Search results

This study examines the importance of income income-shifting arrangements of US multinational corporations (MNCs) on future stock price crash risk.

This study employs a sample of 7,641 corporation-year observations over the 2005–2017 period and uses ordinary least squares regression analysis.

The authors find that the income-shifting arrangements of MNCs are positively and significantly associated with stock price crash risk after controlling for corporate tax avoidance and other known determinants of stock price crash risk in the regression model. This result is robust to alternative measures of stock price crash risk and income-shifting, and several endogeneity tests. The authors also observe that income-shifting arrangements increase stock price crash risk both directly and indirectly through the information opacity channel. Finally, in cross-sectional analyses, the authors find that the positive association between income-shifting and stock price crash risk is more pronounced for MNCs that use tax haven subsidiaries and have weak corporate governance mechanisms.

The authors provide new empirical evidence that MNCs will likely face significant capital market consequences regarding their income-shifting arrangements.

Circular economy advocates innovations that upcycle wastes in the food supply chain to generate high added-value materials. These innovations are not only disruptive and green but also they are often initiated by startups, leading to the emergence of novel open-loop supply chains connecting actors in food and non-food sectors. While earlier research has highlighted the need to seek legitimacy for disruptive innovations to survive and grow, little is known about how these innovations occur and evolve across sectors. This paper aims to elaborate on this mechanism by exploring the function of the circular economy as a boundary object to facilitate legitimacy-seeking strategies.

An exploratory multiple-case research design is adopted and features food waste innovation projects with multi-tier supply chains consisting of a food producer, a startup and a buying firm. The study is investigated from the legitimacy and boundary object lenses.

The findings proposed a framework for the role of a boundary object in enabling legitimacy-seeking strategies for novel food waste innovations. First, the interpretative flexibility of the circular economy affords actors symbolic resources to conduct manipulation strategy to achieve cognitive legitimacy. Second, small-scale work arrangements enable creation strategy for the new supply chain to harness moral legitimacy. Finally, pragmatic legitimacy is granted via diffusion strategy enabled by scalable work arrangements.

This paper provides novel insights into the emergence of food waste innovation from a multi-tier supply chain perspective. It also highlights the key role of the boundary object in the legitimacy-seeking process.

The paper covers the topic of power strategies between actors and the interplay between the service ecosystem and the actor(s), and vice versa. The paper addresses the lack of conceptual development concerning power considerations beyond dyadic, rigid and role-based models found in general marketing literature. Further, the paper opens the area of power relationships, using the service ecosystem as conceptual framework.

The paper has a systemic and sociological view on service-ecosystems using mainly Giddens' structuration theory. Service-dominant logic literature from 2004 to 2021 is systematically reviewed for power issues and qualitatively analyzed. Mayring's step model of, firstly, inductive and, secondly, deductive category development is applied. Subcategories were identified, subsumed and finally grouped into five categories to increase the level of abstraction.

The article investigates power considerations and enables marketers to create power through (1) imbalance, to find strategies and counterstrategies for (2) actor's behavior, to understand the (3) actor's embeddedness within a service ecosystem and its dynamic nature, to learn about (4) institutions and actor's institutional work. A set of seven propositions is presented for the conceptualization of power strategies in a service ecosystem.

The consideration of power on different levels supports both the zooming-in and zooming-out to observe and understand the power phenomena in a service ecosystem. Seven propositions about episodic as well as systemic power relations are presented. Power is conceptualized in service ecosystem as transformative capability of an actor to intervene on institutions and in some way alter them, recognizing that power relations are co-created, dynamic and context-dependent.

The article recognizes different levels (micro-meso-macro) of power considerations and helps practitioners and marketers to create power through (1) imbalance, find strategies and counterstrategies for (2) actor's behavior, understand the (3) actor's embeddedness within a service ecosystem and its dynamic nature, learn about (4) institutions and actor's institutional work. This enables managers to find an appropriate choice of action in their specific context to transform the service ecosystem(s) they are embedded in.

As all social systems are power systems, a service ecosystem can only be fully understood by integrating the elementary concept of power. As such, power considerations within actor strategies and the service ecosystem are relevant to improve the understanding of transformation of the service ecosystem. Power, in the sense of the transformative capability of actors, changes the social and material world.

Power issues are important to understand the “hows” of resource integration in service ecosystems and its transformation or stability.

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

The aggressive competition in the real estate market forces real estate developers to tackle the challenge of selecting the best project construction phasing alternative. The real estate industry is characterized by high costs, high profit and high risks. The schedules of real estate projects are also characterized by having large number of repetitive activities that are executed over a long duration. The repetitiveness, long duration of execution, the high amounts of money involved and the high risk made it desirable to leverage the impact of changes in phasing plans on net present value of amounts incurred and received over the long execution and selling duration. This also changes the project progress, and delivery time as well as their respective impact on customer degree of satisfaction. This research addresses the problem of selecting the best phasing alternative for real estate development projects while maximizing customer satisfaction and project profit.

The research proposes a model that generates all construction phasing alternatives and performs decision-making to rank all possible phasing alternatives. The proposed model consists of five modules: (1) Phasing Sequencing module, (2) Customer Satisfaction module, (3) Cash-In calculation module, (4) Cost Estimation module and (5) Decision-making module. A case study was presented to demonstrate the practicality of the model.

The proposed model satisfies the real estate market's need for proper construction phasing plans evaluation and selection against the project's main success criteria, customer satisfaction and project profit. The proposed model generates all construction phasing alternatives and performs multi-criteria decision making to rank all possible phasing alternatives. It quantifies the score of the two previously mentioned criteria and ranks all solutions according to their overall score.

The research proposes a model that assist real estate market's need for proper construction phasing plans evaluation and selection against the project's main success criteria, customer satisfaction and project profit. The proposed model can be used to conclude general guidelines and common successful practices to be used by real estate developers when deciding the construction phasing plan. In this study the model is based on business models where all the project units are sold, rental cases are not considered. Also, the budget limitations that might exist when phasing is not considered in the model computations.

The model can be used as a complete platform that can hold all real estate project data, process revenues and cost information for estimating profit, plotting cash flow profiles, quantifying the degree of customer satisfaction attributable to each phasing alternative and providing recommendation showing the best one. The model can be used to conclude general guidelines and common successful practices to be used by real estate developers when tackling the challenge of selecting construction phasing plans.

This study examines how informal business networks achieve marketing goals in socially uncertain contexts. Drawing from multiple historical sources, Shangbangs, a type of business network that thrived in pre-1949 China, are analyzed.

The Critical Historical Research Method (CHRM) undergirds a study of Shangbangs’ historicity (i.e. their socio-historically embedded multiplicity, including organizational forms, activities and connotations.

As informal regional, professional, project-based, special-product-based or mixed marketing networks, Shangbangs relied on “flexible specialization” and coupled multiple business needs to market goods and services, business organizations, specific social values and, when necessary, to debrand business rivals.

This analysis extends theories about marketing networks by probing their subtypes, diverse marketing activities, multipronged channels and relationship building with social entities (including underground societies, business associations and guilds) in response to pre-1949 China’s market uncertainties. Substantiating an alternative approach to “flexible specialization” and marketing innovations within the pre-1949 Chinese economy shows how a parallel theoretical framework can complement western-based marketing theories.

This first comprehensive analysis of Shangbangs, an innovative historical Chinese marketing network outside the conventional market-corporate dichotomy, can inform theory building for marketing strategy-making and management conditioned by social contexts.

The study explores the evolution of Indian domestic electronics manufacturing post-economic reforms and also investigates the lack of natural growth stages among Indian start-up/SME electronics manufactures.

The theoretical framework is inspired by Dawar and Frost's survival strategy theory that local companies may follow to overcome competitive threats from MNCs. The study adopts a qualitative methodology, more precisely, a phenomenological approach to walking through policy/regulatory reforms amid market distortions, technological gaps and colonial mindset from the perspective of Indian domestic electronics manufacturers. The study has adopted Gioia method of data analysis to inductively suggest a few research propositions.

The phenomenological approach revealed eight essential structure (essence) narratives to explore the complex issue that plague the industry: make in India, made in India, preferential market access strategy, equitable market access strategy, blue ocean strategy, competitive positioning strategy, technical capability and importance of policy/regulatory arbitrage.

The situation of Indian electronics manufacturing units is comparable to the bonsai tree situation, where natural evolution in business stages does not exist; they are born and die as start-ups/MSMEs. The study advocates for equitable market access by removing market distortions. The long-term solution may lie in making available locally manufactured products as a dependable alternative to the imported products or produced locally by MNC OEMs in terms of cost, quality, technology, volume, after-sale service and integrated supply chain.

While the favorable FDI policies, digital India and make-in India initiatives have strengthened domestic electronics production, it is yet to significantly impact India's position in global trade, including manufacturing and exports.

The paper’s purpose is to consider, using a transaction cost economics (TCE) framework, the mechanisms used by space agencies to encourage private investment in the commercial spaceflight sector.

The authors conducted a content analysis of 554 pages of news articles, relating to issues pertaining to partnerships between national government-based space agencies and private space travel providers, published over a 20-year period. Leximancer was used to initially screen the data and then the authors manually analysed the content to identify themes.

The data analysis revealed three themes, relating to: the uncertainty of space travel; National Aeronautics and Space Administration (NASA) stimulating innovation in the private sector; and risk, insurance and regulation. These themes informed by TCE reveal the “hierarchical” organisational forms used to achieve human spaceflight and then the “hybrids”, insurance and regulations used to stimulate private sector investment and innovation.

This paper contributes to the accounting literature by answering the calls of Alewine (2020) and Tucker and Alewine (2022a, b) for more research into accounting in the space context. Specifically, the paper contributes by identifying mechanisms used by NASA to stimulate private investment in the space travel sector, as well as issues that have affected the implementation of these mechanisms. The paper also contributes to the literature by, based on the analysis, identifying a series of reflections designed to stimulate further management accounting research in the space context.

The purpose of this paper is to propose a model that will demonstrate how the integration of Salam (exclusive agricultural commodity trade) with Takaful (micro-Takaful – a subdivision of Islamic insurance) and value chain can address major challenges facing the agricultural sector in Kano State, Nigeria.

The study conducted a thorough and critical analysis of relevant literature and existing models of financing agriculture in Nigeria to come up with the proposed model.

The findings indicate that measures undertaken to address the major challenges fail. In view of this, this study proposed Bay-Salam with Takaful and value chain model to solve a number of challenges such as poor access to financing, poor marketing and pricing, delay, collateral requirement and risk issues in order to avail farmers with easy access to finance and provide effective security to financial institutions.

The paper is limited to using secondary data. Therefore, empirical investigation can be carried out to strengthen the validation of the model.

The study outcome seeks to improve the productivity of the farmers through enhancing their access to finance. This will increase their level of production and provide more employment opportunities. In addition, it will boost financial inclusion, income generation, poverty alleviation, standard of living, food security and overall economic growth and development.

The novelty of this study lies in the integration of classical Bay-Salam with Takaful and value chain and create a unique model structure which the researchers do not come across in any research that presented it in Nigeria.

This research paper aims to examine consumers' perceptions and behaviours towards “pre-loved luxury fashion products” and focusses on analysing the moderating influence of consumers' attitude strength. Additionally, it investigates the impact of desirability in sustainable luxury experiences (LEs) on consumers' purchase intentions (PIs). The study draws inspiration from the Norm Activation Model theory and operationalises attitude strength using the Elaboration Likelihood Model theory.

Purposive sampling technique was employed to collect 317 useable samples from respondents who had previously purchased or intended to purchase pre-loved luxury fashion goods. SPSS and AMOS version 25 was used for data analysis.

The findings reveal that consumers' environmental concern influences their intention to purchase pre-loved luxury fashion products. Furthermore, sustainable LE acts as a significant mediator in this relationship. The study also demonstrates that the intention to purchase pre-loved luxury fashion products is strengthened when consumers possess a strong attitude towards them.

Luxury marketers can strategise accordingly to motivate consumers to purchase pre-loved luxury fashion products by resonating with their cultural correlates through persuasive advertising to favourably affirm their attitude towards pre-loved luxury fashion products.

This study contributes to the literature by addressing the unresolved area of PIs for pre-loved luxury fashion products, considering the moderating role of attitude strength in emerging markets. It highlights the significance of advocating and promoting pre-loved luxury fashion products and provides valuable insights for luxury marketers.