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Article
Publication date: 15 December 2022

Tien Dung Luu

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

Abstract

Purpose

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

Design/methodology/approach

The data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period.

Findings

This study elucidates how firm-level resources, entrepreneur characteristics and costs of doing business influence an entrepreneur’s decision to enter, the speed and the degree of formality.

Originality/value

This study provides insight into the origins of an entrepreneur’s decisions to the multidimensions of business formality through the lenses of the resource-based view, entrepreneurship and institution theories.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 16 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 27 October 2023

Ambrose R. Aheisibwe, Razack B. Lokina and Aloyce S. Hepelwa

This paper aims to examine the level of economic efficiency and factors that influence economic efficiency among seed potato producers in South-western Uganda.

Abstract

Purpose

This paper aims to examine the level of economic efficiency and factors that influence economic efficiency among seed potato producers in South-western Uganda.

Design/methodology/approach

The paper analyses the economic efficiency of 499 informal and 137 formal seed producers using primary data collected through a structured questionnaire. A multi-stage sampling technique was used to select the study sites and specific farmers. A one-step estimation procedure of normalized translog cost frontier and inefficiency model was employed to determine the level of economic efficiency and the influencing factors.

Findings

The results showed that mean economic efficiencies were 91.7 and 95.2% for informal and formal seed potato producers, respectively. Furthermore, results show significant differences between formal and informal seed potato producers in economic efficiency at a one percent level. Market information access, credit access, producers' capacity and experience increase the efficiency of informal while number of potato varieties, market information access and producers' experience increase economic efficiency for formal counterparts.

Research limitations/implications

Most seed potato producers, especially the informal ones do not keep comprehensive records of their production and marketing activities. This required more probing as answers depended on memory recall.

Practical implications

Future research could explore panel data approach involving more cropping seasons with time variant economic efficiency and individual unobservable characteristics that may influence farmers' efficiency to validate the current findings.

Social implications

The paper shows that there is more potential for seed potato producers to increase their economic efficiency given the available technology. This has a direct implication on the economy through increased investment in the production and promotion of high yielding seed potato varieties to meet the growing national demand for potatoes.

Originality/value

The paper bridges the gap in literature on economic efficiency among seed potato producers, specifically in applying the normalized translog cost frontier approach in estimating economic efficiency in the context of potato sub-sector in Uganda.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2021-0641

Details

International Journal of Social Economics, vol. 51 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 6 July 2023

Nisit Panthamit, Paisarn Panthamitr and Guowei Tian

This study aims to convey the understanding of the ecosystem – how “hundi” works on the border trade between Myanmar and northern Thailand, which is an informal transfer system…

Abstract

Purpose

This study aims to convey the understanding of the ecosystem – how “hundi” works on the border trade between Myanmar and northern Thailand, which is an informal transfer system and is widely used as an alternative banking system. Even though the role of hundi is unable to declare the sources of money under the standard settlement of formal banking system, a failure to operate of its official mechanism are carrying using hundi, as a financial platform across the border between Thailand and Myanmar. This study surveys the best practice mechanism for the regional and international cooperation.

Design/methodology/approach

This paper draws on relevant literature, open-source reporting, and interviews with more than 30 interviewees on the border between Thailand and Myanmar. Interviewees includes border-trader, money changer, money transfer operators, business leaders, hundi operators, immigrant labors, government officials and commercial banking staffs.

Findings

This study provides a unique insight of hundi system, which work as the alternative mode of formal banking. It is an informal fund transfer payment platform used on the border between Thailand and Myanmar in the past five decades. It insists that hundi plays a significant role in both substitution and complementary on the trade and payment across the border of Myanmar–Thailand. Even though confronting with the barriers of financing of terrorism (anti money laundering AML/combating the financing of terrorism CFT) risk, the competition with the expanding and modernizing formal banking sector, and the introduction of Fintech and mobile money services. In the short term, these are unlikely to eliminate the hundi system completely, but may instead push hundi operators towards adopting these networks and technologies in their own operations.

Social implications

This paper will be a useful source for academics, development professionals, policymakers, law enforcement agencies and business actors who are seeking to understand Myanmar’s informal payment system, hundi.

Originality/value

This is the latest work for border trade payment or trade financing role of hundi which has hidden under the informal market of the border for several decades. It has few research of hundi on border trade and payment, particularly after the military coup in 2021 which made hundi return to be on the spotlight and simultaneous mechanism of border trade and payment ecosystem of Myanmar. This paper will be a useful source for academics, development professionals, policymakers, law enforcement agencies and business actors who are eager to understand Myanmar’s informal payment system, hundi, especially during the hardship.

Details

Journal of Money Laundering Control, vol. 27 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 8 November 2022

Anna Pistoni, Anna Arcari and Chiara Gigliarano

This study analyses the link between product/service innovation, partnerships and Managerial Control System (MCS). Particularly, it aims to analyse empirically the role of MCS in…

Abstract

Purpose

This study analyses the link between product/service innovation, partnerships and Managerial Control System (MCS). Particularly, it aims to analyse empirically the role of MCS in supporting the innovation partnership successful functioning and management.

Design/methodology/approach

The sample of this study consists of 106 Italian manufacturing firms belonging to the sectors of the Italian economy with the largest number of registered patents according to the European trend chart on innovation.

Findings

The results show that MCS may play a key role in reducing risks and lowering the likelihood of failure of innovation partnerships. Particularly, the authors found a positive correlation between the use of informal control mechanisms and a partnership’s successful performance. Moreover, among informal control, the findings show that trust is the only true informal mechanism that can guarantee a successful collaboration. The results of this study may offer relevant implications for practitioners. With regard to the control of the partnership’s activities, the initiatives and creativity of those who are actively involved in the innovation process should not be inhibited; therefore, stifling them with strict rules and procedures would be ineffective but if a firm is not willing to give up formal control mechanisms altogether because it does not believe that a trust-based coordination is sufficiently reassuring, it should opt for “weak”, albeit formal, control mechanisms based on a shared production and management of plans and reports, thus ensuring a perfect information symmetry among different partners.

Originality/value

Notwithstanding the different opportunities provided by partnerships and strategic alliances to support there is a growing body of evidence of a high failure rate in such organisational forms. One of the causes cited in the literature is the high level of risk associated with alliances as compared to internal development of innovation. The risks mainly arise from the difficulties to obtain cooperation with partners that might have different objectives, and from the potential opportunistic behaviour of some of the partners. This is particularly true in innovation networks where the uncertainty of producing an interesting result is very high and the investments that the partners make are considerable. In this context, MCS could play a relevant role in reducing the risks and decreasing the likelihood of failure.

Details

European Journal of Innovation Management, vol. 27 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 19 January 2024

Roosa Amanda Lambin and Milla Nyyssölä

Mainland Tanzania has seen two decades of significant social policy reforms and transformations in its social and economic structures, whilst the country continues to grapple with…

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Abstract

Purpose

Mainland Tanzania has seen two decades of significant social policy reforms and transformations in its social and economic structures, whilst the country continues to grapple with persisting gender inequalities. This article examines Tanzania's social policy developments from a gender perspective. The authors analyse the level, reach and quality of social policy delivery to working-age women across the areas of health policy, social protection and employment policy during 2000–2021.

Design/methodology/approach

The article draws on qualitative research deploying the scoping review method. The data consist of diverse secondary materials, including academic publications, government policy documents, relevant statistics and other types of “grey” literature.

Findings

Tanzania has made significant advancements in the legal frameworks around welfare provision and has instituted increasingly gender-responsive government policy plans. The health and social protection sectors, in particular, have witnessed the introduction of large-scale measures expanding social policy implementation. However, social policy delivery remains two-tiered, with differences in provisions for women in the formal and informal sectors.

Originality/value

Social policy delivery and implementation have increased and diversified in Sub-Saharan Africa (SSA) during the new millennium, with a growing integration of gender-specific policy objectives. However, limited social policy scholarship has focused on the gendered effects of broader social policy models in SSA. The article remedies the concomitant knowledge gaps by examining various social policies and their impacts on working-age women in Mainland Tanzania. The authors also engage with the theoretical welfare regime literature and present an analytical framework for gender-sensitive assessment of emerging social policy models in the Global South.

Details

International Journal of Sociology and Social Policy, vol. 44 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 1 May 2024

Subhanjan Sengupta, Sonal Choudhary, Raymond Obayi and Rakesh Nayak

This study aims to explore how sustainable business models (SBM) can be developed within agri-innovation systems (AIS) and emphasize an integration of the two with a systemic…

Abstract

Purpose

This study aims to explore how sustainable business models (SBM) can be developed within agri-innovation systems (AIS) and emphasize an integration of the two with a systemic understanding for reducing food loss and value loss in postharvest agri-food supply chain.

Design/methodology/approach

This study conducted longitudinal qualitative research in a developing country with food loss challenges in the postharvest supply chain. This study collected data through multiple rounds of fieldwork, interviews and focus groups over four years. Thematic analysis and “sensemaking” were used for inductive data analysis to generate rich contextual knowledge by drawing upon the lived realities of the agri-food supply chain actors.

Findings

First, this study finds that the value losses are varied in the supply chain, encompassing production value, intrinsic value, extrinsic value, market value, institutional value and future food value. This happens through two cumulative effects including multiplier losses, where losses in one model cascade into others, amplifying their impact and stacking losses, where the absence of data stacks or infrastructure pools hampers the realisation of food value. Thereafter, this study proposes four strategies for moving from the loss-incurring current business model to a networked SBM for mitigating losses. This emphasises the need to redefine ownership as stewardship, enable formal and informal beneficiary identification, strengthen value addition and build capacities for empowering communities to benefit from networked SBM with AIS initiatives. Finally, this study puts forth ten propositions for future research in aligning AIS with networked SBM.

Originality/value

This study contributes to understanding the interplay between AIS and SBM; emphasising the integration of the two to effectively address food loss challenges in the early stages of agri-food supply chains. The identified strategies and research propositions provide implications for researchers and practitioners seeking to accelerate sustainable practices for reducing food loss and waste in agri-food supply chains.

Details

Supply Chain Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 15 March 2024

B. Elango

This study seeks to explicate how institutional disruptions impact multinational corporation (MNC) subsidiary control choices. It uses institutional theory to understand the…

Abstract

Purpose

This study seeks to explicate how institutional disruptions impact multinational corporation (MNC) subsidiary control choices. It uses institutional theory to understand the influence of formal and informal institutions across countries on the type of control system employed in an MNC manufacturing subsidiary.

Design/methodology/approach

This study’s sample is based on a unique dataset from five trustworthy sources. We use multi-level models to account for the hierarchical nature of the sample of 1,630 multinational subsidiaries spread across 26 host countries by firms from 21 home countries.

Findings

The institutional distance between the host and the home country has a negative relationship with strategic control. In contrast, the home country’s power distance has a positive relationship with strategic control.

Originality/value

Study findings indicate the need to incorporate formal and informal institutional elements in the control system’s conceptual framing and design. This notion complements existing visualizations of optimizing MNC controls through extant articulations of minimizing governance costs through organizational design choices or strategic needs.

Details

Cross Cultural & Strategic Management, vol. 31 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Open Access
Article
Publication date: 3 January 2024

Cameron McCordic, Ines Raimundo, Matthew Judyn and Duncan Willis

Climate hazards in the form of cyclones are projected to become more intense under the pressures of future climate change. These changes represent a growing hazard to low lying…

Abstract

Purpose

Climate hazards in the form of cyclones are projected to become more intense under the pressures of future climate change. These changes represent a growing hazard to low lying coastal cities like Beira, Mozambique. In 2019, Beira experienced the devastating impact of Cyclone Idai. One of the many impacts resulting from this Cyclone was disrupted drinking water access. This investigation explores the distribution of Cyclone Idai’s impact on drinking water access via an environmental justice lens, exploring how preexisting water access characteristics may have predisposed households to the impacts of Cyclone Idai in Beria.

Design/methodology/approach

Relying on household survey data collected in Beira, the investigation applied a decision tree algorithm to investigate how drinking water disruption was distributed across the household survey sample using these preexisting vulnerabilities.

Findings

The investigation found that households that mainly relied upon piped water sources and experienced inconsistent access to water in the year prior to Cyclone Idai were more likely to experience disrupted drinking water access immediately after Cyclone Idai. The results indicate that residents in formal areas of Beira, largely reliant upon piped water supply, experienced higher rates of disrupted drinking water access following Cyclone Idai.

Originality/value

These findings question a commonly held assumption that informal areas are more vulnerable to climate hazards, like cyclones, than formal areas of a city. The findings support the inclusion of informal settlements in the design of climate change adaptation strategies.

Details

Disaster Prevention and Management: An International Journal, vol. 33 no. 6
Type: Research Article
ISSN: 0965-3562

Keywords

Article
Publication date: 30 April 2024

Chunli Liu and Jing Cheng

This study aims to investigate the impact of board skill diversity (BSD) on corporate environmental responsibility (CER). In addition, this study explores the moderating effects…

Abstract

Purpose

This study aims to investigate the impact of board skill diversity (BSD) on corporate environmental responsibility (CER). In addition, this study explores the moderating effects of formal regulatory pressure and informal media pressure.

Design/methodology/approach

This study uses Chinese high polluting companies as the sample and uses regression analysis. Robustness checks, including instrumental variable regression, Heckman two-stage model and propensity score matching method, are performed to test the robustness of the results.

Findings

The findings suggest that BSD significantly improves CER performance. Both formal regulatory pressure and informal media pressure strengthen the positive impact of BSD on CER. Further channel analyses reveal that BSD improves CER performance by promoting corporate proenvironmental behaviors rather than by restricting environmental violations; skill diversity of executive directors has a more significant effect on CER than that of independent directors. Finally, the moderating effect of regulatory pressure is only significant after the implementation of the Environmental Protection Law, and the moderating effect of media pressure mainly concentrates on negative media coverage.

Practical implications

The involvement of directors with more diverse skills is essential to improve corporate proenvironmental behaviors. Companies should select qualified directors with different skills to further improve their performance on environmental protection and sustainable development.

Social implications

Regulators and standard-setters should develop efficient guidelines on corporate board governance to enhance the positive role of companies in environmental and sustainable development.

Originality/value

This study broadens the research on the determinants of CER by examining the influence of BSD on CER and the moderating roles of various stakeholder pressures, thereby providing a deeper understanding of corporate environmental performance and sustainable development.

Details

Sustainability Accounting, Management and Policy Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8021

Keywords

Open Access
Article
Publication date: 18 January 2024

Paola Ferretti, Cristina Gonnella and Pierluigi Martino

Drawing insights from institutional theory, this paper aims to examine whether and to what extent banks have reconfigured their management control systems (MCSs) in response to…

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Abstract

Purpose

Drawing insights from institutional theory, this paper aims to examine whether and to what extent banks have reconfigured their management control systems (MCSs) in response to growing institutional pressures towards sustainability, understood as environmental, social and governance (ESG) issues.

Design/methodology/approach

The authors conducted an exploratory study at the three largest Italian banking groups to shed light on changes made in MCSs to account for ESG issues. The analysis is based on 12 semi-structured interviews with managers from the sustainability and controls areas, as well as from other relevant operational areas particularly concerned with the integration process of ESG issues. Additionally, secondary data sources were used. The Malmi and Brown (2008) MCS framework, consisting of a package of five types of formal and informal control mechanisms, was used to structure and analyse the empirical data.

Findings

The examined banks widely implemented numerous changes to their MCSs as a response to the heightened sustainability pressures from regulatory bodies and stakeholders. In particular, with the exception of action planning, the results show an extensive integration of ESG issues into the five control mechanisms of Malmi and Brown’s framework, namely, long-term planning, cybernetic, reward/compensation, administrative and cultural controls.

Practical implications

By identifying the approaches banks followed in reconfiguring traditional MCSs, this research sheds light on how adequate MCSs can promote banks’ “sustainable behaviours”. The results can, thus, contribute to defining best practices on how MCSs can be redesigned to support the integration of ESG issues into the banks’ way of doing business.

Originality/value

Overall, the findings support the theoretical assertion that institutional pressures influence the design of banks’ MCSs, and that both formal and informal controls are necessary to ensure a real engagement towards sustainability. More specifically, this study reveals that MCSs, by encompassing both formal and informal controls, are central to enabling banks to appropriately understand, plan and control the transition towards business models fully oriented to the integration of ESG issues. Thereby, this allows banks to effectively respond to the increased stakeholder demands around ESG concerns.

Details

Meditari Accountancy Research, vol. 32 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

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