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Book part
Publication date: 20 September 2021

Ke Gong and Scott Johnson

In the early days of the COVID-19 pandemic, an area could only report its first positive cases if the infection had spread into the area and if the infection was…

Abstract

In the early days of the COVID-19 pandemic, an area could only report its first positive cases if the infection had spread into the area and if the infection was subsequently detected. A standard probit model does not correctly account for these two distinct latent processes but assumes there is a single underlying process for an observed outcome. A similar issue confounds research on other binary outcomes such as corporate wrongdoing, acquisitions, hiring, and new venture establishments. The bivariate probit model enables empirical analysis of two distinct latent binary processes that jointly produce a single observed binary outcome. One common challenge of applying the bivariate probit model is that it may not converge, especially with smaller sample sizes. We use Monte Carlo simulations to give guidance on the sample characteristics needed to accurately estimate a bivariate probit model. We then demonstrate the use of the bivariate probit to model infection and detection as two distinct processes behind county-level COVID-19 reports in the United States. Finally, we discuss several organizational outcomes that strategy scholars might analyze using the bivariate probit model in future research.

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Book part
Publication date: 26 September 2011

Alfonso Miranda

This chapter enquires whether family migration experience affects the probability of high school graduation of children once unobserved heterogeneity is properly accounted…

Abstract

This chapter enquires whether family migration experience affects the probability of high school graduation of children once unobserved heterogeneity is properly accounted for. Bivariate dynamic random effects probit models for cluster data are estimated to control for the potential endogeneity of education and migration outcomes of elder members of a family in a regression for the education and migration of younger children. Correlation of unobservables across migration and education decisions as well as within groups of individuals such as the family are explicitly modeled. Results show that children from households headed by a migrant are less likely to graduate from high school than children from households headed by a non-migrant. However, as the number of migrants in the family increase, a larger number of migrants in the family is associated with a higher probability of graduation from high school in México. Negative migrant selection in unobservables is detected.

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Research in Labor Economics
Type: Book
ISBN: 978-1-78052-333-0

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Book part
Publication date: 6 December 2011

Martin Farnham and Emma Hutchinson

A substantial literature examines the effect of high-performance workplace practices on various outcomes for firms and workers. However, little attention has been paid to…

Abstract

A substantial literature examines the effect of high-performance workplace practices on various outcomes for firms and workers. However, little attention has been paid to the effect of broad job design on product quality or financial performance. And with rare exception, the empirical literature on outcomes from high-performance work practices treats those practices as exogenously determined. This chapter seeks to address these two shortcomings in the existing literature. Using a nationally representative cross-section of British employers in 2004, we measure the effect of multiskilling on establishment-level labor productivity, product quality, and financial performance. We find that treating multiskilling as an endogenous choice of employers in empirical models of organizational performance has significant implications for the results. In particular, the estimated (positive) effect of multiskilling on labor productivity vanishes when we treat multiskilling as an endogenous choice of employers. Treating multiskilling as an endogenous choice changes its estimated effect on product quality from zero to positive and substantially increases the estimated magnitude of its (positive) effect on financial performance.

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Advances in the Economic Analysis of Participatory and Labor-Managed Firms
Type: Book
ISBN: 978-0-85724-760-5

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Article
Publication date: 15 August 2019

Endro Gunawan, John K.M. Kuwornu, Avishek Datta and Loc T. Nguyen

The purpose of this paper is to examine the factors influencing Indonesian farmers’ use of the warehouse receipt system (WRS) and their choice of private and public warehouses.

Abstract

Purpose

The purpose of this paper is to examine the factors influencing Indonesian farmers’ use of the warehouse receipt system (WRS) and their choice of private and public warehouses.

Design/methodology/approach

Primary data were collected through questionnaires administered to 500 farmers in two districts, Subang and Cianjur, in West Java Province in Indonesia. Binary logit regression was employed to examine the factors influencing farmers’ use of the WRS. Binary and bivariate probit regressions were employed to determine the factors influencing farmers’ choice of private and public warehouses.

Findings

The empirical results of the binary logit regression revealed that age, land ownership, selling price, the use of the warehouse receipt as collateral security and the availability of transportation facility positively influenced farmers’ use of the WRS, whereas education, income, farm profit and participation in farmers’ group negatively influenced farmers’ use of the WRS. The results of the binary probit regressions revealed that profit, availability of insurance and processing facility positively influenced the farmers’ decision to use the private WRS, whereas education, production, selling price and distance from the farm to the warehouse negatively influenced farmers’ decision to use the private WRS. Age, education, selling price and distance from the farm to the warehouse positively influenced the farmers’ decision to use the public WRS, whereas production and availability of processing facility negatively influenced the decision of farmers to use the public WRS.

Practical implications

This study highlights the importance of education and government assistance regarding the provision of facilities and price indemnified insurance for successful implementation of the WRS.

Originality/value

This study provides an empirical contribution to the existing literature on the development of WRS in Indonesia. In terms of methods of analysis, previous studies used purely qualitative and descriptive methods, whereas this study employed econometric techniques (i.e. binary logit, binary probit and bivariate probit regressions) to examine the WRS in Indonesia. In addition, whereas previous studies explored the WRS in general, this study investigated the farmers’ use of the public and private warehouses in addition to exploring the WRS in general. Finally, the finding that the average annual profit of non-users was significantly higher than that of the users of the WRS is striking, and this could be attributed to the current challenges of the implementation of the WRS, including high transportation and warehouse rental costs.

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Agricultural Finance Review, vol. 79 no. 4
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 24 October 2019

Misraku Molla Ayalew and Zhang Xianzhi

The purpose of this paper is to investigate the effect of financial constraints on innovation in developing countries. It also examines how the effect of financial…

Abstract

Purpose

The purpose of this paper is to investigate the effect of financial constraints on innovation in developing countries. It also examines how the effect of financial constraints varies by sector and with main firm characteristics such as size and age.

Design/methodology/approach

The study utilizes matched firm-level data from two sources; the World Bank Enterprise Survey and the Innovation Follow-Up Survey. From 11 African countries, 4,720 firms have been included in the sample. A recursive bivariate probit model is used.

Findings

The result shows that financial constraints adversely affect a firm’s decision to engage in innovative activities and the likelihood to have product innovation and process innovation. The results point out that the extent of the adverse effect of financial constraints on innovation differs across the sectors, firm size and age groups. A firm’s innovation is also explained by firm size, R&D, cooperation/alliance, the human capital of the firm, staff training, public financial support and export. At last, the probability of encountering financial constraints is explained by firms’ ex ante financing structure, amount of collateral, accounting and auditing practices and group membership.

Practical implications

Managers should strengthen the internal and external financing capacity to reduce financing constraints and their adverse effect on innovation.

Social implications

A pending policy task for African leaders is to design and evaluate reforms that reduce the adverse effects of financial constraints on innovation.

Originality/value

This study contributes to the existing literature on financing of innovation by examining how and to what extent financial constraints affect innovation across various sectors, size and age groups.

Details

Asian Review of Accounting, vol. 28 no. 3
Type: Research Article
ISSN: 1321-7348

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Article
Publication date: 6 June 2016

Naqeeb Ur Rehman

The purpose of this paper is to investigate the innovation activities of Chilean firms by using micro-level data.

Abstract

Purpose

The purpose of this paper is to investigate the innovation activities of Chilean firms by using micro-level data.

Design/methodology/approach

Micro-level data have been obtained from the World Bank, Enterprise Survey on 696 Chilean small and medium enterprises (SMEs). Bivariate probit estimation method has been used.

Findings

The results showed that SMEs are less likely to apply for patents and introduce product innovations. This outcome indicates that Chilean SMEs face resource constraint in terms of introducing product innovations and applying for patents. In addition, SMEs undertaking research and development (R&D) and making network ties with other research institutions are more likely to introduce patents and product innovations. Similarly, SMEs that are engaged in quality programs are more likely to spend on patents. Lastly, SMEs with public support for innovation activities positively influence the patent application.

Research limitations/implications

Findings imply that SMEs investment in knowledge-based assets (e.g. R&D, networks and quality methods) accelerate their innovation output. Policy makers should not only provide financial incentives (R&D subsidies) to SMEs but also encourage their strong ties with research institutions for higher innovation output.

Originality/value

Previous studies showed research gap related to micro-level analysis of the Chilean SMEs. For the first time, multiple proxies have been used as dependent variables (product/process innovations and patent application/spending), which is neglected by the past studies.

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Journal of Entrepreneurship in Emerging Economies, vol. 8 no. 2
Type: Research Article
ISSN: 2053-4604

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Article
Publication date: 11 September 2017

Yan Li

The purpose of this paper is to examine whether people who engage in religious activities are more generous in terms of both religious and secular giving.

Abstract

Purpose

The purpose of this paper is to examine whether people who engage in religious activities are more generous in terms of both religious and secular giving.

Design/methodology/approach

Bivariate probit (BVP) and bivariate tobit (BVT) analyses show that religious people have a greater propensity to give and higher levels of giving to both religious and secular charitable organizations. The bivariate systems permit a test of the correlation across the different giving decisions, and the correlation between religious and secular giving is found to be highly significant.

Findings

Religiosity positively influences both religious and secular donations. After controlling for this correlation, the impacts of religiosity on religious and secular giving are more efficient estimates but smaller than expected.

Originality/value

As a result of these methodological shortcomings, the causal relationship between religiosity and charitable giving is far from clear. To overcome those problems, this study uses BVP and BVT models to control for the potential correlation between religious giving and secular giving by the same individual and then draws appropriate interpretations. This study adds a firmer theoretical foundation to the existing literature.

Details

International Journal of Social Economics, vol. 44 no. 9
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 6 June 2016

Stefano Ciliberti, Laura Carraresi and Stefanie Bröring

The purpose of this paper is twofold: first, it aims to investigate how internal and external drivers affect innovation in the Italian food industry. Second, the authors…

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Abstract

Purpose

The purpose of this paper is twofold: first, it aims to investigate how internal and external drivers affect innovation in the Italian food industry. Second, the authors are interested to understand to what extent these drivers are industry specific, and therefore, they are contrasted against those relevant for the pharmaceutical industry in Italy according to the increasing growth of cross-industry innovation between these two sectors. The paper aims, thus, to shed light on the differences between food and pharmaceutical industries in terms of innovation drivers to understand potential precursors of emerging industry convergence.

Design/methodology/approach

Both probit and bivariate probit models are estimated, using data from the Italian Community Innovation Survey, in order to provide empirical evidence on drivers affecting innovation in the food and pharmaceutical industries.

Findings

The innovation activity of Italian food and pharmaceutical companies strongly relies on the presence of in-house R & D activities. Whereas firms in the pharmaceutical industry combine both internal and external R & D activities and knowledge sources to produce innovation, the case of the food industry is strongly dependent on the acquisition of external technology. In particular, the increased need for absorptive capacity of both sectors emphasises the key role of university research for collaboration, knowledge transfer and product innovation.

Research limitations/implications

The paper gives insights not only on drivers for innovation, but especially on the industry-specific differences which should be taken into account to have a contingent view. Limitations concern the impossibility to perform panel data analysis, due to the design of the database. Furthermore, both food and pharmaceutical sub-samples are not completely representative, since large companies tend to be overrepresented.

Practical implications

This paper provides managerial insights concerning the internal and external drivers affecting innovation. Moreover, it raises awareness as regards the possible differences between the food and pharmaceutical industries, which is crucial for establishing successful pathways for cross-industry innovation.

Originality/value

This study represents one of the few attempts to compare the innovation drivers of two manufacturing sectors (food and pharmaceutical), increasingly involved in cross-industry collaborations, and to highlight the industry-specific differences in those drivers which can act as forerunners of this phenomenon.

Details

British Food Journal, vol. 118 no. 6
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 9 November 2012

Núria Quella and Silvio Rendon

The purpose of this paper is to measure the effect that knowing the Catalan language has on individuals’ comparative advantage to perform certain jobs in Catalonia…

Abstract

Purpose

The purpose of this paper is to measure the effect that knowing the Catalan language has on individuals’ comparative advantage to perform certain jobs in Catalonia (Spain), where Catalan and Spanish coexist.

Design/methodology/approach

Using census data for 1991 and 1996, and for individuals born in Spain, the paper first estimates a Probit model for individuals’ level of Catalan proficiency in order to correct for the possible endogeneity of Catalan knowledge, as it may be jointly determined with occupational selection or be a reflection of unobserved human capital or innate ability. Then, it estimates a bivariate Probit model for the probability of choosing a given occupation conditional on a given Catalan proficiency level.

Findings

The paper finds that advanced proficiency in Catalan reinforces selection into being employed, being an entrepreneur, and into white‐collar occupations and communication‐intensive jobs. Being able to read and speak Catalan increases selection into white collar occupations by between 11 and 16 percentage points, while writing Catalan increases by 4 to 7 percentage points the probability of engaging in services, and government and educational activities.

Practical implications

Because census data are cross‐sectional panel effects on language selection cannot be analyzed. Nevertheless, the paper's results suggest that investing in learning the local language, at the firm and the government level, improves job matching and assimilation of workers to multilingual economies. The authors suggest a cost‐benefit analysis to assess the effectiveness of language policies for further research.

Originality/value

The results contribute to the scarce literature on the economic value of a language, i.e. on how much language knowledge as a form of human capital reinforces individuals’ comparative advantage to perform certain tasks.

Details

International Journal of Manpower, vol. 33 no. 8
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 1 February 2021

Joseph Ikechukwu Uduji, Elda Nduka Okolo-Obasi and Simplice Anutechia Asongu

The purpose of this paper is to critically examine the impact of a growth enhancement support scheme (GESS) on youth development in informal farm entrepreneurship in…

Abstract

Purpose

The purpose of this paper is to critically examine the impact of a growth enhancement support scheme (GESS) on youth development in informal farm entrepreneurship in Nigeria. Its special focus is to investigate the impact of the GESS on rural youths’ adoption of new technologies needed to sustainably increase food security in Nigeria.

Design/methodology/approach

This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 800 rural youths were sampled across the six geopolitical zones of Nigeria.

Findings

The result from the use of a bivariate probit model indicates that the GESS has a significant impact on rural youths’ innovations in farming.

Practical implications

This suggests that information and communication technology could provide new opportunities for making farming more interesting and enterprising for rural young people.

Social implications

It implies that while old male and female farmers are less likely to adopt the new farming technologies needed to achieve Nigeria’s agricultural transformation agenda (ATA), a younger generation can help introduce new technologies, while also learning from traditional methods.

Originality/value

This research adds to the literature on informal farm entrepreneurship and rural communities’ debate in developing countries. It concludes that engaging youths in GESS should form the foundation of the ATA in Nigeria, which, in turn, would offer adequate combination of new and traditional solution to address the challenges of food insecurity in Sub-Saharan Africa.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 15 no. 3
Type: Research Article
ISSN: 1750-6204

Keywords

1 – 10 of 518