Neoclassical and contract economic theory of the firm

Considering the company as an integral part of the market system, theories appeared that reveal traditional economic theory and take into account the sphere of business.

Social Performance Feedback and Firm Communication Strategy

Although corporate social performance has become an important measure of firm performance, there is little understanding about how firms respond to social performance feedback and how impression management may function as an important firm response to the feedback. Building upon and extending the literature on the behavioral theory of the firm and the strategic use of language, we examine how discrepancies between firms’ social performance and their aspiration levels affect how firms use visual expressions in their CSR reports. In addition, we argue that the relationship between social performance discrepancies and the use of visual expressions in CSR reports is moderated by the extent to which firms conduct socially responsible activities to enhance legitimacy (reflected in the level of state ownership) and the extent to which firms engage in social activities to improve financial performance (reflected in foreign exposure). Using a sample of Chinese firms issuing CSR reports from 2009 to 2017, our empirical results provide strong support for these arguments.

The Academic Spinoff Theory of the Firm

This paper reviews the key theories of the firm and considers their relevance to studying and understanding academic spinoffs as a special case of firms. The theory of the firm is an important aspect in entrepreneurship literature, as without clear understanding of the parameters influencing firm's behaviour, it remains difficult to predict its decisions to secure sustainable growth and ensure development of the economy overall. The paper considers the contribution of transaction cost theory, managerial theory, resource-based view, knowledge-based view, and dynamic capabilities, to the understanding of the academic spinoff. In essence, these theoretical explanations lend multiple perspectives that offer a greater insight into the academic spinoff firm by illuminating the issues of its boundaries, entrepreneurs, resources, knowledge, and networks. It is concluded that understanding academic spinoffs requires acknowledging this theoretical plurality. In response to this challenge, the paper proposes the Academic Spinoff Theory of the Firm.

A bottom-up role of information asymmetry: opening the black-box of firms’ resource allocation mechanism

Purpose Drawing on the concept of resource-based theory of the firm; the purpose of this study is to analyze the influence of firms’ strategic approaches on the firm performance via indirect effect using a multilevel, bottom-up approach. Design/methodology/approach Using the survey method, the present study obtains data from 104 diversified manufacturing firms and analyzes the bottom-up effect of firms’ strategic approach on efficient resource allocation using Mplus. Findings Given the prevailing conditions, the study found that the motive of most firms is growth rather than risk mitigation or collaboration in the manufacturing sector of Pakistan. Furthermore, the study found that the bottom-level employees’ information asymmetry has a significant impact on the strategic resource allocation decision, which can lead to resource allocation inefficiency. Research limitations/implications Despite making a unique contribution, the present study has few limitations requiring researchers’ attention to in the forthcoming. These include a low amount of data, self-reporting technique and failure to include all the possible reason that could cause resource allocation inefficiency. Practical implications The present research has potential applications for managers of the manufacturing industry. First, the study alerts managers about the challenges of resource allocation. At the same time, this study provides critical implication for managing bottom-level employees. Originality/value The current study has made a sizable impression in the literature of resource-based theory of the firm by recommending a model that augments the theoretical foundation of strategic management of the firm. So, closely considering these insights would be helping for the firms for allocating resources efficiently in the manufacturing industry.

Econometric modeling of cost per flying hour of civil helicopters

Subject. The article addresses factors of the growing cost of flying hour, which is an integral indicator of helicopter efficiency at the stage of its operation. Objectives. The purpose is to develop an econometric model of dependence of cost per flying hour on the main relative aircraft performance characteristics that determine the effectiveness of design and technological solutions for civil and multi-purpose helicopters, to make a decision at the preliminary design stage regarding the efficiency of designed product during the operational phase and the feasibility of R&D. Methods. The study rests on basic provisions of the theory of the firm, the theory of fundamental value of assets, international standards of the aviation equipment operation manual. Results. Based on econometric analysis, the main determinants of cost per flight hour are identified from the set of relative flight characteristics of the helicopter. The paper demonstrates that the number of products in operation, the cost of flight hour, the efficiency and transparency of logistics infrastructure in the provision of maintenance services represent a tool for managing the cost of product life cycle during its operation. Conclusions. The main factors having the greatest impact on the efficiency of after-sales service of products in the aviation industry are fuel efficiency, specific fuel consumption (fuel consumption per unit of power). The cost per flight hour is an integral indicator of the effectiveness of after-sales service and depends on relative flight characteristics of aircraft in operation.