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Drawing on the international business and game theory literature, this study assesses foreign firm treatment in the early stages of regulatory enforcement.
Abstract
Purpose
Drawing on the international business and game theory literature, this study assesses foreign firm treatment in the early stages of regulatory enforcement.
Design/methodology/approach
Treating regulation intensity as an exposure variable, negative binomial regression models were applied to firm-level data from 32 emerging markets (n = 15,331) to identify the determinants of inspection interactions. Robustness checks also were performed via variable substitutions for several predictors and an alternative form of statistical testing (i.e. Tobit regression, since it arguably better addresses dependent variables with corner solution responses).
Findings
Controlling for multiple organizational, regulatory and national characteristics, the findings are consistent with a foreign privilege, manifesting in reduced vulnerability to multiple encounters with labor inspection officials. Moreover, inward FDI stock was negatively related to the general probability of repeat interactions regardless of locus of ownership, an effect that was not moderated by stage of development or the regulatory influence of host interest groups. This collectively suggests that foreign firms not only are favored in compliance monitoring but also work post-entry to influence agencies to generally benefit business.
Research limitations/implications
More comprehensive assessments were precluded given the lack of information on reasons for contact, citations and fines, and inspectorate reactions to company responses. Second, enforcement-risk management was measured indirectly since investors' internal dealings and actions toward officials are unavailable in secondary sources.
Practical implications
These findings have important implications for social responsibility, suggesting CSR stakeholders need to track enforcement more closely and exert pressure where needed so rights are not sacrificed for economic development.
Originality/value
This study provides the most rigorous assessment to date of the role that firm, government and economic factors play in national inspection targeting. It also examined whether foreign owners pool and leverage their political influence to impact general inspection activity, a previously untested prospect.
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John Owusu-Afriyie, Priscilla Twumasi Baffour and William Baah-Boateng
This study seeks to estimate union wage effect in the public and private sectors of Ghana, respectively. It also seeks to ascertain whether the union wage effect in the two…
Abstract
Purpose
This study seeks to estimate union wage effect in the public and private sectors of Ghana, respectively. It also seeks to ascertain whether the union wage effect in the two sectors varies.
Design/methodology/approach
The authors use data from the Ghana Living Standards Survey 6 (GLSS 6, 2012/2013) and Ghana Labour Force Survey (GLFS, 2015). In terms of estimation technique, the authors employ the Blinder–Oaxaca decomposition technique to estimate union wage effect in public and private sectors, respectively.
Findings
The findings indicate that union wage effect in the public sector is positive and higher relative to that of the private sector.
Practical implications
The findings imply that strict enforcement of Section 82 of Labour Act 2003 (Act 651) will curb the political influence of public sector unions over their employer (Government).
Originality/value
This research paper has not been presented to any journal for publication and it is the authors' original work.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0045
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The purpose of the article is to outline the insights provided by Alan Fox in Man Mismanagement in relation to the rise of the New Right political economy and the spread of…
Abstract
Purpose
The purpose of the article is to outline the insights provided by Alan Fox in Man Mismanagement in relation to the rise of the New Right political economy and the spread of unitarist managerialism. The article assesses the contemporary work and employment relations implications of mismanagement arising from a “second wave” of the New Right ideology from 2010 in the UK.
Design/methodology/approach
Responding to the Special Issue on Alan Fox, the article focuses on Alan Fox's book Man Mismanagement, considering industrial relations developments arising between the 1st (1974b) and 2nd (1985) editions relating to the political rise of the New Right. It reviews various literature that illustrates the contemporary IR relevance of the book and Fox's insights.
Findings
The New Right’s ideology has further fragmented work, disjointed labour rights and undermined collective industrial relations institutions, and macho mismanagement praxis is even more commonplace, compared to when Fox wrote Man Mismanagement. The stripping away of the institutional architecture of IR renders the renewal of pluralist praxis, like collective bargaining and other forms of joint regulation of work, a formidable task.
Originality/value
The value of the article relates to the identification of dramatic historical industrial relations events and change in the UK in Alan Fox's book Man Mismanagement, most notably relating to the rise to power of the Thatcherite New Right in 1979. Originality is evidenced by the authors’ drawing on Fox's ideas and assessing the implications of the “second wave” of the New Right in the contemporary industrial relations (IR) context of the 2020s under the conceptual themes of fragmented work, disjointed labour rights and undermined collectivism.
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Ana Botella-Andreu, Cristina Villar, José Pla-Barber and Ulf Andersson
This study aims to investigate the drivers of political embeddedness and the possible outcome in terms of autonomy and subsidiary unique competences.
Abstract
Purpose
This study aims to investigate the drivers of political embeddedness and the possible outcome in terms of autonomy and subsidiary unique competences.
Design/methodology/approach
This study draws on resource dependence theory and applies structural equation modeling on a sample of 193 subsidiaries.
Findings
Political embeddedness is confirmed as a source of potential autonomy and the development of competences and is usually boosted by previous existing networks at the internal and external levels.
Originality/value
The authors investigate and discuss how multinational corporations can leverage political resources in host-country political arenas, extending their understanding of the interplay between political activities and market strategies.
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Kaouther Toumi, Nabil Ghalleb and Mikael Akimowicz
This paper aims to explore individuals’ economic empowerment and political empowerment association and the moderation role of entrepreneurship development programs on this…
Abstract
Purpose
This paper aims to explore individuals’ economic empowerment and political empowerment association and the moderation role of entrepreneurship development programs on this relationship in the context of post-revolution Tunisia, which is a newer developing democracy.
Design/methodology/approach
The study uses a quantitative approach based on econometric modeling. A questionnaire was designed and administrated to a stratified random sample of 343 participants in the Entrepreneurship for the Participation and Inclusion of Vulnerable Youth in Tunisia program, funded by the United Nations Democracy Fund and implemented in rural northwestern Tunisia between 2017 and 2021. A coarsened exact matching method is also applied for robustness analysis.
Findings
The analysis shows that when individuals have enhanced economic decision-making agency and are involved in economic networks, they are more likely to demonstrate higher political empowerment. It also shows that expanding rural individuals’ economic opportunities by providing entrepreneurial resources, such as entrepreneurial training and microcredit, strengthens individuals’ economic empowerment and political empowerment association.
Practical implications
The study provides practical implications for policymakers in newer developing democracies. Citizens’ political empowerment and inclusion in rural areas could be promoted by developing entrepreneurship development programs, which could help reinforce the citizens-state relationship and establish more stable social contracts. The research also provides practical implications for the international development community, donor agencies and program designers through duplicating similar programs in other countries with weak central government structures (i.e. post-conflict environments, post-revolution).
Originality/value
The research attempts to contribute to the ongoing debates linking entrepreneurship, economic empowerment and political/citizen empowerment. It focuses on a Middle East and North Africa country, Tunisia, characterized by socioeconomic issues and low civic participation.
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The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…
Abstract
Purpose
The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.
Design/methodology/approach
The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.
Findings
The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.
Originality/value
In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.
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This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.
Abstract
Purpose
This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.
Design/methodology/approach
It introduces a novel theoretical framework, the state-business-labor relations (SBLR) framework, where four main actors are identified: the state, big businesspersons or tycoons, owners and managers of small and medium enterprises (SMEs) or Entrepreneurs and labor. Different SBLR categories or modes are introduced depending on levels of coordination and power relations between the studied actors. The paper then investigates how these SBLR modes, through adopting various policies targeting the industrial sector, lead to different growth paths. Rather than focusing only on economic growth, this research regards a growth path as a matrix of the performance in long-run growth and equality of distribution.
Findings
Using regression analysis and statistical data, the results suggest that the Co-Balanced mode, having higher levels of coordination and lower favoritism, leads to the best growth path among the four introduced modes, especially with its emphasis on high levels of venture capital availability and easiness of starting business. while the Lib-Capture mode, characterized by lower coordination and higher favoritism, seems to have the worst growth path and the best implemented policy for this mode is suggested to be high profit taxes that seem to counter the negative impact of the existing high levels of favoritism.
Research limitations/implications
Despite the important findings that this research has reached, this paper is mainly meant to open a further investigation into this topic and open this dimension that the research on VoC and political economy have under-researched. A deeper investigation of SBLR typologies that could only be possible by having richer datasets with more data on coordination for the whole world, rather than only the advanced economies, would further our understanding of the dynamics that shape the growth paths of different countries of the world.
Practical implications
To realize the best industrial growth path, fighting favoritism should be an important objective. The negative impact of favoritism on innovation could not be disregarded in the eve of the fourth industrial revolution, where innovation is increasingly pivotal to future industrial development. Actively engaging societal groups in the policymaking process is important in addressing their concerns and balancing them at the same time. This should lead to the double benefit of formulating better policies that should foster growth as well as provide better distribution of this growth. High levels of coordination should help in realizing this objective. Yet, this could only be possible if societal groups are free to associate and aggregate their power and when there are means of preventing one actor from gaining more favorite treatment and exclusive influence over policymakers. The presence of both powerful and broadly represented business associations and labor unions and the existence of a government interested in coordinating their efforts-rather than letting itself be controlled by one group at the expense of the others-should help in the realization of the best growth path. Thus, institutional reform that empowers societal groups and enables them to defend their interests as well as fights all forms of corruption should lead to the realization of a more prosperous and equitable industrial development, with the “re-industrialization” of the developed world being no exception. The technological and social challenges of intensive automation and digitalization accompanying the fourth industrial revolution make the envisaged institutional reform more urgent.
Originality/value
This paper is introducing a novel theoretical framework for studying the effect of state-society relations, particularly SBLR, on the industrial growth paths of developed countries. It integrates three important bodies of literature in order to build a more comprehensive understanding of the dynamics of state-society relations and their economic consequences. These are the Varieties of Capitalism (VoC), State-Business Relations (SBR) and Industrial Relations. The SBLR framework differentiates between tycoons and entrepreneurs, an important distinction that often goes unnoticed. Different SBLR categories or modes are introduced, depending on levels of coordination and power relations between the actors. It is proposed in this research that the effect on growth paths goes beyond the simple dichotomy between CMEs and LMEs usually present in the literature of VoC and that power relations provide an essential complementary dimension in explaining this causality.
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Peng Ning, Lixiao Geng and Liangding Jia
Drawing on bargaining power and the inequality aversion perspective, this study aims to probe employees’ influence on addressing income inequality between top executives and…
Abstract
Purpose
Drawing on bargaining power and the inequality aversion perspective, this study aims to probe employees’ influence on addressing income inequality between top executives and nonexecutive employees. Meanwhile, it examines the moderating role of employee-related factors and plan attributes.
Design/methodology/approach
This study uses a staggered difference-in-differences design with a propensity scoring match approach and verification of the parallel trend assumption to test the hypotheses.
Findings
The results support the hypothesis that employee stock ownership plans (ESOPs) significantly reduce within-firm income inequality. The negative effect is amplified by both the presence of trade unions and the unemployment rate at the regional level, as well as the duration of the lock-in period and the scale of participants within the stock ownership plan.
Practical implications
This study has implications for income inequality research and ESOP design and provides theoretical support for policymakers and corporate governance.
Originality/value
This study contributes to the literature on income inequality by examining the implementation of ESOPs from the employee perspective. Furthermore, it extends the current literature by investigating the strengthening effects of regional factors and ESOP attributes on the relationship between ESOPs and income inequality. The conclusions provide new empirical evidence to promote the effective implementation of ESOPs by combining internal and external factors.
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Dominique Mazé, Jorge Alcaraz and Ricardo E. Buitrago R.
This paper aims to investigate how emerging market multinational enterprises (EMNEs) are integrating and expanding into other emerging market host countries, focusing on Chinese…
Abstract
Purpose
This paper aims to investigate how emerging market multinational enterprises (EMNEs) are integrating and expanding into other emerging market host countries, focusing on Chinese mining companies in Peru.
Design/methodology/approach
Adopting a qualitative approach, an in-depth analysis of two Chinese state-owned enterprises’ strategies was conducted, building on stakeholder theory and the business ecosystem perspective.
Findings
This study reveals a reliance on high-level political lobbying rather than localized engagement strategies. However, findings point to increasing grassroots resistance among local stakeholders, undermining EMNEs’ bargaining power.
Originality/value
This paper argues for a paradigm shift toward inclusive, cooperative “translocal governance” approaches as empowered communities gain voice. Key contributions include advancing theoretical understanding of changing stakeholder relationships and power configurations in emerging countries, underscoring the rising significance of microlevel sociocultural embeddedness for MNE success and highlighting practical imperatives for EMNEs to embark on rapid localization strategies in Latin America. By elucidating multilayered integration realities in Peru, this interdisciplinary study yields contextualized insights and enriches perspective on the conditions and pathways for EMNEs to build sustainability in Global South emerging market environments.
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Abstract
Purpose
Research on the relationship between customer bargaining power and supplier performance in supplier–customer relationships has flourished in recent decades. This study aims to empirically investigate whether product market overlap (PMO) in a supply chain moderates the effect of customer bargaining power on supplier profitability.
Design/methodology/approach
This study uses large-scale secondary data from multiple databases. Econometric panel data techniques are used to test the hypotheses.
Findings
The results show that PMO in a supplier–customer relationship and PMO in supplier–supplier relationships both exacerbate the negative effect of the bargaining power of customers on supplier profitability.
Originality/value
This study contributes to the field of supply chain management. This study brings new insights into the ongoing debate surrounding the relationship between customer bargaining power and supplier profitability. The study also contributes to the literature on supply chain networks by showing the impact of indirect supply chain relationships.
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