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Article
Publication date: 3 December 2020

Cristi Frenț and Douglas C. Frechtling

Despite its popularity as the only method for measuring the national economic contribution of tourism accredited by the United Nations and other multilateral economic…

Abstract

Purpose

Despite its popularity as the only method for measuring the national economic contribution of tourism accredited by the United Nations and other multilateral economic institutions, Tourism Satellite Account (TSA) is rarely applied to subnational regions. The purpose of this paper is to examine to what extent the compliance with some general principles that any regional TSA should follow contributes to better international comparability of tourism statistics, one of the main goals of the TSA.

Design/methodology/approach

Through secondary research, 14 countries have been identified making regional TSA applications by complying most likely with these principles. In this regard, some methodological issues and main results obtained by these countries are investigated.

Findings

This study concludes that international comparability of TSA compilation data at regional levels should be a long-term goal once congruence is achieved between national and regional TSAs.

Research limitations/implications

The paper is not based on a primary data collection of TSA data.

Practical implications

The paper shows that regional TSAs might also be envisaged in the international comparability process of the national TSA data. It provides suggestions for how to use data to improve measurement of the economic contribution of tourism to regions.

Originality/value

It is the first paper addressing the international comparability of a sizable number of regional TSAs from 14 countries.

目的

本文旨在理解任何一个区域TSA对这些原则的遵循多大程度上有助于提高旅游统计数据的国际可比性。这是TSA的主要目标之一。

设计/方法论/方法

尽管旅游卫星账户(TSA)作为联合国和其他多边经济机构官方认可的测量旅游业的国家经济贡献的唯一方法而广受欢迎, 但是TSA很少被应用于地方上。通过二次研究, 已经识别了14个国家通过遵循区域TSA应遵循的一般原则来应用区域TSA。本文研究了这些国家在这方面的方法论问题和主要成果。

发现

本研究得出结论, 一旦国家和区域TSAs达成一致, 区域层面的TSA汇编数据的国际可比性应该成为一个长期目标。

研究局限/意义

本文并非基于TSA数据的原始数据集。

实践意义

本文认为, 在各国TSA数据的国际可比性进程中可能也可以展望区域TSAs. 本文为如何利用数据提高旅游业对区域经济贡献的测量提出了建议。

创意/价值

这是第一篇涉及来自14个国家的相当大的数据量的TSAs国际可比性的文章。

Propósito

El propósito de este documento es examinar en qué medida el cumplimiento de algunos principios generales que debe seguir cualquier CST regional contribuye a una mejor comparabilidad internacional de las estadísticas de turismo, uno de los principales objetivos de la CST.

Diseño/metodología/enfoque

A pesar de su popularidad como el único método para medir la contribución económica nacional del turismo acreditado por las Naciones Unidas y otras instituciones económicas multilaterales, la Cuenta Satélite de Turismo (CST), rara vez se aplica a las regiones subnacionales. Mediante investigaciones secundarias, se han identificado catorce países que realizan aplicaciones regionales de la CST, cumpliendo muy probablemente con algunos principios generales que toda CST regional debería seguir. A este respecto se investigan algunas cuestiones metodológicas y los principales resultados obtenidos por esos países.

Hallazgos

Este estudio concluye que la comparabilidad internacional de los datos de compilación de la CST a nivel regional debería ser un objetivo a largo plazo, una vez que se logre la congruencia entre las CST nacionales y regionales.

Limitaciones/implicaciones de la investigación

El documento no se basa en una recopilación de datos primarios de la TSA.

Implicaciones prácticas

El documento muestra que las CST regionales también podrían contemplarse en el proceso de comparabilidad internacional de los datos de CST nacionales. Ofrece sugerencias sobre cómo utilizar los datos para mejorar la medición de la contribución económica del turismo a las regiones.

Originalidad/valor

Es el primer documento que aborda la comparabilidad internacional de un número considerable de CST regionales de catorce países.

Article
Publication date: 12 October 2022

Yu Jia, Yongqing Ye, Zhuang Ma and Tao Wang

This study aims to verify the respective and interactive effects of subnational formal and informal institutions (i.e. legal effectiveness and social trust) on foreign firm…

Abstract

Purpose

This study aims to verify the respective and interactive effects of subnational formal and informal institutions (i.e. legal effectiveness and social trust) on foreign firm performance, and further identify the contingent factor (i.e. institutional experience) that moderates these relationships.

Design/methodology/approach

Drawing on the institutional-based view, this study develops several hypotheses that are tested using a comprehensive dataset from four main data sources. The authors’ unit of analysis is foreign firms operating in China. The authors ran ordinary least squares (OLS) regression model to investigate the effects. A series of robustness tests and endogeneity tests were performed.

Findings

The results show that both legal effectiveness and social trust at subnational level positively affect foreign firm performance respectively. Legal effectiveness and social trust at subnational level have complementary effect in promoting the performance of foreign firms. Foreign firm's institutional experience in target region of emerging economies host country strengthens the positive impact of subnational legal effectiveness on performance, but weakens the positive impact of subnational social trust on performance.

Practical implications

It is important to fully understand the impact of heterogeneous institutional environments of subnational regions in emerging economies on foreign firm performance, which would help foreign firm make a more suitable secondary choice decision of investment destinations at the subnational regional level.

Originality/value

First, drawing on institutional-based view, the authors incorporate the subnational formal and informal institutional factors to investigate their impacts on foreign firm performance by switching the attention from national level to subnational level in emerging economy host countries. Second, this research furthers existing studies by bridging a missing link between both subnational formal and informal institutional environments and foreign firms' outcomes. Third, the authors prove that the model of subnational formal and informal institutions in influencing foreign firms' performance is contingent on their institutional experience in target subnational region of emerging economy host country.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 25 September 2019

Alberto Carlo Cajavilca and Marta Tostes

The purpose of this paper is to examine the role and contribution of San Martin and Chazuta subnational governments in promoting development and internationalization of the cocoa…

1103

Abstract

Purpose

The purpose of this paper is to examine the role and contribution of San Martin and Chazuta subnational governments in promoting development and internationalization of the cocoa and chocolate value chain from the stakeholders’ perceptions. This work was based on a qualitative approach in which information triangulation method, information processing with evaluation rubric and WebQDA software were used. The results showed that stakeholders of both value chains perceive that the subnational government’s actions taken to develop and internationalize these value chains are poorly valued and insufficient. Likewise, six internationalization barriers were identified in which two are perceived as the main limitations: low productivity levels and access to innovations and technology. These results contribute to enrich the decision-making process of political authorities and public officials from the San Martin subnational governments. Moreover, they provide information, according to the Peruvian national requirements, on the perceptions needed to rethink and improve the governmental services available, especially productive activities in the rainforest area (Presidencia del Consejo de Ministros, 2015; Wiener Fresco, 2010). This can improve or create new extension services to increase the quality of the Chazuta’s cocoa and chocolate products and to facilitate their entry into more demanding and profitable markets (Shapira, y otros, 2015).

Design/methodology/approach

This paper has been developed by using a qualitative approach with an exploratory and descriptive scope. The objective was to examine a study case of how subnational governments contribute in the promotion of development and internationalization of agro-industrial value chains as alternatives to illicit crops (Hernandez, Fernandez, & Baptista, 2010). The Chazuta case was selected because it is representative of the region in terms of coca eradication and is located between two regions of high biodiversity – Cordillera Escalera Regional Conservation Area and Cordillera Azul National Park.

Findings

One of the issues hindering the ability of the Chazuta cocoa and chocolate producers is based on their perception that the subnational governments’ efforts are focused on meeting already-established goals and little emphasis is placed on solving productive problems. On the other hand, at an articulation level, the most relevant efforts have been connecting the cocoa and chocolate customers to Chazuta producers through events. In spite of this, such events are not considered a permanent activity and the producers do not perceive that these mechanisms enable them to maintain these long-term trade relationships. This can be explained by the fact that Chazuta cocoa and chocolate organizations recognize that they still have incipient productive capacities to meet the foreign market’s demand. Furthermore, associations, cooperatives and SMEs are not able to maintain constant levels of production quality, except the family-based business. Knowledge and techniques provided by subnational governments and private organizations are not fully used or implemented by the associations’ members. This low level of knowledge application can be explained by cultural factors and also because the producers receive multiple and sometimes contradictory information from various providers of technology extension services. This leads to inadequate use or non-implementation of productivity improvements, thus generating a virtuous circle in which production and quality of the goods remain at low levels, which hinders their entry into demanding and profitable markets.

Research limitations/implications

This paper has been developed with a qualitative approach considering an exploratory and descriptive scope. Chazuta case was selected because it is representative of the region in terms of eradication achievements and it is located between two regions of high biodiversity. A rubric is an evaluation method of individuals or organizations performance, taking into consideration the evaluator’s pre-established criteria to determine if the objectives and goals are being met. Based on these criteria, evidence and performance information is collected. Following, performance is graded based on the researcher’s predetermined criteria and finally a merit-based judgment is made on the performance.

Practical implications

The results contribute to enrich decision making of political authorities and public officials from San Martin subnational governments. They provide information, according to Peruvian national requirements, on the perceptions needed to rethink and improve provided government services, especially in rainforest area productive activities. This adds up to improvement or creation of new extension services to increase the quality of Chazuta’s cocoa and chocolate products, and to facilitate their entry into more demanding and profitable markets.

Social implications

The situation of San Martín region and Chazuta district is contextualized and emphasis is given to socioeconomic conditions and the value of cocoa as an alternative crop to coca. From 1980 to early 2000, Peru lived a period of generalized violence due to narcoterrorism, which had large-scale outreach in southern highland and rainforest areas. To deal with this situation, subnational governments in collaboration with international cooperation decided to consolidate agro-industrial value chains in order to generate legal income for rural populations. For this purpose, alternative crop policies were implemented and San Martin region achieved the best results.

Originality/value

This fieldwork was carried out as part of the undergraduate thesis but after fieldwork, with the use of online software tool WebQDA, codes were created to systematize and quantify the collected information in the content manager. The codes were created taking into account assessment and evaluation variables. Each value represented a code referred to a performance level as perceived by Chazuta cocoa and chocolate value chains stakeholders.

Details

Revista de Gestão, vol. 26 no. 4
Type: Research Article
ISSN: 2177-8736

Keywords

Article
Publication date: 21 May 2018

Christian Geisler Asmussen, Bo Nielsen, Anthony Goerzen and Svenja Tegtmeier

This paper aims to develop a more nuanced view of subnational location choice with a particular focus on global cities. It is argued that multinational firms may use global cities…

Abstract

Purpose

This paper aims to develop a more nuanced view of subnational location choice with a particular focus on global cities. It is argued that multinational firms may use global cities to establish bridgeheads-subsidiaries at intermediate levels of the ownership chain that enable further international as well as subnational expansion.

Design/methodology/approach

Beyond those host country subsidiaries that are directly owned by a foreign multinational, the authors go deeper and focus specifically on the multi-tiered – “subsidiaries of subsidiaries” to examine how the geographic origins and destinations of these investments are associated with micro-location choices in a host country.

Findings

The authors find that there are substantial differences between the types, roles, activities and geographic origins of the firms locating in different areas, and in the ownership structures spanning them. The authors propose that this has managerial and theoretical implications which may be understood based on an organizing framework describing a tradeoff between the pursuit of global connectivity and local density on the one hand and cost control on the other.

Research limitations/implications

Empirical work on foreign location choices should take into account ownership structures and take a more fine-grained view of subnational variation.

Practical implications

Managers need to consider the trade-offs between connectivity, density and costs when making foreign location decisions.

Social implications

Policy makers should think about the unique contributions that various subnational regions such as global and ordinary cities can make to global value chains.

Originality/Value

The authors bridge the hitherto separate literatures pertaining to subsidiary mandates and subnational dimensions of foreign location choice by investigating the fine-grained roles and ownership structures from a supranational as well as subnational perspective.

Details

Competitiveness Review: An International Business Journal, vol. 28 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 6 July 2015

Jaya Prakash Pradhan and Keshab Das

The purpose of this study is to examine the subnational regional dimension of exports by small and medium-sized enterprises (SMEs) in India, one of the prominent emerging…

Abstract

Purpose

The purpose of this study is to examine the subnational regional dimension of exports by small and medium-sized enterprises (SMEs) in India, one of the prominent emerging economies or “rising powers”.

Design/methodology/approach

To understand the forces driving the variation in subnational region’s share in international business of rising power SMEs, an analytical conceptual framework on regional export advantage (REA) was formulated based on the review of relevant theoretical and empirical literature. The model was estimated for Indian states using the most appropriate and recently developed econometric technique of fractional logit model.

Findings

The paper provides evidence that the emergence of exports by rising Indian power SMEs is geographically limited to a few select regions/states. Southern Indian states alone accounted for half of exports from SMEs in the organized manufacturing sector during 2000-2008, followed by Western India. The REA analysis has brought to the fore that regional stock of technological knowledge, availability of skill, port facilities, urban areas and foreign direct investment stocks are crucial factors determining states’ share in SME exports across technological subcategories. However, the size and sophistication of local demand continue to influence states’ efforts at enhancing exports by SMEs, at least those belonging to the medium- and high-technology categories.

Research limitations/implications

The proposed empirical framework could be extended to include institutional and political economy factors. Its application to subnational regional shares in total exports by all firms taking into account fixed effects for regions may be another feasible line of future research.

Practical implications

Empirical findings recognize that appropriate strategies by subnational policymakers are important for a region to achieve a higher contribution in national SME exports. Subnational policy measures aimed at upgradation of regional technological assets and skill base through the promotion of technology clusters and R & D of local firms, facilitation and creation of better industry-university linkages and investments in education and training institution may help the states to gain higher export advantage.

Originality/value

This paper provides new analytics and insights into the role of subnational spaces in the internationalization of rising power SMEs from India and serves to contribute to the extant international business research that is predominantly occupied with “nation” as the unit of location.

Details

critical perspectives on international business, vol. 11 no. 3/4
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 7 September 2020

Rishika Nayyar and Shameen Prashantham

The purpose of this paper is to examine whether subnational market-supporting institutions in Indian states affect the likelihood of Indian multinational enterprises (MNEs) to…

Abstract

Purpose

The purpose of this paper is to examine whether subnational market-supporting institutions in Indian states affect the likelihood of Indian multinational enterprises (MNEs) to undertake acquisitions in advanced economies (AEs) rather than emerging economies (EEs) and, if so, which mechanism – institutional fostering or escapism – underlies the phenomenon.

Design/methodology/approach

The paper uses a logistic regression model on a dataset of 647 firm-level cross-border acquisitions (CBAs) undertaken by Indian MNEs during the period 2010–2016.

Findings

The paper finds support for the institutional escapism mechanism, as opposed to the institutional fostering mechanism, underlying Indian MNEs’ acquisitions in AEs (rather than EEs). That is, firms headquartered in Indian states where market-supporting institutions (such as economic liberalization and efficiency of legal systems) are weak are more likely to undertake CBAs in AEs than in EEs as an escapist response to weak subnational institutions at home.

Originality/value

The paper highlights the relevance of the mainstream international business (IB) concept of emerging market multinational enterprises (EMNEs) internationalization to critical IB scholarship by examining subnational institutional influences on EMNEs’ foreign market choice between AEs and EEs. In particular, by providing evidence for the institutional escapism mechanism which has potential negative socioeconomic consequences in the region of the investing firm, the paper adds to critical IB research which places great emphasis on the examination of inequalities and draws attention to the EMNE context as a suitable setting for further research on internationalization from a critical perspective.

Article
Publication date: 1 July 2014

Päivi Karhunen, Riitta Kosonen and Svetlana Ledyaeva

– The purpose of this paper is to analyse the impact of institutional distance, extended to capture subnational institutional variation, on foreign entry mode choice.

Abstract

Purpose

The purpose of this paper is to analyse the impact of institutional distance, extended to capture subnational institutional variation, on foreign entry mode choice.

Design/methodology/approach

As an empirical study, it focuses on manufacturing firms established in Russia by foreign investors from developed countries. The dependent variables, the share of foreign ownership and the entry mode choice binary variable (equal to 1 for full foreign ownership and zero for a joint venture) were obtained from the registry of foreign-owned firms in Russia. The World Bank's regulatory quality (RQ) index on a national level and a respective indicator for the various Russian regions on a subnational level were utilised to measure institutions. Multilevel cross-classified analysis including foreign firms, the various Russian regions and characteristics of the foreign owners’ home countries was applied to for making empirical estimations.

Findings

The empirical results show, first, that the regionally adjusted institutional distance, i.e. the distance between the home country and the Russian region in question, when measured in terms of RQ, shifts the ownership structure towards shared ownership. However, nation-level institutional distance between the home country and Russia does not show any statistically significant relationship with the modal choice.

Originality/value

The results indicate that with the exception of industries of strategic importance to the state, the most important “rules of the game” for foreign entry strategies are provided not by the federal government but by the regional governors. The theoretical value of the paper lies in the extension of the institutional distance concept to the subnational level. At the same time, the paper identifies those institutional features that foreign entrants eyeing Russia need to take into account when selecting an entry mode and location within Russia.

Details

Baltic Journal of Management, vol. 9 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

Open Access
Article
Publication date: 11 August 2020

Christian Falaster and Manuel Portugal Ferreira

Using an institution-based view, this study aims to conceptualize how sub-national institutional characteristics are likely to explain location choice of multinationals’ research…

2534

Abstract

Purpose

Using an institution-based view, this study aims to conceptualize how sub-national institutional characteristics are likely to explain location choice of multinationals’ research and development (R&D) subsidiaries.

Design/methodology/approach

In a conceptual paper, this study explores specific institutional facets of the regional environments within a country that are capable of explaining, at least in part, the location choices of multinational corporations’ R&D subsidiaries.

Findings

This study thus explores the more nuanced influences of the institutional environments at a subnational level and develops propositions to explain location choices based on the differences of the institutional environments.

Originality/value

This study contributes to international business theory by incorporating a location-specific analysis that contrasts to the usual country-level observation on the determinants of firms’ location decisions.

Details

Innovation & Management Review, vol. 17 no. 4
Type: Research Article
ISSN: 2515-8961

Keywords

Article
Publication date: 16 October 2017

Fei Sun, Junjie Hong, Xiuying Ma and Chengqi Wang

The purpose of this paper is to examine how subnational institutions within a country explain the performance consequences of open innovation (OI) in emerging market enterprises…

Abstract

Purpose

The purpose of this paper is to examine how subnational institutions within a country explain the performance consequences of open innovation (OI) in emerging market enterprises (EMEs).

Design/methodology/approach

The paper conducts a regression analysis by using a novel panel data set comprising of 438 innovative Chinese firms over the period of 2008-2011.

Findings

The authors show that although on average openness to external actors improves innovation performance this effect is pronounced for EMEs that operate in subnational regions with a higher level of intellectual property rights (IPR) enforcement and of factor market development. The findings point to the context-dependent nature of OI strategy and the complementary effect of institutional parameters in emerging markets and help to reconcile the contrasting findings regarding the effect of OI in the prior literature.

Originality/value

This paper extends the literature on OI by suggesting that the analysis of the performance consequences of OI strategy should go beyond the nexus between OI and firm performance, and instead, focus on subnational-specific institutions, such as region-specific IPR enforcement, factor market development and intermediation market development, that may facilitate or constrain the effect of OI model.

Details

Management Decision, vol. 55 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 14 May 2018

Elona Guga

An attempt will be made to shed light on the course and pattern of the decentralization process by analyzing the historical development of local government and the…

Abstract

Purpose

An attempt will be made to shed light on the course and pattern of the decentralization process by analyzing the historical development of local government and the territorial-administrative reform of 2015-2020 in Albania and the factors that have been shaping it. The scope is to understand the impact of the reform elements on the subnational governments and in general their overall impact on the government. The purpose of this paper is to fill the gap in the existing literature for Albania and at offering some insights on the administrative-territorial reform. Furthermore, it will contribute to the current debate on fiscal decentralization in South Eastern European (SEE) countries and the public management model implemented after the last reforms.

Design/methodology/approach

The first section analyzes the historical development of local government reforms from the 1990s to today and will help to identify if there is instrumentalism advocacy. The second section explains the determinants of the local government’s fiscal autonomy in Albania of the period from 2003 to 2016. Three indicators are used as proxies for fiscal decentralization: the proportion of subnational expenditure over national expenditure, of total subnational revenues over total revenues of central government and the indicator of own subnational revenues over total revenues of the central government. The data from the budget and the revised budgets are then compared.

Findings

Despite Albania’s commitment to decentralize its government functions, there is still work to do. The territorial and administrative reform has not generated the expected results. Almost 90 percent of the revenues still come from the central government’s unconditional transfers. Therefore, the Albanian Government should build capacities and skills, and train the employees of each level of government that currently benefit from international assistance.

Research limitations/implications

The analysis represents a single case study on the territorial-administrative reform in Albania. Its implementation started in 2015 and it is probably too early to discuss outcomes. However, it might be useful to analyze the first results after a two-and-a-half-year period of implementation of reforms. Despite contributing to the existing gap in the literature, additional research will be necessary to better understand the decentralization process not only in Albania, but in all SEE countries.

Practical implications

It is necessary to first understand the lack of initial output, as well as the various challenges faced, in order to take the corrective measures on time.

Originality/value

This paper discusses in detail the reform adopted and the progress made by the Albanian local government units. The reform attempts to develop better relationships between the central and local governments and hence improve their service delivery, transparency and accountability. This paper is the first one that is attempting to analyze the initial output of the territorial-administrative reform of 2015-2020.

Details

International Journal of Public Sector Management, vol. 31 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

1 – 10 of over 1000