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Article
Publication date: 20 March 2024

Duane Windsor

This study aims to help develop “business principles for stakeholder capitalism” in two steps. First, the study defines internal logic of three theories of capitalism and two…

Abstract

Purpose

This study aims to help develop “business principles for stakeholder capitalism” in two steps. First, the study defines internal logic of three theories of capitalism and two variants within each theory. Second, it examines approaches to integration into modern democratic capitalism. Treating the three theories as substitutes identifies relative strengths and weaknesses; complementarity and partial overlap approaches to integration study the institutional settings within which stakeholder capitalism operates. Empirical outcomes reflect competition between market and stakeholder businesses for participants, with institutional conditions determining the scope of collective action.

Design/methodology/approach

The approach aligns three typologies in a unique conceptual arrangement defining the three theories of capitalism: forms of capitalism, potential failures of each form and associated types of goods. The first method examines the internal logic of each theory of capitalism. The second draws on traditional narrative review of references documenting each theory of capitalism and variants together with modern Marxist anti-capitalism.

Findings

Three typologies align uniquely with the theories of capitalism, each having two variants. Both variants of stakeholder capitalism are compatible with compassionate capitalism, constitutional government or polycentric governance but not with self-interest capitalism, dictatorship or Marxism. A theory of modern democratic capitalism allocates roles for private, club and social goods with empirically variable mixes occurring across countries. Competition among different types of enterprises provides an empirical test for comparative advantages of stakeholder capitalism. Future research should consider approaches for testing the proposed conceptual scheme in practice concerning capacity to deal with grand challenges, wicked problems and black swan events.

Research limitations/implications

Research approach is limited to logical examination of theories and literature documentation without direct empirical confirmation. The study does not address practical implications for managers and public officials or social implications concerning private incentives, stakeholder cooperation or collective action.

Originality/value

Originality lies in shifting terms of debate about stakeholder capitalism from advocacy of substitute theories to understanding of its relationship to market capitalism and collective action capitalism. Value lies in explaining desirability of theoretical integration of three types of capitalism into a comprehensive framework for modern democratic capitalism.

Article
Publication date: 21 November 2023

Ming-Chang Huang, Ting-Chuan Lin, Ping-Hsin Lin, Ya-Ping Chiu and Chi-Hung Chung

This study aims to investigate whether higher value creation leads to higher value appropriation and to identify the boundary conditions in a buyer–supplier relationship that can…

Abstract

Purpose

This study aims to investigate whether higher value creation leads to higher value appropriation and to identify the boundary conditions in a buyer–supplier relationship that can explain why a particular supplier can appropriate higher value than others.

Design/methodology/approach

The study uses questionnaire surveys. The sample of the survey has 150 publicly-listed supplier firms in Taiwan. The unit of analysis is the buyer–supplier relationship.

Findings

In the buyer–supplier relationship, suppliers’ bargaining power, partnership and a supplier’s original brand manufacturing (OBM) business can strengthen the positive relationship between value creation and value appropriation.

Research limitations/implications

This study adopts the unilateral viewpoint of suppliers; however, some constructs might require dyadic evaluation. This study only explores the spillover effect of OBM business on the relationship between value creation and appropriation.

Practical implications

The spillover effect of a supplier’s OBM business in a buyer–supplier relationship allows the buyer to share more common benefits and the supplier to capture more private benefits as compensation. By broadening its customer base, a supplier can increase its bargaining power. A supplier can also maintain a strategic partnership with each essential buyer.

Originality/value

To avoid the dark-side effect of partnership, the model provides the contingency that a supplier can capture more value from a buyer–supplier relationship.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 15 November 2023

Katelyn Sorensen and Jennifer Johnson Jorgensen

This paper aims to use Q methodology to investigate Millennial perceptions toward private label or national brand apparel.

Abstract

Purpose

This paper aims to use Q methodology to investigate Millennial perceptions toward private label or national brand apparel.

Design/methodology/approach

Q methodology was chosen to identify factors, which correspond to patterns of perceptions prevalent among Millennials. Participants were supplied with 14 statements that they sorted into two Q sorts – One representing perceptions of private label and the other representing perceptions of national brands. The Q sorts were completed through Qualtrics and participants answered open-ended questions on the placement of each statement within each Q sort.

Findings

Two factors emerged on private labels, highlighting patterns in price consciousness and uniqueness (acknowledged as patterns surrounding the desire for particular apparel characteristics). Three factors arose for national brand apparel, emphasizing the need for national brands to provide consumers with product security, quality and uniqueness (as identified through the unpreferred qualities national brands typically exhibit).

Originality/value

This study illustrates the various viewpoints retailers must consider when marketing apparel to a specific target demographic. In addition, a single perception (uniqueness) was found to connect motivations, which led to the development of a model for future inquiry.

Research limitations/implications

Despite complete Q sorts and qualitative statements, participants' unfamiliarity with Q methodology and the sorting action of statements could be considered a limitation. The use of MTurk is also considered a limitation owing to the anonymity and possible deception of the workforce.

Practical implications

Private label brand personality growth has many retailers expanding their brand portfolios. Based on the findings of this study, specific opportunities are highlighted for the expansion and marketing of private labels and brand labels based on specific perceptions of a broad Millennial cohort.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 26 April 2023

Felipe Chávez-Bustamante and Cristián Troncoso-Valverde

This paper aims to study the role of absorptive capacities in coopetitive alliances that involve leakages of sensitive private knowledge regarding firms’ production processes.

Abstract

Purpose

This paper aims to study the role of absorptive capacities in coopetitive alliances that involve leakages of sensitive private knowledge regarding firms’ production processes.

Design/methodology/approach

This paper uses a game theoretic approach to model a differentiated product market in which two firms asymmetrically informed about the economic value of a business opportunity must cooperate to exploit this opportunity. Under coopetition, firms gain access to their partners’ core knowledge as the result of inevitable leakages of information. Firms differ in their absorptive capacities, which affects their abilities to leverage this new knowledge outside the collaborative activity.

Findings

Firms with superior absorptive capacities are more likely to devise alliances whose purpose is to gain access to their partners’ core knowledge. This opportunistic behaviour does not disappear even if firms compensate their partners for the damages caused by this deceptive business practice. This paper also finds that a highly specialised product safeguards firms with limited absorptive capacities against these opportunistic behaviours.

Originality/value

This paper provides a theoretical analysis of the role that absorptive capacities and product specialisation play in influencing the emergence of opportunistic behaviours in coopetitive alliances. The theoretical analysis underscores the extent to which the risk of opportunism associated with the exploitation of a partner’s specific core knowledge outside the scope of the cooperative activity affects not only the nature and intensity of market competition but also the incentives to pursue coopetitive alliances.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 26 December 2022

Bruvine Orchidée Mazonga Mfoutou and Yuan Tao Xie

This study aims to examine the solvency and performance persistence of defined benefit private and public pension plans (DBPPs) in the Republic of Congo.

Abstract

Purpose

This study aims to examine the solvency and performance persistence of defined benefit private and public pension plans (DBPPs) in the Republic of Congo.

Design/methodology/approach

The authors use the 2 × 2 contingency table approach and the time product ratio (TPR)-based cross-product ratio (CPR) on data covering ten years from 2011 to 2020, with variable funded ratios and excess returns, to determine the solvency and performance persistence of defined benefit pension plans.

Findings

The authors document a lack of solvency and performance persistence in DBPP funds. They conclude that the solvency and performance of DBPP funds are not repetitive. The previous year's private and public defined benefit pension funds’ results do not repeat in the current year. Hence, the current solvency and performance of defined benefit pension funds are not good predictors of future funds' solvency and performance.

Originality/value

To the best of the authors’ knowledge, this study is the first to combine solvency and performance to examine the persistence of defined benefit pension plans in sub-Saharan Africa.

Details

African Journal of Economic and Management Studies, vol. 14 no. 4
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 19 May 2022

Dan-Yi Wang and Xueqing Wang

An optimal control model is built considering the private sector's opportunistic effort diversion and reciprocal effort improvement, while a numerical study is conducted to draw…

Abstract

Purpose

An optimal control model is built considering the private sector's opportunistic effort diversion and reciprocal effort improvement, while a numerical study is conducted to draw some managerial implications.

Design/methodology/approach

In infrastructure PPP projects, private sectors may opportunistically divert part of their effort from the current projects to other projects to allocate their limited human resources. Nevertheless, this effort diversion can be inhibited by dynamic incentives since the private sectors reciprocally exert greater effort into the current projects when receiving the dynamic incentives. This article investigates how the government specifies the output standard that the private sector should meet and offers dynamic incentives to mitigate the private sector's opportunistic effort diversion.

Findings

The output standard for the private sector to acquire the dynamic incentives should be specified as the output level corresponding to the private sector's optimal long-run stationary equilibrium (OLSE) effort level, which decreases with its reciprocal preference level but increases with its effort-diverting level. The optimal dynamic incentives comprise an initial incentive and a periodic OLSE incentive, which declines with the reciprocal preference level but improves with the effort-diverting level. Besides, the numerical study reveals that the government should distinguish whether the bidders have high effort-diverting levels and, if so, should focus on their reciprocal preference levels and decline the bidders with low reciprocal preference to avoid utility loss.

Originality/value

This article provides a theoretical model combining opportunistic behavior with reciprocal preference through an optimal control lens, thus embedding the problem of incentive design into a broader socioeconomic framework.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 11 December 2023

Zehui Bu, Jicai Liu and Xiaoxue Zhang

The paper aims to elucidate effective strategies for promoting the adoption of green technology innovation within the private sector, thereby enhancing the value of public–private…

Abstract

Purpose

The paper aims to elucidate effective strategies for promoting the adoption of green technology innovation within the private sector, thereby enhancing the value of public–private partnership (PPP) projects during the operational phase.

Design/methodology/approach

Utilizing prospect theory, the paper considers the government and the public as external driving forces. It establishes a tripartite evolutionary game model composed of government regulators, the private sector and the public. The paper uses numerical simulations to explore the evolutionary stable equilibrium strategies and the determinants influencing each stakeholder.

Findings

The paper demonstrates that government intervention and public participation substantially promote green technology innovation within the private sector. Major influencing factors encompass the intensity of pollution taxation, governmental information disclosure and public attention. However, an optimal threshold exists for environmental publicity and innovation subsidies, as excessive levels might inhibit technological innovation. Furthermore, within government intervention strategies, compensating the public for their participation costs is essential to circumvent the public's “free-rider” tendencies and encourage active public collaboration in PPP project innovation.

Originality/value

By constructing a tripartite evolutionary game model, the paper comprehensively examines the roles of government intervention and public participation in promoting green technology innovation within the private sector, offering fresh perspectives and strategies for the operational phase of PPP projects.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 9 March 2023

Swechha Chada and Gopal Varadharajan

This paper aims to examine the relationship between earnings quality and corporate cash holdings in an emerging economy. Existing literature posits that earnings quality is a…

Abstract

Purpose

This paper aims to examine the relationship between earnings quality and corporate cash holdings in an emerging economy. Existing literature posits that earnings quality is a result of information asymmetry and firms with lower earnings quality increases cash holdings, to shield the firm from future uncertainties. In this paper, the authors propose a ‘private benefits hypothesis’, which suggests that lower earnings quality is an indicator of opportunism and expropriation of resources in the firm, through tunneling or excessive executive compensations. As a result, firms with lower earnings quality increase cash holdings in their control, to increase their private benefits and to avoid the scrutiny of the external stakeholders. The authors further examine the monitoring role played by institutional investors on cash holdings, with varying degrees of earnings quality.

Design/methodology/approach

This study uses an unbalanced panel data sourced from Prowessdx, from 2000 to 2019. The analysis employs 20,231 firm-year observations from 2,421 firms. Earnings quality is calculated following Dechow and Dichev (2002).

Findings

Empirical analysis confirms that the firms with higher earnings quality reduce cash. Further, institutional investors reduce the cash holdings in firms with higher earnings quality. Institutional investors effectively reduce the cash only in firms with at least 10% of equity shareholding. The results are robust to alternative measures of earnings quality and endogeneity concerns.

Originality/value

This study diverges from the information asymmetry hypothesis in the existing literature on earnings quality and cash holdings and highlights the underlying private benefits hypothesis, that will impact cash holdings. Next, the 10% institutional shareholding is important in the Indian context as it represents the minimum threshold at which block holders can request extraordinary general meetings (Section 100 of the Companies Act 2013) or the involvement of the National Company Law Tribunal (NCLT) (Section 213 of the Companies Act 2013). This study highlights that unlike in Anglo-Saxon economies, institutional investors or other minority shareholders are empowered by the Companies Act 2013 to play a vital role in corporate governance with a mere 10% equity.

Details

International Journal of Managerial Finance, vol. 20 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 15 December 2023

Zehui Bu, Jicai Liu and Jiaqi Liu

Emotions, understood as evolving mental states, are pivotal in shaping individuals“' decision-making, especially in ambiguous information evaluation, probability estimation of…

Abstract

Purpose

Emotions, understood as evolving mental states, are pivotal in shaping individuals“' decision-making, especially in ambiguous information evaluation, probability estimation of events, and causality analysis. Public–private partnership (PPP) projects represent a confluence of “economic–environmental–social” dimensions, wherein stakeholder behavior follows the sequential progression of “cognition–emotion–action.” Consequently, comprehending the effects of emotional shifts on stakeholder's decision-making processes is vital to fostering the sustainability of PPP projects.

Design/methodology/approach

The paper utilizes rank-dependent expected utility and evolutionary game theory to systematically examine the influence of emotional factors on stakeholders' behavior and decision-making processes within PPP projects. The paper integrates three emotional state functions—optimism, pessimism and rationality—into the PPP framework, highlighting the intricate interactions among the government, private sector, surrounding public and the media. Furthermore, the paper amalgamates the evolutionary pathways of environmental rights incidents with the media's role. Through equilibrium analysis and numerical simulation, the paper delves into the diverse interplay of emotions across different phases of the environmental rights incident, assessing the impact of these emotions on the evolutionary game's equilibrium results.

Findings

Emotions significantly influence the microlevel decisions of PPP stakeholders, adapting continually based on event dynamics and media influences. When the private sector demonstrates optimism and the surrounding public leans toward rationality or pessimism, the likelihood of the private sector engaging in speculative behavior escalates, while the surrounding public refrains from adopting a supervisory strategy. Conversely, when the private sector is pessimistic and the public is optimistic, the system fails to evolve a stable strategy. However, when government regulation intensifies, the private sector opts for a nonspeculative strategy, and the surrounding public adopts a supervisory strategy. Under these conditions, the system attains a relatively optimal state of equilibrium.

Originality/value

The paper develops a game model to examine the evolutionary dynamics between the surrounding public and private sectors concerning environmental rights protection in waste incineration PPP projects. It illuminates the nature of the conflicting interests among project participants, delves into the impact of emotional factors on their decision-making processes and offers crucial perspectives for the governance of such partnerships. Furthermore, this paper provides substantive recommendations for emotional oversight to enhance governance efficacy.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 12 October 2022

Limin Su, YongChao Cao, Huimin Li and Chengyi Zhang

The optimal payment in the whole operation and maintenance period of water environment treatment PPP projects has become the main approach to realize sustainable development of…

Abstract

Purpose

The optimal payment in the whole operation and maintenance period of water environment treatment PPP projects has become the main approach to realize sustainable development of projects. This study is aimed at constructing an effective payment model for the whole life period of projects to achieve win-win among all stakeholders, so as to provide a theoretical reference and managerial implications for the public sector in the whole operation and maintenance period.

Design/methodology/approach

In the whole operation and maintenance period of water environment treatment PPP projects, this article investigates how the public sector optimizes the payment in the whole operation and maintenance period of projects. Firstly, the projects' whole operation and maintenance period is divided into several stages according to the performance appraisal period. And then, the multi-stage dynamic programming model is constructed to design the payment construct model for the public sector in each performance appraisal stage. The payment from the public sector is the decision variable, and the deduction from the private sector is a random variable.

Findings

The optimal payment model showed that the relatively less objective weight of public sector leaded to its relatively more total payment and vice versa. Therefore, the sustainable development of the projects can only be ensured when the objective weights both of them should be balanced. Additionally, the deduction from the performance appraisal of private sector plays an important role in the model construction. The larger deduction the private sector undertakes, the smaller profits private sector has. Since the deduction at each stage is a random variable, the deduction varies with the different probability distributions obeyed by the practical deduction in each stage.

Research limitations/implications

The findings from this study have provided theoretical and application references, and some managerial implications are also given. First, the improvement of the pricing system of public sector should be accelerated. Second, the reasonable profit of the private sector must be guaranteed. While pursuing the maximization of social benefits, the public sector should make full use of the price sharing mechanism in the market and supervise the real income situation of the private sector. Third is increasing the public to participate in pricing. Additionally, it is a limitation that the deduction is assumed to conform to a uniform distribution in this study. Other probability distributions on deduction can be essentially further sought, so as to be more line with the actual situation of the projects.

Originality/value

The optimal payment in whole operation and maintenance period of the projects has become an important issue, which is a key to project success. This study constructs a multi-stage dynamic programming model to optimize payment in the whole period of projects. Additionally, this study adds its value through deeply developing the new theories of optimal payment to more suitable for the practical problems, so that to optimize the design of payment mechanism. Meanwhile, a valuable reference for public and private sectors is provided to ensure the sustainable development of the projects.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

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