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1 – 10 of 20David Audretsch, Maksim Belitski and Candida Brush
Research on financing for entrepreneurship has consolidated over the last decade. However, one question remains unanswered: how does the combination of external finance, such as…
Abstract
Purpose
Research on financing for entrepreneurship has consolidated over the last decade. However, one question remains unanswered: how does the combination of external finance, such as equity and debt capital, and internal finance, such as working capital, affect the likelihood of grant funding over time? The purpose of this study is to analyse the relationship between different sources of financing and firms' ability to fundraise via innovation grants and to examine the role of female chief executive officer (CEO) in this relationship. Unlike equity and debt funding, innovation grants manifest a form of innovation acknowledgement and visibility, recognition of potential commercialization of inovation.
Design/methodology/approach
The authors use firm-level financial data for 3,034 high-growth firms observed in 2015, 2017 and 2019 across 35 emerging sectors in the United Kingdom (UK) to test the factors affecting the propensity of high-growth firms to secure an innovation grant as a main source of fundraising for innovation during the early stages of product commercialization.
Findings
The results do not confirm gender bias for innovation fundraising in new industries. This contrasts with prior research in the field which has demonstrated that access to finance is gender-biased. However, the role of CEO gender is important as it moderates the relationship between the sources of funding and the likelihood of accessing the grant funding.
Research limitations/implications
This study does not analyse psychological or neurological factors that could determine the intrinsic qualities of male and female CEOs when making high-risk decisions under conditions of uncertainty related to innovation. Direct gender bias with regards to access to innovation grants could not be assumed. This study offers important policy implications and explains how firms in new industries can increase their likelihood of accessing a grant and how CEO gender can moderate the relationship between availability of internal and external funding and securing a new grant.
Social implications
This study implicates and empirically demonstrates that gender bias does not apply in fundraising for innovation in new industries. As female CEOs represent various firms in different sectors, this may be an important signal for investors in new product development and innovation policies targeting gender bias and inclusion.
Originality/value
The authors draw on female entrepreneurship and feminist literature to demonstrate how various sources of financing and gender change the likelihood of grant funding in both the short and long run. This is the first empirical study which aims to explain how various internal and external sources of finance change the propensity of securing an innovation grant in new industries.
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Marvelous Kadzima, Michael Machokoto and Edward Chamisa
This study empirically examines the nonlinear effects of mimicking peer firms' cash holdings on shareholder value, with consideration of macroeconomic conditions.
Abstract
Purpose
This study empirically examines the nonlinear effects of mimicking peer firms' cash holdings on shareholder value, with consideration of macroeconomic conditions.
Design/methodology/approach
An instrumental variable approach for nonlinear models is estimated for a large sample of US firms over the period 1991–2019. This approach addresses the reflection problem in examining peer effects, whereby it is impossible to separate the individual's effects on the group, or vice versa, if both are simultaneously determined.
Findings
The authors find an inverted U-shaped association between shareholder value and mimicking intensity of peer firms' cash holdings. This result suggests that mimicking peer firms' cash holdings is subject to diminishing returns. It is more beneficial at lower levels of mimicking intensity but less so or suboptimal at higher levels. Further evidence indicates that this inverted U-shaped shareholder value-mimicking intensity nexus is asymmetric. Specifically, it is salient for decreases relative to increases in cash holdings and, more importantly, in good relative to bad macroeconomic states. The findings are robust to several concerns and have important implications for liquidity management policies.
Originality/value
The authors provide new empirical evidence of the nonlinear effects of mimicking peer firms' cash holdings on shareholder value, which varies with macroeconomic conditions.
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Xiyue Zheng, Fusheng Wang, Shiyu Liu, Han Wang and Dongchao Zhang
This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies…
Abstract
Purpose
This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies during the period spanning 2010–2019. The data pertaining to these companies was used as a research sample to analyze the effects of OFDI on radical innovation performance.
Design/methodology/approach
Hierarchical regression analysis was used to test the proposed models, using survey data collected from 442 high-tech companies in China.
Findings
The findings of this study indicate a curvilinear (i.e. U-shaped) relationship between the breadth/depth of OFDI and radical innovation performance. Additional analysis reveals that OFDI plays a role in facilitating innovation breakthroughs by enhancing the internal dynamic capabilities of companies. Moreover, it is observed that a well-established institutional environment in the host country of investment can positively moderate the relationship between OFDI breadth/depth and radical innovation performance.
Originality/value
This study proffers a significant contribution to the understanding of the crucial role played by OFDI from emerging economy companies in enhancing radical innovation performance. Moreover, it offers theoretical guidance for multinational companies aiming to foster innovation breakthroughs.
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Eli Sumarliah, Tieke Li, Bailin Wang, Safeer Ullah Khan and Sher Zaman Khan
The paper examines the intent to adopt blockchain-facilitated Halal traceability (BFHT) scheme in Indonesian firms' Halal food supply chain (SC). This study integrates…
Abstract
Purpose
The paper examines the intent to adopt blockchain-facilitated Halal traceability (BFHT) scheme in Indonesian firms' Halal food supply chain (SC). This study integrates Halal-focused attitude, innovation diffusion and institutional theories to construct the model.
Design/methodology/approach
Data collection uses a simple random sampling method. Respondents are company leaders with experience and knowledge regarding Halal SC. The SEM-PLS approach was applied to test the hypothetical structure.
Findings
The intent to adopt BFHT is considerably affected by perceived attractiveness, as perceived attractiveness is considerably affected by institutional forces, which are significantly influenced by Halal-focused attitude. Firms that follow a completely Halal-focused attitude show higher awareness regarding institutional forces that motivate them to adopt a BFHT.
Originality/value
This research is among the initial works regarding Halal SCs that integrate Halal-focused attitude, innovation diffusion and institutional theories to recognise firms' intent to adopt a BFHT scheme.
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Gongtao Zhang and M.N. Ravishankar
Digital technologies create myriad innovation opportunities and have inspired the establishment of many new start-ups in recent years. Despite the growing knowledge on digital…
Abstract
Purpose
Digital technologies create myriad innovation opportunities and have inspired the establishment of many new start-ups in recent years. Despite the growing knowledge on digital entrepreneurship, few studies explore how start-ups exploit these opportunities to achieve entrepreneurial success. The purpose of this paper is to explore start-ups’ capabilities for successful delivery of digital artefacts in a cloud computing infrastructure.
Design/methodology/approach
Empirical data were collected during a qualitative case study of an established start-up in the Chinese market by interviewing 41 interviewees. Informed by the notion of dynamic capabilities and using the Gioia methodology, the case firm's life cycle was analysed in detail.
Findings
The study identifies start-ups’ ordinary and dynamic capabilities for successful development and delivery of digital services. The findings provide insights into a portfolio of start-ups’ capabilities, namely adaptation, networking, reengineering and refinement.
Originality/value
The study suggests that start-ups’ capabilities and underlying entrepreneurial actions determine the degree to which adoption of digital technologies create and transfer value to customers. The study offers specific insights into how start-ups successfully develop and deliver digital artefacts in a cloud infrastructure based on entrepreneurs' prior expertise, vision and accumulated experience.
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This paper aims to examine the relationship between employee dynamic capabilities (EDCs), innovative work behavior (IWB) and job performance (JP) among nurses in public hospitals…
Abstract
Purpose
This paper aims to examine the relationship between employee dynamic capabilities (EDCs), innovative work behavior (IWB) and job performance (JP) among nurses in public hospitals in Iraq. It also determines the mediating role of IWB in the relationship between EDC and JP.
Design/methodology/approach
This study uses structural equation modeling via partial least squares (PLS-SEM) and bootstrapping estimation to analyze the model. A total of 425 respondents participated in the survey, though only 372 participants completed all the items in the questionnaire. Hence, 372 responses were analyzed after data screening.
Findings
This study indicates that EDC has a positive correlation with IWB among nurses in public hospitals in Iraq. It also shows that IWB has a positive relationship with JP. It further demonstrates that IWB has a positive mediating effect on the relationship between EDC and JP among nurses in Iraq’s public hospitals.
Research limitations/implications
The implication of this study is that EDC can significantly predict IWB, while the latter is a significant predictor of JP among nurses in public hospitals in Iraq. Besides, the relationship between EDC and JP is significantly mediated by IWB. However, as a cross-sectional investigation showing a single snapshot in time, this study has some limitations in terms of establishing strict causality among the variables. Rather than extensive actual data, the findings are based on a log compiled by a key respondent. The findings are obtained from a survey conducted in one country, but certain variables, such as EDC, may have varying implications across different countries. Hence, future research can focus on a diverse range of countries, which could be used to ascertain the findings’ generalizability.
Originality/value
This study advances our understanding of the direct effect of the exploration and exploitation variables as well as the mediating effect of IWB in the relationship between EDC and JP among nurses in public hospitals in Iraq.
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Richard Ramsawak, Samuel Buertey, Greeni Maheshwari, Duy Dang and Chung Thanh Phan
This paper explores the relationship between board interlocks and firm outcomes by reviewing the most recent peer-reviewed articles examining this research theme.
Abstract
Purpose
This paper explores the relationship between board interlocks and firm outcomes by reviewing the most recent peer-reviewed articles examining this research theme.
Design/methodology/approach
A systematic and bibliometric methodology of assessing 369 peer-reviewed articles from the Web of Science (WoS) database was applied. The study also leverages key R-packages litsearchr and Bibliometrix software to enhance the descriptive and thematic literature analysis to identify gaps and opportunities for new research.
Findings
This study confirms a rapid increase in articles on this thematic area, over the last decade, with increasing collaboration occurring among researchers in the United States, Europe, China, South Korea and India. Four core research clusters are identified. The first and largest cluster links interlocked directors to issues related to corporate governance and firm outcomes. The second cluster links social network theory, interlocking directorates and firm outcomes. Smaller emerging research clusters include topics related to ownership structure, board size, political connectedness and impacts on firm outcomes. The final cluster examines the influence of board interlocks on market value and firm innovation.
Practical implications
Interlocked directors can have both positive and negative impacts on a wide variety of firm outcomes. This study places great interest in the selection of new directors, ensuring that the selection has aligned with the needs and interests of the company and disclosures of potential competing interests are declared and considered. Equally important are the governance practices used to monitor directors' behavior and to protect the interest of shareholders and the firm. This is particularly relevant in the internal appointment of interlocked directors to critical positions, such as audit committees or instances where interlocked directors may simultaneously hold CEO or executive leadership positions in other companies.
Originality/value
This paper examines the board interlocks literature related to firm outcomes. Additionally, this review identifies several topics and disciplines which, if pursued, could enrich the literature and promise new avenues for future research.
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Sayed Muhammad Fawad Sharif, Yang Naiding and Sayed Kifayat Shah
Collaborative projects require overlapping skills and capabilities to facilitate knowledge transfer. However, not all kinds of learning are virtuous and some may lead to leakage…
Abstract
Purpose
Collaborative projects require overlapping skills and capabilities to facilitate knowledge transfer. However, not all kinds of learning are virtuous and some may lead to leakage of commercially valuable knowledge. The purpose of this paper is to explain and restrain leakage of organizational competitive knowledge in collaborative projects.
Design/methodology/approach
A total of 398 survey questionnaires are collected from project-based firms in Pakistan. We gathered data from horizontal and vertical collaborations. Analysis is conducted with transaction cost economics lens through Process Macro 3.0.
Findings
Findings suggest that partner’s learning intent (PLI) and distrust positively affect knowledge leakage, whereas human resource management (HRM) practices have negative effect on knowledge leakage. Furthermore, HRM practices negatively moderate the relationship between PLI and knowledge leakage and distrust positively mediates it.
Research limitations/implications
This study integrates HRM with knowledge management to restrain knowledge leakage and contributes to knowledge management and strategic management. This study examines knowledge leakage in the presence of passive opportunism.
Originality/value
This study explains how passive opportunism translates into opportunistic behavior. Besides, effectiveness of HRM practices are least surveyed to restrain passive and active opportunisms.
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Ahsan Nawaz and Francis Lanme Guribie
Social procurement (SP) is a complicated and risky innovation, the adoption of which needs to be accompanied by complementary process and organizational change. To date, however…
Abstract
Purpose
Social procurement (SP) is a complicated and risky innovation, the adoption of which needs to be accompanied by complementary process and organizational change. To date, however, there has been little empirical evidence explaining whether and how different sorts of external pressures affect the level of SP adoption in the construction sector. Drawing on institutional theory, this study aims to analyze how three types of isomorphic pressures (i.e. coercive, mimetic and normative pressures) influence the adoption of SP in the construction sector.
Design/methodology/approach
The impacts of these pressures are empirically tested with survey data collected from 134 construction firms in the Chinese construction industry.
Findings
The findings show that both coercive and mimetic pressures have a considerable impact on the adoption of SP. However, there is little evidence in this study that normative demands had a major impact on SP.
Practical implications
This research is a useful instrument for promoting a favorable social attitude regarding construction procurement. Through socioeconomic regeneration and development, procurement can be considered as a significant route for social transformation, economic development and poverty reduction.
Originality/value
This study addresses the paucity of research into SP in the construction industry by establishing the institutional drivers to procuring services and products from a social enterprise perspective. Findings from this study extend the frontiers of existing knowledge on SP in the construction industry.
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This study aims to explore whether top management team (TMT) faultlines affect corporate digitalization and what the impact mechanism is, thus effectively promoting the digital…
Abstract
Purpose
This study aims to explore whether top management team (TMT) faultlines affect corporate digitalization and what the impact mechanism is, thus effectively promoting the digital transformation of enterprises from the perspective of optimizing TMT structure.
Design/methodology/approach
This study sampled companies that were listed in China between 2011 and 2020. Using the two-way fixed effect model, it empirically tests the impact of TMT faultlines on the digital transformation of enterprises.
Findings
TMT task-related faultline significantly positively impacts enterprise digital transformation, while the bio-demographic faultline has a significant negative effect. The regulatory role played by Chief Executive Officer (CEO) power intensity in the relationship between the bio-demographic faultline and digital transformation is a negative one. The above relationship is strongly influenced by industry technical sophistication, corporate location and listing board.
Research limitations/implications
The research has promoted the development of the upper echelons theory in the context of digitalization. Moreover, it enlightens the research of digital transformation’s influencing factors and mechanisms. However, no suitable mediating variable was found.
Practical implications
This research has significant implications for managers to optimize the internal structure of the TMT according to different enterprises’ business strategies in order to establish an efficient management team.
Originality/value
This study provides a new theoretical framework for TMT’s role in enterprise digital transformation. Further, it makes a beneficial exploration of the boundary and situational conditions of their relationship.
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