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Article
Publication date: 13 March 2024

Keanu Telles

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…

Abstract

Purpose

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

Design/methodology/approach

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

Findings

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

Originality/value

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 12 January 2024

Adel Ali Al-Qadasi

Institutional investors are major shareholders in publicly traded firms and play crucial roles in the financial and governance aspects of these firms. Despite their importance…

Abstract

Purpose

Institutional investors are major shareholders in publicly traded firms and play crucial roles in the financial and governance aspects of these firms. Despite their importance, little is known about their role in internal auditing. This study aims to fill this gap by investigating the relationship between institutional investors’ ownership and investment in the internal audit function (IAF).

Design/methodology/approach

The study uses ordinary least squares regressions with two-way cluster-robust standard errors (firm and year) to estimate the relationship between institutional investors’ ownership and investment in IAF for Malaysian listed firms between 2009 and 2020.

Findings

The findings show that companies with higher levels of institutional ownership invest more in IAF, suggesting that institutional investors can effectively monitor managers due to their large holdings. Moreover, both transient and dedicated institutional investors are more likely to invest in IAF.

Originality/value

The results highlight the importance of institutional investors as a significant determinant of investment in IAF, which can aid regulators and managers in understanding the institutional investors’ role in governing and optimizing the efficient use of a firm’s resources. The findings also provide insight into institutional investors’ behavior regarding monitoring systems, which may inspire regulators and policymakers to consider increasing institutional investors’ participation to enhance governance structures.

Details

Managerial Auditing Journal, vol. 39 no. 2
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 20 June 2023

Fabrizio Errico, Antonio Messeni Petruzzelli, Umberto Panniello and Angelo Scialpi

This paper aims to explore the effects of two drivers, namely, the received fundings and its interaction with the specialized competences owned by the managerial board, on the R&D…

Abstract

Purpose

This paper aims to explore the effects of two drivers, namely, the received fundings and its interaction with the specialized competences owned by the managerial board, on the R&D activities performed by start-ups.

Design/methodology/approach

This paper tests hypotheses on a sample of 405 innovative start-ups established in Italy and registered into the Chamber of Commerce official database. This study uses the R&D expenses as a measure of the innovative performance of start-up, and the authors also collected the number and total amount of grants received by them and the presence of high qualified team in their management board.

Findings

The analysis reveals that both the number and total amount of grants received by start-ups positively impact the innovative performance. The same is for the integration of the total amount of grants with the presence of high qualified team in the management board.

Research limitations/implications

This study did not distinguish between different types of grants adopted by start-ups, while it would be interesting to study whether any difference does exist among them in terms of their influence on innovative performance. Also, this paper considers the total number of specialized people in the team while it would certainly be interesting to analyze people’s background and competences in relation to the innovative performances.

Practical implications

This paper allows us to offer some provisional conclusions such as having funds in the preliminary phase of start-up life cycle, and investments mainly for R&D expenses. The start-up must also leverage its skills and therefore it is necessary to invest in human capital.

Social implications

Findings suggest that policymakers should introduce integrated measures to support start-ups throughout the entire life cycle, from the creation of the idea to incubation up to industrial consolidation.

Originality/value

This paper focuses on the determinants of start-up innovative performance because both external (such as political, economic, social and technological) and internal (such as organizational) influencing factors have to be considered as crucial for start-ups innovation and growth. Finally, this study is one of the few attempts exploring the phenomenon by using an empirical methodology based on real and certificated data.

Details

Journal of Knowledge Management, vol. 28 no. 2
Type: Research Article
ISSN: 1367-3270

Keywords

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