Empowerment of former migrant workers: Triple bottom line framework

This study aims to analyze the empowerment of former Indonesian migrant workers, especially in the potential of running small businesses. The research data were collected by interview and literature study and the data were classified and analyzed using SWOT analysis. The SWOT analysis results are interpreted with a triple bottom line framework approach, which includes financing, environment, and social. The results of the study show that the migrant workers in Donomulyo district have sufficiently good capital in terms of financing, environment, especially in natural resources, and the social environment that allows business growth. One of the main challenges is human resources, ranging from entrepreneurial spirit to minimal managerial skills. Therefore, stakeholders must focus on programs that prioritize improving entrepreneurial skills and managerial aspects.

Choosing Between Growth and Glory

Prior work has established that the financing environment can impact firm strategy. We argue that this influence can shape the earliest strategic choices of a new venture by creating a potential trade-off between two objectives: rapid growth and reaping the benefits of a positive reputation (glory). We leverage a simple reputation-building strategic choice—naming the firm after the founder (eponymy)—that is associated with superior profitability. Next, we argue via a formal model that the availability of/dependence on external financing can explain why high-growth firms are rarely eponymous. We find empirical support for the model’s predictions using a large data set of 1 million European firms. Eponymous firms grow considerably more slowly than similarly profitable firms. Moreover, eponymy varies in accordance with the firm’s financing environment in a pattern consistent with our model. We discuss implications for the literature on new-venture strategy. This paper was accepted by Bruno Cassiman, business strategy.

Positive Externality of the American Jobs Creation Act of 2004

U.S. multinational enterprises repatriated over $300 billion under the 2004 tax holiday. The repatriated funds can improve debt financing environment of nonrepatriating firms, especially those that are financially constrained. We document that such an externality of the tax holiday increases debt financing and consequently investments for financially constrained nonrepatriating firms relative to less constrained nonrepatriating firms. Using private loan market data, we further confirm a link from repatriated funds to increased debt financing for financially constrained nonrepatriating firms. Overall, the 2004 tax holiday appears to have benefited the U.S. economy through its positive externality on the debt market.

Productivity Analysis in Ethically Induced Financing Environment

This chapter carries further the content of Chapter 6 to the measurement of an ethically value-induced index of productivity. A learning-form of the endogenously ethics-induced production function is formulated. This is empirically simulated for the case of Islamic banks in Indonesia that claim to introduce the moral and ethical elements of the Islamic Law in the affairs of finance and banking. Inferences are drawn for instructive purposes in the area of introducing the moral and ethical law in the study of business affairs, which is a significant subsystem of the grand world-system.