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1 – 10 of 827Sajad Noorbakhsh and Aurora A.C. Teixeira
This study aims to estimate the impact of refugee inflows on host countries’ entrepreneurial rates. The refugee crisis led to an increased scientific and public policy interest in…
Abstract
Purpose
This study aims to estimate the impact of refugee inflows on host countries’ entrepreneurial rates. The refugee crisis led to an increased scientific and public policy interest in the impact of refugee inflows on host countries. One important perspective of such an impact, which is still underexplored, is the impact of refugee inflows on host countries entrepreneurial rates. Given the high number of refugees that flow to some countries, it would be valuable to assess the extent to which such countries are likely to reap the benefits from increasing refugee inflows in terms of (native and non-native) entrepreneurial talent enhancement.
Design/methodology/approach
Resorting to dynamic (two-step system generalized method of moments) panel data estimations, based on 186 countries over the period between 2000 and 2019, this study estimates the impact of refugee inflows on host countries’ entrepreneurial rates, measured by the total early-stage entrepreneurial activity (TEA) rate and the self-employment rate.
Findings
In general, higher refugee inflows are associated with lower host countries’ TEA rates. However, refugee inflows significantly foster self-employment rates of “medium-high” and “high” income host countries and host countries located in Africa. These results suggest that refugee inflows tend to enhance “necessity” related new ventures and/ or new ventures (from native and non-native population) operating in low value-added, low profit sectors.
Originality/value
This study constitutes a novel empirical contribution by providing a macroeconomic, quantitative assessment of the impact of refugee from distinct nationalities on a diverse set of host countries' entrepreneurship rates in the past two decades resorting to dynamic panel data models, which enable to address the heterogeneity of the countries and deal with the endogeneity of the variables of the model.
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This paper aims to explore how the establishment modes used by emerging economy multinational corporations (EE-MNCs) influence their subsequent experiences of liability of origin…
Abstract
Purpose
This paper aims to explore how the establishment modes used by emerging economy multinational corporations (EE-MNCs) influence their subsequent experiences of liability of origin (LOO) in developed economies based on the causal-model theory of categorization.
Design/methodology/approach
Taking Chinese listed firms' direct investments in developed economies as the sample, this paper utilizes Heckman (1979)'s self-selection model to examine the effect of establishment modes. Besides, when checking the robustness, subsample analyses and 2SLS regressions are used to rule out the alternative explanation associated with LOO mitigation.
Findings
EE-MNCs that enter a developed economy by greenfield investment experience heightened LOO while entries using M&A are associated with the mitigated liability. When EEMNCs enter a more institutionally distant developed country, the establishment modes will be more determinant of their subsequent experiences of this liability. Moreover, the effect of establishment modes can recede when EE-MNCs have established their presence in a developed country for a longer time.
Originality/value
This paper utilizes the causal-model theory of categorization to articulate the underlying mechanisms through which the country-of-origin cue is weakened by the cue transmitted by M&A. It further considers the context-saliency of the cue of M&A and clarifies boundary conditions for the effectiveness of this establishment mode to mitigate LOO.
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This study aims to examine the share of foreign direct investment (FDI) in creating the value added (VA) of innovative and other industries in Poland in 2004–2020.
Abstract
Purpose
This study aims to examine the share of foreign direct investment (FDI) in creating the value added (VA) of innovative and other industries in Poland in 2004–2020.
Design/methodology/approach
In terms of the empirical analysis of FDI stocks, their locations were divided into innovative and other industries. The differences in the creation of VA are presented by domestic and foreign enterprises. The impact of FDI stocks in individual industries on gross domestic product (GDP) changes was assessed using the vector error correction model (VECM).
Findings
FDI from innovative industries generated approx. 7% VA of the Polish economy in the years 2004–2020. In 2009–2018, the share of VA of foreign enterprises in innovative industries in Poland showed a faster growth (by 5 pp) than in other industries. The results of decomposition confirm that the level of explanation of GDP by FDI in innovative industries is higher than in other industries.
Research limitations/implications
Changes in the classification of activities reduce the time series period available.
Practical implications
This study explains the participation of foreign and domestic enterprises in creating VA. The results are useful to pursuing the national investment policy.
Social implications
The economic results of domestic and foreign enterprises in the host country affect the economic growth and development and ultimately the socio-economic conditions of life.
Originality/value
This work provides some additional explanations for the inconclusive results of international research into the impact of FDI on GDP or the spillovers effects. Its usefulness concerns the detailed impact of FDI by industrial structures on GDP.
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Yu-Ping Chen, Yu-Shan Hsu and Margaret Shaffer
Drawing on the whole-life perspective of career development and the conservation of resources theory, the authors consider whether self-initiated expatriates' (SIEs’) cultural…
Abstract
Purpose
Drawing on the whole-life perspective of career development and the conservation of resources theory, the authors consider whether self-initiated expatriates' (SIEs’) cultural intelligence (CQ) is a general, cross-domain resource that helps SIEs gain resources in the work and nonwork domains. The authors contend that CQ will be associated with greater levels of organizational and community embeddedness, which in turn will facilitate their career satisfaction. The authors also propose the role of perceived host country community diversity climate as an environmental condition that, when low, strengthens the relationships between CQ and organizational and community embeddedness.
Design/methodology/approach
The authors examine the study hypotheses based on two distinct samples of SIEs (Sample 1: 169 Asian SIE professionals; Study 2: 147 SIE academics).
Findings
SIEs' CQ positively relates to their organizational and community embeddedness, which in turn is associated with greater levels of career satisfaction. The authors also find that SIEs with high CQ are more likely to experience community embeddedness and career satisfaction when they perceive that the host country community diversity climate is low.
Originality/value
First, this study goes beyond existing literature that rarely examines nonwork inputs to SIE career success. Second, extending previous CQ research with a strong organizational focus, the authors investigated how CQ influences SIEs' work and nonwork embeddedness. Third, the authors found that the absence of a peripheral ecological condition, perceived host country community diversity climate, may strengthen the direct relationship between CQ and embeddedness and the indirect relationship between CQ and career satisfaction.
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Eugene Misa Darko and Kangning Xu
This study empirically investigates the long-run and interactive effect of Chinese foreign direct investment (CFDI) on Africa's industrialization process.
Abstract
Purpose
This study empirically investigates the long-run and interactive effect of Chinese foreign direct investment (CFDI) on Africa's industrialization process.
Design/methodology/approach
The authors employed industry and manufacturing value-added (% GDP) as the dependent variables and applied the two-step GMM and panel-corrected standard errors' (PCSE) techniques involving a panel of 49 African countries from 2003 to 2020.
Findings
The industry value-added (% GDP) results show that the presence of CFDI propels industrial productivity by contributing to value-addition in the short and long run. Moreover, the study shows that the magnitude of the CFDI effect on industrialization is pronounced in the short-run when it is associated with labor and natural resources. This result reveals efficiency-seeking behavior of CFDI and the CFDI-Africa industrialization nexus is not primarily resource-driven. More importantly, the authors found human capital, electricity and political stability, as primary factors that magnify CFDI's effect on industrialization in the short and long run.
Originality/value
This study is the first to use macro-level data to empirically investigate and find the significant effect of CFDI on Africa's industrialization in the long run. More importantly, the authors investigated channels through which CFDI magnifies industrialization in Africa in the short and long run.
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Tien Dung Luu, Thuy Tien Huynh and Tuan Thanh Phung
This paper aims to assess the relationships between foreign direct investment (FDI) and domestic entrepreneurship (DE) with the moderating role of formal institutions (FI)…
Abstract
Purpose
This paper aims to assess the relationships between foreign direct investment (FDI) and domestic entrepreneurship (DE) with the moderating role of formal institutions (FI), logistics and information communication technology (ICT) capacities.
Design/methodology/approach
The study is based on unbalanced panel data of 53 countries from 2006 to 2020 at different stages of development, using a fuzzy-set qualitative comparative analysis.
Findings
The research results indicate that FDI directly affects the establishment of domestic entrepreneurship. Additionally, FDI firms via the buffer mechanism of FI, logistics and ICT development for DE. Through its adjustment to the quality of institutions, logistics and ICT infrastructure, GDP per capita determines the direction of FDI's impact on DE.
Originality/value
The study's findings grant empirical evidence and theoretical contributions to the relationship between FDI and domestic entrepreneurial development through the buffering mechanism of FI, logistics and the role of ICT.
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Sovath Kenh and Qidi Wei
Cambodia's sustained and robust growth performance since the post-reform era in 1993 has been attributed to the boom in inward foreign direct investment (FDI) attracted to the…
Abstract
Purpose
Cambodia's sustained and robust growth performance since the post-reform era in 1993 has been attributed to the boom in inward foreign direct investment (FDI) attracted to the country's labor-intensive industries, where it has comparative advantages. The purpose of this study is twofold. First, it aims to assess the consistency between Cambodia's revealed comparative advantage in exports and its sectoral inward FDI. Second, it examines the relationship between industry-level FDI and growth performance by accounting for heterogeneity across industries.
Design/methodology/approach
The paper uses descriptive methods and an industry-level dataset provided by the Council for the Development of Cambodia to elucidate the issue. Additionally, it applies instrumental variable two-stage least squares (IV-2SLS) regression to investigate the impact of industry-specific FDI on economic growth from 1994 to 2017, which also aims to address the endogeneity issue.
Findings
On the one hand, our research finds that Cambodia's FDI has been attracted to sectors in which it has a comparative advantage during the aforementioned period. On the other hand, both FDI and the comparative advantage index significantly impact economic growth in Cambodia. The greater the flow of foreign investment into sectors with comparative advantage, the stronger the impetus for growth.
Originality/value
This study fills a gap in the literature and contributes to a better understanding of the relationship between FDI and economic growth in Cambodia. It is the first paper to investigate the heterogeneity of industry-specific FDI and provides practical recommendations for policymakers to effectively harness foreign investments and avoid malign FDI inflows.
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Hanyang Ma, Jingjie Zou and Hailiang Zou
This study aims to explore the internationalization of multinational enterprises (MNEs) from China and aims to examine the relationship between Chinese MNEs’ duration of…
Abstract
Purpose
This study aims to explore the internationalization of multinational enterprises (MNEs) from China and aims to examine the relationship between Chinese MNEs’ duration of internationalization and export intensity, and the contingent roles of the home country government.
Design/methodology/approach
By extending the springboard theory with institutional and cost-benefit analyses, the authors elaborate a two-phase framework of internationalization to explain how Chinese MNEs develop their international business under the influences of the home country government. Furthermore, the authors apply the Heckman two-stage method based on a panel data set of 19,994 firm-year observations of Chinese listed firms in 2008–2018 to test the hypotheses.
Findings
The research findings demonstrate an inverted U-shape relationship between the duration of internationalization and the export intensity of MNEs from China. The export intensity of MNEs from China increases during the initial phase of internationalization, and decreases during the subsequent. A further study reveals that the inverted U-shape of Chinese non-SOEs is steeper than that of SOEs, and this moderating effect is more salient after the Belt and Road Initiative. These results highlight the influence of the home government through state ownership and policies on the inverted U-shaped relationship.
Originality/value
This study helps to refine the understanding of Chinese MNEs’ global expansion by addressing time as an explicit dimension and revealing the mechanism of state ownership and the home country governmental policy in the dynamic internationalization process.
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Dorcas Moyanga, Lekan Damilola Ojo, Oluseyi Alabi Awodele and Deji Rufus Ogunsemi
Micro, small and medium-sized enterprises are the live wire of construction industry in developing countries. These classes of establishments are most affected by economic…
Abstract
Purpose
Micro, small and medium-sized enterprises are the live wire of construction industry in developing countries. These classes of establishments are most affected by economic contraction and turmoil, thus affecting their performance and survivability. Hence, the purpose of this study is to investigate and prioritize the survival determinants of construction consulting organization during economic contraction in Nigeria using quantity surveying firms as a focal point.
Design/methodology/approach
The study adopted the descriptive-survey design and quantitative data were collected through questionnaire purposely administered to quantity surveying firms in the Southwestern part of Nigeria. The data obtained from 99 quantity surveying firms on survival determinants were analysed using various statistical analysis such as mean score, standard deviation, Mann–Whitney U test, Kruskal–Wallis H test, and so on. Principal component analysis was used to identify the principal components of survival determinants, while the factors were prioritized using fuzzy synthetic evaluation (FSE).
Findings
The result of the analysis reveals eight factors that significantly determines the survival of firms during the period of economic contraction. Furthermore, the eight grouped factors were prioritized accordingly namely firm's innovation and diversification, ownership structure and networking, education level and management skills, and so on.
Practical implications
This study investigated the survival determinants of quantity surveying firms and prioritized it with the opinions of principal partners in quantity surveying establishments. As against obtaining large survey responses from all quantity surveyors in the study area that may not have practical experience of managing firms, the limited responses received provide valid basis to broaden the horizon of professionals and other stakeholders on the key determinants for firms to survive economic turmoil.
Originality/value
This study contributes to the body of knowledge by providing information on prioritized factors that must be considered in an appropriate order by quantity surveying firms to survive economic contraction.
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Agnieszka Nowinska and Marte C.W. Solheim
The purposes of this paper are to delve into the “liability of foreignness” among immigrants and to explore factors that may enhance or moderate such liability while obtaining…
Abstract
Purpose
The purposes of this paper are to delve into the “liability of foreignness” among immigrants and to explore factors that may enhance or moderate such liability while obtaining jobs in host countries. We explore the competition for jobs in a host country among foreign-born individuals from various backgrounds and local residents, by examining such factors as their human capital, as well as, for the foreign-born, their duration of residence in the host country.
Design/methodology/approach
Applying configurational theorizing, we propose that the presence of specific human capital can help reduce the challenges associated with the “liability of foreignness” for migrants who have shorter durations of stay in the host country, and, to a lesser extent, for female migrants. Our study draws upon extensive career data spanning several decades and involving 249 employees within a Danish multinational enterprise.
Findings
We find that specific human capital helps established immigrants in general, although female immigrants are more vulnerable. We furthermore find a strong “gender liability” in the industry even for local females, including returnees in the host countries. Our findings suggest that for immigrants, including returnees, career building requires a mix of right human capital and tenure in the host country, and that career building is especially challenging for female immigrants.
Originality/value
While the concept of “liability of foreignness” – focussing on discrimination faced by immigrants in the labour market – has been brought to the fore, a notable gap exists in empirical research pertaining to studies aiming at disentangling potential means to overcome such liability, as well as in studies seeking to explore this issue from a stance of gendered experience.
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