Search results

This study aims to investigate the impact of institutional fragility on the innovation investments of enterprises by analyzing the moderating effect of government subsidies and the integration of industry and finance.

Multiple regression analysis was used on 10,838 samples of 2,356 listed companies in China for the period 2007–2017, to empirically test the influence of institutional fragility on innovation investment. Moreover, Heckman’s two-stage approach was used for the robustness of the regression results.

The results show that the relationship between institutional fragility and innovation investment is an inverted U-shaped; government subsidies negatively moderate the relationship between institutional fragility and innovation investment, while the integration of industry and finance positively moderates them. Further analysis shows that the relationship between institutional fragility and innovation investment is more significant for high-tech enterprises. Similarly, the relationship between institutional fragility and innovation output also presents an inverted U-shape, which mainly affects enterprises’ breakthrough innovation output, but has no substantial impact on the incremental innovation output.

The conclusions provide new ideas for guiding the government’s reform, promoting the integration of industry and finance and promoting enterprise innovation.

Two types of institutional constraints, namely, institutional voids and policy uncertainty, have been recognised and elaborated, including their influence on new venture performance. However, not enough attention has been paid to the multidimensional attribute of institutional transformation. By hinting at a relatively underexplored third type of institutional constraints, i.e. institutional fragility, this paper aims to build a comprehensive framework of institutional constraints to analyse how innovative start-up performance is influenced by institutional constraints.

Using Chinese manufacturing firms as the empirical sample, the authors use an econometric method to test the relationship between institutional constraints and the performance of innovative start-ups.

On the basis of a uniquely constructed database from 2005 to 2007, the authors find that institutional constraints are negatively associated with innovative start-up performance proxied by return on assets, sales growth and new product sales.

The study offers researchers and practitioners a detailed view of institutional constraints and innovative start-up performance.

The purpose of this paper is to provide an analysis of the Institutional Framework and Governance in Latin America, which aims at detecting similarities or differences among the countries of the region.

The objective of the research will be achieved through the application of multivariate factor analysis and cluster analysis techniques.

The paper shows the importance of the institutional framework and governance for the countries of Latin America and demonstrates the heterogeneity in the areas of institutions and governance in the region. The paper also confirms the presence of differentiated groups of countries that can and should collaborate with each other to enhance the socio-economic development of the region in a globalized context.

Due to the limited Latin America countries example in this paper, the authors consider for future studies would be to enlarge the number of countries and to implement same study to Asian countries.

The main contribution of this study in practice is that by classifying countries into clusters with similarities and differences, this study allows politicians and the institutional leaders to redesign current and/or formulate new policies aimed at institutional quality and good governance. In addition, results of the study should be taken into account by institutions such as the International Monetary Fund or the World Bank when deciding on multilateral support or when taking financing decisions as the type of support and the conditions applied should be differentiated according to the cluster in question. Also, in the context of academic research, the clusters will allow comparative studies that can assess the impact of the institutional framework and other variables on indicators such as direct foreign investment, economic growth or sociological ones, such as poverty, the distribution of income, etc.

This paper provides the analysis of the Institutional Framework and Governance in Latin America under the multivariate analysis approach.

How does emerging market multinational enterprises’ (EM MNEs) resource vulnerability to domestic institutional weakness influence the escapist outward foreign direct investment (OFDI)? This study aims to focus on how varying qualities of technological resources make EM MNEs vulnerable to institutional weakness at home and when such a vulnerability triggers escapist OFDI.

A mix of primary and secondary data is used to study evidence of escapist OFDI in the case of multilatinas. Structural equation modelling and hierarchical regressions were applied to test the hypotheses.

Domestic institutional weakness triggers escapist OFDI only when EM MNEs’ resources are vulnerable to institutional pressures. Technological leadership increases the vulnerability of EM MNEs to the pressure of institutional weaknesses at home, which, in turn, motivates escapist OFDI.

In discussing the role of firm resources and their vulnerability to institutional weakness, a mechanism is proposed to shed light on how EM MNEs transform the general country framework of the institutional environment into the specific decision to escape via OFDI.

This chapter investigates the determinants of the growth performance of Africa. I start by illustrating a broader research agenda that accounts not only for basic economic and demographic factors but also for the role of history and institutional development. After reporting results from standard growth regressions, I analyze the role of Africa's peculiar history, which has been marked by its colonization experience. Next, I discuss the potential growth impact of state fragility, a concept that reflects multiple facets of the dysfunctions that plague the continent. The last topic I address is the influence, in and out of Africa, of the slave trades. The chapter ends with critical conclusions and suggestions for further research.

The aim of this paper is to empirically analyze the source of commonality in liquidity change in China's stock market.

This paper used two‐step test method in Coughenour and Saad and empirically tested the relationship between institutional investors' involuntary trading behaviors and commonality in liquidity change in China's stock market.

The results showed that to take the open‐end fund as a representative of institutional investors, their involuntary trading behaviors were an important source of commonality in liquidity change in China's stock market.

For a long time, the domestic researchers have ignored the study about the source of commonality in liquidity change in China's stock market. But, this study's conclusion expanded the explanation about the source of commonality in liquidity change in China's stock market from a new point of view that the demand‐side explanation. Because there is no market‐maker trading behaviors in China's stock market, the paper cannot explain the source of commonality in liquidity change in China's stock market from the point of view of the supply‐side explanation.

This study aims to explore the effect of the home country institutional environment on firms’ outward foreign direct investment (OFDI) and how it is affected by institutional environment differences across home country subregions. Drawing on transaction cost theory, this paper examined the relationship between the Belt and Road Initiative (BRI) and Chinese firms’ OFDI, as well as the moderating roles of local government officials’ career horizons and state ownership.

A sample of 5,018 Chinese firm-year observations with foreign investment activities was used over 11 years to estimate a panel-feasible generalized least square regression model.

The results show that the BRI improves Chinese firms’ OFDI in countries along the BRI route. Furthermore, this positive relationship is weaker for firms where provincial officials have longer career horizons and is stronger for state-owned enterprises (SOEs) compared to non-SOEs.

The findings confirm the positive effect of home country institutional environment on firms’ OFDI. Furthermore, the multiple government perspective offers new insight into the effects of the home country’s institutional environment on OFDI.

Management education trainers are increasingly called upon to train students to devise interventions for sustainable development in business settings. Due to the dominant reductionist paradigm, these interventions may lead to unwanted side effects. Teaching students about unacknowledged feedback loops in complex systems should prevent them from choosing “the most obvious” intervention without considering unwanted side effects.The current study aims to report the effects of teaching a systems perspective, applied to transport systems, on students’ opinions and expressed paradigms. The following questions are addressed: Do students adhere to the techno-centric paradigm, believing technology, innovation and growth can solve all types of threats for sustainable development, while neglecting low probability, high impact events? Are paradigms held by students coherent? Can teaching lead to a change in opinions and paradigms held by students?

Measures for several systems concepts (i.e. functional stupidity, paradigms and fragility) are taken across a wide sample of university students. Posttests of some key items are taken for a subsample that followed a sustainability and systems perspective in a course on transport economics.

A large share of students think that technology can solve different types of problems in sustainable development (a kind of weak sustainability), but their paradigms tend to be a mix of conflicting opinions. Though student opinions on topics that were explicitly treated in the course have changed, neither a wider paradigm shift nor significantly more coherent paradigms can be confirmed.

The results show that even though students can be taught about the unwanted side effects and limitations on specific techno-fix interventions, this does not automatically translate into a critical mind-set toward techno-fixing in general.

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.

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.

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.

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.

Building on resource dependence theory and the dynamic institution-based view, this paper examines the influence of government affiliations on firm product innovation in a dynamic institutional environment.

Using unique panel data of Chinese manufacturing firms covering a period of 12 years (1998–2009) with 2,564,547 firm-year observations, this study chooses the panel Tobit model with random effects to explore the influence of government affiliations on firm product innovation, followed by an analysis to test the moderation effects of dynamic institutional environments.

The study findings suggest that Chinese firms with higher-level government affiliations have a relatively high product innovation performance. It finds that this innovation stimulating effect is contingent on the dynamic nature of the institutional environment. To be specific, a high speed of institutional transition may depress the positive innovation effects of government affiliations, while a more synchronized transition speed of institutional components may enhance the positive innovation effects of firms' government affiliations.

This study adds to a better understanding of the drivers of product innovation in Chinese firms that are situated in environments that are characterized by institutional change, using and contributing to resource dependence theory and the dynamic institution-based view.