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The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.
Abstract
Purpose
The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.
Design/methodology/approach
The authors examine the research model through probit regression techniques to the 472,303-patent data across 16 industries derived from the United States Patent and Trademark Office.
Findings
The results suggest that international connectedness increases the accessibility of foreign knowledge and helps the accumulation of technological capability. Thus, this paper provides a better understanding that international connectedness can be critical for exploiting knowledge dispersed worldwide and influencing intra- and interindustry knowledge-sourcing behavior in the home country.
Originality/value
While prior studies have mainly paid attention to the relationship between parents and subsidiaries in foreign countries for international knowledge sourcing, the authors attempt to analyze international and local knowledge sourcing with a broader set of knowledge sourcing channels at an aggregate level. By considering an industry’s export intensity and inward foreign direct investment, this study reveals specifically how the extent of an industry’s international connectedness influences knowledge sourcing from both abroad and locally.
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Yot Amornkitvikai, Martin O'Brien and Ruttiya Bhula-or
The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing…
Abstract
Purpose
The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing nonrenewable resource consumption and pollution. This study investigates the effect of green industrial practices on technical efficiency for Thai manufacturers.
Design/methodology/approach
The study uses stochastic frontier analysis (SFA) to estimate the stochastic frontier production function (SFPF) and inefficiency effects model, as pioneered by Battese and Coelli (1995).
Findings
This study shows that, on average, Thai manufacturing firms have experienced declining returns-to-scale production and relatively low technical efficiency. However, it is estimated that Thai manufacturing firms with a green commitment obtained the highest technical efficiency, followed by those with green activity, green systems and green culture levels, compared to those without any commitment to green manufacturing practices. Finally, internationalization and skill development can significantly improve technical efficiency.
Practical implications
Green industry policy mixes will be vital for driving structural reforms toward a more environmentally friendly and sustainable economic system. Furthermore, circular economy processes can promote firms' production efficiency and resource use.
Originality/value
To the best of the authors' knowledge, this study is the first to investigate the effect of green industry practices on the technical efficiency of Thai manufacturing enterprises. This study also encompasses analyses of the roles of internationalization, innovation and skill development.
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Aaron van Klyton, Mary-Paz Arrieta-Paredes, Vedaste Byombi Kamasa and Said Rutabayiro-Ngoga
The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The…
Abstract
Purpose
The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The objectives of this study are (1) to discern between regional and global exporting and (2) to evaluate its policymaking implications.
Design/methodology/approach
Primary survey data were collected from 330 Rwandan SMEs and were analysed using ordered logistic models as an application of the expectation-maximisation iterating algorithm, which was tested for robustness using a sampling model variation.
Findings
The results show that alternative sources of finance are the predominant choice to finance the intention to export within and outside Africa. As the scope of export intentions broadened from regional to global, there was a shift in preferences from less formal to more formal lending technologies, moving from methods like factoring to lines of credit. Moreover, reliance on bank officers became more significant, with increasing marginal effects. Finally, the study determined that government financing schemes were not relevant for SMEs pursuing either regional or global exporting.
Practical implications
Whilst alternative sources of finance predominate the export intentions of Rwandan SMEs, establishing a robust banking relationship becomes crucial for global exporting. Despite this implication, the intention to export should prompt more transparent communication regarding government financial support programmes. There is an opportunity for increased usage of relationship lending to customise support for SMEs involved in exporting, benefiting both the private and public sectors.
Originality/value
This study accentuates how export distance alters SME financing priorities. The results also contribute to understanding how the value of relationship lending changes when less familiar markets (i.e. global exporting) are the objective. Moreover, the study offers a new perspective on how institutional voids affect entrepreneurial financing decisions in LICs.
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Several empirical studies indicate that the existence of a large informal sector is a major obstacle to firms’ choices of innovation strategies. This paper aims to address this…
Abstract
Purpose
Several empirical studies indicate that the existence of a large informal sector is a major obstacle to firms’ choices of innovation strategies. This paper aims to address this issue and investigates the effect of the informal sector on the innovation of formal firms in Greece.
Design/methodology/approach
Using the World Bank’s Enterprise Survey data, the impact of informal competition on formal firms’ innovation in Greece is investigated by testing whether formal firms use innovation as a tool to protect and sustain their competitive advantage vis-à-vis informal firms and whether overall and informal competition has an inverted-U relationship with the innovation of formal firms. The effects of bribing and other variables drawn from the empirical literature are also controlled for.
Findings
The findings fill a gap in the literature regarding the effects of the informal sector on formal economic activity in Greece, by indicating that the informal sector puts pressure on formal firms to innovate, in order to differentiate their product or service and enhance their productivity and by offering learnings to help policymakers to promote innovation in Greece.
Originality/value
The originality of this study is that it investigates the impact of informal competition on formal firms’ innovation in Greece, a developed economy with a large informal sector. It does so by focusing on the effects that formal firms’ informal practices have on their competitors’ innovation activities, and the role of informal competition in creating and sustaining a competitive advantage in Greece.
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Emir Malikov, Shunan Zhao and Jingfang Zhang
There is growing empirical evidence that firm heterogeneity is technologically non-neutral. This chapter extends the Gandhi, Navarro, and Rivers (2020) proxy variable framework…
Abstract
There is growing empirical evidence that firm heterogeneity is technologically non-neutral. This chapter extends the Gandhi, Navarro, and Rivers (2020) proxy variable framework for structurally identifying production functions to a more general case when latent firm productivity is multi-dimensional, with both factor-neutral and (biased) factor-augmenting components. Unlike alternative methodologies, the proposed model can be identified under weaker data requirements, notably, without relying on the typically unavailable cross-sectional variation in input prices for instrumentation. When markets are perfectly competitive, point identification is achieved by leveraging the information contained in static optimality conditions, effectively adopting a system-of-equations approach. It is also shown how one can partially identify the non-neutral production technology in the traditional proxy variable framework when firms have market power.
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Nadia Albis Salas, Isabel Alvarez and John Cantwell
This paper explains the mechanisms underlying the generation of two-way knowledge spillovers through the interaction of subsidiaries with differentiated local responsibilities and…
Abstract
Purpose
This paper explains the mechanisms underlying the generation of two-way knowledge spillovers through the interaction of subsidiaries with differentiated local responsibilities and domestic firms.
Design/methodology/approach
The study is based on firm-level panel data from a census of Colombian manufacturing firms for the period 2003–2012. The estimation procedure involves two stages. In the first one, total factor productivity (TFP) of foreign and domestic firms is estimated. In a second step, we estimate conventional spillovers (from foreign-owned to local firms) and reverse spillovers (from local to foreign-owned firms) separately, using a random effect approach.
Findings
This study’s findings reveal that only locally creative subsidiaries enjoy positive and significant two-way knowledge spillover effects. The connectivity of subsidiaries to local and international networks is reinforced by reciprocal relationships among actors that enhance bidirectional knowledge flows, these being favored by the dynamics of clustering effects.
Originality/value
The paper contributes with new empirical evidence about the mechanism explaining how the technological heterogeneity of subsidiaries plays a determinant role in the generation of both knowledge flows from foreign to domestic firms and to the reverse, all integrated into the same framework.
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This study aims to identify the updated areas in family business innovation (FBI) and propose a future research agenda for scholars in the domain.
Abstract
Purpose
This study aims to identify the updated areas in family business innovation (FBI) and propose a future research agenda for scholars in the domain.
Design/methodology/approach
Using VOSviewer and Bibliometrix-R, this study conducts a bibliometric analysis on 699 Scopus-indexed journal articles/reviews to analyse FBI’s performance and intellectual structure.
Findings
This study provides up-to-date assessment through performance analysis. Through the co-citation, co-word and thematic evolution analysis, this study unpacks FBI themes/topics to propose possible future avenues.
Practical implications
The findings provide insights into resilient innovation-driven family businesses to enlighten the next generation of family business leaders with essential innovation knowledge for sustainable growth.
Originality/value
This study complements past FBI reviews by offering renewed perspectives that future research can focus on, in turn, enhancing literature on contemporary, relevant topical issues in the FBI post-COVID-19 pandemic.
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This study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.
Abstract
Purpose
This study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.
Design/methodology/approach
The study sample comprised 96 small and medium-sized exporting enterprises (SMEs) in Vietnam. The data is analysed using multiple regression analysis (MRA), Hayes' process model and fuzzy-set qualitative comparative analysis (fsQCA).
Findings
The results indicate that GD significantly negatively affects EP. In this dilemma, the export market orientation (EMO) and digital transformation positively moderated the relationship between GD and EP, such that the negative effect of GD on EP was weaker when EMO and digital were stronger.
Originality/value
This initial study contributes significantly to international business theories and practices, which reveal the role of GD via firm digital capacity and EMO in thriving SMEs’ EP. This study might grant new insight into international business and a critical approach to addressing the new insights small firms may face in a fragile but technologically advanced world.
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Francesco Aiello, Paola Cardamone, Lidia Mannarino and Valeria Pupo
The purpose of this study is to investigate whether and how inter-firm cooperation and firm age moderate the relationship between family ownership and productivity.
Abstract
Purpose
The purpose of this study is to investigate whether and how inter-firm cooperation and firm age moderate the relationship between family ownership and productivity.
Design/methodology/approach
We first estimate the total factor productivity (TFP) of a large sample of Italian firms observed over the period 2010–2018 and then apply a Poisson random effects model.
Findings
TFP is, on average, higher for non-family firms (non-FFs) than for FF. Furthermore, inter-organizational cooperation and firm age mitigate the negative effect of family ownership. In detail, it is found that belonging to a network acts as a moderator in different ways according to firm age. Indeed, young FFs underperform non-FF peers, although the TFP gap decreases with age. In contrast, the benefits of a formal network are high for older FFs, suggesting that an age-related learning process is at work.
Practical implications
The study provides evidence that FFs can outperform non-FFs when they move away from Socio-Emotional Wealth-centered reference points and exploit knowledge flows arising from high levels of social capital. In the case of mature FFs, networking is a driver of TFP, allowing them to acquire external resources. Since FFs often do not have sufficient in-house knowledge and resources, they must be aware of the value of business cooperation. While preserving the familiar identity of small companies, networks grant FFs the competitive and scale advantages of being large.
Originality/value
Despite the wide but ambiguous body of research on the performance gap between FFs and non-FFs, little is known about the role of FFs’ heterogeneity. This study has proven successful in detecting age as a factor in heterogeneity, specifically to explain the network effect on the link between ownership and TFP. Based on a representative sample, the study provides a solid framework for FFs, policymakers and academic research on family-owned companies.
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Anh Tuyet Nguyen, Vu Hiep Hoang, Phuong Thao Le, Thi Thanh Huyen Nguyen and Thi Thanh Van Pham
This study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A…
Abstract
Purpose
This study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication.
Design/methodology/approach
This study adopted the Cobb–Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley–Pakes and the Levinsohn–Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019.
Findings
The results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels.
Research limitations/implications
This study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage.
Practical implications
The study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts.
Originality/value
This study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0373
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