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Article
Publication date: 12 April 2024

Amonrat Thoumrungroje and Nang Sarm Siri

Drawing upon the resource-based view this study aims to examine the connections between formal and informal business relationships and resource-bridging and adaptive capabilities…

Abstract

Purpose

Drawing upon the resource-based view this study aims to examine the connections between formal and informal business relationships and resource-bridging and adaptive capabilities within the context of foreign subsidiaries of multinational enterprises (MNEs) operating in Thailand. Based on prior literature emphasizing business network ties as sources of competitive advantage in emerging markets, this study extends the discourse by investigating the moderating effects of technological turbulence, power distance and assertiveness.

Design/methodology/approach

This study uses a quantitative research approach, using data obtained from a self-administered survey conducted among 168 foreign subsidiaries spanning diverse industries in Thailand. The data were analyzed by using multiple-group structural equation modeling to test the hypothesized relationships.

Findings

Cultivating different types of business ties enables foreign subsidiaries to improve different types of capabilities. While interpersonal relationships (i.e. informal businessties) enable them to develop their abilities to combine various resources (i.e. resource-bridging capability), rigid contractual-based relationships (i.e. formal businessties) help them to be more adaptive (i.e. adaptive capability). These relationships are also contingent upon the levels of technological turbulence, host-country power distance and host-country assertiveness.

Originality/value

This research builds upon prior research on network ties and capability building by delineating the specific nature of capabilities. Contradicting to the previous findings, demonstrating a negative relationship between formal business ties and capabilities, this study found that each type of business tie enables foreign subsidiaries to enhance different types of capabilities under different circumstances. Moreover, this study adopts a lens of host-country national culture rather than home-country culture in investigating the moderating effects of power distance and assertiveness.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 26 January 2023

Fenglian Wang, Qing Su and Zongming Zhang

This study is aimed at making an inspection of the effects of collaborative innovation network characteristics on firm innovation performance, and the intermediary roles of…

Abstract

Purpose

This study is aimed at making an inspection of the effects of collaborative innovation network characteristics on firm innovation performance, and the intermediary roles of knowledge transfer efficiency is taken into account.

Design/methodology/approach

This study used a convenient sampling method to obtain population and samples. Using data obtained by publishing online and paper questionnaires, and using on-site interviews in Anhui Province in the Yangtze River Delta region of China, descriptive analysis, regression analysis and correlation analysis are utilized to study the direct influence of collaborative innovation network characteristics on knowledge transfer efficiency as well as firm innovation performance, and the intermediary roles of knowledge transfer efficiency on firm innovation performance, respectively. In this study, 3,000 questionnaires were distributed to the employees of enterprises engaged in research and development (R&D) activities, of which 2,560 were valid. With the help of SPSS24.0 software, the reliability and validity of the questionnaire was analyzed.

Findings

The results are indicative of that network centrality and relationship strength positively affect knowledge transfer efficiency and firm innovation performance. Nevertheless, network scale has no significant correlation with knowledge transfer efficiency and enterprise innovation performance. In addition, knowledge transfer efficiency is an intermediary between collaborative innovation network characteristics and enterprise innovation performance, and positively affects enterprise innovation performance, which demonstrated that managers should take advantage of collaborative innovation network characteristics to elevate knowledge transfer efficiency because well-realized transferals of knowledge can help accelerate the coordination of resources in knowledge, and finally bring about the advancement of firm's innovation abilities and performance.

Research limitations/implications

There are few previous studies that fully examined the relationships among collaborative innovation network characteristics, knowledge transfer efficiency and firm innovation performance. This paper developed previous researches on the relationships between collaborative innovation network characteristics, knowledge transfer efficiency and firm innovation performance. The mediation of knowledge transfer efficiency on the relationship between collaborative innovation network characteristics and firm innovation performance is analyzed. Further, studies on collaborative innovation network characteristics using data obtained from employees engaged in R&D activities are very limited in the literature. On account of that, the findings in this study may make sense to the innovation ability of innovative enterprise and expand the literature in the field of enterprise strategic management and knowledge management.

Practical implications

This analysis shows that collaborative innovation network characteristics have both positive and negative effects on firm innovation performance. Therefore, business managers should pay attention to their position in the collaborative innovation network and maintain the relationship strength with other innovation subjects. Special consideration should be given to the knowledge transfer of innovative enterprises, so as to improve firm innovation performance practically.

Originality/value

The study may provide additional understandings for researchers, government managers, universities and enterprises with regard to strategic management from the visual angle of innovation ecosystems. It is instrumental in the exploration of the mechanisms enabling firm innovation performance.

Open Access
Article
Publication date: 2 November 2023

Giulia Piantoni, Laura Dell'Agostino, Marika Arena and Giovanni Azzone

Measuring shared value (SV) created in innovation ecosystems (IEs) is increasingly relevant but complex, given the multidimensional and multiactor nature of both concepts, which…

Abstract

Purpose

Measuring shared value (SV) created in innovation ecosystems (IEs) is increasingly relevant but complex, given the multidimensional and multiactor nature of both concepts, which challenges traditional performance measurement systems (PMSs). Moving from this gap, the authors propose an integrated approach to extend the balanced scorecard (BSC) for measuring and monitoring SV creation at IE level.

Design/methodology/approach

The proposed approach combines the most recent contributions on PMS in IEs and SV to define perspectives and dimensions that are better suited to deal with the nature of both IEs and SV. The approach is also applied to the real case (Alpha) of an Italian IE through a step wise method. Starting from the IE vision, the authors identify in the strategy map the specific objectives related to each perspective/dimension combination and then associate a performance indicator with each objective.

Findings

The resulting SV BSC is composed of indicators interconnected along different perspectives and dimensions. The application of the approach to the real case proves its feasibility and highlights characteristics, advantages and disadvantages of the SV BSC when used at IE level. The authors also provide guidelines for its application to other IEs.

Originality/value

The study contributes to the research on PMS by introducing and applying to a real case an integrated approach to assess SV in IEs, overcoming the shortcomings of PMS framed for single firms. It can be of interest for both researchers in the field of ecosystems value creation and practitioners managing or promoting such complex structures.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 11
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 12 December 2023

Martin Eloundou Ndzana and Paulin Gregory Mvogo

Recent work in the economics of innovation in developing countries increasingly considers the formality of business as a determining factor of economic development. However…

Abstract

Purpose

Recent work in the economics of innovation in developing countries increasingly considers the formality of business as a determining factor of economic development. However, current knowledge on how formality determines both innovation and business performance remains mixed. This article examines this relationship by analyzing, on the one hand, the role of formality on innovation and, on the other hand, the moderating effect of formality on the relationship between innovation and the performance of business in francophone Sub-Saharan Africa.

Design/methodology/approach

Based on a sample of 1,369 Cameroonian and Senegalese small and medium-sized enterprises (SMEs) from the International Development Research Center (IDRC), the Crepon Duguet et Maraise (CDM) technique was used to reduce the endogeneity bias inherent in this type of analysis.

Findings

The results show that formal companies have a better capacity for innovation. In addition, formality positively moderates the relationship between innovation and the performance of businesses in the case of product and commercial innovations. On the other hand, it negatively moderates the relationship between innovation and the performance for process and organizational innovations.

Practical implications

These results show that the advantages of formalization widely relayed by national public institutions and international organizations can present a risk for business if the expected gains are not accompanied by innovations.

Originality/value

This paper contributes to research by taking into account the heterogeneity of firms because it is one of the first to study formality as a moderator in the relationship between innovation and firm performance in Sub-Saharan African economies.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 15 December 2022

Tien Dung Luu

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

Abstract

Purpose

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

Design/methodology/approach

The data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period.

Findings

This study elucidates how firm-level resources, entrepreneur characteristics and costs of doing business influence an entrepreneur’s decision to enter, the speed and the degree of formality.

Originality/value

This study provides insight into the origins of an entrepreneur’s decisions to the multidimensions of business formality through the lenses of the resource-based view, entrepreneurship and institution theories.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 16 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 9 April 2024

Aaron van Klyton, Mary-Paz Arrieta-Paredes, Vedaste Byombi Kamasa and Said Rutabayiro-Ngoga

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The…

Abstract

Purpose

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The objectives of this study are (1) to discern between regional and global exporting and (2) to evaluate its policymaking implications.

Design/methodology/approach

Primary survey data were collected from 330 Rwandan SMEs and were analysed using ordered logistic models as an application of the expectation-maximisation iterating algorithm, which was tested for robustness using a sampling model variation.

Findings

The results show that alternative sources of finance are the predominant choice to finance the intention to export within and outside Africa. As the scope of export intentions broadened from regional to global, there was a shift in preferences from less formal to more formal lending technologies, moving from methods like factoring to lines of credit. Moreover, reliance on bank officers became more significant, with increasing marginal effects. Finally, the study determined that government financing schemes were not relevant for SMEs pursuing either regional or global exporting.

Practical implications

Whilst alternative sources of finance predominate the export intentions of Rwandan SMEs, establishing a robust banking relationship becomes crucial for global exporting. Despite this implication, the intention to export should prompt more transparent communication regarding government financial support programmes. There is an opportunity for increased usage of relationship lending to customise support for SMEs involved in exporting, benefiting both the private and public sectors.

Originality/value

This study accentuates how export distance alters SME financing priorities. The results also contribute to understanding how the value of relationship lending changes when less familiar markets (i.e. global exporting) are the objective. Moreover, the study offers a new perspective on how institutional voids affect entrepreneurial financing decisions in LICs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 4 April 2024

Aldo Salinas and Cristian Ortiz

The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.

Abstract

Purpose

The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.

Design/methodology/approach

The study employs econometric techniques for panel data covering the period from 2002 to 2017 and considering 17 Latin American countries. The evidence presented is based on the informal economy data generated by Medina and Schneider (2018) who estimate the size of the informal economy using a structural equation model and the share of manufacturing in total employment as a measure of the size of the manufacturing sector. Also, the study addresses the possible endogeneity bias in the relationship studied and makes the conclusions more robust, thus avoiding spurious correlations that weaken the findings.

Findings

The results indicate that most industrialized Latin American countries are associated with a smaller size of the informal economy.

Practical implications

The findings have important policy implications, as they suggest that Latin American economies need to switch the structure of the economy toward more sophisticated productive structures if they want to reduce the size of the informal economy. Thus, more efforts should be deployed to policies to diversify and upgrade economies.

Originality/value

The study contributes to the literature on the informal economy by connecting the country’s productive structure and informality. Specifically, the results show that the productive structure of countries is a plausible explanation for the size of the informal economy.

Details

Journal of Entrepreneurship and Public Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 29 March 2024

Amir Ghazinoori, Manjit Singh Sandhu and Ashutosh Sarker

The purpose of this study is to examine how formal and informal institutions play a role in the Iranian context in shaping corporate social responsibility (CSR) policies and…

Abstract

Purpose

The purpose of this study is to examine how formal and informal institutions play a role in the Iranian context in shaping corporate social responsibility (CSR) policies and practices.

Design/methodology/approach

Using a multiple case-study approach combining comparative and cross-sectional methods with semi-structured interviews, primary data was collected from eight corporations that actively participated in CSR activities in Iran. A microanalysis approach was used to examine the meanings and dynamics in the data. Through thematic analysis and pattern-matching techniques, the authors separately examined the roles of formal and informal institutions. Cross-case analysis was used to highlight the cases’ similarities and differences.

Findings

This study demonstrates that both formal and informal institutional structures exist in Iran and that both types influence CSR. This study also shows that informal institutions (such as personal values, culture, religion, traditions, charity and philanthropy) play a more explicit role than formal institutions (such as legal regulations and laws) in shaping CSR adoption policies and practices. The results indicate that, among institutions linked to CSR, formal and informal institutions are complementary and potentiate each other in Iran. Nevertheless, compared to formal ones, informal institutions play a more prominent role in shaping CSR policies and practices.

Research limitations/implications

The authors recognize that, although the eight corporations are large, and although they interviewed their key personnel, they do not claim that these findings are generalizable, owing to the qualitative nature of the study and the small number of selected corporations.

Originality/value

This study makes relevant theoretical and empirical contributions. First, it contributes to the growing body of CSR literature that highlights the necessity of linking informal and formal institutions. Although the CSR literature lacks research on informal institutions in developing economies, researchers have yet to push forward and explore how the CSR adoption process works in developing economies that have influential informal institutions.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 15 April 2024

Dena Badawi and Bree Akesson

As host to over one million Syrian refugees, Lebanon continues to experience challenges addressing the needs of refugee families. This research examined the experiences of Syrian…

Abstract

Purpose

As host to over one million Syrian refugees, Lebanon continues to experience challenges addressing the needs of refugee families. This research examined the experiences of Syrian families with the refugee support system in Lebanon. The purpose of this study was to better understand the strengths and gaps in existing mechanisms of support for these Syrian families, including informal support from family, neighbors and community and more formalized support provided through entities such as nongovernmental organizations and United Nations agencies.

Design/methodology/approach

Data were collected from 46 families displaced by the war and living in Lebanon (N = 351 individuals within 46 families). Collaborative family interviews were conducted with parents, children and often extended family.

Findings

The data identified both strengths and gaps in the refugee support system in Lebanon. Gaps in the refugee support system included inadequate housing, a lack of financial and economic support, challenges with a lack of psychosocial support for pregnant women and support for disabled youth. Despite these challenges, families and community workers reported informal community support as a strong mediator of the challenges in Lebanon. Furthermore, the data find that organizations working with Syrian families are utilizing informal community support through capacity building, to create more effective and sustainable support services.

Originality/value

This study provides an overview of strengths and gaps in supports identified by refugees themselves. The research will inform the development and improvement of better support systems in Lebanon and in other refugee–hosting contexts.

Details

International Journal of Migration, Health and Social Care, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-9894

Keywords

Article
Publication date: 19 March 2024

Weiyi Cong, Shoujian Zhang, Huakang Liang and Qingting Xiang

Job stressors have a considerable influence on workplace safety behaviors. However, the findings from previous studies regarding the effect of different types of job stressors…

Abstract

Purpose

Job stressors have a considerable influence on workplace safety behaviors. However, the findings from previous studies regarding the effect of different types of job stressors have been contradictory. This is attributable to, among other factors, the effectiveness of job stressors varying with occupations and contexts. This study examines the effects of challenge and hindrance stressors on construction workers' informal safety communication at different levels of coworker relationships.

Design/methodology/approach

A three-dimensional framework of informal safety communication is adopted, including self-needed, citizenship and participatory safety communication. Stepwise regression analysis is then performed using questionnaire survey data collected from 293 construction workers in the Chinese construction industry.

Findings

The results demonstrate that both challenge and hindrance stressors are negatively associated with self-needed and citizenship safety communication, whereas their relationships with participatory safety communication are not significant. Meanwhile, the mitigation effects of the coworker relationship (represented by trustworthiness and accessibility) on the above negative impacts vary with the communication forms. Higher trustworthiness and accessibility enable workers faced with challenge stressors to actively manage these challenges and engage in self-needed safety communication. Similarly, trustworthiness promotes workers' involvement in self-needed and citizenship safety communication in the face of hindrance stressors, but accessibility is only effective in facilitating self-needed safety communication.

Originality/value

By introducing the job demands-resources theory and distinguishing informal safety communication into three categories, this study explains the negative effects of challenge and hindrance job stressors in complex and variable construction contexts and provides additional clues to the current inconsistent findings regarding this framework. The diverse roles of challenge and hindrance job stressors also present strong evidence for the need to differentiate between the types of informal safe communication.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

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