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Open Access
Article
Publication date: 28 August 2019

Andres Dominguez

This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not comply with…

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Abstract

Purpose

This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not comply with official regulations. This issue is relevant because, similar to other developing countries, the informal sector in Colombia employs more than 50 per cent of the workforce. The results of this study demonstrate that one standard deviation increase in agglomeration reduces by 52 per cent the probability of being informal. Results are consistent with the idea that informal firms benefit less from agglomeration because of legal restrictions that block the relationship with formal firms.

Design/methodology/approach

The objective of the present paper is to estimate the effect of agglomeration on the probability that a firm – given a location – chooses to be informal. The authors deal with endogeneity issues by using soil information related to earthquake risk, which reduces the height of buildings and therefore increases the cost of agglomeration. The analysis focuses on Cali, Colombia, where the informal sector employs 60 per cent of the workforce. The registration of economic activities is used as a criterion to identify informal firms, in such a way that the percentage of informal firms is 42 per cent.

Findings

The authors find that the effect of agglomeration is strongly negative. The probability of being informal diminishes by 52 per cent when agglomeration increases by one standard deviation. Results in this paper shed light on how formal firms tend to be localized in high-density commercial and industrial areas, while informal firms are localized in low-density and peripheral areas where the land for production is cheaper and where they can avoid the control of authorities.

Originality/value

Theory argues that spatial production externalities and commuting costs are among the main forces that shape the city’s internal structure. Externalities include effects that increase firms’ production, and therefore workers’ income, when the size of the local economy grows. The authors now have strong evidence that firms’ productivity is positively related with the volume of nearby employment. Most of the empirical findings concern firms in the formal sector and, accordingly, the literature says little about the effect of agglomeration on informal firms’ location. However, this effect is crucial for developing countries where informal work is the main option for less-educated workers facing unemployment.

Details

Applied Economic Analysis, vol. 27 no. 80
Type: Research Article
ISSN:

Keywords

Open Access
Article
Publication date: 10 November 2023

Maria Mouratidou, Mirit K. Grabarski and William E. Donald

The purpose of this study is to empirically test the intelligent career framework in a public sector setting in a country with a clientelistic culture to inform human resource…

Abstract

Purpose

The purpose of this study is to empirically test the intelligent career framework in a public sector setting in a country with a clientelistic culture to inform human resource management strategies.

Design/methodology/approach

Based on a qualitative methodology and an interpretivist paradigm, 33 in-depth interviews were conducted with Greek civil servants before the COVID-19 pandemic. The interview recordings were subsequently transcribed and coded via a blend of inductive and deductive approaches.

Findings

Outcomes of the study indicate that in a public sector setting in a country with a clientelistic culture, the three dimensions of knowing-whom, knowing-how and knowing-why are less balanced than those reported by findings from private sector settings in countries with an individualistic culture. Instead, knowing-whom is a critical dimension and a necessary condition for career development that affects knowing-how and knowing-why.

Originality/value

The theoretical contribution comes from providing evidence of the dark side of careers and how imbalances between the three dimensions of the intelligent career framework reduce work satisfaction, hinder career success and affect organisational performance. The practical contribution offers recommendations for human resource management practices in the public sector, including training, mentoring, transparency in performance evaluations and fostering trust.

Open Access
Article
Publication date: 19 December 2023

Narcís Bassols i Gardella, Christian Acevedo and Catalina Orjuela Martínez

This research finds out to what extent companies’ names are influenced by the place’s attributes versus the official branding policies of a place and, consequently, whether and…

Abstract

Purpose

This research finds out to what extent companies’ names are influenced by the place’s attributes versus the official branding policies of a place and, consequently, whether and how local companies “buy into” the place’s strategies put forth by official bodies.

Design/methodology/approach

This paper is both conceptual and empirical, as a mixed quantitative and interpretive approach is used. The companies’ names of a tourist industry (the tour and guiding companies) in three destinations are compared and pitched against the branding of these cities. The companies' names are classified into categories to ascertain whether they reflect (or diverge from) the official strategies. Finally, a conceptual model is developed to explain the findings: the strategic naming model (SNM).

Findings

Our main finding is that the overall business features of a place being stronger determinants to the naming strategies than tourist destination branding initiatives. The intrinsic features of a place seem thus to be “above” destination branding policies. The researched features account for different naming strategies, such as highly original names, flat names or non-strategic names.

Research limitations/implications

As the work is based on a convenience sample, it cannot claim strong representativity. The fact that each of the three data sets was processed by a different researcher might bring up personal biases.

Practical implications

This work is a call for a more intensive use of naming strategies to the companies’ advantages, as naming is found out to be strategy used to a very low degree. Thanks to this research, companies will understand the different naming possibilities and be able to apply them to their strategies by choosing names which express “uniqueness” or “belonging”. Practitioners will also be aware of whether they are communicating towards the industry or towards the market.

Originality/value

No works were found that empirically pursue our research goals. Therefore, this research might be considered as a novelty. The proposed SNM model explains and relates the most usual company naming techniques, which were unrelated up to date.

Details

Journal of Place Management and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8335

Keywords

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