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Extends Mäler′s notion of weak complementarity between a private good and a public good to non‐homothetic demand functions which can be exactly aggregated. Aggregate demand functions depending on private prices, public good quantities and income distribution statistics can then be used to recover the private individual demand functions which reveal an individual′s willingness to pay for public goods.

This paper aims to determine the essential “collective goods” which a foreign multinational enterprise (MNE) must have before production can start in a remote area of an emerging economy, and to consider the alternative governance modes available to procure or create these goods.

This purpose is examined conceptually and theoretically. First, the concept of “collective goods” is presented, followed by a consideration of the traditional “buy, ally or make” contractual approaches available to obtain goods and services. These approaches are repositioned in the context of an “emerging economy” so that alternative “ordering systems” as well as “non-contractual” means of obtaining things have to be considered in the context of internalization and reciprocity theories.

It is difficult to obtain collective goods in remote areas of emerging economies where private ordering prevails and even succeeds but at high transaction costs and with substantial government intervention. However, the use of non-contractual modes of exchange such as reciprocity is available to facilitate exchanges between market MNEs and nonmarket state offices and civil-society associations such as non-governmental organizations with which collaboration is necessary but which cannot be acquired or controlled by MNEs. However, market firms can use philanthropy and lobbying to obtain the help of these nonmarket actors who know how to operate under private and state-ordering systems.

Theoretical implications: Internalization theory explains why MNEs are able to obtain collective goods by providing them “in-house”, while reciprocity theory exemplifies how non-contractual modes of exchange can substitute for the traditional but contractual “buy, ally and/or make”.

Managerial implications: In terms of the organizational structure of the subsidiary of an MNE operating in an emerging economy, it appears that the line functions of procurement, engineering and production may rely more on contractual exchanges with foreign suppliers, while the staff functions of public affairs, government relations and human resources may be more adept at using reciprocal exchange with local suppliers.

The provisioning of the collective goods when a firm builds its facilities in a remote and underdeveloped part of an emerging economy has hardly received any research attention nor have the non-contractual ways – such as reciprocity – available in the context of private ordering to obtain these goods.

The purpose of this chapter is to introduce the concept of public business models and develop a theory for the process of developing and managing public business models.

This research synthesizes insights from various fields into a set of theoretical ideas that lay out what public business models are, to what extent they differ from commercial/industrial business models, and how they are developed and managed by public entrepreneurs.

Developing and managing a business model is an entrepreneurial task that has been missing from the public entrepreneurship literature. Public entrepreneurs perform these tasks using public and private resources, leveraging public institutional systems, and developing capabilities that differ in several dimensions from private entrepreneurs due to the nature of public goods and existence of quasi-markets where public business models are developed and used.

This chapter opens new avenues for research in public entrepreneurship by suggesting that (1) public business models form the foundation of public entrepreneurship, (2) public business models differ from commercial business models not in their functionality but rather in their scope and design, and (3) public business models co-evolve with public institutions to maintain their legitimacy and value creation potential.

This chapter equips public entrepreneurs with new insights into enterprising behaviors and the dynamism of value creation and capture in public ventures.

The current study represents the first attempt to directly incorporate the notion of business models into the public entrepreneurship literature.

Our research is about the trade in material goods from Asia to Europe over this period, and its impact on Europe’s consumer and industrial cultures. It entails a comparative study of Europe’s East India Companies and the private trade from Asia over the period. The commodities trade was heavily dependent on private trade. The historiography to date has left a blind spot in this area, concentrating instead on corruption and malfeasance. Taking a global history approach we investigate the trade in specific consumer goods in many qualities and varieties that linked merchant communities and stimulated information flows. We set out how private trade functioned alongside and in connection with the various European East India companies; we investigate how this changed over time, how it drew on the Company infrastructure, and how it took the risks and developed new and niche markets for specific Asian commodities that the Companies could not sustain.

The beliefs that Government interferes with individual freedom and that private and public goods are competitive appear to be the two major reasons for man′s aversion to paying taxes. In reality, however, especially from a socio‐economic viewpoint, government also increases individual freedom, and the acceptance of necessity is as much an ingredient of good life as the attainment of freedom. Furthermore, private goods and public goods are as complementary as they are competitive. Thus, compared with the main‐ stream neoclassical economist, the social economist has a more complete understanding of the actual human condition and, in so doing, he can provide better solutions to the problem of man′s hostility to paying taxes.

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.

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.

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 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 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.

Public heritage facilities – national parks, art galleries, museums and so on – are now required by professional accounting standards in Australia to be valued and included in government general purpose financial statements as assets. This study challenges the appropriateness of such an accounting treatment in relation to the SAC4 definition of assets and the purported usefulness of the information. Instead it is argued that these facilities are public goods, and that commercial accounting principles should not be applied to them. The article explains the nature and significance of public goods and how they differ from private goods. It explains why commercial accounting principles are irrelevant for public heritage facilities because their objectives are social rather than financial and why commercial valuations are irrelevant and unreliable if applied to them. Finally, it is contended that the facilities are assets held in trust for the nation by government and hence should not be included in its general purpose financial reports.

The purpose of this chapter is to analyse Public–Private Partnerships (PPPs) in the developing and emerging economies as a multifaceted challenge from viewpoint of the 10 keys ‘for’ and ‘against’ PPPs: feasibility; planning; optimization; modernization and development; financing; project delivery; project operation; supervision; user satisfaction and accounting issues. The conceptual model and the reasons were formulated by the authors some 10 years ago, based on the literature and case-study reviews. Relevance of those reasons was verified in practice. The knowledge and critical perspective on the above-stated reasons are relevant for the implementation of PPP projects in any national economy – developed, emerging or developing, but it is quintessential for the implementation of PPPs in the economies that are at the early stage of implementation of PPPs. Although for the identification of the above-stated reasons, wide comparative literature and case-studies review was conducted, the reasons were verified in practice in Slovenia only. Slovenia is considered as one of the most advanced transition countries of Central Europe and a developed economy. This chapter can improve public policy, teaching, learning and practice of PPP implementation in developing and emerging economies. The value of this chapter is in the approach which goes beyond the usual defending or renouncing of PPPs. This chapter also clearly identifies the importance of a sincere motive for the implementation of PPPs by the government as a prerequisite for the successful implementation of PPPs.

The paper offers a new view of the role of state based on recognition of the economic ability of the state as a separate factor of production. Recognizing the state’s economic ability is as a fifth factor of production and correspondingly gives indirect taxes the status of factor income as state profit. Direct taxes play two roles: they fund expenditure that is necessary for the production of public goods and at the same time they are in effect the latter’s price. If we were to apply the mechanism of producing and purchasing private goods to public goods, direct taxes would be replaced by the state loans that are non‐repayable, but yield interest, or by irretrievable loans with computed interest. In this case, which is illustrated by the budgetary equations in the model of an economy “without taxes”, indirect taxes become analogous to state profit and direct taxes are replaced by irretrievable loans with computed interest.

Presented on behalf of the Evian Group @ IMD, this paper aims to expand upon points made in the keynote speech at the 9th Annual EABIS Colloquium on Corporate Responsibility and Emerging Markets held in St Petersburg, Russia on 20‐21 September 2010.

Three themes are explored within the context of the BRICs: geopolitics and global governance in the twenty‐first century; the balance between public good and private enterprise; and frameworks for equitable trade and inclusive growth.

The global situation is precarious, characterized by multi‐polarity, asymmetrical power threats, and a vacuum in global governance. The trade‐based economic development of the BRICs is a positive economic sign but raises implications for sustainability. There is a need for balance between the ability of the public sector to provide public goods, including global public goods, and the need for government to create incentives for the private sector and unleash its creativity and energy. With the proper incentives and legal structure, including respect for the rule of law, the energy and creativity of the private sector can be harnessed to develop a framework for equitable trade and inclusive growth, and to further the development of a sustainable global market economy.

The paper provides a catalyst for discussion that bridges the gap between business school education, legal education, political science and economics.