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1 – 10 of over 5000Meng Chen, Hefu Liu and Xinlin Tang
Firms are increasingly depending on supplier portfolios in the quest for firm innovation. However, whether concentrated supplier portfolios are beneficial to innovation remains…
Abstract
Purpose
Firms are increasingly depending on supplier portfolios in the quest for firm innovation. However, whether concentrated supplier portfolios are beneficial to innovation remains highly disputed. This study aims to investigate the effect of supplier portfolio concentration on firm innovation and the contingencies that shape this effect.
Design/methodology/approach
The authors build on the knowledge search view to theorize a U-shaped effect of supplier portfolio concentration on firm innovation and further propose that the U-shaped effect is contingent on financial slack and growth opportunities. The authors collected panel data from 1,320 manufacturing firms in China. The negative binomial regression analyses were performed to test the hypotheses.
Findings
Supplier portfolio concentration has a U-shaped effect on firm innovation. This U-shaped effect is weakened and flipped by financial slack but strengthened by growth opportunities.
Originality/value
The findings extend current understandings of the influence of supplier portfolio on firm innovation by clarifying the U-shaped effect of supplier portfolio concentration on innovation and the circumstances under which supplier portfolio concentration is more effective for firm innovation.
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Muhammad Shahbaz and Avik Sinha
The purpose of this paper is to provide a survey of the empirical literature on environmental Kuznets curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of…
Abstract
Purpose
The purpose of this paper is to provide a survey of the empirical literature on environmental Kuznets curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991–2017.
Design/methodology/approach
This survey categorizes the studies on the basis of power of income in empirical models of EKC. It has been hypothesized that the EKC shows an inverted U-shaped association between economic growth and CO2 emissions.
Findings
For all the contexts, the results of EKC estimation for CO2 emissions are inconclusive in nature. The reasons behind this discrepancy can be attributed to the choice of contexts, time period, explanatory variables, and methodological adaptation.
Research limitations/implications
The future studies in this context should not only consider new set of variables (e.g. corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, happiness, population education structure, public investment toward alternate energy exploration, etc.), but also the data set should be refined, so that the EKC estimation issues raised by Stern (2004) can be addressed.
Originality/value
By far, no study in the literature of ecological economics has focused on the empirical estimation of EKC for CO2 emissions. This particular context has been used for this study, as CO2 is one of the highest studied pollutants in the ecological economics, and especially within the EKC hypothesis framework.
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To reconcile the existing contradictory conclusions on the relationship between cross-border mergers and acquisitions (M&As) and innovation, this paper aims to propose a…
Abstract
Purpose
To reconcile the existing contradictory conclusions on the relationship between cross-border mergers and acquisitions (M&As) and innovation, this paper aims to propose a theoretical model of the impact of cross-border M&As on technological innovation and explore the moderating role of institutional distance from the perspective of springboard theory and new institutional theory.
Design/methodology/approach
Through the use of the two-way fixed effect model and the U-test method, the authors test the hypotheses based on a sample of cross-border M&A events of Chinese manufacturing enterprises during the period from 2006 to 2019.
Findings
The research shows that there is an inverted U-shaped relationship between cross-border M&As and technological innovation. Furthermore, formal institutional distance moderates the inverted U-shaped relationship in such a way that it reaches its turning point at a smaller scale of cross-border M&As, and the inverted U-shaped relationship is steeper when formal institutional distance is relatively high. The informal institutional distance moderates the inverted U-shaped relationship in such a way that it reaches its turning point at a larger scale of cross-border M&As and the inverted U-shaped relationship is flatter when the informal institutional distance is relatively high.
Originality/value
The research conclusions integrate heterogeneous views of the existing research, further clarify the influence mechanism and boundary conditions between cross-border M&As and technological innovation, identify the different moderating roles of formal institutional distance and informal institutional distance and enrich the literature on knowledge transfer and recombinant innovation during post-merger integration.
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Allen Michel, Jacob Oded and Israel Shaked
The cornerstone of Modern Portfolio Theory with implications for many aspects of corporate finance is that reduced correlation among assets and reduced standard deviation are key…
Abstract
Purpose
The cornerstone of Modern Portfolio Theory with implications for many aspects of corporate finance is that reduced correlation among assets and reduced standard deviation are key elements in portfolio risk reduction. The purpose of this paper is to analyze the conditional correlation and standard deviation of a broad set of indices with the S & P 500 conditioned on market performance.
Design/methodology/approach
The authors examined volatility and correlation for a set of indices for a 19-year period based on weekly data from July 2, 1993 to June 30, 2012. These included the NASDAQ, MSCI EAFE, Russell 1000, Russell 2000, Russell 3000, Russell 1000 Growth, Russell 1000 Value, Gold, MSCI EM and Dow Jones UBS Commodity. The data for the Wilshire US REIT, Barclays Multiverse, Multiverse 1-3, Multiverse 3-5 and Multiverse 10+ became available starting July 2, 2002. For these indices the authors used weekly data from July 1, 2002 through June 30, 2012. For the iBarclays TIPS, the authors used weekly data from the time of availability, namely, for the period December 12, 2003 through June 29, 2012.
Findings
The findings demonstrate that both the conditional correlations and standard deviations vary as a function of market performance. Moreover, the authors obtain a U-shape distribution of correlations conditioned on market performance for equity indices, such as NASDAQ, as well as for the Wilshire REIT. Namely, correlations tend to be high when market returns are at low or high extremes. For more typical market performance, correlations tend to be low. A modified U-shape is found for bond indices and the Dow Jones UBS Commodity Index. Interestingly, the correlation between gold and the S & P 500 is unrelated to the return on the S & P.
Originality/value
While it has been observed that asset classes move together, this paper is the first to systematically analyze the nature of these asset class correlations.
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The purpose of this paper is to provide evidence that the U‐shaped relationship between intellectual property rights (IPRs) and per capita gross domestic product (GDP) observed in…
Abstract
Purpose
The purpose of this paper is to provide evidence that the U‐shaped relationship between intellectual property rights (IPRs) and per capita gross domestic product (GDP) observed in the past literature using a panel of data is not a consequence of longitudinal forces, as has been previously postulated, but instead a consequence of cross‐sectional influences.
Design/methodology/approach
Differences in the longitudinal and cross‐sectional relationship between IPRs and per capita GDP are analyzed through a variety of methods, including pooled regression analysis that isolates the regional differences that are critical in making an accurate longitudinal analysis from the panel data.
Findings
Analyzing the country data reveals that a longitudinal U‐shaped relationship is counterfactual, as countries generally do not weaken their IPRs once they are in place, barring a regime change or other alteration in their political economy. The significant U‐shape link between IPRs and per capita GDP empirically observed in preliminary analysis of the panel data is instead a result of cross‐sectional influences.
Originality/value
Making the distinction between the cross‐sectional and longitudinal relationship between IPRs and per capita GDP provides a more accurate insight about how IPRs change in a country as it develops.
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Ambreen Fatima and Humera Sultana
Several studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of this…
Abstract
Purpose
Several studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of this paper is to explore the existence of U‐shape relationship in the case of Pakistan and if it does exist, what factors determine this U‐shape relationship?
Design/methodology/approach
For the estimation purpose data according to provinces and regions are pooled for three years. The model is estimated using a simple fixed effect test.
Findings
The results affirm the existence of U‐shaped relationship. Estimation of the pooled data attributed this U‐shape relationship with female education attainment, sectoral employment share, unemployment rate, wages and marital status. Results confirm that high rate of economic development is encouraging the female participation in the labor force by increasing the work opportunities for females. The females are taking full advantage of these increased opportunities by increasing their level of education attainment. Research limitations/implications – In testing the U‐shape hypothesis, household expenditure on fuel consumption representing level of economic development in the country is used as the data on GDP are not available at the provincial level.
Practical implications
This paper recommends that skill‐based education programmes should be promoted so that females could be absorbed in the formal labor market. It also recommends measures to decrease unemployment rates and improve labor market conditions.
Originality/value
The paper is first of its kind as it applied pooled data technique for the estimation of U‐shape relationship.
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Shuchuan Hu, Qinghua Xia and Yi Xie
This study investigates firms' innovation behaviour under environmental change. Therefore, it examines the effect of trade disputes on corporate technological innovation and how…
Abstract
Purpose
This study investigates firms' innovation behaviour under environmental change. Therefore, it examines the effect of trade disputes on corporate technological innovation and how product market competition moderates this relationship.
Design/methodology/approach
This research tests the hypotheses using the fixed effects model based on panel data of publicly listed enterprises in China from 2007–2020.
Findings
The empirical results validate the positive association between trade disputes and corporate research and development (R&D) intensity as well as the U-shaped relationship between trade disputes and radical innovation. Additionally, the moderating effect of product market competition is verified: a concentrated market with less competition flattens the U-shaped curve of radical innovation induced by trade disputes; as the market becomes more concentrated and less competitive, the U-shaped relationship eventually turns into an inverted U.
Originality/value
First, this study contributes to the corporate innovation and trade dispute literature by expanding the environmental antecedents of technological innovation and the firm-level consequences of trade disputes. Second, this study enriches the theoretical framework of the environment–innovation link through an integrated perspective of contingency theory and dynamic capabilities view. Third, instead of the traditional linear mindset which had led to contradictory results, this study explores a curvilinear effect in the environment–innovation relationship.
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Wei Li and Zhuzhu Feng
Over the past decades, mainstream studies have generally indicated that new ventures could improve entrepreneurial performance by adopting strategic alliances (SAs). However…
Abstract
Purpose
Over the past decades, mainstream studies have generally indicated that new ventures could improve entrepreneurial performance by adopting strategic alliances (SAs). However, recently an increasing number of new ventures appear to not realize this objective using SAs at all times and may, rather, even be stuck in the survival trap. This dilemma indicates that the causal relationship between SAs and entrepreneurial performance in new ventures is not simply linear and rather a further complex nonlinear relationship. To handle this debate, this study attempted to reveal the nonlinear relationship of two types of SAs (technology alliances and market alliances) in new ventures with entrepreneurial performance (organizational growth and customer value). In addition, the moderating effect of transactive memory system (TMS) in the entrepreneurial team under the nonlinear relationship was explored.
Design/methodology/approach
This study established a research model by considering technology alliances and market alliances as two independent variables, organizational growth and customer value as two dimensions of entrepreneurial performance, and TMS as the moderators. The survey data collected from 207 Chinese new ventures was subjected to the hierarchical linear regression method for testing the proposed hypotheses.
Findings
The results revealed that there is an inverse U-shaped relationship between technology alliances and organizational growth, while the relationship between technology alliances and customer value was U-shaped. In addition, the relationship between market alliances and organizational growth was U-shaped, while an inverse U-shaped relationship was observed between market alliances and customer value. Finally, TMS was observed to positively moderate the U-shaped relationship between technology alliances and customer value as well as the U-shaped relationship between market alliances and organizational growth.
Originality/value
This study concluded that a nonlinear relationship between SAs and entrepreneurial performance existed in new ventures, which contributes to resolving the debate on whether new ventures could adopt SAs to improve entrepreneurial performance at all times. Specifically, the findings of this study would enrich the existing literature on the outcomes of SAs in new ventures through an evaluation of the effect of the inverse nonlinear relationship between technology alliances and market alliances on entrepreneurial performance (e.g. organizational growth and customer value). In addition, the findings of this study would extend the discussions about the conditions of the above causal relationship by introducing the TMS as the core moderator.
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In recent years, scholars have questioned the linear relationship between challenge stressors and positive outcomes. Nevertheless, few studies have examined whether challenge…
Abstract
Purpose
In recent years, scholars have questioned the linear relationship between challenge stressors and positive outcomes. Nevertheless, few studies have examined whether challenge stressors and workplace learning outcomes have an inverse U-shaped relationship. Therefore, this study aims to determine whether challenge stressors have an inverse U-shaped relationship with workplace learning outcomes among young Japanese employees.
Design/methodology/approach
Data were collected from 1,257 individuals in two time periods through an internet survey and analyzed using regression analysis.
Findings
The findings suggest that challenge stressors have an inverse U-shaped relationship with workplace learning outcomes.
Practical implications
The relationship between challenge stressors and workplace learning outcomes is positive until a certain point and becomes negative after a certain point. Hence, when promoting learning outcomes among young employees, supervisors should be careful to avoid subjecting employees to very little or excessive amount of challenge stressors.
Originality/value
This study provides evidence supporting the assumption that the relationship between challenge stressors and positive outcomes has an inverted U-shape.
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This study analyzes the maturity structure of the volatility in the KOSPI200 index and futures returns. Using bivariate GARCH model, we obtain the empirical evidences that the…
Abstract
This study analyzes the maturity structure of the volatility in the KOSPI200 index and futures returns. Using bivariate GARCH model, we obtain the empirical evidences that the maturity structure of the volatility is U-shaped unlike the well-known Samuelson effect. Remarkably. U-shaped structures are found not only in the futures market but also in the spot market These evidences imply that returns are more volatile around tile futures maturity date in both markets.
Some explanations are suggested about U-shaped maturity structures. First, under Samuelson hypothesis it is possible to show that the volatilities are high around the maturity date because of the volatility clustering and the volatility spill-over. Second, we try the regression of the volatility on variables such as the proportion of the individual investors, the foreign investors, and the program trading. These variables are U-shaped or inverse U-shaped due to the remaining maturity. Only before 2000, it is found that the proportions of the foreign investors and the program trading are compatible with U-shaped volatility structures.
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