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Open Access
Article
Publication date: 13 March 2024

Keanu Telles

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…

Abstract

Purpose

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

Design/methodology/approach

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

Findings

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

Originality/value

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Open Access
Article
Publication date: 30 October 2023

Roger Schweizer, Katarina Lagerström, Emilene Leite and Cecilia Pahlberg

The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation…

Abstract

Purpose

The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation within the MNC. In contrast to the rather scarce previous research, the authors argue that HQ needs to solve the coopetition paradox under the sway of a parenting paradox. Hence, HQ faces a dual paradox.

Design/methodology/approach

Drawing on the literature on HQ’s role during MNCs’ innovation processes, this conceptual paper revisits the previously suggested HQ measures to enable coopetition among subsidiaries. By applying a sheer ignorance perspective, the authors contribute with a more nuanced understanding of the HQ’s role in innovation activities.

Findings

The article identifies four challenges as the HQ faces a parenting paradox that hinders its ability to solve the coopetition paradox: context specificity of subsidiaries’ innovation work, normative expectations of subsidiary managers, potential opportunistic behavior of HQ manager and HQ underestimation of needed resources. The article suggests that HQ needs to become more informed and preferably even embedded in the local innovation networks of its most important subsidiaries and that coopetition should not be managed solely on an HQ level.

Originality/value

Advocating a sheer ignorance perspective, the article pioneers in discussing the role that HQ plays in managing coopetition among subsidiaries in innovation activities.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 21 December 2023

Thanh Dat Le and Nguyen Nguyen

This study examines the effect of stable institutional investors on firms' product quality failures. Furthermore, the authors investigate the channels through which institutional…

Abstract

Purpose

This study examines the effect of stable institutional investors on firms' product quality failures. Furthermore, the authors investigate the channels through which institutional ownership stability enhances product quality management.

Design/methodology/approach

This study uses probit, ordered probit and negative binomial regression frameworks to investigate the research questions. In addition, the authors utilize the three-stage least-squares to address the endogeneity issues.

Findings

Using a sample of product recall incidents from 2012 to 2021, the authors find that firms with more stable institutional ownership have a lower probability, frequency and severity of recall incidents and adopt a proactive product recall strategy. Institutional investors with significant and persistent holdings improve quality management by reducing overinvestment and the use of option-linked and relative performance executive compensations. Furthermore, the influence of stable institutional owners on product quality failures is more pronounced in firms with low managerial ability and specialist CEOs. Lastly, the empirical evidence demonstrates that stable holdings by active investors have a more substantial impact on reducing product recalls than passive and other stable institutional holdings.

Originality/value

This study is the first to examine the impact of institutional ownership stability on firms' product recalls. The authors contribute to the literature on the benefits of stable institutional ownership on firm outcomes and the determinants of product quality failures.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 10 January 2024

Tony Yan and Michael R. Hyman

The purpose of this paper is to provide a critical historical analysis of the business (mis)behaviors and influencing factors that discourage enduring cooperation between…

Abstract

Purpose

The purpose of this paper is to provide a critical historical analysis of the business (mis)behaviors and influencing factors that discourage enduring cooperation between principals and agents, to introduce strategies that embrace the social values, economic motivation and institutional designs historically adopted to curtail dishonest acts in international business and to inform an improved principal–agent theory that reflects principal–agent reciprocity as shaped by social, political, cultural, economic, strategic and ideological forces

Design/methodology/approach

The critical historical research method is used to analyze Chinese compradors and the foreign companies they served in pre-1949 China.

Findings

Business practitioners can extend orthodox principal–agent theory by scrutinizing the complex interactions between local agents and foreign companies. Instead of agents pursuing their economic interests exclusively, as posited by principal–agent theory, they also may pursue principal-shared interests (as suggested by stewardship theory) because of social norms and cultural values that can affect business-related choices and the social bonds built between principals and agents.

Research limitations/implications

The behaviors of compradors and foreign companies in pre-1949 China suggest international business practices for shaping social bonds between principals and agents and foreign principals’ creative efforts to enhance shared interests with local agents.

Practical implications

Understanding principal–agent theory’s limitations can help international management scholars and practitioners mitigate transaction partners’ dishonest acts.

Originality/value

A critical historical analysis of intermediary businesspeople’s (mis)behavior in pre-1949 (1840–1949) China can inform the generalizability of principal–agent theory and contemporary business strategies for minimizing agents’ dishonest acts.

Details

Journal of Management History, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1751-1348

Keywords

Article
Publication date: 23 October 2023

Sharadendu Sharma and Rahul Arora

Participation in global value chains (GVCs) is increasingly related to the economic growth of any country. The conceivable beneficial impact of GVCs on economic growth differs…

Abstract

Purpose

Participation in global value chains (GVCs) is increasingly related to the economic growth of any country. The conceivable beneficial impact of GVCs on economic growth differs across countries and could be modified with the countries' domestic institutional arrangements. However, ignoring the complementarity between the components of institutional quality led to ignorance of the institutional imbalance present in the country. Hence, the primary purpose of this study is to examine the role of institutional imbalance as a moderating variable between GVC participation and economic growth from 2000 to 2018.

Design/methodology/approach

To address the issue of endogeneity among the variables in the model, the study employs the generalized methods of moments (GMM) as an econometric analysis method.

Findings

The study finds that well-functioning domestic institutions facilitate the positive impact of GVC participation on economic growth. Conversely, an increased institutional imbalance harms the relationship between GVC participation and economic growth. These findings emphasize a balanced portfolio of institutional components. It advocates the holistic development of each component to reap greater benefits for GVC participation for any country. The study highlights that the weakness in one of the components must be addressed rather than substituted by increasing the strength of another component.

Research limitations/implications

The policies should be framed to improve the weakest component first, followed by other components of institutional quality. Simultaneous reforms involving all the dimensions of institutional quality would smoothen the path of transforming GVCs trade to the country's economic development. Additionally, the high institutional imbalance can provide a bird's eye view to policymakers to work on specific aspects of institutional quality more rigorously.

Originality/value

The existing literature has used a combined measure of institutional quality as a mediator variable while measuring the impact of GVC participation on economic growth. While using a combined measure, it ignores the complementarity among its components. Assuming substitutability among various components may lead to an incorrect estimation. Using the arguments proposed by Bolen and Sobel (2020), the present study considers the existence of complementarity among various components of institutional quality. It calculates the institutional imbalance used as a moderating variable while estimating the impact of GVC participation on economic growth.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Open Access
Article
Publication date: 27 February 2024

Maria Pia Paganelli

Is there a secret recipe for economic growth?

Abstract

Purpose

Is there a secret recipe for economic growth?

Design/methodology/approach

No, there is no recipe, but we can extrapolate some pieces of advice from Adam Smith.

Findings

An economy can leave behind its “dull” stagnant state and grow when its markets expand, when the productivity of its workers increases thanks to high compensations, which are seen as incentives to work harder and when lobbying and cronyism are kept at bay. Luck plays a role too, but these three ingredients are necessary, even if not sufficient, for an economy to grow and thus be “cheerful.”

Originality/value

These three aspects – expansion of market, liberal compensation of workers and lobbying – especially combined, have often been underestimated in Smith’s understanding of the possible sources of economic growth.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 7 March 2023

Anke Aarninkhof-Kamphuis, Hans Voordijk and Geert Dewulf

Health care organizations’ decision-making for the future relies on anticipating changes. Reliable predictions are becoming increasingly difficult, creating anxiety and requires…

Abstract

Purpose

Health care organizations’ decision-making for the future relies on anticipating changes. Reliable predictions are becoming increasingly difficult, creating anxiety and requires long-term adaptive planning to cope with unforeseen circumstances. The purpose of this study is to gain insights into the awareness of uncertainties that decision makers in healthcare have, particularly when making long-term investments.

Design/methodology/approach

This is a qualitative study with an explorative purpose. The data were collected through semi-structured and open interviews with board members of long-term care organizations.

Findings

The study revealed that respondents are most uncertain about the future financing of their real estate system. Another concern revealed is about the shortage of care professionals combined with an increasing demand for future care. Despite most decision makers do recognize uncertainties during the decision-making process, decision makers hardly address the level of these uncertainties. Although this study did find that some decision makers are aware of deep uncertainties, in terms of “unknown unknowns,” they have no actual approaches for dealing with such situations.

Originality/value

Decision makers at healthcare organizations are uncertain as to their ability to anticipate technological, economic, social and political developments, as well as predict future healthcare system transformations. Some decision makers are aware of deep uncertainties, in terms of “unknown unknowns” and “unidentified unknowns,” but they lack an actual approach to deal with such situations. This study examines how strategies adapt to unforeseen developments or how to deal with deep uncertainties in healthcare as complex adaptive system.

Details

Journal of Facilities Management , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 10 November 2023

Vinay Kandpal

This qualitative study aims to examine bankers’ perspectives regarding financial inclusion, the challenges it faces and the scope for improvement. This research proposes a…

Abstract

Purpose

This qualitative study aims to examine bankers’ perspectives regarding financial inclusion, the challenges it faces and the scope for improvement. This research proposes a financial inclusion model, considering the inputs received by bankers. Financial exclusion of different sections is an issue common to emerging countries.

Design/methodology/approach

Data for qualitative research were collected through interviews with bank officials. The information was gathered from 32 bankers from India’s several zones (North, South, West and East). The data were collected from bankers from different public and private sector banks. Thematic analysis was performed up to the point of saturation to study the response received from bankers.

Findings

Bank-related issues such as frequent computer problems, network connectivity problems, costs, a shortage of bank branches, fewer transactions through automated teller machines and a shortage of banking staff affect customers’ confidence in formal banking. Banking services are disrupted by a lack of trust in banking correspondents (BCs), as they are not regular employees of banks. Limits on daily transactions discourage high-value customers from using BCs and kiosks. The time spent on administrative formalities impacts customers. Financial inclusion is affected by availability, accessibility, usage and affordability. Digital financial literacy is essential for ease of transaction, but awareness about financial products helps protect customers from cyber scams. The findings of this research would benefit financial institutions globally in developing their businesses and helping to achieve financial inclusion and the United Nation’s sustainable development goals (SDGs).

Originality/value

This research paper undertakes a qualitative analysis of the views collected from bankers. Bankers are crucial stakeholders in the successful implementation of the National Financial Inclusion Policy of the Government of India. Bankers’ perspectives will be important not only for India and its researchers but also in the global context, as the UN’s SDGs focus on leaving no one behind.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 29 December 2022

Nikhil Suryakant Ghag, Padmanav Acharya and Vivekanand Khanapuri

It is critical for small and medium-scale enterprises (SMEs) to review and monitor sustainability performance indicators across three dimensions: economic, environmental and…

Abstract

Purpose

It is critical for small and medium-scale enterprises (SMEs) to review and monitor sustainability performance indicators across three dimensions: economic, environmental and social to attain long-term competitiveness. SMEs lack a holistic perspective on sustainability; they are frequently hindered from contemplating environmentally favorable investments beyond what is legally needed. The purpose of this paper is to present a joint Decision-making trial and Evaluation Laboratory (DEMATEL) and NK methodology for developing a process model for introducing and implementing sustainable competitiveness practices for SMEs.

Design/methodology/approach

This study addresses the issue by adopting a sustainable competitiveness practices framework and applying a novel method that integrates DEMATEL and NK model for evaluating and developing the implementation path model for Indian manufacturing SMEs.

Findings

This paper also demonstrates that not only the relational practice itself but also the order in which the relational practices are implemented can be related to performance. According to the authors' preliminary findings, organizations in this study should first implement a social dimension, which includes sustainable leadership, knowledge sharing, etc., then an economic dimension like quality, sustainable innovations, etc., and finally environmental dimensions like green marketing, solid waste reduction, etc., with their management for competitiveness.

Research limitations/implications

These findings offer some preliminary information as well as advice for managers and policymakers looking to integrate sustainable efforts.

Practical implications

This study asserts that not only the interdependent practice but also the sequence of implementation is important and can relate to the performance. The path result shows that the organization develops first sustainable design and product development (economic), sustainable leadership (social) and solid waste reduction (environmental) practices.

Originality/value

There is no such study that develops a process model for introducing and implementing sustainable competitiveness of SMEs which assesses and analyzes the interdependencies across relational behaviors, to the best of authors’ knowledge. The novelty of this work lies in integrating DEMATEL-NK model approach.

Details

Journal of Global Operations and Strategic Sourcing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 12 December 2023

Mustafizur Rahman, Sifat Ajmeer Haque and Andrea Trianni

This study aims to recognize the significant barriers of small and medium-sized enterprises (SMEs) in Bangladesh, hindering the adoption of total quality management (TQM)…

Abstract

Purpose

This study aims to recognize the significant barriers of small and medium-sized enterprises (SMEs) in Bangladesh, hindering the adoption of total quality management (TQM). Additionally, this research intends to explore the interrelations among these barriers to develop essential managerial insights for promoting TQM implementation in SMEs.

Design/methodology/approach

The interpretive structural modeling (ISM) approach and Matrice d'impacts croisés multiplication appliquée á un classment (MICMAC) a cross-impact matrix multiplication applied to classification show the relationship among the barriers and classification of the barriers to TQM implementation respectively, and partial least squares structural equation modeling (PLS-SEM) is applied for ISM model validation.

Findings

This study examined previous literature and conducted interviews with professionals to identify 17 barriers. The study then develops and investigates a model that outlines the relationships and priorities among these barriers and categorizes them based on their impact and interdependence. This analysis can assist SMEs in implementing TQM during their operations successfully.

Practical implications

This research emphasizes the crucial obstacles that greatly affect other barriers and require immediate attention. Furthermore, this study provides valuable information for SMEs to effectively prioritize their resources and efforts to overcome these obstacles.

Originality/value

This study delves into the primary obstacles impeding the integration of TQM in SMEs through a novel approach. Additionally, this study constructs a verified contextual framework that depicts the hierarchies and interconnections among these barriers.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

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