Search results
1 – 10 of over 1000Indri Dwi Apriliyanti and Stein Oluf Kristiansen
The purpose of this paper is to illuminate the hidden process of collusion among power holders in state-owned enterprises (SOEs) in an emerging economy, which endures despite…
Abstract
Purpose
The purpose of this paper is to illuminate the hidden process of collusion among power holders in state-owned enterprises (SOEs) in an emerging economy, which endures despite comprehensive reforms towards democracy and good governance. Why are mechanisms of checks and balances not functioning in the way they should?
Design/methodology/approach
The analysis is based on in-depth interviews with board members, executives, politicians, bureaucrats and representatives from auditing boards involved in the management of SOEs in Indonesia.
Findings
The findings reveal practices of collective conservatism, reciprocal opportunism and normalisation of corruption. The costs of getting into powerful positions are so high that conglomerate business owners gain control over the management of SOEs. The authors use the terms “wall-building and gatekeeping” to explain such cases.
Research limitations/implications
There is a continuous process of wall building and gatekeeping occurring among business oligarchs, bureaucrats and elected politicians in Indonesia. New entrants into the system are co-opted by the established elite.
Practical implications
This study shows collusion, rent-seeking and corruption among political and business elites as well as top officials in the government hinder good governance reforms in state-owned Indonesian enterprises.
Social implications
Collusion and illicit business practices in SOEs are clearly grounded on wall building and gatekeeping. Tackling this problem is a precondition for good governance and an improved legal and regulatory business environment in Indonesia. The ideal separation of powers and the checks and balances for good governance apparently need more than a democracy to break through. A further strengthening of the free press and critical academics will be one crucial contribution.
Originality/value
There is generally a lack of understanding of the context of corruption, such as the influence of institutional and organisational structures. The topic of corruption is also under-researched due to the difficulty of finding empire evidence. This paper contributes to explaining why new political and organisational structures, such as a democratically elected parliament and a particularly designed corruption eradication commission, are not able to hinder rent-seeking practices and illicit political business in state agencies.
Details
Keywords
Owing to its specificities, the family small and medium enterprise (SME) shows a particular behavior as for the creation, development, sharing, protection and transmission of…
Abstract
Purpose
Owing to its specificities, the family small and medium enterprise (SME) shows a particular behavior as for the creation, development, sharing, protection and transmission of knowledge. The purpose of this paper is to study the specificities of the processes of knowledge creation and development in family firms.
Design/methodology/approach
Through a questionnaire, hypotheses of the model were tested. The study is based on 118 firms belonging to various industries. After evaluating the reliability and validity of the items through exploratory and confirmatory factor analysis, the model was tested through structural equation modeling (LISREL).
Findings
The model retained induces the following conclusions. Internationalization knowledge positively influences internationalization degree of the firm. The conservatism of family SME does not directly influence the level of internationalization knowledge. The influence of conservatism on internationalization knowledge is exerted only through the decisional dimension of independence orientation. The independence orientation of family SME, then with its two dimensions simultaneously (decisional and resource independence), does not significantly influence internationalization knowledge. Contrary to decisional independence which influences indirectly the degree of internationalization (through the intermediation of internationalization knowledge), resource independence influences directly the dependant variable. The mediation of internationalization knowledge is thus not totally proven. Social networking positively influences the amount of internationalization knowledge.
Research limitations/implications
A major weakness is the absence of a synchronic approach as the dependent and independent variables are measured at the same moment. A more longitudinal approach would be valuable to analyze the causal relationships between the independent variables and internationalization knowledge and internationalization degree. A second limitation is that the characteristics of the sample may limit the generalizability of the results.
Originality/value
To the author's knowledge, the paper is the first of its kind to examine the knowledge‐based processes in family businesses.
Details
Keywords
The purpose of this paper is to analyze long-term institutional causes and consequences of preference falsification by studying the evolution of China’s patriarchal clan system.
Abstract
Purpose
The purpose of this paper is to analyze long-term institutional causes and consequences of preference falsification by studying the evolution of China’s patriarchal clan system.
Design/methodology/approach
The historic study shows that although the clan system was abolished in the Qin dynasty, it re-emerged among high-standing families in the Han dynasty and spread to common people after the Tang dynasty.
Findings
The author submits that the clan system was an institutional response to the preference falsification problem that arose due to the dictatorial political institutions first established in the Qin dynasty. It helped people to take collective action by themselves and also opened a back door to influence government decisions. A piece of clear evidence is the co-evolution of the clan system and government personnel system.
Social implications
In this sense, the clan system probably also helped to prolong the political institutions for 2,000 years.
Originality/value
This is the first institutional study on the clan system in China.
Details
Keywords
James M Kohlmeyer and James E Hunton
The purpose of this study is to investigate differences between individual and collective budgeting decisions with respect to budgetary slack creation and task performance. While…
Abstract
The purpose of this study is to investigate differences between individual and collective budgeting decisions with respect to budgetary slack creation and task performance. While a great deal of research exists in the area of budgeting, to our knowledge, no prior studies have dealt with budget settings in a collective (e.g. small group or cross-functional team) environment. Accordingly, the current study examines differences in slack creation and task performance using a two (decision mode: individual vs. collective decision) by two (incentive contract: slack-inducing vs. truth inducing) between-subjects experimental design. A total of 295 students participated in the experiment (79 individuals and 72 three-person collective units). As expected, individuals and collective decision-makers created significantly more slack under a slack-inducing contract than a truth-inducing contract. Additionally, as anticipated, collective decision-makers created more slack than individuals under a slack-inducing contract. Unexpectedly, however, collective decision-makers created more slack than individuals using a truth-inducing contract. Task performance was significantly different between individuals and collective unit members, such that performance of former exceeded latter, as hypothesized. Finally, preliminary analysis indicated that choice shift occurred in the collective units, such that the units became more cautious in setting budget goals than individuals under both incentive contract conditions.
This chapter analyzes how the macro-environment determines corporate dividend decisions. First, political factors including political uncertainty, economic policy uncertainty…
Abstract
This chapter analyzes how the macro-environment determines corporate dividend decisions. First, political factors including political uncertainty, economic policy uncertainty, political corruption, and democracy may have two opposite effects on dividend decisions. For example, firms learn democratic practices to improve their corporate governance, but dividend policy may be the outcome of strong corporate governance or the substitute for poor corporate governance. Second, firms in countries of high national income, low inflation, and highly developed stock markets tend to pay more dividends. A monetary restriction (expansion) reduces (increases) dividend payments, as economic shocks like financial crises and the COVID-19 may negatively affect corporate dividend policy through higher external financial constraint, economic uncertainty, and agency costs. On the other hand, they may positively influence corporate dividend policy through agency costs of debt, shareholders' bird-in-hand motive, substitution of weak corporate governance, and signaling motive. Third, social factors including national culture, religion, and language affect dividend decisions since they govern both managers' and shareholders' views and behaviors. Fourth, firms tend to reduce their dividends when they face stronger pressure to reduce pollution, produce environment-friendly products, or follow a green policy. Finally, firms have high levels of dividends when shareholders are strongly protected by laws. However, firms tend to pay more dividends in countries of weak creditor rights since dividend payments are a substitute for poor legal protection of creditors. Furthermore, corporate dividend policy changes when tax laws change the comparative tax rates on dividends and capital gains.
Details
Keywords
Márcio Lopes Pimenta and Éderson Luiz Piato
The purpose of this paper is to present an analysis of the cognitive relationship between personal values of buyers and attributes of automobiles.
Abstract
Purpose
The purpose of this paper is to present an analysis of the cognitive relationship between personal values of buyers and attributes of automobiles.
Design/methodology/approach
In total, 60 interviews were performed with buyers of sporty and compact cars. The qualitative laddering technique guided data collection and analysis, resulting in two cognitive value maps (HVM). The results were interpreted based on three theoretical approaches: Schwartz (1994), Allen (2000) and Gutman (1982).
Findings
The dominant chains from the two models indicate connection between “design and hedonism,” “internal finishing and hedonism” and “security items and safety as a value.” Therefore, these customers are predominantly characterized by individualistic values: by the pursuit of personal pleasure and concern for personal safety.
Research limitations/implications
Due to qualitative techniques having been used, future research could validate some presented results through surveys based on the connections between the set of attributes and values presented in this research.
Practical implications
Results from this study can help to develop segmentation and advertising strategies, as well as marketing aftermarket actions based on the psychographic profile provided by the HVMs. They may also assist integration between the initial and final phases of new vehicles’ development which have concepts similar to those studied here.
Originality/value
The extant literature provides few studies with the specific objective of identifying connections between vehicle attributes and the personal values of the consumers. This paper presents an interpretation of the cognitive relationships between vehicle attributes and personal values through three theoretical perspectives, providing multidimensional profiles to explain consumers’ values.
Details
Keywords
Peter Byrne, Cath Jackson and Stephen Lee
The purpose of this paper is to test the hypothesis that investment decision making in the UK direct property market does not conform to the assumption of economic rationality…
Abstract
Purpose
The purpose of this paper is to test the hypothesis that investment decision making in the UK direct property market does not conform to the assumption of economic rationality underpinning portfolio theory.
Design/methodology/approach
The developing behavioural real estate paradigm is used to challenge the idea that investor “man” is able to perform with economic rationality, specifically with reference to the analysis of the spatial dispersion of the entire UK “investible stock” and “investible locations” against observed spatial patterns of institutional investment. Location quotients are derived, combining different data sets.
Findings
Considerably greater variation in institutional property holdings is found across the UK than would be expected given the economic and stock characteristics of local areas. This appears to provide evidence of irrationality (in the strict traditional economic sense) in the behaviour of institutional investors, with possible herding underpinning levels of investment that cannot be explained otherwise.
Research limitations/implications
Over time a lack of distinction has developed between the cause and effect of comparatively low levels of development and institutional property investment across the regions. A critical examination of decision making and behaviour in practice could break this cycle, and could in turn promote regional economic growth.
Originality/value
The entire “population” of observations is used to demonstrate the relationships between economic theory and investor performance exploring, for the first time, stock and local area characteristics.
Details
Keywords
Peter Rossini and Valerie Kupke
The purpose of this paper is to address a key issue fundamental to the operation of land and housing markets, that is, the relationship between land and house prices. The study…
Abstract
Purpose
The purpose of this paper is to address a key issue fundamental to the operation of land and housing markets, that is, the relationship between land and house prices. The study identifies possible causation between established house and vacant allotment prices using the metropolitan area of Adelaide, Australia as a case study.
Design/methodology/approach
A key outcome of the study is the construction of a Site Adjusted Land Price Index against which a Quality Adjusted House Price Index is compared.
Findings
The results show that there is a lagged effect of land prices on house prices and that this is significant at an interval of eight lag periods. The results also imply that the lead lag relationship between established house and vacant allotment prices is not unidirectional. This suggests that, while a change in house prices leads to a change in land prices in the short-run, the long-run position is for increasing land prices to lead to a delayed increase in house prices.
Research limitations/implications
Rising house prices do not simply and solely reflect a shortage of land. There are suggested effects both immediate from house to land and delayed from land to house, particularly in a rising market.
Originality/value
The lead lag relationships of both indexes are tested using Granger causality estimates to assess whether theoretical Ricardian concepts still hold in a modern urban land market.
Details
Keywords
This study investigates state institutions' influence on corporate accountability and control practices in a rural African context. Exploring the different rationales behind state…
Abstract
Purpose
This study investigates state institutions' influence on corporate accountability and control practices in a rural African context. Exploring the different rationales behind state existence in the context of sugar production in Egypt, this work clarifies how accountability is practised differently in the case of the high centrality of state logics in the business sector.
Design/methodology/approach
Theoretically, the study draws insights from the institutional logics perspective. Following the case study approach, data are collected through interviews, observations and documents.
Findings
The study found that state institutions can play a supportive rather than a mere constraining role in the management, accountability and control processes. Notably, it clarified how state-related institutions were highly central and influential in a way that enabled them to curb the (negative) influences of the community and business institutions. In this context, it is social – rather than functional – accountability which emerges as the central control practice to achieve answerability and enforcement.
Originality/value
Thus, this study's reported findings confirm the role of institutional (political) logics as supportive in society.
Details