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Open Access
Article
Publication date: 13 September 2021

Paulo Cesar Bontempo

The purpose of this study is to analyze how institutional governance and business environment affect countries’ competitiveness and their relative importance.

8326

Abstract

Purpose

The purpose of this study is to analyze how institutional governance and business environment affect countries’ competitiveness and their relative importance.

Design/methodology/approach

In this paper, the authors analyze how institutional governance and business environment affect countries’ competitiveness, their relative importance and what are the implications for Brazil. The authors have collected data from 131 countries related to the institutional governance, business environment and competitiveness of these countries. For the analysis of the mentioned influences, the technique of partial least squares structural equations modeling is used.

Findings

Results indicate that the main role in countries’ competitiveness is played by the quality of institutional governance. The quality of the business environment reinforces the positive effect of the quality of institutional governance on countries’ competitiveness (mediation effect). Brazil has poor governance quality indicators when compared to high-middle income countries, especially regarding government effectiveness, political stability and control of corruption.

Research limitations/implications

The study provides a better understanding of the relative importance of governance quality and business environment quality for countries’ competitiveness. One limitation of this study is that the research was restricted to data related to the year 2019.

Practical implications

For strategists and decision-makers, understanding these effects on countries’ competitiveness and their relative importance is fundamental to understanding what makes their companies internationally competitive.

Social implications

The presence and appreciation of institutional governance quality need to be cultivated in society.

Originality/value

Instead of using the original diamond model, which presents circular relationships, the authors have used the business environment construct, composed of elements of the diamond model to test the relationships between the quality of institutional governance, competitiveness and the business environment.

Details

RAUSP Management Journal, vol. 57 no. 1
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 24 June 2020

Oliver Nnamdi Okafor, Festus A. Adebisi, Michael Opara and Chidinma Blessing Okafor

This paper investigates the challenges and opportunities for the deployment of whistleblowing as an accountability mechanism to curb corruption and fraud in a developing country…

8470

Abstract

Purpose

This paper investigates the challenges and opportunities for the deployment of whistleblowing as an accountability mechanism to curb corruption and fraud in a developing country. Nigeria is the institutional setting for the study.

Design/methodology/approach

Adopting an institutional theory perspective and a survey protocol of urban residents in the country, the study presents evidence on the whistleblowing program introduced in 2016. Nigeria’s whistleblowing initiative targets all types of corruption, including corporate fraud.

Findings

This study finds that, even in the context of a developing country, whistleblowing is supported as an accountability mechanism, but the intervention lacks awareness, presents a high risk to whistleblowers and regulators, including the risk of physical elimination, and is fraught with institutional and operational challenges. In effect, awareness of whistleblowing laws, operational challenges and an institutional environment conducive to venality undermine the efficacy of whistleblowing in Nigeria.

Originality/value

The study presents a model of challenges and opportunities for whistleblowing in a developing democracy. The authors argue that the existence of a weak and complex institutional environment and the failure of program institutionalization explain those challenges and opportunities. The authors also argue that a culturally anchored and institutionalized whistleblowing program encourages positive civic behavior by incentivizing citizens to act as custodians of their resources, and it gives voice to the voiceless who have endured decades of severe hardship and loss of dignity due to corruption.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 6
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 18 November 2021

Michael Opara, Oliver Nnamdi Okafor, Akolisa Ufodike and Kenneth Kalu

This study adopts an institutional entrepreneurship perspective in the context of public–private partnerships (P3s) to highlight the role of social actors in enacting institutional

1403

Abstract

Purpose

This study adopts an institutional entrepreneurship perspective in the context of public–private partnerships (P3s) to highlight the role of social actors in enacting institutional change in a complex organizational setting. By studying the actions of two prominent social actors, the authors argue that successful institutional change is the result of dynamic managerial activity supported by political clout, organizational authority and the social positioning of actors.

Design/methodology/approach

The authors conducted a field-based case study in a complex institutional and organizational setting in Alberta, Canada. The authors employed an institutional entrepreneurship perspective to identify and analyze the activities of two allied actors motivated to transform the institutional environment for public infrastructure delivery.

Findings

The empirical study suggests that the implementation of institutional change is both individualistic and collaborative. Moreover, it is grounded in everyday organizational practices and activities and involves a coalition of allies invested in enacting lasting change in organizational practice(s), even when maintaining the status quo seems advantageous.

Originality/value

The authors critique the structural explanations that dominate the literature on public–private partnership implementation, which downplays the role of agency and minimizes its interplay with institutional logics in effecting institutional change. Rather, the authors demonstrate that, given the observed impact of social actors, public–private partnership adoption and implementation can be theorized as a social phenomenon.

Details

Accounting, Auditing & Accountability Journal, vol. 34 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 11 August 2020

Christian Falaster and Manuel Portugal Ferreira

Using an institution-based view, this study aims to conceptualize how sub-national institutional characteristics are likely to explain location choice of multinationals’ research…

2444

Abstract

Purpose

Using an institution-based view, this study aims to conceptualize how sub-national institutional characteristics are likely to explain location choice of multinationals’ research and development (R&D) subsidiaries.

Design/methodology/approach

In a conceptual paper, this study explores specific institutional facets of the regional environments within a country that are capable of explaining, at least in part, the location choices of multinational corporations’ R&D subsidiaries.

Findings

This study thus explores the more nuanced influences of the institutional environments at a subnational level and develops propositions to explain location choices based on the differences of the institutional environments.

Originality/value

This study contributes to international business theory by incorporating a location-specific analysis that contrasts to the usual country-level observation on the determinants of firms’ location decisions.

Details

Innovation & Management Review, vol. 17 no. 4
Type: Research Article
ISSN: 2515-8961

Keywords

Open Access
Article
Publication date: 9 June 2023

Maryam Khosravi, Mojtaba Amiri and Nezameddin Faghih

Transitional entrepreneurship in distressed economies is a fairly new concept with respect to new ventures in such challenging economic environments. Formal institutional voids…

Abstract

Purpose

Transitional entrepreneurship in distressed economies is a fairly new concept with respect to new ventures in such challenging economic environments. Formal institutional voids are sometimes held up as a reason for the difficulties present in distressed economies, along with exogenous shocks and other upheavals. In this research, the authors seek to contribute empirically and theoretically as to ways in which formal institutions voids can be filled by a culture developed by transitional entrepreneurs. Indeed, in transition economies, formal institutions need to be enhanced by informal institutions to control corruption and other misbehavior by authorities. Iranian economists emphasize these essential reforms to be able to manage current difficulties, yet top down policies cannot help transitional entrepreneurs benefit from the country’s value-adding cultural heritage to informally address this. To study this, qualitative research methods were used to interpret transitional entrepreneurs’ ideology and ethical routines as the ingredients of a commercial culture that can establish soft law that substitutes for formal institutions. This helps to reduce the disfunctionality of formal institutions in distressed economies.

Design/methodology/approach

A thematic analysis interviewing key Iranian entrepreneurs and economists is conducted. Also based on an interpretive paradigm, a hermeneutic cycle has been carried out on selected texts. Results have been verified throughout related literature as to come up with a solid synthesized interpreted outcome.

Findings

This paper contributes to theory from a new perspective by discussing transitional entrepreneurship and navigating a distressed economy; in which, ideology and ethics as the ingredients of soft law (Newman and Posner, 2018) are discussed as the base to further develop a commercial culture that fills voids of formal institutions. The formal–informal institutional cycle in distressed economies as the major difficulty entrepreneurs face (Peng and Luo, 2000) is important, because they try to increasingly enhance their move toward a market orientation (Bruton et al., 2008). The authors contribute as to how transitional entrepreneurs can complete this process of adaptation and also the fact that those informal institutions do actually respond to those adaptations. The other contribution is to enrich theories about institutions from the point of view of culture. Knowing these facts helps transitional entrepreneurs, because in distressed communities, formal institutions’ function has an important effect on economic performance (Amorós, 2009). This research’s contributions shed light to help government leaders understand the pros and cons of their actions forced on the industry. As it has been characterized in this research, it can turn in to new formal set of legitimacies (Ahlstrom et al., 2008) to root out corruption and help set the economy on a path to innovation and new venture creation.

Originality/value

Transitional entrepreneurs can depend on the less formal cultural-cognitive aspect of ethics and ideology. These entrepreneurs can be working on the burgeoning private sector, who want to connect with the outside effectively to overcome an economy in distress. Transitional entrepreneurs may face governmental institutional intermediaries as a barrier. Formal intermediaries tend to benefit from inefficiencies caused by hierarchal orders and will improve informality in order to overcome difficulties. In this research, institutional theory from the third pillar of the cultural-cognitive sheds light on transitional entrepreneurship in distressed economies, where inquiry is to fill voids of formal institutions as a process of possible linking between new generated soft law derived by beliefs, ideology and professional morality in order to influence (old) legitimacies. The research’s focus evolves on values transitional entrepreneurs utilize to build informal institutions and then impact further on formal institutions to handle distressed communities. This theoretical background expands on subsections to define conceptual building blocks for the study, essential aspects such as individuals as transitional entrepreneurs, the values they utilize to generate soft law, informal institutions and soft law, to manage voids in formal institutions and legitimacy building aspects in policy agenda setting for transitional entrepreneurship in distressed economies.

Details

New England Journal of Entrepreneurship, vol. 26 no. 2
Type: Research Article
ISSN: 2574-8904

Keywords

Open Access
Article
Publication date: 31 January 2020

Marilú Pereira Castro and Tomas Aquino Guimaraes

The purpose of this paper is to identify dimensions that can influence the innovation process in justice organizations.

2244

Abstract

Purpose

The purpose of this paper is to identify dimensions that can influence the innovation process in justice organizations.

Design/methodology/approach

This study uses a qualitative approach. Data were collected through a semi-structured interview script. In all, 23 in-depth interviews were undertaken with lawyers, public defenders, judges, prosecutors and public officials from the five regions of Brazil. These data were analyzed using content analysis techniques.

Findings

The perceptions of the interviewees show that the process of innovation in justice organizations can be influenced by five dimensions: Institutional Environment (institutional level), Leadership (organizational level), Organizational Resources (organizational level), Cooperative Relations (interorganizational level) and Innovative Behavior (individual level). These dimensions may promote or restrict innovation.

Originality/value

The results indicate that there are growing efforts to introduce innovations designed to improve the performance and service delivery of justice organizations. However, there is resistance to innovation because these organizations are highly institutionalized and consequently seek stability and absence of change.

Details

Innovation & Management Review, vol. 17 no. 2
Type: Research Article
ISSN: 2515-8961

Keywords

Open Access
Article
Publication date: 16 March 2022

Zheyao Pan, Guangli Zhang and Huixuan Zhang

The aim of this study is to investigate the impact of local political uncertainty on the asymmetric cost behavior (i.e. cost stickiness) for listed firms in China.

1327

Abstract

Purpose

The aim of this study is to investigate the impact of local political uncertainty on the asymmetric cost behavior (i.e. cost stickiness) for listed firms in China.

Design/methodology/approach

In this study, the authors manually collect the turnover data of prefecture-city officials as a measure of exogenous fluctuations in political uncertainty and obtain firm-level financial information from the China Stock Market Accounting Research (CSMAR) database. To perform the analysis, the authors augment the traditional cost stickiness model by including the interaction terms of the prefecture-city official turnover, and firm-level and prefecture-city level control variables.

Findings

The authors find that political turnover leads to a higher degree of cost stickiness, implying that firms retain slack resources when political uncertainty is high. Moreover, the effect of political turnover on cost stickiness is more pronounced for firms residing in regions with weaker institutional environments, and firms that are privately owned and with smaller size. The authors further provide evidence that policy uncertainty and the threat of losing political connection are two underlying channels. Overall, this study documents that the local political process is an important channel that influences corporate operational decisions.

Originality/value

This study provides the first piece of evidence on the relation between political uncertainty and cost stickiness at the local government level. Moreover, the authors propose and demonstrate two underlying channels through which political uncertainty affects firms' asymmetric cost behavior.

Details

China Accounting and Finance Review, vol. 24 no. 2
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 29 April 2021

Wilquer Silvano de Souza Ferreira, Gláucia Maria Vasconcellos Vale and Patrícia Bernardes

The aim of this article is to test the hypothesis that peer-to-peer technology platforms (Uber) are associated with disruption in the institutional environment, affecting beliefs…

2144

Abstract

Purpose

The aim of this article is to test the hypothesis that peer-to-peer technology platforms (Uber) are associated with disruption in the institutional environment, affecting beliefs, norms and users' ways of thinking and acting.

Design/methodology/approach

Probability sample comprising 843 users (446 passengers; 397 drivers) in the city of Belo Horizonte, Brazil, using a set of indicators was specifically designed for this study.

Findings

Uber triggers significant changes in the systems of rewards and sanctions, in social preferences, and in entrepreneurial structure and governance, and promotes the coexistence of an institutional logic, hitherto dominant, with new believes, rules, norms and regulatory systems.

Originality/value

This is a pioneer study that associates institutional approach's elements with technology platforms; the authors also elaborated and utilized an analysis model consisting of a set of completely original indicators capable of mapping and measuring different dimensions of the phenomenon under analysis.

Details

Revista de Gestão, vol. 30 no. 2
Type: Research Article
ISSN: 1809-2276

Keywords

Open Access
Article
Publication date: 12 October 2021

Cintya Lanchimba, Hugo Porras, Yasmin Salazar and Josef Windsperger

Although previous research has examined the role of franchising for the economic development of countries, no empirical study to date has investigated the importance of…

4764

Abstract

Purpose

Although previous research has examined the role of franchising for the economic development of countries, no empirical study to date has investigated the importance of franchising for social, infrastructural, and institutional development. The authors address this research gap by applying research results from the field of sustainable entrepreneurship and highlight that franchising has a positive impact on economic, social, institutional and infrastructural development.

Design/methodology/approach

This study uses a fixed-effects model on a panel dataset for 2006–2015 from 49 countries to test the hypothesis that franchising positively influences various dimensions of country development such as economic social institutional and infrastructural development.

Findings

The findings highlight that franchising has a positive impact on the economic, social, infrastructural, and institutional development of a country. Specifically, the results show that the earlier and the more franchising systems enter a country, the stronger the positive impact of franchising on the country's economic, social, institutional, and infrastructural development.

Research limitations/implications

This study has several limitations that provide directions for further research. First, the empirical investigation is limited by the characteristics of the data, which are composed of information from 49 countries (covering a period of 10 years). Because franchising is not recognized as a form of entrepreneurial governance in many emerging and developing countries, the available information is mainly provided by the franchise associations in the various countries. Hence, there is a need to collect additional data in each country and to include additional countries. Second, although the authors included developed and developing countries in the analysis, the authors could not differentiate between developed and developing countries when testing the hypotheses, because the database was not sufficiently complete. Third, future studies should analyze the causality issue between franchising and development more closely. The role of franchising in development may be changing depending on different unobserved country factors, economic sector characteristics, or development stages.

Practical implications

What are the practical implications of this study for the role of franchising in the development of emerging and developing economies? Because public policy in emerging and developing countries suffers from a lack of financial resources to improve the social, infrastructural and institutional environment, entrepreneurs, such as franchisors who expand into these countries, play an important role for these countries' development. In addition to their entrepreneurial role of exploring and exploiting profit opportunities, they are social, institutional, and political entrepreneurs who may positively influence country development (Schaltegger and Wagner, 2011; Shepard and Patzelt, 2011). Specifically, the findings highlight that countries with an older franchise sector (more years of franchise experience) may realize first-mover advantages and hence larger positive spillover effects on their economic, social, institutional and infrastructural development than countries with a younger franchise sector. Hence, governments of emerging and developing countries have the opportunity and responsibility to reduce potential market entry barriers and provide additional incentives for franchise systems in order to trigger these positive spillover effects. The authors expect that the spillover effects from the franchise sector on the economic, institutional, social and infrastructural development of a country are stronger in emerging and developing countries than in developed countries.

Originality/value

Previous research has focused on the impact of franchising on the economic development of a country, such as its growth of gross domestic product (GDP), employment, business skills, innovation and technology transfer. This study extends the existing literature by going beyond the impact of franchising on economic development: the results show that franchising as an entrepreneurial activity offers opportunities for economic, social, institutional, and infrastructural development, all of which are particularly important for emerging and developing economies. The findings of this study contribute to the international franchise and development economics literature by offering a better understanding of the impact of franchising on country development.

Details

International Journal of Emerging Markets, vol. 19 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Content available
Article
Publication date: 21 February 2022

Anna Earl and Elizabeth Rose

Abstract

Details

Review of International Business and Strategy, vol. 32 no. 1
Type: Research Article
ISSN: 2059-6014

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