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1 – 10 of over 6000Salwa Bin Idrees, Syed Musa Alhabshi, Ashurov Sharofiddin and Anwar Hasan Abdullah Othman
The purpose of this study is to frame the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions as the main actors…
Abstract
Purpose
The purpose of this study is to frame the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions as the main actors in the organisational field. More precisely, Libyan commercial banks have been identified as empirical evidence, to identify constraints of the institutional environment governing the behaviour and decision-making of commercial banks, when adopting Islamic financial transactions.
Design/methodology/approach
A questionnaire has been designed for 14 Libyan commercial banks which is distributed to the Board of Directors, managers, directors of departments, and personnel. The exploratory factor analysis (EFA) and the measurement model by using the first-order and second-order confirmatory factor analysis (CFA) have been applied as essential steps to embody the conceptual framework and test the research hypotheses.
Findings
The results of the EFA indicated sufficient correlation among the dimensions of the external environment. The CFA supported this study’s hypotheses. The modelling showed that the cultural-cognitive, normative and regulative dimensions are institutional constraints impeding Libyan commercial banks’ adoption of Islamic financial transactions. Interestingly, the findings of the CFA align with the EFA findings in supporting the conceptual framework of the research. They portrayed that the cultural-cognitive dimension has been identified by explicit and implicit cognition.
Originality/value
This study systematically embodies the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions, as the main factors in the organisational field to be conceptually rich lenses to investigate social considerations to reinforce institutional thought broadly. The results of this study were consistent with extant Islamic financial literature, reflecting symmetry and similarity across commercial banks, particularly at the first stage of adopting Islamic financial transactions.
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Junying Liu, Zhixiu Wang, Jiansheng Tang and Jingcong Song
While there is a general belief that a defective institutional environment will lead to higher compliance risk, the current state of knowledge about how the institutional…
Abstract
Purpose
While there is a general belief that a defective institutional environment will lead to higher compliance risk, the current state of knowledge about how the institutional environment affects enterprises' compliance is equivocal. This study aims to explore how does the host country's institutional environment affect the compliance risk perception of international engineering contractors and how to mitigate this impact.
Design/methodology/approach
This study empirically tests the impact of the institutional environment from the two dimensions of the institutional environment: legal completeness reflects whether the formal regulations are clear, detailed and comprehensive and legal effectiveness reflects whether rules and policies can be implemented effectively when the proper legal codes are provided. Based on 213 questionnaire data, this study uses partial least squares structural equation model (PLS-SEM) and Smart PLS software to test the hypothesis.
Findings
This study finds a negative relationship between the host country's legal completeness (LC) or legal effectiveness (LE) and a contractor's compliance risk perception. Further, the results show potential absorptive capacity (PAC) and realized absorptive capacity (RAC) of a contractor are critical for mitigating the impact of low LC in the host country, but not when LE is low.
Practical implications
The findings will be useful for international engineering contractors to respond to the compliance risk of the host country, both in choices of overseas investment locations and compliance capacity building.
Originality/value
This study reveals the impact of the host country's institutional environment on the compliance risk perception of international contractors, and provides theoretical guidance for how to alleviate the compliance barriers brought by the host country's institutional environment to international engineering contractors.
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Factors of production (labour, land, capital), technology and technical progress are usually cited as the main sources of economic growth and development. However, there are a…
Abstract
Factors of production (labour, land, capital), technology and technical progress are usually cited as the main sources of economic growth and development. However, there are a number of other factors that have a significant impact on the possibilities and extent of their use or their further improvement and development. These factors undoubtedly include the institutional environment, within which corruption is also a consideration. In this chapter, attention will be focused on the various institutional variables that are used to assess the quality of a country's institutional environment, including corruption. A number of studies have shown that a quality institutional environment and low levels of corruption are prerequisites for long-term economic growth. Using an analysis of individual indicators of the Worldwide Governance Indicators (WGIs), published annually by the World Bank, supplemented by the Corruption Perception Index (published by Transparency International), we look at where Czechia has moved over the last decade or two in terms of institutional quality and corruption.
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The scaling of social initiatives is of immense importance for public innovation. A key factor in the scaling process is the institutional environment, which plays a key role in…
Abstract
Purpose
The scaling of social initiatives is of immense importance for public innovation. A key factor in the scaling process is the institutional environment, which plays a key role in supporting and coordinating the scaling process. This environment can be either homogeneous or heterogeneous, i.e. dominated by a few or a variety of public organizations, norms and practices. Both environments have advantages and challenges. However, the academic understanding of the influence of the institutional environment is limited, and a systematic empirical assessment of the relationship between the type of environment and scaling is lacking. The purpose of this paper is to explore the influence of homogeneous and heterogeneous environments on the scaling process of social initiatives.
Design/methodology/approach
A comparative qualitative study was conducted in the Dutch social sector, including 48 in-depth interviews with initiators and organizations operating in three different domains – a homogeneous, heterogeneous or mixed environment – in the public sector.
Findings
Homogeneous environments are less supportive of scaling social initiatives than heterogeneous environments, as sharing best practices and collaborating with less-familiar organizations is not common. Heterogeneous environments, however, do not provide coordination of the scaling process, with the risk that public funds are used less efficiently and effectively. Institutional environments with a balance of homogeneity and heterogeneity are best suited for scaling social initiatives.
Originality/value
By combining literature from different research areas and conducting extensive empirical research in different domains of the social sector, the authors' study provides a broad and nuanced picture and brings precision to the authors' understanding of the relationships between the institutional environment and scaling in the public sector.
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Ya’nan Zhang, Xuxu Li and Yiyi Su
This study aims to explore the extent to which Chinese multinational enterprises (MNEs) rely on supranational institution – the Belt and Road Initiative (BRI) – versus host…
Abstract
Purpose
This study aims to explore the extent to which Chinese multinational enterprises (MNEs) rely on supranational institution – the Belt and Road Initiative (BRI) – versus host country institutional quality to navigate their foreign location choice.
Design/methodology/approach
This study uses a conditional logit regression model using a sample of 1,302 greenfield investments by Chinese MNEs in 54 BRI participating countries during the period 2011–2018.
Findings
The results indicate that as a supranational institution, the BRI serves as a substitution mechanism to address the deficiencies in institutional quality in BRI participating countries, thereby attracting Chinese MNEs to invest in those countries. In addition, the BRI’s substitution effect on host country institutional quality is more pronounced for large MNEs, MNEs in the manufacturing industry and MNEs in inland regions.
Originality/value
This study expands the understanding of the BRI as a supranational institution for MNEs from emerging markets and reveals its substitution effect on the host country institutional quality. Furthermore, it highlights that MNEs with diverse characteristics gain varying degrees of benefits from the BRI.
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Meiting Ma, Xiaojie Wu and Xiuqiong Wang
There is consensus among scholars on how political institutional imprinting interprets the unique management and practice phenomenon of Chinese enterprises. However, little…
Abstract
Purpose
There is consensus among scholars on how political institutional imprinting interprets the unique management and practice phenomenon of Chinese enterprises. However, little scholarly attention has been given to the different political institutional imprints that shape firms’ internationalization. Therefore, this study aims to investigate how communist and market logic political institutional imprintings influence firms’ initial ownership strategies in outward foreign direct investment.
Design/methodology/approach
Based on the propensity score matching difference in difference method and a sample of 464 foreign investments from 2009 to 2020 for 310 Chinese private firms.
Findings
The results show that private firms with market logic political institutional imprintings tend to adopt higher ownership and vice versa. As institutional differences increase, private firms with market logic imprintings are more risk-taking and adopt higher ownership, whereas private firms with communist imprintings are more conservative and choose lower ownership. When diplomatic relations are friendlier, private firms with market logic imprintings prefer higher ownership to grasp business opportunities and vice versa.
Originality/value
This study not only identifies the net effect of political institutional imprinting on private firms’ initial ownership strategy but also investigates the different moderating effects of current institutional forces to respond to the call for research on bringing history back into international business research and the fit between imprinting and the environment.
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Jaemin Kim, Michael Greiner and Cynthia Miree
In competitive environments, explicitly seeking institutional changes to adopt a new technology, rather than exploiting current resources, can harm more than help organizations’…
Abstract
Purpose
In competitive environments, explicitly seeking institutional changes to adopt a new technology, rather than exploiting current resources, can harm more than help organizations’ efforts to achieve their performance goals. However, institutionally embedded organizations often respond to the introduction of industry disruptive technology in counterproductive ways. This paper aims to study the paradox of embedded agency in competitive environments and explore the diffusion of new occupations associated with data analytics.
Design/methodology/approach
This study uses the context of the Major League Baseball where the digital platform, PITCHf/x, implemented during 2006 and 2007 seasons facilitated the professional baseball clubs to create occupations for data analytics.
Findings
This study found that long-term low performance of organizations resulted in creating occupations for a new technology and deploying professionals to them and the public media’s negative tenor mediated the relationship between the signal of institutional inefficiency and such a boundary work in a competitive environment.
Originality/value
This research enriches our understanding of the early disperse of a new occupation in the times of the emergence of digital platform by exploring the temporal attributes of organizational performance and the role of public media as the antecedents to embedded agency.
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Organization studies in India has largely remained insular to the writings of Indian scholars in parent disciplines such as sociology. The lack of engagement with Indian…
Abstract
Purpose
Organization studies in India has largely remained insular to the writings of Indian scholars in parent disciplines such as sociology. The lack of engagement with Indian sociological works has promoted excessive dependence on Euro–American theory. It has further hindered the development of indigenous theories. This paper aims to argue that engagement with the writings of classical and contemporary Indian sociologists can resolve this issue.
Design/methodology/approach
The paper delineates the contribution of Indian sociologists to organizational or sociological institutionalism. It focuses specifically on the contribution of these scholars concerning two subtopics: conceptualization of institutions and fields, and the dynamics of institutional change.
Findings
The paper draws upon the work of Indian sociologists to develop a concept of ecological field. It further delves into the dynamic interplay between ideas and institutional change. More precisely, it draws attention to the role of actors and mechanisms that produce ideas.
Originality/value
Future studies can leverage the contribution of Indian scholars to explicate, elaborate and develop creative theories of organizational institutionalism. Such cumulative efforts can help in building an Indian tradition of organizational institutionalism.
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Yi-Chun Huang and Chih-Hsuan Huang
Prior research on green innovation has shown that institutional pressure stimulates enterprises to adopt green innovation. However, an institutional perspective does not explain…
Abstract
Purpose
Prior research on green innovation has shown that institutional pressure stimulates enterprises to adopt green innovation. However, an institutional perspective does not explain why firms that face the same amount of institutional pressure execute different environmental practices and innovations. To address this research gap, the authors linked institutional theory with upper echelons theory and organization performance to build a comprehensive research model.
Design/methodology/approach
A total of 800 questionnaires were issued. The final usable questionnaires were 195, yielding a response rate of 24.38%. AMOS 23.0 was used to analyze the data and examine the relationships between the constructs in our model.
Findings
Institutional pressures affected both green innovation adoption (GIA) and the top management team's (TMT's) response. TMT's response influenced GIA. GIA was an important factor affecting firm performance. Furthermore, TMT's response mediated the relationship between institutional pressure and GIA. Institutional pressures indirectly affected green innovation performance but did not influence economic performance through GIA. Finally, TMT's response indirectly impacted firm performance through GIA.
Originality/value
The authors draw on institutional theory, upper echelons theory, and a performance-oriented perspective to explore the antecedents and consequences of GIA. This study has interesting implications for leaders and managers looking to implement green innovation and leverage it for firm performance to out compete with market rivals as well as to make the changes in collaboration with many other companies including market rivals to gain success in green innovation.
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Yann Truong and Yosr Ben Tahar
Crises, such as COVID-19 pandemic, are critical events that provoke important changes in organizational practices, regulations and actors' roles. The pharmaceutical sector has…
Abstract
Purpose
Crises, such as COVID-19 pandemic, are critical events that provoke important changes in organizational practices, regulations and actors' roles. The pharmaceutical sector has been strongly affected because of the urgency to produce drugs that are effective and safe. However, the validation process and regulations are historically restrictive in this sector. This study aims to study how biotechnology firms, small companies lacking resources, have undertaken strategic actions during crisis time to induce important changes to their advantage within such a highly regulated environment.
Design/methodology/approach
Interviews were conducted with 21 managers in four mRNA-based biotechnology firms.
Findings
Results showed that rhetorical strategies and institutional actions are used in order to manage change opportunities. Media attention, greater openness of state agencies and public willingness to accept new ways of treatment illustrated this opportunity of change in favor of biotechnology firms.
Originality/value
Highly regulated environments tend to be unfavorable to smaller firms with limited resources to overcome these constraints. The authors show that times of crisis can reverse this assumption through the provision of new opportunities as long as the smaller firms skillfully use strategic actions to exploit the institutional changes at play.
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