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Open Access
Article
Publication date: 13 February 2024

Leonardo Nery Dos Santos, Hsia Hua Sheng and Adriana Bruscato Bortoluzzo

Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose…

Abstract

Purpose

Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose of this paper is to study this type of cost from institutional and regulatory perspectives. The authors argue that these costs decrease when the host country adopts concepts of international regulations that multinationals may be familiar with due to their own home country regulation experience. This prior regulatory experience gives foreign subsidiaries an advantage of foreignness (AoF), which can offset their liability of foreignness (LoF).

Design/methodology/approach

This study compared the returns on assets of 35 domestic firms with those of foreign subsidiaries in the Brazilian energy industry between 2002 and 2021, using regression dynamic panel data.

Findings

The existence of a relationship between the international regulatory norm and the Brazilian regulator has transformed the LoF into an advantage of foreignness to compete with local energy firms. The results also suggest that the better the regulatory quality of the subsidiary’s country of origin, the better its performance in Brazil, as it can reduce compliance costs. Finally, the greater the psychic distance between Brazil and the foreign subsidiary’s home country, the worse its performance.

Research limitations/implications

The research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017).

Practical implications

This research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017). The practical implication is that the relationship between conformity costs, capital budget calculation and strategic planning for internationalization will be related to the governance quality of the home country of multinationals. The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.

Social implications

The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.

Originality/value

This research discuss firm and local regulator tie is one of core competitiveness in host countries (Yang and Meyer, 2020). This study also complements the current institutional and regulatory foreignness studies in emerging economy (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022). Second, prior regulatory experience of multinational enterprise in similar environment can affect its foreign affiliate performance (Perkins, 2014). Third, this study confirms current literature that argues that knowledge and ability to operate in an institutionalized country can be transferred from parent to affiliate. In the end, this study investigates whether AoF persists when host governments improve the governance of their industries.

Details

RAUSP Management Journal, vol. 59 no. 1
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 5 April 2024

Lidia Kritskaya Lindelid and Sujith Nair

Wage employees enter self-employment either directly or in a staged manner and may subsequently undertake multiple stints at self-employment. Extant research on the relationship…

Abstract

Purpose

Wage employees enter self-employment either directly or in a staged manner and may subsequently undertake multiple stints at self-employment. Extant research on the relationship between entry modes and the persistence and outcomes of self-employment is inconclusive. This study investigates the relationship between wage employees’ initial mode of entry into self-employment and the duration of the subsequent first two stints of self-employment.

Design/methodology/approach

This study used a matched longitudinal sample of 9,550 employees who became majority owners of incorporated firms from 2005 to 2016.

Findings

The findings demonstrate that the initial mode of entry into self-employment matters for the first two stints at self-employment. Staged entry into self-employment was associated with a shorter first stint and became insignificant for the second stint. Staged entry into self-employment was positively related to the odds of becoming self-employed for the second time in the same firm.

Originality/value

Using a comprehensive and reliable dataset, the paper shifts focus from the aggregated onward journey of novice entrepreneurs (survival as the outcome) to the duration of their self-employment stints. By doing so, the paper offers insights into the process of becoming self-employed and the patterns associated with success/failure in entrepreneurship associated with self-employment duration.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 11
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 23 April 2024

R.G. Priyaadarshini and Lalatendu Kesari Jena

The paper aims to propose and validate a process-based model to enhance managerial effectiveness among micro, small and medium enterprises (MSMEs). It has been observed that…

Abstract

Purpose

The paper aims to propose and validate a process-based model to enhance managerial effectiveness among micro, small and medium enterprises (MSMEs). It has been observed that business uncertainties and inadequate financial resources that MSME entrepreneurs and managers face require them to constantly engage in strong self-awareness and self-regulating behavior to enhance the efficacy in their roles and, henceforth, their role performance effectiveness.

Design/methodology/approach

The approach for data collection was based on the clustering of MSMEs belonging to the clusters machine tool, pump manufacturing, foundry, textile and auto-component clusters in India. The respondents to the study were MSME entrepreneurs and managers who oversee and manage multiple functions like operations, quality, marketing, sales, supply chain management, procurement, personnel and administration and general administration.

Findings

The self-efficacy of entrepreneurial managers of MSMEs is observed to play an integral role in enhancing the efficacy of their roles, thus highlighting the use of a process-based perspective while dealing with constant resource constraints and excessive dynamism in their business contexts. The ability to handle multiple tasks effectively and resilience to manage challenges enhances their role-making process, which is significant in achieving and sustaining goal-oriented behavior among MSME entrepreneurs and managers.

Practical implications

This paper would serve as an effective model for entrepreneurs and managers to enhance their efficacy in the individual and interdependent role context, which would help achieve their individual and organizational goals. The model emphasizes a process-based perspective that thrusts the need to relate to the organizational context, enhancing individual confidence for goal-related behavior and fulfilling their role-related expectations.

Originality/value

This paper presents a model of enhancing managerial effectiveness that discusses self-efficacy as antecedent behavior. Here, personal and environmental factors aid cognition to one’s capability to construct reality, self-regulate, encode information and engage in effective managerial action.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

Open Access
Article
Publication date: 16 January 2024

Candida Brush, Birgitte Wraae and Shahrokh Nikou

Despite the considerable increase in research on entrepreneurship education, few studies examine the role of entrepreneurship educators. Similarly, most frameworks from…

Abstract

Purpose

Despite the considerable increase in research on entrepreneurship education, few studies examine the role of entrepreneurship educators. Similarly, most frameworks from entrepreneurship education recognize the educator’s importance in facilitating instruction and assessment, but the factors influencing the educator role are not well understood. According to the identity theory, personal factors including self-efficacy, job satisfaction and personal values influence the perspective of self, significance and anticipations that an individual in this role associates with it, determining their planning and actions. The stronger the role identity the more likely entrepreneurship educators will be in effectively developing their entrepreneurial skills as well as the overall learning experience of their students. The objective of this study is to pinpoint the factors that affect entrepreneurial role identity.

Design/methodology/approach

Drawing upon the identity theory, this study developed a theoretical framework and carried out an empirical investigation involving a survey of 289 entrepreneurship educators across the globe. Structural equation modeling (SEM) technique was applied to analyze and explore the factors that impact the identity of the educators in their role as entrepreneurship teachers.

Findings

The findings show that the role identity of entrepreneurship educators is significantly influenced by their self-efficacy, job satisfaction and personal values. Among these factors, self-efficacy and job satisfaction have the most significant impacts on how educators perceive their role. The implications of these results and directions for future research are also discussed.

Originality/value

The novelty of the current study is derived from its conceptualization of the antecedents of role perception among entrepreneurship educators. This study stands out as one of the earliest attempts to investigate the factors that shape an individual’s scene of self and professional identity as an entrepreneurship educator. The significance of comprehending the antecedents of role perception lies in the insights it can offer into how educators undertake and execute their role, and consequently, their effectiveness in teaching entrepreneurship.

Details

Education + Training, vol. 66 no. 10
Type: Research Article
ISSN: 0040-0912

Keywords

Article
Publication date: 27 September 2023

Dolly Gaur, Kanishka Gupta and Abhinav Pal

To promote gender equality, world leaders at the UN came up with Sustainable Development Goal 5 (SDG5). It proposes to eliminate discrimination against women by providing them…

Abstract

Purpose

To promote gender equality, world leaders at the UN came up with Sustainable Development Goal 5 (SDG5). It proposes to eliminate discrimination against women by providing them with similar opportunities for reaching leadership positions. Hence, this study aims to examine the contribution made by women transformational leaders to their employees’ performance. The study seeks to emphasize the role played by female leaders in the on-job performance of employees and their mental well-being by encouraging intrinsic motivation among them.

Design/methodology/approach

For the purpose of data collection, a questionnaire was sent through Google Forms to the employees who had females as their superiors or in the decision-making position. Data from a final sample of 517 respondents was gathered, on which SEM was applied to analyze the direct impact of transformational women’s leadership on employee performance and the indirect impact through the mediation of intrinsic motivation.

Findings

The study found that by having feminine traits, women are stronger transformational leaders as they encourage individuals to be self-motivated instead of getting stimulated because of some external incentive. Also, such a leadership style ensures better work performance and mentally healthier employees. In addition, transformational women's leadership creates a better work environment by inspiring a teamwork culture instead of individualism.

Practical implications

The study has implications for not just researchers but other stakeholders as well. The study is useful for organizations as it directs them to hire and promote more women for leadership positions. Also, the results hint that people prefer working for women-led organizations as it will ensure a healthier work atmosphere.

Originality/value

There are many studies from earlier times related to transformational leadership. However, female leadership and the role it plays for employees have not gotten their fair share of attention. Thus, to the best of the authors’ knowledge, the present work is one of the very few where contributions made by women transformational leaders have been assessed.

Details

Journal of Global Responsibility, vol. 15 no. 2
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 1 December 2023

Rojalin Sahoo and Chandan Kumar Sahoo

The purpose of this research is to examine the relationship between employer and employees in a public power sector undertaking through the validation of CODE (compensation…

Abstract

Purpose

The purpose of this research is to examine the relationship between employer and employees in a public power sector undertaking through the validation of CODE (compensation, organizational justice, dispute resolution and employee empowerment) and PLE (workforce productivity, employee loyalty and employee engagement) model.

Design/methodology/approach

A hypothesized research model was developed and validated by using structural equation modeling (AMOS 20). In total, 303 responses were accumulated by administering a structured questionnaire among the employees of a state-owned power sector.

Findings

The results revealed that a harmonious climate of employee relations is prevailing in the public power utility. Additionally, the findings suggest that the CODE and PLE model of employee relations are found to be positive and significant by investigating the impact of compensation, organizational justice, dispute resolution and employee empowerment as the predictors; and workforce productivity, employee loyalty and employee engagement as the critical outcomes of employee relations.

Practical implications

The study recommends some plausible insights for practitioners, decision-makers and policy formulators to develop strategies and policies for nurturing congenial employee relations and also to cultivate a facilitative work environment for generating contented and competent manpower.

Originality/value

Validation of CODE and PLE model of employee relations in the new perspective of power sector undertaking is an epoch-making and novel contribution that offers significant empirical evidence to the extant literature. Moreover, the exploration of employer–employee relations in this context is a unique and innovative effort toward existing research.

Details

International Journal of Conflict Management, vol. 35 no. 3
Type: Research Article
ISSN: 1044-4068

Keywords

Article
Publication date: 5 September 2023

Yoo Na Youm, Jin Young Lee and Chong Kyoon Lee

Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to…

Abstract

Purpose

Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to examine what factors influence a firm’s decision in its scope of CSR. In exploring what factors influence CSR scope, the authors examine the relationship between a firm’s prosocial orientation and CSR and further examine its boundary conditions by the existence of CSR department.

Design/methodology/approach

This study uses a data set – the Social Value Survey – administered by the Center for Social Value Enhancement Studies based in the context of Korean firms. Based on 86 firm responses, statistical models were performed to test hypotheses.

Findings

The findings show that a firm’s prosocial orientation is positively associated with CSR scope. Further, this study shows that there is a negative moderating effect of the CSR department for the relationship between the prosocial orientation and CSR scope.

Originality/value

This study attempts to contribute to the extensive line of work on the antecedents of CSR by exploring the simultaneous existence of various drivers of CSR and the interplay between the drivers. And this study enhances the understanding on what factors influence the decision of CSR scope within a complex system of diverse stakeholder relationships. Additionally, this study has potentially shed light on the role of CSR departments to determine CSR scope.

Article
Publication date: 23 April 2024

Mengke Wang, Chen Qian, Ataullah Kiani and Guangyi Xu

Stewardship behavior is an important embodiment of the spirit of employee ownership, which is critical to the sustainability of companies, especially under the influence of the…

Abstract

Purpose

Stewardship behavior is an important embodiment of the spirit of employee ownership, which is critical to the sustainability of companies, especially under the influence of the COVID-19 epidemic. Most previous studies have focused on how to motivate employees’ stewardship behavior, but little is known about how stewardship behavior affects employees themselves. The purpose of this study is to explore how employee stewardship behavior affects their work-family interface based on the conservation of resources (COR) theory.

Design/methodology/approach

In this study, structural equation modeling was conducted using two-wave survey data from 323 employees through three internet companies in Southern China.

Findings

Results reveal that engaging in stewardship behavior is positively correlated with both positive emotion and emotional exhaustion. Positive emotion and emotional exhaustion, in turn, mediate the effects of stewardship behavior on work–home interface. Family motivation influences the strength of the relationships between positive emotion or emotional exhaustion and work–family interface, that is, high family motivation strengthens the positive association between positive emotion and work–family enrichment and weakens the positive association between emotional exhaustion and work–family conflict.

Practical implications

This study suggests that managers should give employees more support and care to ease the worries of engaging in stewardship behavior. Also, organizations should recruit employees with high family motivation, which can reduce the negative effects of stewardship behavior on work–-family interface.

Originality/value

Based on an actor’s perspective, this study examines both the positive and negative effects of stewardship behavior on employees themselves, thereby increasing understanding of the dual effect of stewardship behavior. In addition, this study further elucidates the mechanisms that moderate the positive and negative effects of individual family motivation on their engagement in stewardship behavior within the COR theory.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 16 April 2024

Yan Xu

The purpose of this paper is to investigate the relationship between tax avoidance and earnings persistence in the light of a developing economy, with the main focus on China.

Abstract

Purpose

The purpose of this paper is to investigate the relationship between tax avoidance and earnings persistence in the light of a developing economy, with the main focus on China.

Design/methodology/approach

In the analysis, the author conducts a survey on the tax avoidance situation of Chinese listed companies from 2012 to 2020. Then, a multivariate regression analysis is performed in order to analyse the relationship between corporate tax avoidance and earnings persistence.

Findings

The findings of the present study show that tax avoidance has a significant positive effect on earnings persistence. However, when the degree of tax avoidance is high, the “risk effect” of tax avoidance exceeds the “value effect”, and tax avoidance will reduce the persistence of earnings. This conclusion is even more prominent when the company is non-state-owned. Further research shows the increase of institutional investors’ shareholding ratio can improve “value effect” of tax avoidance, lessen “risk effect” of tax avoidance, and positively affect the relationship between tax avoidance and earnings persistence.

Practical implications

This study provides evidence for investors to understand the dual effect of tax avoidance on earnings persistence. The results may have implications for regulatory bodies. They can provide a better understanding of the corporate governance role of institutional investors in curbing opportunistic tax avoidance.

Originality/value

This study enriches the research on tax avoidance effects by analysing the impact of tax avoidance on earnings persistence. This study also compensates for the shortcomings of analysing earnings persistence mainly from the perspective of tax differences in the past, and promotes the study of the corporate governance effects of institutional investors under different levels of tax avoidance.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Book part
Publication date: 6 May 2024

Nousheen Tariq Bhutta, Anum Shafique, Muhammad Arsalan and Hifsa Hussain Raja

This study aims to test the mean and volatility spill over from the environmental, social, and governance (ESG) market to the stock markets of G7 countries. The study used…

Abstract

This study aims to test the mean and volatility spill over from the environmental, social, and governance (ESG) market to the stock markets of G7 countries. The study used ARMA-GARCH model to predict the results. The findings of the study reveal that as the spill over exists in the markets, however the mean volatility does not exist showing efficiency of the market as significant results depict that past prices cannot predict the future prices. It provides new insights for the international portfolio investors and policymakers by shedding light on how cross-markets correlate in two different markets.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

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