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The purpose of this study is to explore the feasibility of applying an internet‐based information system (IBIS) to facilitate business alliance activities, especially for small and median enterprises whose business performance is highly dependent on their strategic alliance partnerships.

A case study of six firms was conducted to understand current business alliance practices in Taiwan and to investigate the demand for applying IBIS systems in business alliance activities. A prototype of the IBIS system was also developed and evaluated.

We found that communication and information sharing are the most appropriate activities in business alliances for the application of an IBIS system and that the decision to adopt an IBIS system is dependent on the allied partners' support and the technological capabilities they possess. However, the lack of trust in internet security is one of the key factors that may hinder enterprises from applying the IBIS system to business alliance activities.

The prototype IBIS system was tested by two case firms. Though the test result was positive, a larger test group might be helpful in discovering ways of improving the system for practical use.

The positive result of the system evaluation supports the feasibility of applying the IBIS system to facilitate business alliance activities.

Both the IBIS system and strategic alliance are important research issues in business. However, integrative research of the two issues is seldom undertaken. This study validates the feasibility of applying the IBIS system to increase the operational efficiency of a strategic alliance.

This paper aims to examine the impact of interest rate liberalisation on the constancy of mean interest rates in China to test the effect of financial reforms and provide strategies for future practices.

Bai and Perron’s (1998, 2003) methodology is used to test for structural breaks in the mean of different interest rates using Chinese data, and break dates are measured against the exact dates of the interest rate liberalisation. The performance of mean interest rates across the regimes defined by liberalisation dates is also investigated.

The main results show that interest rates generally increase (decrease) after deregulations on lending (deposit) rates, but these changes are not significant to induce a negative impact on the domestic economy. Instead, the infrequent but important shifts (structural breaks) in mean interest rates are caused by factors other than liberalisation such as economic shocks, inflationary expectation and liquidity crunch in China.

To the best of the author’s knowledge, this paper provides unprecedented evidence on significant changes in interest rates attributable to the liberalisation within the Chinese context.

The tax advantage of debt is considered an important motivation for highly leveraged transactions. The German government limited the tax deductibility of interest expenses to 30.0 percent of earnings before interest, taxes, depreciation, and amortization (the interest barrier rule) in 2008 to reduce the tax incentives for debt financing. This study aims to evaluate the impact of the introduction of the interest barrier rule.

The paper analyzes the changes in the value of the tax shield for German leveraged buyouts as a result of the promulgation of an interest barrier rule. Tax shields are computed to quantify the wealth transfer from taxpayers to corporations.

Prior to the 2008 tax reform, tax shields contributed 8.4 percent to the transaction price, thereby raising the equity value by 33.0 percent on average. With the introduction of the interest barrier rule, the value of tax shields is reduced by 35.1 percent. Affecting more than 75 percent of buyouts, the rule significantly lessens the tax incentive for high levels of debt. The reduction of the corporate tax rate from 31.7 percent to 26.3 percent further lowers the value creation potential. The limited interest deductibility may therefore reduce the number of leveraged buyouts and hence economic growth, unless other non‐debt forms of financing can fulfill the need for capital.

As the first continental European study, this research concentrates on the impact of the German interest barrier rule on value creation in highly leveraged transactions. Conclusions can be drawn in a broader European context.

I. INTRODUCTION In this monograph we point out and analyse various dimensions of bargaining structure, which we define broadly as the institutional configuration within which bargaining takes place, and attempt to provide some guidelines for management action. We look at the development, theory, and present framework of bargaining structure in Britain and then examine it in terms of choices: multi‐employer versus single employer, company versus plant level bargaining, and the various public policy issues involved.

Aims to ascertain the extent to which industry appears to influence the financing behaviour of a sample of Australian small and medium‐sized enterprises (SMEs).

The research employs data for several thousand SMEs taken from the Australian federal government's Business Longitudinal Survey undertaken over four financial years from 1994‐1995 to 1997‐1998. The principal analytical technique employed is logistic regression modelling with various financial structure measures as dependent variables, and with industry as the independent variable of central interest.

The research findings reported in the paper provide substantial empirical evidence that cross‐industry differences in financing behaviour do exist even after controlling for other relevant influences on SME financing choices such as enterprise size, business age, profitability, growth, asset structure and risk. The key finding is that industry does not simply proxy for one or more of these other factors, but is an important influence in its own right.

There are evidently effects arising from the fundamental nature of industries that require better understanding before a reliable prescriptive position on SME financing can be reached. What these effects are cannot really be ascertained using the research data and methods employed in this study, which give a relatively superficial perspective on the matter. A need for more in‐depth qualitative investigation is indicated.

The main implication of this research for scholars and policy‐makers concerned with SMEs is clearly the need to regard industry as an important independent influence on financing behaviour.

Shanghai is a Chinese city with a history of more than 700 years, which has played a very important role over 30 years of rapid economic growth in China. The purpose of this paper is to investigate the quality management maturity system and schemes of Shanghai enterprises.

The investigation on quality management maturity of Shanghai enterprises was conducted by Shanghai Association for Quality (SAQ), to study the environmental impact of increasing globalization of industries.

SAQ made a systematic investigation and evaluation on the maturity of enterprise product, services and overall management quality, to comprehensively understand and assess the current status and levels of Shanghai enterprise quality management and to obtain important information for preparing a strategy for the Shanghai enterprise quality development plan and countermeasures to stay competitive in the new era.

The paper shows that, in order to further improve market competitiveness and capability of sustainable operation and growth, Shanghai enterprises must enhance their overall quality management level guided by the performance excellence criterion, implementing and putting forward mega efforts on enterprises taking primary responsibility for striving to promote CSR based on “operation with integrity and responsibility”, investing in “soft skills strength development” and utilizing quality improvement tools and techniques to promote the overall quality management level to a new high in the next decade.

The purpose of this paper is to analyze the dynamics of China's health biotech clusters from an interregional perspective. By treating clustering as the result of firms' localization choices, the paper examines whether and why different types of firms agglomerate in the various locations.

The paper employs a demographic approach that is inspired by the 2006 work of Romanelli and Feldman on cluster development in the USA. It categorizes China's clusters based on differences in the degree of policy support and the nature of the science base. Then, it draws a sample of 75 of China's most visible firms and analyses them in terms of entrepreneurial origin, their location and, if applicable, the location of their subsidiaries. By matching types of firms with types of clusters, the paper highlights some characteristics of China's regional development.

Studies on China's high‐tech agglomerations unanimously complain about a lack of “creative buzz” compared to the vibrant clusters of for example, the Bay Area in the USA. The analysis indicates that the lack of a creative culture is associated with the anatomy of cluster development. China's clusters grow to a significant extent by attracting enterprise subsidiaries to their sites. The authors argue that these particular cluster anatomies are founded on China's capital market. As the capital market is not prepared to provide pre‐revenue firms with sufficient funds, firms have to earn revenue quickly in order to ensure their viability. Therefore, they concentrate on building up manufacturing capacity and exploiting given technologies. The main point is that local governments as major providers of financial support are instrumental in this process. The establishment of manufacturing subsidiaries in various locations rests on the rationale of collecting funds. This leads to the conclusion that national capital markets either reinforce or inhibit clustering depending on how much it allows the mobility of financial capital. Local government funds do not travel far. This has an impact on the firms' localization decisions and their business strategies, which, in turn, affects the “culture” inside the clusters.

This argument is based on a limited number of interviews conducted by the authors or other researchers. In order to corroborate the link between the capital market and local development trajectories, more evidence needs to be collected via interview surveys and other means to extract financial information.

Unlike other research on Chinese clusters, this paper offers an interregional perspective based on a demographic approach. The argument is original in linking regional cluster dynamics with the national institutional set‐up.

The overall objective of this research was to elucidate the ecosystem of women’s health social enterprises (WHSEs) based in the United States. The Aim I was to conduct a secondary data analysis of a random national sample of non-profit WHSEs based in the United States regarding their characteristics and areas of intervention. Aim II was to conduct a qualitative assessment of a sample of WHSEs based in the United States regarding their perspectives on the ecosystem of WHSEs. Aim I utilized the GuideStar database and assessed enterprise size, geographic location, financial distress, health intervention area, and health activity category using descriptive statistics, statistical tests, and multivariable regression analysis via SPSS. Aim II utilized in-depth interviewing and grounded theory analysis via MAXQDA 2018 to identify novel themes and core categories while using an established framework for mapping social enterprise ecosystems as a scaffold.

Aim I findings suggest that WHSE activity is more predominant in the south region of the United States but not geographically concentrated around cities previously identified as social enterprise hubs. WHSEs take a comprehensive approach to women’s health, often simultaneously focusing on multiple areas of health interventions. Although most WHSEs demonstrate a risk for financial distress, very few exhibited severe risk. Risk for financial distress was not significantly associated with any of the measured enterprise characteristics. Aim II generated four core categories of findings that describe the ecosystem of WHSE: (1) comprehensive, community-based, and culturally adaptive care; (2) interdependent innovation in systems, finances, and communication; (3) interdisciplinary, cross-enterprise collaboration; and (4) women’s health as the foundation for family and population health. These findings are consistent with the three-failures theory for non-profit organizations, particularly that WHSEs address government failure by focusing on the unmet women’s health needs of the underserved populations (in contrast to the supply of services supported by the median voter) and address the market failure of over exclusion through strategies such as cross-subsidization and price discrimination. While WHSEs operate with levels of financial risk and are subject to the voluntary sector failure of philanthropic insufficiency, the data also show that they act to remediate other threats of voluntary failure.

Aim I findings highlight the importance of understanding financial performance of WHSEs. Also, lack of significant associations between our assessed enterprise characteristics and their financial risk suggests need for additional research to identify factors that influence financial performance of WHSE. Aim II findings show that WHSEs are currently engaged in complex care coordination and comprehensive biopsychosocial care for women and their families, suggesting that these enterprises may serve as a model for improving women’s health and health care. The community-oriented and interdisciplinary nature of WHSE as highlighted by our study may also serve as a unique approach for research and education purposes. Additional research on the ecosystem of WHSE is needed in order to better inform generalizability of our findings and to elucidate how WHSE interventions may be integrated into policies and practices to improve women’s health.

In November 2003, John Fruehwirth, a principal at Allied Capital, was considering a $20 million mezzanine investment in growth capital for Elephant Bar, a California restaurant chain. Elephant Bar had had some initial success in California but now Allied's investment committee had to wrestle with the question of whether the restaurant concept was strong enough to travel and become a national brand or whether it was mainly a “California Concept.” And if the concept was strong enough to travel, would Allied Capital be able to meet its underwriting standards? Because Elephant Bar is a company with aggressive growth plans, it is significantly riskier than traditional mezzanine investments. The case can be used in courses on venture investing to illustrate another funding source available to young companies. Traditional mezzanine financing is often used to provide a portion of the funding for late-stage investments, such as leveraged buyouts. The case can also be used in courses on private equity to illustrate the perspective, risk mitigation strategies, and return expectations of mezzanine investors.

This case has a teaching note and a spreadsheet, which are available to registered faculty members.

Small- and-medium sized enterprises (SMEs) significantly contribute to the success of platform-based innovation ecosystems (PIEs). However, less is known about their behaviors and behavioral intentions (BIs) toward participating in PIEs. Considering that SMEs' BIs directly influence their behaviors and reveal the underlying logic of their behaviors, this study, therefore, focuses on SMEs' BIs and explores the antecedents to reveal the rational effects on BIs of the participation.

An extended framework is proposed to understand SMEs' BIs toward the participation and empirically tested with data from a sample of 189 Chinese SMEs based on partial least squares structural equation modeling (PLS-SEM).

The results show that (1) the framework has a good fit in the context of PIEs and a large predictability of SMEs' BIs toward the participation; (2) as expected, SMEs' BIs are directly positively affected by their attitudes (ATTs), subjective norms (SNs) and platform leaders (PLs), while indirectly positively influenced by perceived usefulness (PU) and ease and negatively influenced by perceived risks (PRs) via mediation effects and (3) surprisingly, BIs are directly negatively affected by platforms probably because of the potential collaborative risks based on platforms.

This study enriches PIE literature by focusing on complementors and proposing a framework of SMEs' BI toward joining PIEs, and it also expands the application of BI–behavior theories in the context of PIEs by offering a BI–behavior perspective to analyze the rational logic of SMEs' behaviors of participating to PIEs. Practically, the main findings not only benefit SMEs to better understand their BIs and to make a wise choice toward the participation, but provide implications for PLs to proactively design interventions for attracting SMEs’ complementors.