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This chapter focuses on critical thinking as a new, powerful, and specialized tool and technique for understanding and analyzing the subtle operations of the free enterprise capitalist market system and its ethics and morality. Everything in the world of consumers and market enterprise systems are determined by our supply–demand system that in turn are determined by our presumed limitless production–distribution and consumption (LDPC) systems. From a critical thinking viewpoint, we study the free enterprise capitalist system (FECS) as a dynamic, interconnected organic system and not as a discrete or compartmentalized body of disaggregate parts. Systems thinking with critical thinking calls for a shift of our mindset from seeing just parts to seeing the whole reality in its structured dynamic unity; both mandate that we see ourselves as active participators or partners of FECS and not as mere cogs in its wheels or as mere factors of its production processes. Critical thinking seeks to identify the “structures” that underlie complex situations in FECS with those that bring about high- versus low-leveraged changes in various versions of capitalism. Specifically, this chapter applies critical thinking to FECS as defined by its founder, Adam Smith, in 1776 to its fundamental and structural assumptions, and as supported or critiqued by serious scholars such as Karl Marx, Maynard Keynes, C. K. Prahalad and Allen Hammond (inclusive capitalism), John Mackey and Rajendra Sisodia (conscious capitalism), and others.

This study examined how economic freedom and its related components, such as open markets, regulatory efficiency, rule of law and the size of government, affect bank risk behavior, focusing on the Japanese context.

The study employs a two-step GMM framework on the annual data of Japanese banks ranging from 2005 to 2020 to empirically test the hypotheses. Furthermore, we also use the ordinary least square method to ensure the robustness of our mainline findings.

The finding suggests that economic freedom increases the banks' risk-taking, thus making them fragile. The results also highlight that out of the four main subcomponents of economic freedom, regulatory efficiency and government size increase bank risk-taking, while the rule of law and open markets decrease banks' risk-taking. Additionally, we examine how the banks' specific characteristics affect the results by creating a subsample based on capitalization and liquidity ratios. Overall, the results are consistent with the baseline findings. Moreover, the results are robust to alternative proxy measures of risk.

The study's findings have several implications for regulators and policymakers. The results suggest that regulators and policymakers should reconsider their strategies for economic freedom to ensure that they promote stability in the banking system and reduce banks' risk-taking inclinations.

Although previous studies have examined the impact of economic freedom on bank stability and risk-taking, this study is the first to do so in the Japanese context, contributing to the literature by providing new insights and empirical evidence.

This article aims at contributing to the literature using conjoint experiment methods for political economic problems. The author measures the stated willingness of young adults to start an enterprise in hypothetical realities described by different levels of six institutional factors pertaining to the business environment.

The author conducts the “forced-choice” conjoint experiment on a sample of 200 young Polish students. This analysis allows for the verification of the expectations concerning the differences in the respondents' stated preferences relating to the potential obstacles to their entrepreneurial inclinations. The author estimates the average marginal component effects (AMCEs) and the marginal means (MMs).

Evidence is provided that the institutional factors are not similarly significant to the stated entrepreneurial preferences of Polish young adults. Legal certainty and economic freedom are the attributes of the most notable effect on respondents' feelings about perceived entrepreneurial barriers; however, the results vary across the subgroups.

The study results provide a tentative perspective on the Polish young adults' feelings about institutions as a potential obstacle to their entrepreneurial inclinations. The employment of conjoint methodology lays the groundwork for scholars studying the entrepreneurial environment, legal institutions and current public mood of different social groups.

This study is a unique attempt to answer political economic questions concerning entrepreneurial institutions in Poland through the implementation of a comprehensive market research method. In addition, the author indicates a specific set of six institutional factors as well as define a distinct group of young adults.

The purpose of this paper is to have a deeper understanding of the nonlinear relationship between the impact of climate change on tourism development. Current studies on the effects of climate change on tourism development primarily rely on linear correlation assumptions.

Based on the New Institutional Economics theory, the institutional setting inherently motivates and ensures the growth of the tourism industry. For a precise evaluation of the nonlinear consequences of climate change on tourism, this paper concentrates on Chinese cities between 2011 and 2021, methodically analyzing the influence of climate change on tourism.

The study findings suggest that there is an “inverse U”-shaped nonlinear relationship between climate change and tourism development, initially strengthening and subsequently weakening. Based on these findings, the research further delves into how institutional contexts shape the nonlinear association between climate change and tourism growth. It was found that in a higher institutional backdrop, the “inverse U” curve tends to flatten and surpass the curve adjusted for a lesser institutional context. Upon deeper mechanism analysis, it was observed that cities with more advanced marketization, improved industrial restructuring and enhanced educational growth exhibit a more evident “inverse U”-shaped nonlinear connection between climate change and tourism evolution.

First, previous studies on climate change and tourism development largely rely on questionnaire data (Hu et al., 2022). In contrast to these studies, this paper uses dynamic panel data, which to some extent overcomes the subjectivity and difficulty of causality identification in questionnaire data, making our research conclusions more accurate and reliable. Second, this study breaks through the linear relationship hypothesis of previous literature regarding climate change and tourism development. By evaluating the nonlinear relationship of climate change to tourism development from the institutional pressure perspective, it more intricately delineates their interplay mechanism, expanding and supplementing the research literature on the relationship mechanism between climate change and tourism development. Thirdly, the conclusions of this study are beneficial for policymakers to better understand and assess the scope of climate change impacts. It also aids relevant departments in clarifying the direction of institutional environment optimization to elevate the level of tourism development when faced with adverse impacts brought about by climate change.

This study seeks to deepen the understanding of the political process underlying the establishment and evolution of corporate governance (CG) regulations in a developing country.

Drawing on regulatory space concept (Hancher and Moran, 1989) and Oliver's (1991) typology of strategic responses, the authors identify which actor participated in and benefitted from the establishment of a new transnational CG regulation in Pakistan. Data were collected through interviews and from the published secondary sources.

The findings highlighted regulations are being influenced and shaped up by the political process of negotiation, bargaining, manipulation and domination between powerful and resourceful actors in a given regulatory space. National regulators and regulatees can be indeed fervent opponents to the transnational regulations when it comes to protecting their well-rooted national interests.

This study contributes to the accounting literature by illustrating political processes through which internationally recognised CG practices are resisted, negotiated and implemented in the developing countries. The regulator must pay attention that the outcome of the regulatory change process is the result of carefully crafted and conscious strategies of actors in the regulatory space.

With increasing wine consumption in Armenia, both residents and inbound tourists have become attractive target groups for wine sales, which are stimulated by wine tourism activities. The objective of this explorative study is to shed light on the potential of wine tourism for rural development in Armenia.

The paper starts with a structured and interdisciplinary literature review. Based on qualitative surveys among local tour operators and wine producers, and complemented by three expert interviews, the offer of wine tourism activities in Armenia will then be analyzed.

Each of the surveyed wine producers offers wine tourism activities. Foreign tourists know little about the Armenian wine industry, however, and are interested in cultural experiences and Armenia’s breathtaking nature. Armenian wine producers need to understand the expectations of their target groups to develop or adapt their offers successfully.

Due to the explorative nature of this study, the sample size of the surveyed wineries and tour operators is small and hence not representative. In addition, only local tour operators were surveyed. The sample should be extended to include foreign tour operators and more wineries in future research projects.

Whereas first studies on the structure and competitiveness of the Armenian wine sector exist, there is no survey on the general wine tourism in Armenia and its potential to foster rural development.

This study aims to examine the effect of ownership structure on financial performance of commercial banks in Kenya.

The data were collected from audited financial statements of 39 commercial banks in Kenya for the period 2009–2020.

Regression results found evidence of ownership structure explaining commercial banks’ financial performance. The results found a negative association between state ownership and net interest margin, a negative association between management ownership and net interest margin and a negative association between institutional ownership and return on assets.

Based on the findings, commercial bank management should therefore devise ownership structure policies that are geared toward boosting their financial performance both in the short run and the long run. Second, this study recommends a minority shareholding of the state in commercial banks to deter political interference, protect investors’ wealth from erosion and allow the majority shareholders to adopt a strong corporate governance mechanism for higher financial performance. Banks with a high percentage of state ownership should consider partial privatization to improve corporate governance practices. Third, banks should adopt a managerial ownership policy limiting the proportion of equity stock held by executives to limit their powers in strategic decision-making. Fourth, this study proposes a percentage limit on the equity stock of an institutional investor to eliminate bureaucracy in strategic decision-making and protect investors’ wealth.

The study finding is meant to inform regulation and operation policies in the banking sector and contribute to the literature on ownership structure, especially in the banking sector.

This paper examines the mediation role of green innovation in the relationship between corporate social responsibility and environmental performance of manufacturing firms in Ghana.

The paper chose African emerging markets and surveyed managers from manufacturing firms. With 301 questionnaires qualified for this study’s final analyses, the authors adopt the multiple regression with mediation models to estimates the nexus among study variables.

Results evidence that both corporate social responsibility and green innovation has a positive and significant impact on environmental performance. Interestingly, the authors find that corporate social responsibility significantly improves environmental performance through green innovation indicating that firms could essentially build their dynamic resource and innovation capabilities in sustainability leading to enhanced environmental performance.

This paper develops a dynamic resource-based view of firm environmental performance illustrating how firms use resources to build strategic capabilities for competitive advantage, which leads to improved environmental performance. The paper highlights the mediation role of green innovation on corporate social responsibility and environmental performance relationships.

This study's results provide significant insights to owners and managers of manufacturing companies to integrate corporate social responsibility and green innovation to ensure environmental performance and sustainability. Furthermore, policy makers should encourage green innovation when design sustainable development systems in the manufacturing industry.

The paper provides a valuable model showing how green innovation mediates corporate social responsibility to improve environmental performance and build competitive advantages considering both small, medium, and large manufacturing enterprises in emerging countries.

The theory of managerial discretion and the direct insights it provides in the understanding of the varying impact strategic and operational actions have on organizational change and business fortunes is an area of research potential underexplored in the UK. This study aims to establish whether the measurement of managerial discretion is constant between the two similar societal corporate frameworks of the UK and the USA listed markets.

The extant managerial discretion ranking model, established in the USA, is empirically assessed for its validity and effectiveness across a sample of high- and low-discretion companies from the FTSE 350.

Using accounting measures, a clear and significant difference is established between UK high and low managerial discretion entities. The results prove to be significant in enabling the differential comparative analysis of the institutional characteristics of corporates.

To the best of the authors’ knowledge, no study of this nature has been conducted previously in the UK context. While the original model developed in the USA is now several decades old, the UK results reflect similar industry rankings as found originally in the USA, subject to some differences considered to be a result of the changing nature of global business since the 1990s. This study opens a new seam of novel research, which has the potential to uncover, at a granular level, the differential mores and character of management ethics, styles and practices in such issues as organizational change, corporate culture, governance and social responsibility.