Effect of buyer dependency of subcontracting SMEs on R&D investment

PurposeThis study aims to focus on the subcontracting relationship between small and medium-sized enterprises (SMEs) and business group buyers and analyze the effect of the level of buyer dependency on R&D intensity. The primary prediction is that buyer dependency and R&D intensity have a non-linear relationship, showing an inverted U-shaped relationship. Furthermore, the moderating effect of founder CEOs and internationalization is explored.Design/methodology/approachA sample of 546 firm-level survey responses were collected from Korean subcontracting SMEs provided by the Ministry of SMEs and Startups and the Korea Venture Business Association.FindingsA lower level of dependency on business group buyers promotes R&D investment, while excessive dependence reduces R&D investment. Moreover, founder CEOs and internationalization decrease the effect of buyer dependency on R&D investment, implying that both firm characteristics are associated with a long-term focus and promote R&D investment.Research limitations/implicationsThis research contributes to the literature on the special form of the buyer–supplier relationship, that is, subcontracting. Subcontracting has a contradictory effect on R&D investment based on large group buyer dependency, and this relationship is moderated by the founder CEO and internationalization.Practical implicationsThis study provides insights to managers and practitioners governing SME subcontracting by showing that the level of buyer dependency is better managed in promoting innovation, and the long-term perspective allows SMEs to be less affected by buyer dependency.Originality/valueThis study extends the literature by focusing on the non-linear relationship between buyer dependency and R&D intensity of subcontracting SMEs. This approach addresses the contradicting results suggested by prior supply chain management literature and suggests that the level of buyer dependency should be considered when analyzing the subcontracting relationship.

Potential for the Development of Productive Activities of the Russian Penal System in the Context of Achieving National Goals Under the Paris Climate Agreement

One of the key tasks of the penal and correctional system is not only to socially isolate convicts and organize acceptable living conditions for them, but also to ensure their adequate resocialization after serving their sentence. The solution of this problem requires new approaches to the conduct of production activities by the institutions of the Federal Penitentiary Service of Russia. Among others, priority should be given to the areas of traditional economic specialization of the penitentiary system, which include, for example, logging and woodworking. The national contribution of the Russian Federation to the implementation of the goals of the Paris Climate Agreement implies the fullest possible use of the carbon-absorbing capacity of Russian forests. This task is solved, among other things, by a significant increase in the volume of artificial reforestation, which requires the development of a network of tree nurseries throughout the country. The article analyzes in detail the experience of a joint pilot project on forest nursery creation based on one of the institutions of the Federal Penitentiary Service with the participation of business association in the field of forest industry in Krasnoyarsk Krai. It is shown that the project is not only effective, but also has high indicators of economic efficiency, characterized by low payback period under the condition of ensuring decent working conditions for inmates. It emphasizes the importance of scientific and methodological support of the work performed by universities and research institutes, including within the program of creating world-class scientific and educational centers of the Ministry of Science and Higher Education of the Russian Federation

Social capital inequality and capital structure of new firms in a developing country: the role of bank ties

PurposeThis article aims to clarify the role of social capital and social capital inequality embedded in bank ties in enabling and diversifying new firms' debt use.Design/methodology/approachThe study adopts a quantitative method, using an unbalanced longitudinal dataset covering three years–2011, 2013 and 2015–from a project on small manufacturing enterprises in Vietnam. The sample consists of 513 firm-year observations.FindingsNetwork extensity and network mobilisation increase new firms' debt use. Differences in ascribed and attained social statuses (i.e. gender, generation, business association membership and political affiliation) result in social capital inequality between entrepreneurs. Entrepreneurs who are of a younger generation, have higher levels of education and are not members of the Communist Party benefit less from social capital than those who are older, have less education and are party members.Originality/valueThe effects of access to and the use of the social capital embedded in bank ties on new firms' debt use are both studied. The sources of social capital inequality are investigated at the individual level through distinguishing ascribed and attained social statuses and explained by two mechanisms: capital deficit and return deficit. The moderating effects of social capital inequality are also examined.

The Implementation of Pre Merger Notification in The Draft Law on The Prohibition of Monopoly Practices and Unhealthy Business Competition in Indonesia

This paper examines the consequences of the Post Merger regime in Law No. 5/1999 concerning the Prohibition of Monopolistic Practices and Business Competition. This research uses the normative juridical method and comparative approach, comparing the American Antitrust Law which has successfully implemented the pre merger notification with the Indonesian Business Competition Law which implements the post merger notification. The results of this study indicate that the importance of implementing the Pre Merger Notification in the draft Law on the Prohibition of Monopolistic Practices and Unfair Business Competition is viewed in a comparison with the success of the Antitrust Law America and supported by the dynamics of globalization of the Industrial Revolution 4.0 which became a challenge for the Business Association Supervisory Commission. Thus, the regime change from Post Merger Notification to Pre Merger Notification is the right step in implementing a merger in Indonesia because Pre Merger Notification provides legal certainty and also more efficient for business actors and KPPU as a preventive effort with the aim that the implementation of Pre Merger Notification will be carried out optimally in achieving the goal of fair business competition

Information Security and Cybersecurity Management: A Case Study with SMEs in Portugal

Information security plays a key role in enterprises management, as it deals with the confidentiality, privacy, integrity, and availability of one of their most valuable resources: data and information. Small and Medium-sized enterprises (SME) are seen as a blind spot in information security and cybersecurity management, which is mainly due to their size, regional and familiar scope, and financial resources. This paper presents an information security and cybersecurity management project, in which a methodology based on the well-known ISO-27001:2013 standard was designed and implemented in fifty SMEs that were located in the center region of Portugal. The project was conducted by a business association located at the center of Portugal and mainly participated by SMEs. The Polytechnic of Leiria and an IT auditing/consulting team were the other two entities that participated on the project. The characterisation of the participating enterprises, the ISO-27001:2013 based methodology developed and implemented in SMEs, as well as the results obtained in this case study, are depicted and analysed in the paper. The attained results show a clear benefit to the audited and intervened SMEs, being mainly attested by the increasing of their information security management robustness and collaborators’ cyberawareness.

COVID-19: Implications on Small and Medium Enterprises (SMEs) in Japan

The Coronavirus (Covid-19) outbreak has affected all business sectors. The state of emergency, limited movement order and social distancing are amongst the preemptive efforts of the Japanese government to safeguard public health. While recognizing the importance of preventing the immense spread of the virus, there are certain unexplored impacts of the movement control measure on the SMEs in Japan. The objective is to scrutinize the repercussions of the Covid-19 on SMEs in Japan. The study applies a qualitative approach through the analysis of the secondary data from the internet, as well as from the Japanese official government and business association. this article intends to scrutinize the actual implications of the Japanese’s state of emergency on SMEs businesses and to identify the survival strategies of the business. Thus, this study differs from other methods such as other quick online surveys that commonly conducted by market surveys. Our findings contribute towards the actual challenges faced by the SMEs during the pandemic crisis.

Marriage

This chapter examines the establishment of formal marriage, including same-sex marriage, and the legal issues involved in maintaining that relationship. While in the past the marital relationship was wholly defined by the state, now certain aspects of the relationship can be negotiated by the parties, which may result in a more egalitarian relationship. Also, by including the marriage within the world of contract, one effect is to move the status away from its religious roots and aspects and toward its being a secular relationship. The benefit of treating marriage as a special kind of partnership contract is that it emphasizes the individual nature of the relationship and downplays its community aspects. Indeed, the modern marriage is more like an association, in some situations a business association, of two adults who have preserved their individual rights. The chapter then considers freedom to marry as a fundamental right and looks at how states have limited marriage formation throughout history.