Global Business and Economics Review (57 papers in press)
International Oil Prices and Consumer Prices in Pakistan: Is the Relationship Symmetric?
by Syed Tehseen Jawaid, Mohammad Haris Siddiqui, Muhammad Shahbaz
Abstract: This study empirically examines the effect of international oil prices on aggregated and disaggregated consumer prices in Pakistan by employing annual time series data for the period of 1981-2011. Cointegration results confirm the existence of the positive long run relationship between international oil prices and consumer prices in Pakistan in all models. Furthermore, the error correction model unveils no immediate or short-run relation between oil prices and consumer prices. Similarly, our empirical evidence also reveals asymmetric relationship between international oil prices and consumer prices. Results indicate that the positive shock in international oil price has a significant positive effect in all models. On the other hand, negative shock in oil price has insignificant effect. It is suggested that prevention of cartel, implementation of antitrust law and reduction in borrowing constraints could be used to tackle the problem of asymmetric behavior.
Keywords: Consumer Prices; Oil Prices; Disaggregated Prices; Pakistan; Symmetry.
INSTITUTIONAL AND MACROECONOMIC DETERMINANTS OF FINANCIAL DEVELOPMENT IN THE OIC COUNTRIES
by Abdulsalam Abubakar, Salina Kassim
Abstract: The role of a well-developed and functioning financial system to the growth process of nations is strongly recognized in both the academia and policy cycles. Consequently, the question arose that if financial development is so important to economic growth, then, what determines it is equally worthy of attention. This study is inspired by this concern and the fact that financial development in the OIC member countries is low relative to other developing countries. The study investigates the institutional and macroeconomic determinants of financial development in 50 OIC member countries over the period 2003 to 2011. Due to the potentials of country specific effects and endogeneity of explanatory variables, a dynamic panel approach that is system-GMM was employed. The results revealed that overall level of income positively influences financial development, and exchange rate encourages financial depth and lending activities. Financial openness is found to promote financial depth only, while institutional quality promotes lending activities. On the other hand, inflation stimulates bank private credit and reduces the depth of the financial sector. This mixed results implied that, policy makers in the OIC countries, shall adopt a hybrid of economic and financial policies as well as implement political, legal and governance reforms in order to strike a balance between the needs of both the suppliers and users of funds, enhance financial development and hence promote economic growth.
Keywords: Determinants; Financial Development; Institutions; OIC; System-GMM.
Drivers of R&D Internationalisation-Evidence from US Firm Investments in Developing Economies
by Wei He, Tantatape Brahmasrene
Abstract: In todays global competitive environment, multinational corporations (MNCs) continue to internationalise their research and development (R&D) activities by progressively locating their innovatory capacity in developing nations. Hence, a panel study is developed to examine the effects of multiple factors that motivate U.S. R&D investments in developing nations based on the analysis of longitudinal data collected from a variety of governmental, academic and public sources. The empirical results indicate that MNCs locate their foreign R&D activities in developing nations in order to exploit the available resource endowment. Furthermore, targeting the emerging markets does not appear to be a strong motivator that drives MNCs foreign R&D investments. Instead, developing nations that have advanced telecommunication infrastructure, low labor costs and technology specialisation capabilities attract more foreign R&D investments. The paper concludes by identifying a range of issues, managerial and policy implications.
Keywords: MNCs; internationalisation; R&D investments; developing economies; telecommunication; labor costs; technology specialisation; market factor; resource factor.
THE IMPACT OF RESEARCH AND DEVELOPMENT ON TOTAL FACTOR PRODUCTIVITY IN SOUTH AFRICA: AN APPLICATION OF AUTOREGRESSIVE DISTRIBUTED LAG MODEL APPROACH
by Tshepo Sylvester Sekaiwa, Andrew Maredza
Abstract: This study analyses the impact of research and development (R&D) on total factor productivity (TFP) in South Africa from 1970 to 2013. The study tests the Schumpeterian theory of growth which suggests that TFP growth results from inter alia R&D. The study uses autoregressive distributed lag (ARDL) testing procedure to study TFP impact of R&D investment in South Africa. To take into account the changing structure of South African economy, the entire sample (1970 2013) and two sub-samples: 1970 -1994 and 1990 - 2013 capturing resource-based South Africa and knowledge-based South Africa respectively are estimated. The ARDL test results revealed that there is cointegration between TFP and R&D in South Africa for all the samples; implying that domestic and foreign R&D played a positive role on TFP growth of South Africa. Based on the results, the South African policy makers are encouraged to use their policy instruments to improve R&D investment, particularly domestic R&D to achieve higher TFP growth.
Keywords: Total Factor Productivity; Research and Development; Schumpeterian growth theory; South Africa.
Violations of Put-Call Parity for CNX Nifty Index Options: A Study at National Stock Exchange
by Tanuj Nandan, Puja Agrawal
Abstract: Derivatives markets provide a platform for market participants to hedge their risk, and aid price discovery. Correct pricing of derivatives instruments is imperative in the performance of these functions. In the present study, an attempt has been made to examine the valuation of CNX Nifty Index Options in terms of Put-Call Parity (PCP) relationship, over a ten-year period. Since PCP is a no-arbitrage based argument, it does not suffer from the limitations that are inevitable while gauging pricing efficiency using model-based approaches. Various error estimates, supported by non-parametric tests have been used validate our results statistically. Our findings indicate frequent violations of PCP, though the magnitude of mispricing is small. Further, the results are charted across Moneyness, Days-to-Expiry and Liquidity. The present study can be extremely important for all stakeholders, as violation of PCP leads to risk-free profitable arbitrage, which is an antithesis to efficient markets.
Keywords: derivatives; put-call parity; no-arbitrage; index options; CNX Nifty; pricing efficiency; mispricing; error estimates; non-parametric tests; moneyness;.
Organizational Management Culture and Employers' Health Insurance Offering strategies in the US: An Ubuntu Based Random Utility Modeling Approach
by Niankara Ibrahim
Abstract: This article takes an approach to explaining the behavioral manifestations of the decision making in US companies' offer of health insurance that is grounded not only on their cost minimizing behavior, but also in a humanness dimension based on the African concept of Ubuntu. In this way, we define an Ubuntu based Random Utility Modeling framework, describing the choice process as a tripartite decision making, and implemented using a nationally representative random sample of 1,061 American companies. rnrnThe results suggest that even under groups or formal committee management culture, western style management does not produce outcomes similar to those expected theoretically under the Ubuntu style management. More specifically, companies with groups and formal committee management culture are 1.58 times less likely to choose a multiple plan strategy over a single plan strategy, hence failing to show the more wholesome plan offering that would theoretically prevail under the Ubuntu style management.
Keywords: Affordable Care Act; Discrete Choice Modeling; Employer Health Insurance; Ubuntu.
Population, Immigration and Growth in a Romer Endogenous Growth Model
by Pedro J. Gutierrez
Abstract: Endogenous growth theory has not yet consistently incorporated population growth or immigration into its models. As a result, in the present day, there is no universally accepted endogenous growth model explaining the empirical observed relationships between growth, population and immigration. The present paper overcomes this inconvenience by designing a fully specified Romer endogenous growth model, completely microfounded, that incorporates the existence of population growth and immigration and that allows the stylized facts of growth as well as the relationships between growth, population and immigration to be explained. In addition, the proposed model is susceptible to calibration and simulation, and, when applied to the US economy, provides a good fit to the data.
Keywords: Stochastic General Equilibrium Model; Endogenous Growth; Romer's (1986) Model; Population; Immigration; Immigrant-native complementarity.
Does Domain Specific Consumer Innovativeness vary with Consumers Individual Cultural Orientation?
by Bahtisen Kavak, Ayca Turhan, Canan Eryigit
Abstract: The purpose of this study is to examine whether the level of consumer innovativeness differs in individual level cultural dimensions namely, uncertainty avoidance, individualism, masculinity, power distance, and long term orientation. A survey research was conducted in order to measure domain specific innovativeness for mobile phone consumers and individual level cultural dimensions. In order to test the differences among more and less innovative consumers cluster analysis and t tests were employed. The results of t tests indicated that there are significant differences in cultural orientations among more and less innovative co
Keywords: innovativeness; culture; individual level cultural orientation; domain specific innovativeness.
Optimal Fiscal Policy Rule for Achieving Fiscal Sustainability: The Japanese Case
by Naoyuki Yoshino, Tetsuro Mizoguchi, Farhad Taghizadeh-Hesary
Abstract: Japans debt-to-gross domestic product (GDP) ratio is the highest among Organisation for Economic Cooperation and Development (OECD) countries. This paper will first consider whether Japanese government debt is sustainable. Next, while the Domar condition and Bohns condition are often used in the literature to check whether a governments debt situation is in a dangerous zone, this paper will show that the Domar condition is obtained only from the supply of government bonds. A simple comparison of the interest rate and the growth rate of an economy using the Domar condition is not adequate to check the stability of a governments budget deficit. The model determines both the interest rate and the growth rate of the economy endogenously. Third, this paper shows that Bohns condition satisfies the stability of the government budget in the long run by imposing constraints on the primary balance. However, meeting Bohns condition does not confer economic stability: Even if the condition is satisfied, the recovery of the economy may not be achieved. This paper proposes a new condition considering both the demand and supply of the bond market that satisfies both the stability of the government budget and the recovery of the economy. The paper sheds light on these issues both theoretically and empirically. The empirical findings show that to achieve fiscal sustainability based on the optimal fiscal policy rule provided in this paper, both sides of the Japanese government budget (expenditure and revenue) need to be adjusted simultaneously. Moreover, the results show that the decrease in government expenditure has to be to more than the increase in tax revenue.
Keywords: Japanese Bond Market; Fiscal Sustainability; Fiscal Policy Rule; Government Debt Management.
Developing sustainable competitive advantage of a firm through human resource management practices: a competence-based approach
by Marina Latukha, Polina Lisina
Abstract: The paper aims to investigate the influence of particular human resource management (HRM) roles on the process of achieving different types of sustainable competitive advantage (SCA).We create an empirical model including two parts for testing relationships such as competence-based HRM roles SCA dimensions, and competence-based HRM roles competence modes. Using survey data from 227 European companies, this study explores how SCA dimensions may be developed through HRM practices. We argue that to achieve SCA, a company needs to develop competence-based HRM practices related to identifying and describing core competences. This study advocates that SCA could be assessed by evaluation of the level of development of different competence-based management functions. We prove that competence-based HRM is strongly related to competence management in an organization and contributes to SCA development.
Keywords: sustainable competitive advantage; human resource management; core competence.
SERVICE QUALITY AND ATTITUDINAL LOYALTY: THE MEDIATING EFFECT OF DELIGHT ON RETAIL BANKING RELATIONSHIPS
by Alex Coetzee, Johan Coetzee
Abstract: This study explores the mediating effect of customer delight on the relationship between service quality and attitudinal loyalty in the South African retail banking context. Using a quantitative research design, a sample of 400 retail banking customers were collected. Structural Equation Modelling and specifically the Partial Least Squared (PLS) method was applied on the data. The results confirm that customer delight plays a partial mediating role on the relationship between service quality and attitudinal loyalty. This suggests that banks need to proactively pursue strategies that delight their customers, rather than merely satisfying them. This, however, is a major challenge for banks given the constant need to over-deliver on promises made to customers. In a competitive South African retail banking market driven by sales volumes and the growth in market share, this challenge is amplified further.
Keywords: Customer delight; mediation; attitudinal loyalty; South Africa; relationship banking; structural equation modelling; partial least squares.
The Macroeconomic Determinants of Stock Market Development in Malaysia: An empirical Analysis
by Sin-Yu Ho
Abstract: This study examines the macroeconomic determinants of stock market development in Malaysia during the period 1981-2015. Specifically, it examines the impact of banking sector development, economic performance, inflation rate, foreign direct investment and trade openness on the development of Malaysian stock market. Currently, while theoretical and empirical literature presents diverse views on the relationship between each macroeconomic determinant and stock market development, no studies have been conducted with particular reference to the Malaysian stock market. This paper contributes to the existing literature by investigating the macroeconomic determinants of stock market development in Malaysia using the ARDL bounds testing procedure. The results find that economic performance and trade openness have positive long-run impacts, whereas banking sector development has a negative long-run impact on stock market development. In the short run, we find that the previous period of banking sector development, and the current and previous periods of trade openness have positive impacts on stock market development, whereas inflation rate exerts a negative impact. These findings carry important policy implications.
Keywords: Macroeconomic determinants; Stock market development; Malaysia; ARDL bounds testing.
Post-entry ongoing organizational changes of foreign subsidiaries and survival: does self-selection matter?
by Kyungho Kim
Abstract: This study examines the relationship between the strategy choice of organizational change and the subsequent organizational survival by accounting for the self-selection. This study employed the outward 2525 firm-year foreign direct investments by Korean textile firms from 1986 to 1995, during which labor-intensive Korean firms in the textile industry largely depend on outward foreign direct investment to explore foreign opportunities in developing countries while avoiding increasing labor costs in the domestic market. This study applied a self-selection model introduced by Heckman to test the strategy choice problem. The results without accounting for self-selection show that organizational change in product areas and investment amount have a significant and negative relationship with the mortality rate of a foreign subsidiary, while organizational change in ownership rate does not. When accounting for self-selection, however, the former effects disappear, whereas the latter effect becomes positively significant, suggesting that the effect of strategy choice of organizational change depends on whether unobserved firm attributes and environmental conditions, as well as the type of organizational change, are accounted for in the analytic model.
Keywords: foreign direct investment; post-entry organizational change; self-selection; strategy choice; mortality rate.
BUSINESS PROCESS & INNOVATION MANAGEMENT: THE SITUATION OF SMEs IN ITALY
by Elisa Truant, Laura Broccardo, Francesca Culasso
Abstract: Business process management (BPM) is widely recognized to highly valuable, although not yet widely implemented by companies, with significant differences existing between small and large enterprises. The purpose of this project was to investigate the increasing use of BPM, focussing on innovation in Small and Medium Enterprises (SMEs), an aspect not widely dealt with in the literature. The method used was a survey by questionnaire and a sample of 309 SMEs in Italy considered relevant to the local economy. The Findings pointed to inadequate use of BPM (Ates et al., 2013) giving the main reasons thereof (Chong, 2014). BPM can improve business performance and competitiveness (Jacobs, 2016; Turner and Bititci, 1999). Also the R&D process was studied as a promoter of innovation and key driver of competitiveness. Innovation and R&D are not given much space in the literature, especially as regards small and medium size manufacturing firms (Jones and Williams 1998; Hall and Van Reenen 1999). This project was meant to contribute to the literature on this subject, which is not particularly structured (Ates et al., 2013) and help in bridging the gap with evidence from the local context. Moreover, SME management should be more aware of the importance of process and innovation management in achieving sustainable growth.
Keywords: business process management; organizational structure; innovation; research and development; small and medium enterprises; manufacturing.
Testing Asymmetry of Exchange Rate Changes on the Commodities Exports in Pakistan: A Non-linear ARDL Model
by Haider Mahmood
Abstract: Depreciation may help in up-lifting the commodities exports and this article finds this evidence for Pakistan. This research has investigated the impact of Real Effective Exchange Rate (REER) on Pakistan commodities exports by using a non-linear Auto-Regressive Distributive Lag (ARDL) cointegration developed by Shin et al. (2014) and by using a monthly series of a period of June, 2003-June, 2016. The long run results confirm the positive impact of world income on the most of commodities exports. Further, depreciation of Pak Rupee has been found helpful in increasing 17 out of 21 commodities exports and appreciation has depressed the 12 out of 21 commodities exports. Asymmetrical effects of depreciation and appreciation of exchange rate have also been found in the most of commodities exports. Furthermore, J-curve hypothesis has been found in the 13 out of 21 commodities exports. This study recommends the devaluation of Pak Rupee to increase commodities exports.
Keywords: Devaluation; Commodities’ Exports; Asymmetrical Effects; Cointegration.
An analysis of different Brexit outcomes and their effect on inward FDI to the UK
by Jeremy Head
Abstract: In June 2016, the UK voted to leave the EU, and the economic implications of "Brexit" are starting to take on a clearer focus. This paper seeks to outline the patterns of inward FDI to the UK. The paper analyses the possible impacts of different Brexit scenarios on inward FDI to the UK. The paper's key arguments include that "harder" forms of Brexit are likely to have worse outcomes in terms of inward FDI to the UK, with export platform FDI potentially significantly affected. The effects of Brexit could also be diverse in different industries, given the different motives for FDI, and also diverse in terms of the type of activity of the FDI. Moreover, given the patterns of FDI in the UK, the regional impacts of Brexit will not be evenly spread. The findings have clear policy implications surrounding the Brexit negotiation process.
Keywords: Foreign Direct Investment; FDI Policy; Inward FDI; Brexit; European Union; UK.
Optimal Tax Revenues and Economic Growth in Transition Economies: A Threshold Regression Approach
by Celil Aydin, Omer Esen
Abstract: The purpose of this article is to explore the impact of tax revenue as a share of GDP on economic growth in transition economies. The article uses a dynamic panel threshold model to examine the non-linear relationship between tax revenue and economic growth of 11 Central and Southeastern European and Baltic countries during the transition process between 1995 and 2014. The results suggest that the optimal level of tax revenue for maximizing economic growth is approximately 18.00% of GDP for full transition economies, 18.50% for developing economies, and 23.00% for developed economies. The findings indicate that tax revenues as a share of GDP above the threshold level adversely affect economic growth whereas a tax revenue rate below the threshold positively affects growth. The results of the current study reveal that tax sizes representing the share of the government in the economy have an optimal level.
Keywords: Government Size; Tax Revenue; Economic Growth; Transition Economies; Panel Threshold Model.
Productivity measurement of commercial banks in Malaysia with non-performing loan
by Noor Asiah Ramli, S.Sarifah Radiah Shariff, Nurhayati Hamid
Abstract: In the banking sector, productivity has been considered essential to the development process. This study is determining the productivity of 20 commercial banks in Malaysia consisting of 8 domestic banks and 12 foreign banks between the year 2005 and 2014. The Malmquist Luenberger Productivity Index (MLPI) approach is employed when incorporating undesirable output i.e. non-performing loan. The productivity measured using MLPI shows that the foreign banks perform at a higher productivity change progression compared to domestic banks. The total geometric mean for productivity change in 2008/2009 is found to be the highest percentage of deterioration which is 17.4%, while the maximum progress of productivity is reported in 2010/2011 which is 25.2%. Overall, the finding exhibits that technological changes, i.e. the innovation effect is the main contributor to the productivity changes during the study period.
Keywords: Efficiency Change; Malmquist Luenberger Productivity Index (MLPI); Productivity; Productivity Change; Technological Change.
Determinants of external financial flows to the Southern African development community region: an empirical study
by Forget Mingiri Kapingura, Sylvanus Ikhide, Asrat Tsegaye
Abstract: The study examines the determinants of three forms of foreign capital, cross-border bank flows (CBF), foreign direct investment (FDI) and oversees development assistance (ODA) in the SADC region over a period from 1980 to 2012 utilising the 3SLS model and the GMM. The empirical results reveal that both domestic and foreign factors are important determinants of private external financial flows (FDI and CBF) to the SADC region. In all the regressions estimated in the study, foreign variables emerged to be significant in influencing the flow of finance to the region. This suggests that events in developed countries can reduce the amount of external financial flows to the developing countries. Thus, relying on foreign capital flows may humper growth prospects in the SADC countries. This therefore suggests that mobilisation of domestic resources can be an avenue worth exploring to enable sustainable long-term growth in the region.
Keywords: SADC; foreign capital; 3SLS; generalised method of moments; GMM.
Determinants of intra-FDI flows among ASEAN+3+3 economies
by Atif Awad, Ishak Yussof
Abstract: On the basis of the knowledge-capital model of FDI, present study examines the impact current bilateral free trade agreement (FTA) on intra-FDI flow among ASEAN+3+3 countries. We employed extended form of gravity model on data of bilateral FDI flow among these countries during the period 2001-2012. In addition to basic gravity variables, we examined the role of each of the levels of human capital, natural resources, investment incentive policies, exchange rate, labour cost, institutional quality and FTA on intra-FDI flow among these economies. The results showed that low labour cost, availability of natural resources, investment incentive policies, institution quality and the appreciation of host country's local currency tend to increase intra-FDI flow among these countries. For the factor of interest, the results detected negative impact of FTA on the intra-FDI flow among these countries. This finding, which is consistent with knowledge-capital model of FDI, suggest that it is likely for FTA to increase the economic integration among ASEAN+3+3 economies via improvement in bilateral trade of goods and services and not through bilateral investment.
Keywords: foreign direct investment; FDI; economic integration; free trade agreement; FTA.
Global business models mapping: the American and European models
by Renato Lopes Da Costa, Nélson Dos Santos Antonio, Maria Isabel Miguel
Abstract: The globalisation of business markets requires rethinking existing management theories, and demands a global mental map, open to cultural diversity. The direct competitor, once across the street, might now be kilometres away, putting pressure on companies to continuously learning, developing their competencies and updating their knowledge. This refers not only to practical and technical knowledge, but also to a wide-reaching knowledge of cultures and markets, be they strong, emerging or weak. As such, this article seeks to present theoretical guidance on the manner in which managers 'think strategy' in two very different contexts - those of the USA and Germany. Management models for each, related to their specific cultural characteristics, are presented and the implications of each considered.
Keywords: globalisation; management global map; management culture.
The Schumpeter creative destruction hypothesis: a spatial assessment on Portuguese regions
by Eduardo Anselmo De Castro, João Marques, Miguel Viegas
Abstract: Shumpeter characterised the innovative role of the entrepreneur on economic growth (Schumpeter, 1942). By inventing new products, new processes or techniques, the entrepreneur searches for monopoly rents and forces the social and economic structure to evolve. The routines, characterised by accommodative behaviour, which may endure for long periods are suddenly broken, in a sequence of stagnation and evolutionary periods (Schumpeter, 1947). Therefore, according to the Schumpeter theory, innovation is at the core of economic growth, and goes further as it causes social and economic structural changes. The present article leads on with an empirical assessment about the Schumpeter creative destruction hypothesis at the Portuguese Regional level, using a spatial econometric framework, based on Elhorst (2003) and Bhattacharjee et al. (2012). We estimate a model with spatial fixed effect, exploring the relation between R&D intensity at the firm level, productivity and firm demography dynamics, using a panel data for the 28 Portuguese continental NUTsIII regions between 2006 and 2009. The results obtained confirm the association between productivity and firm demographic dynamics - i.e., regions with higher level of productivity present also higher rates of birth and mortality among firms. We have not found, as it would be predictable according to the Schumpeter hypothesis, statistical evidence of association between productivity and R&D intensity at the firm level. This result indicates that Portuguese firms behaviour is more of imitation rather than innovation.
Keywords: agglomeration; convergence; creative destruction; non-Euclidean space; Portuguese municipalities; spatial autocorrelation.
Conceptualising the effect of brand love on consumers' repurchase intentions for consumer products
by Prapatsorn Suetrong, Guilherme D. Pires, Tom Chen
Abstract: This conceptual paper discusses the theoretical intricacies of the relationship between brand love and consumers' repurchase intention. Consumer emotions towards brands, such as love and likeability, are seen as pivotal to longer-term consumer-brand relationships. Some marketing research advances the potential for brand love to generate positive consumer emotions towards a brand, such as consumer gratitude, directly impacting consumer repurchase intentions and, ultimately, improved business performance. However, there is research alerting for possible negative effects on consumers from building strong emotions, such that the implementation of brand love strategies by business must be exercised with caution and requires deep understanding of the concept. Are brand love and brand likeability distinct concepts with distinct effects on repurchases intentions? Considering types of products differentiated by their search, experience and credence qualities, a framework is developed to examine the relationship between brand likeability, brand love, and their relative effect on consumer repurchase intention. Attention is also given to consumer gratitude as a moderator of the effects of brand love on repurchase intentions.
Keywords: brand likeability; repurchase intention; product category; consumer gratitude; brand love; conceptual framework.
Multifactor analysis of online reputation as a tool for enhancing competitiveness of selected tourism entities
by Frantisek Pollak, Nella Svetozarovova, Bozka Malinak
Abstract: The paper discusses the issue of online reputation, more specifically the ways and methods of its measurements in selected entities operating in the tourism sector. A multifactor analysis of reputation in the virtual world of the internet was conducted on a specific sample of entities - 17 hotels operating in a selected local destination. Taking into account all the relevant factors - entities ratings on major internet sites such as Google, Booking, TripAdvisor and Facebook, these ratings are normalised and compared against the widespread sentiment analysis, which provides a relevant perspective on a selected entity through the eyes of a model customer - internet user. By using a statistical testing, relationships between factors are examined in order to identify and describe basic facts affecting online reputation of selected entities, in the hyper competitive market environment of the internet. The findings identified by the analysis conducted on the local market can be used in any market for the purpose of increasing competitiveness of selected tourism entities.
Keywords: online reputation; reputation management; reputator; customer; internet; destinations; tourism entity.
Impact of firm specific and macroeconomic factors on financial performance of the UAE insurance sector
by Rachna Banerjee, Sudipa Majumdar
Abstract: This study analyses the impact of firm specific and macroeconomic factors on the profitability of the insurance sector in UAE during the period of 2009-2013. In the recent past, the global insurance sector was impacted by the ripple effect of the financial crisis of 2007-2008. Along the lines of the global trend, although profitability of the UAE, insurance sector witnessed a decline from 2008-2010, the spur in its growth rates (10%) in 2012 and 2013 is impressive compared to the negative growth rate in developed markets. Our research contributes to the existing body of knowledge on financial performance of the insurance sector post the global financial crisis. Our results indicate that within the firm specific factors; company size, growth in gross written premium (GWP), leverage, investment ratio and market share are statistically significant in explaining profitability of the insurance companies. Further, GDP growth has a significant positive influence on profitability.
Keywords: insurance sector; gross domestic product; profitability; financial crisis; United Arab Emirates.
Explaining payment amounts among self-selected pay-what-you-want-buyers: results from a field experiment in Germany
by Torsten J. Gerpott
Abstract: This work analyses actual payments of consumers who consciously choose a pay-what-you-want (PWYW) offer in a situation in which a posted price substitute was also available. In a between-person field experiment, we sell two types of freshly prepared sweet treats. In the first experimental condition, we offer waffles under PWYW and in parallel crêpes at a posted price. In the second condition, we reverse the allocation of the pricing methods to the two focal treats. Our sweet snacks stand attracts a total of 288 different customers of whom 158 deliberately buy an item offered under PWYW. We find that, on average, PWYW buyers pay about 15% more than the regular price posted for the similar sales alternative. 56% of the PWYW customers pay exactly the price posted for the close substitute sold in addition to the PWYW item. PWYW prices rise, as buyers are more concerned about fairly treating the seller and are less price-conscious. PWYW amounts decrease, as buyers view the PWYW method primarily as an opportunity to make a bargain and know the seller in person. We discuss implications of the results for practical PWYW applications in organisations and for future research.
Keywords: pay-what-you-want; PWYW; pricing methods; social norms; self-selection; buyer anonymity; field-experimental research; Germany.
Economic issues of innovation clusters-based industrial policy: a critical overview
by B.G. Jean Jacques Iritié
Abstract: Criticisms vis-à-vis cluster policy are numerous, often confusing and really unhelpful; while some authors systematically question the merits, others on the contrary play a genuine role of counsel in his favour. This paper attempts to refocus the debate and analyses the economic issues and implications of the innovation clusters policy. We take a critical view of the literature on clusters, focusing on analysis of the effects of three industrial dynamics in perpetual movement within clusters, i.e. research and development, industrial location and technology cooperation. We assume that innovation cluster 'potentiates', by a synergistic action, the beneficial effect of each of these three industrial dynamics in favour of localised firms. It appears from our analysis that these expectations invested in cluster policy must be relativised. So the reasons for the rising power of cluster policies must be sought elsewhere than in a necessarily consensual and tangible evidence of their positive impacts.
Keywords: cluster; innovation cluster; competitiveness pole; research and development; industrial location; technology cooperation; localised knowledge spillovers; LKS; epistemic communities; potentiating effect.
The impact of public expenditures on real exchange rate dynamics in Algeria
by Mahieddine Adnan Ghecham
Abstract: The objective of this study is to examine the role of government spending in economic diversification process of Algeria. This is achieved by investigating the impact of the government spending on the real exchange rate. This follows on works done on the topic of Dutch disease. The outcome of this study shows that although the relationship oscillates over time, the increase of the government spending leads to the depreciation of the RER. The findings underpin interesting implications with regards to the role of public finance management in the diversification of the economy of Algeria.
Keywords: public expenditures; real exchange rate; economic diversification; Dutch disease; Algeria.
Spillover effects between US ETFs and emerging stock markets
by Gerasimos G. Rompotis
Abstract: The current paper focuses on return and volatility spillovers between the US ETF market and emerging stock markets using a sample of 40 US-listed iShares, which track several emerging stock markets indices from the Americas, Europe, Asia and South Africa. Advanced econometric and correlation analysis techniques are employed in our investigation. More specifically, a comprehensive correlation analysis, which includes the Pearson's simple correlation coefficient and the conditional constant correlation and dynamic conditional correlation coefficients, is performed to answer whether a significant comovement pattern exists between the two markets. Going further, three alternative models, namely an ARMA model, an ARMA-GARCH model and an ARMA-EGARCH model, are used to assess the existence of material spillover effects on returns. Finally, five models are used to accentuate any significant spillovers on volatilities between US emerging markets ETFs and their benchmarks. These models are the augmented GARCH model, the ARMA-GARCH model, the ARMA-EGARCH model, the scalar-BEKK model, and the ARMA-scalar-BEKK model. The empirical findings of correlation analysis reveal a high degree of comovement between the US ETF market and the underlying emerging stock markets. Furthermore, the results on return spillovers demonstrate that significant bilateral such effects exist between ETFs and benchmarks. This is also the case for volatilities.
Keywords: exchange traded funds; ETFs; emerging markets; return; volatility; spillover effects.
The global financial crisis and stock price behaviour: time evidence from Nigeria
by Patrick Olufemi Adeyeye, Olufemi Adewale Aluko, Stephen Oseko Migiro
Abstract: Extensive research was conducted on the effect of the global financial crisis on stock markets across the globe, but only a limited number focused attention on African stock markets. This study examined the impact of the global financial crisis on emerging stock market behaviour by providing evidence of the efficiency and volatility of the Nigerian stock market across different time periods. The period under review ranges between July 2004 and December 2014. It was sub-divided into the period before the crisis (July 2004-June 2007), the crisis period (July 2007-November 2011), and the period after the crisis (December 2011-December 2014). The generalised ARCH (GARCH) model was built to test for persistence of volatility shocks in the sub-sample periods, while an exponential GARCH (EGARCH) model was developed to determine asymmetry and persistence of volatility in the overall period. The study showed that price is a martingale in all sub-sample periods, except for the pre-crisis period. However, in the overall period, price is not a martingale - suggesting that the Nigerian stock market is not weak form efficient. In addition, there was evidence of long-term persistence in price volatility in the crisis, aftermath and overall periods. Holistically, this study found that the global financial crisis reduced stock prices, but did not have a significant impact on price volatility in the Nigerian stock market.
Keywords: stock price; martingale; global financial crisis; volatility; emerging stock market; Nigeria.
Special Issue on: EMRBI Conference 2016 Innovation and Entrepreneurship Theoretical and Practical Perspectives in Small and Medium Enterprises
Determinants of technological and non-technological Innovation in SMEs: the case of Crete
by Evangelos Tsoukatos, Efthalia Tabouratzi, Konstantinos Vassakis, Christos Lemonakis
Abstract: The purpose of this study is to investigate the drivers of both technological and non-technological innovation on evidence from a sample of manufacturing SMEs in the region of Crete (Greece) during a period of economic turbulence. Using probit models the drivers of innovation, both technological and non-technological, are examined. The empirical results of the study indicate that SMEs innovation activity is driven primarily by firm-specific features such as marketing, financial performance, exporting activity and R&D. \r\nThe contribution of this study rests on the investigation of determinants for both technological and no-technological innovation in contrast to the majority of published research that focuses primarily on technological innovation. In addition, to the extent that innovation is, unanimously, considered significant for firms overall performance, findings of the study provide implications for practitioners, managers and policy makers to become appropriately equipped for addressing the challenges of the unstable market environment that enterprises operate in. \r\n
Keywords: innovation; competitiveness; SMEs; technological innovation; non technological innovation; service innovation.
Utilisation of Emotional Intelligence in the Retail Banking Sector A Preliminary Model for Lebanon
by Grace Al Khoury, Alkis Thrassou, Hans Ruediger Kaufmann
Abstract: Emotional intelligence (EI) has been the subject of much controversy over the years consequent to its significance and widespread utilization in business, as well as due to the ways it has been defined and labelled since the 19th century. Given the fact that emotional intelligence can have a major impact on the retail banking sector, a culturally-driven perspective is deemed significant, especially in the context of Lebanon a market that appears to fit no existing model of emotional intelligence. Thus, the aim of this research is to create a preliminary model of emotional intelligence that fits the Lebanese retail banking sector (LRBS), through a combination of existing models, interviews, theoretical research and secondary data. The research findings have identified and interrelated Lebanese-specific cultural variables to be further empirically researched towards an evaluation of their significance regarding individuals EI. The research further developed a preliminary model of EI for the LRBS, comprising general variables, Lebanese-specific variables, and EI skills. The value of the research stems from its contribution to knowledge on the role and significance of EI in the LRBS, as well as from its setting of the foundation for future research that will refine, test and finalise this model.
Keywords: Emotional Intelligence; Culture; Retail Banking; Lebanon.
Italian Credit Cooperative Banks: the Fundamental Role in Supporting the Growth of SMEs and Family Businesses.
by Chiara Crovini, Giovanni Ossola, Guido Giovando
Abstract: Our research concentrates on the role of Italian credit cooperative banks, supporting the entrepreneurship and the development of SMEs and family businesses. We took into consideration the data of loans, allocated by those banks in 2014.
We tried to find the relationship between the banking system and the world of SMEs and family businesses. This research represents the first step of a far deeper analysis. In this stage we aimed at providing the groundwork for further empirical and qualitative analyses. Therefore we try to improve the existing literature by using a conceptual approach.
Despite the limitations of this research, researchers in the field of SMEs and credit cooperative banks can consider the opportunities for further developments of our analysis.
Our findings give evidence that SMEs and family businesses need the support of the Credit Cooperative Banks, in order to further exploit the opportunity to expand their businesses.
Keywords: Credit Cooperative Banks; Loans to Residents; SMEs; Family Businesses; growth; innovation.
The Antecedents and Consequences of Lovemarks: A Study of the Attitudes and Perceptions of Football Club Fans
by Demetris Vrontis, Avichai Shuv-Ami, Ioanna Papasolomou
Abstract: The paper discusses the findings that emerged from a quantitative research study carried out among 1,300 Israeli football fans to explore their brand relationships and the purchase decision process towards their football clubs. The findings show that commitment and sport spectator identity have a mediating effect on the relationship between Lovemarks and fans intentions, favourable word-of-mouth communication and the fans willingness to pay premium prices for football tickets. Lovemarks have a positive effect on the sport spectators identity and commitment. Purchase intention, commitment and identity explained 55% of the variance of the football fans willingness to pay premium prices for football tickets. Lovemarks, image and knowledge are critical drivers for the purchase decision-making process adopted by the fans which, suggests that football clubs have an opportunity to positively influence their fans attitudes and behavior through: the use of mass-media advertising, the use of social media marketing and football matches that provide spectators with unique and unforgettable experiences.
Keywords: Lovemarks; Consumer Behaviour; Consumer Decision-Making; Football Clubs; Football Fans; Commitment; Purchase Intention; Brand Knowledge; Sport Spectator Identity.
Internal CSR practices within the SME sector in Cyprus from the employees perspective - challenges and prospects
by Ioanna Papasolomou, Haris Kountouros, Yioula Melanthiou
Abstract: The paper draws on existing literature on internal corporate social responsibility (CSR) practices and focuses on a recent study of four domains of internal CSR as practiced by small and medium sized companies (SMEs) in Cyprus to draw some conclusions on the current state of internal CSR practices in Cyprus. Given the predominance of SMEs in Cyprus, voluntary CSR initiatives are particularly important, whilst precisely the small size of the majority of Cypriot companies raises a challenge for adoption of CSR practices on the island. The study finds a low level of employee satisfaction with their work-life balance and insufficiently developed practices towards this area. It is argued that genuine employee-driven internal CSR practices should give more emphasis on this and other matters which can improve the degree of satisfaction of employees, given the positive correlation with productivity, employee retention and motivation.
Keywords: Internal CSR; Health and Safety in the Workplace; Organisational Justice and Fairness; Employee Training and Personal Development; Work-Life Balance; Cypriot SMEs.
The Acquisition of Entrepreneurial Competencies in a Virtual Platform: a Structural Equation Model
by VALENTINA ISCARO, LAURA CASTALDI, ENRICA SEPE, CLAUDIO TURI
Abstract: The goal of this work is to contribute to studies that aim to boost entrepreneurship education through the analysis and implementation of the virtual platform ExperimentaLab as a tool to support the activity of universities favouring entrepreneurship. There is a significant and substantial consensus that entrepreneurship is a skill that can be developed through education. Education should provide an innovative learning environment, thus helping students develop entrepreneurial competencies. In this vein, we designed and realised the ExperimentaLab. To test it and evaluate its educational impact, we ran simulations by role play. Data were analysed through Structural Equation Model PLS-Path modelling approach, showing that the designed structure of the ExperimentaLab fosters the acquisition of entrepreneurial competencies by would-be entrepreneurs.
Keywords: entrepreneurial education; entrepreneurial university; Structural Equation Model ; ExperimentaLab.
A model for testing the relationship between companys size and performance: a cross country analysis
by Elisa Giacosa, Alberto Ferraris, Alberto Mazzoleni, Demetris Vrontis
Abstract: The purpose of the research is to verify whether the companys size (in terms of production value) could be considered as a relevant factor in impacting company performance, taking into consideration the country variable. To reach this purpose, Italian and German companies have been compared. Thanks to an empirical evidence on a sample composed of 41,344 Italian companies and 12,219 German companies operating in different sectors, it emerged that the country factor (considering its structural and economic characteristics that are different from the companys size) has a primary importance in determining the differences of performance between German and Italian companies. On the contrary, there is a weak relationship between the companies performance (measured in terms of: profitability, growth and debt repayment capacity) and their size. It means that the size factor is not one of the main factors that explains why the performance of the German companies is better than Italian ones. It follows that the global differences between the two countries are mainly due to the structural and economic characteristics of each country and, in residual form, due to different size of the companies operating in those two countries.
The research is characterized by several theoretical and practical implications, especially for top management and investors.
Keywords: Italian companies; German companies; company’s size; company’s performance; profitability; financial debt repayment.
How to measure the efficiency of the diffusion of innovation in the supply chain - proposed methodology
by Aleksandra Laskowska-Rutkowska
Abstract: This is a conceptual paper, based on literature review. The contribution of this paper consists in providing a methodology for measuring the efficiency of the diffusion of innovation in the supply chain. Based on the analysis of existing literature, a new original methodology, including a measurement matrix and a synthetic indicator has been developed. Research based on the proposed methodology has not been done yet. However, it is hoped that the paper will stimulate a scientific debate on two questions: firstly, whether the availability of a common methodology may ensure comparability of data within an industry, as well as between industries, taking into account their distinguishing characteristics; and, secondly, on whether the above data will prove useful in the development of a set of best practices for the diffusion of innovation in the supply chain. The proposed model needs to be applied in practice, since this is the only way to test its usefulness.
Keywords: diffusion of innovation; innovation in the supply chain; methodology; efficiency measurement; indicators; innovation diffusion efficiency measurement matrix; classification of innovation in the supply chain; theoretical study.
Innovation and social responsibility in food ingredients market
by Anna Claudia Pellicelli, Luigi Bollani
Abstract: This paper deals with food ingredients market. It describes some international characteristics and trends focusing on the importance of innovation to assure continuity to the business preserving the respect of environment. Particularly the social responsibility of the market companies may produce improvements in B2C, but also in B2B channels. An entrepreneurial vision is presented as a necessary link with theoretical backgrounds. An empirical analysis is also introduced to validate some conclusions.
Keywords: food ingredients market; innovation; risk aversion; social responsibility; consumer behaviour; empirical survey; multivariate statistical analysis.
Linking entrepreneurial orientation to brand reputation
by Orlando Rua, Alexandra Franca
Abstract: The relationship between entrepreneurial orientation (EO) and firm performance has a broad scholarly acceptance. However, scant evidence is available on how EO influences other variables, namely intangible assets. In this vein and in light of the resource-based approach, we hypothesize a positive relationship between EO and brand reputation. Based on survey data from 42 Portuguese small and medium enterprises (SMEs), we find empirical support that globally EO has a positive and significant influence on brand reputation, and that the EOs dimension that most contribute is innovativeness. Overall, this study provides novel insights into EO and reputational resources literature.
Keywords: entrepreneurial orientation; reputational resources; brand reputation; brand equity; SMEs; Portuguese footwear industry.
Special Issue on: Inter-Organisational Networks Towards Linking Individual, Organisational and Global Phenomena
Development of European Cluster Initiatives:
Stakeholders Contribution and Enrollment
by Inessa Laur, Magnus Klofsten, Dzamila Bienkowska, Joakim Wincent, Hakan Ylinenpaa
Abstract: This study investigated how cluster initiatives members contribute to cluster initiatives concerning tasks as well as what dependency patterns exist between maturation level and enrollment of members in these organizations. The content of the work is considered as crucial for organizational functioning and development. The findings are based on survey responses from 136 (53% response rate) cluster initiatives from eight European countries. The results show that, first, all members contribute to initiatives development by performing strategic, operational tasks, and provision of resources. Each member tends to focus more on one task than the others that are delegated. Second, two factors influence enrollment of new members in cluster initiatives: age and presence of other influential members. The more mature cluster initiatives become, the more networks and established organizational attributes it will have. This reflects longevity of the initiative and good-quality, intermediary assistance, which are attractive for potential members.
Keywords: Cluster initiatives; intermediaries; actors’ enrollment and contributions.
Special Issue on: 30th B&ESI Conference Big Data Issues Firms, Industries and Government
Crafting a web-unique value proposition using the concept analysis technique
by Ahmad Ghandour
Abstract: Online value proposition is an integral part of websites because it identifies the reason why customers will click on, return, register or buy from the website and feel motivated to share their experience. The purpose of this paper is to develop a framework for identifying competitive web value propositions for eCommerce website. This paper outlines a conceptual analysis of value proposition for eCommerce website combined with the value life cycle in a manner that offers managers a tool to create a web unique value proposition.
The result of this paper is the four-cycle process which is an exercise an organisation can undertake in its own organisations context. Such exercise would be a group activity enabling them to achieve a shared understanding while developing a clearer conceptualization of the online value proposition concept.
Keywords: OVP; eCommerce Website; value proposition; web unique; concept analysis.
PERFORMANCE MEASUREMENT INDICATORS IN THE HEALTHCARE INDUSTRY: A SYSTEMATIC REVIEW
by Nida’a Abu Jbara, Jody Worley
Abstract: This systematic review addresses a gap in the literature on performance appraisal systems for health-care workers. The study explores the efficiency of employee performance measurement systems in providing accurate measurement of the performance of health-care workers across various job types with a particular focus on performance indicators associated with soft skills. Cochrane guidelines for performing a systematic search in discipline-specific and in multidisciplinary databases were supplemented with an independent manual search of relevant studies. Twenty-three articles were identified and classified into three categories: performance measurement systems, evaluation and development of measuring tools, and problems of measuring performance of medical practitioners. The review revealed that there is no comprehensive approach to performance evaluation in healthcare. The identification of soft skills as a performance indicator was lacking and none of the implemented performance measurement systems were reported to be effective. Implications for further research to focus on the development of performance measurements for all workers in the healthcare industry were highlighted.
Keywords: performance indicators; performance measurement; health-care workers; health-care systematic review; soft skills.
The Romance of Modern Accounting Education: An Impact from Positivism and Materialism
by Jordan Hotman Ekklesia Sitorus
Abstract: The main purpose of the study is to reveal the colonialism form experienced by the modern accounting education actors through the principal of education positivism and materialism. The method used in this research is role conflict experienced by the researcher when becoming a college student and lecturer assistant in Bachelor degree of accounting. Based on the research, there are at least three forms of colonialism which are happening in the modern accounting education system. The colonialism can merely be eradicated by a comprehensive rearrangement to the curriculum of the Indonesian accounting education that is by giving a sense of humanism in every learning process. The novelty of this article is to criticize the concept of modern accounting education based on the national ideology of Indonesia.
Keywords: accounting education; curriculum reform; colonialism; rationality education.
Big Data: Ethical Issues
by Loay Alnaji, Ghaleb El Refae
Abstract: The Internet played a heroic role in the information revolution by bringing with it a greater scope of change, not only technologically, but societally as well. Convergence of computers and communications and what they do with information has changed our lives. Dependence on data has increased dramatically in the past decade, whether data are used by governments to monitor terrorism or by businesses to survive in the market or provide a competitive advantage. But with such powerful tools comes many responsibilities. This paper explores the ethical ramifications of using Big Data to conduct business or any other type of activity. We explore the various rules and regulations companies and governments place to help gauge the use of such powerful tools. This paper aims to answer the following question: What are the ethical issues facing businesses and customers when using Big Data?
Keywords: Big Data; Ethics; Surveillance; Data Security; Identity.
UNDERSTANDING THE INVISIBLE HANDS OF INCENTIVES
by Abdelhafid Belarbi, Mahmoud Askari
Abstract: This paper sheds light on the role of incentives in explaining why we do what we do. In this paper, we theorize that no action will take place in vacuum or without a certain incentive(s) and that for each and every action or behavior, there is a known and/or a hidden incentive. We also theorize that the existence of incentives behind every action is not limited to rational incentives and the rationality of actors because irrational actions have their own irrational incentives. As well, we theorize that the existence of incentives in our daily life is the secret of a livable life, and that the disappearance of incentives will lead to a total stop of every action and a total stop of life. In addition, we theorize that life at the micro, meso, and macro levels can be created by creating the needed incentives for a given situation and life can also be taken away by removing incentives behind its existence. We also propose and introduce a new incentive-focused management technique - Management by Incentives (MBI) - for an effective implementation of a goal achievement process.
Keywords: Invisible Hands; Motivation; Incentives; Management by Incentives (MBI).
Impacts of Information Quality on Decision-Making
by Zina Houhamdi, Belkacem Athamena
Abstract: Information quality is a crucial issue for the success of any organization. Several enterprise initiatives have been postponed or sometimes aborted, with bad quality information as the first cause. Prior investigations have pointed out that an understanding of the impacts of information quality is essential to the organizations success. Nevertheless, few investigations have analyzed the impacts of information quality in a business context.
This paper analyzes the impacts of information quality on the decision-making process in a systematic way. To reach this goal, we suggest a pragmatic approach that allows estimation of information quality categories and dimensions. This approach provides detailed insights into the impacts of information quality on the quality of decisions. The results of this approach indicate that intrinsic and contextual categories of information quality affect decision quality in a positive manner. On the other hand, decision quality is not necessarily influenced by representational category of the information quality. Additionally, the findings suggest that, contrary to consistency, increased information completeness and accuracy significantly improves the quality of the decision.
Consequently, not all of the categories of information quality have the same effectiveness for the amelioration of decision quality. The decision maker should pay little or no attention to the amelioration of information consistency and representational information quality. This outcome reduces the cost of information quality improvement considerably.
Keywords: Decision Making; Information Quality; Information Quality Categories and Dimensions.
Special Issue on: Triple Helix Dynamics for Innovation and Regional Growth
ANALYSIS OF THE RESEARCHER
by Nuria Calvo, Sara Fernández-López, Maria Jesus Rodríguez-Gulías, David Rodeiro-Pazos
Abstract: This paper advances the study of the researcher
Keywords: researcher´s motivators; triple helix; research groups; university-industry collaboration; Agency Theory; Spain; France; Portugal; science commercialization; research budget; scientific quality; field of science.
Agricultural Entrepreneurship and the Financial Crisis
by Claudia S. L. Dias, Ricardo Rodrigues
Abstract: This paper aims to analyse the influence of the recent financial crisis, that began in 2008, on European agricultural entrepreneurship, given the impact of the crisis on European economic activity and the lack of studies on agricultural entrepreneurship. Using individual-level data from the Total Early-Stage Entrepreneurial Activity for the European agricultural sector in 2007 (before the crisis) and 2012 (after the crisis), taken from the Global Entrepreneurship Monitor, we investigate whether the financial crisis changes the role of motive, demographic and economic factors (gender, age, education, household income) perceived characteristics (opportunity perception, self-confidence, fear of failure, meeting other entrepreneurs) and innovativeness (clients, technology, competition). This study includes 22 European countries and the results allow us to conclude that the role of these variables is changed by the crisis, except for the role of gender, to meet other entrepreneurs, customers and competition, which may reflect specific characteristics of the agricultural sector.
Keywords: agricultural entrepreneurship; entrepreneurship; agriculture; financial crisis; Europe; GEM.
ROLE OF THE TRIPLE HELIX IN THE ECOSYSTEMS FOR TECH START-UPS IN INDIA: A GAP ANALYSIS
by M.H. Bala Subrahmanya
Abstract: Tech start-ups and their entrepreneurial ecosystems are assuming increasing global attention, particularly from policy makers and empirical researchers, alike. If entrepreneurial ecosystems have to be promoted for an accelerated birth and growth of tech start-ups, it is imperative to understand its structure, essential components and the gaps, if exist. Against this backdrop, this article attempts to ascertain the gap between an ideal ecosystem and the prevailing ecosystems and its causal factors, based on four-stage interactions with ecosystem stakeholders (by means of Delphi technique application) in Bangalore and Hyderabad, in India. The hierarchical regression analysis results brought out the fundamental but inadequate role of the Triple Helix followed by tech start-ups, five indispensable components, three supplementary components, and the level of interactions as the factors contributing to the overall gap prevailing in the two start-up hubs.
Keywords: Start-ups; Triple-Helix; Ecosystem; Entrepreneurship; Gap; Bangalore; Hyderabad; India.
Effectiveness of Regional Biotechnology Clusters to Support Innovation Activities: Case of BioTech Cluster in Russia
by Dina Williams, David Tsiteladze
Abstract: The purpose of the study is to evaluate the level of development of support infrastructure in regional biotechnology clusters in Russian Federation. The paper revealed an immature nature of the support infrastructure which inhibits innovation in biotechnology companies. Based on findings of the research, the paper offers a conceptual framework of organising regional biotechnology cluster under underdeveloped severe market failure in support infrastructure. Although paper focuses on regional clusters in Russia, the implications of the study have significance to scholars in better understanding the nature of biotechnology development in Russia. The developed framework could be utilised by policy makers in regions with underdeveloped market conditions.
Keywords: Regional Biotechnology Cluster; Technology-based Entrepreneurship; Regional Innovation Systems; Venture Capital; Innovation Support Infrastructure.
Towards Combining the Triple Helix Concept with Competence-Based Approach of Educational Management Theory
by Leyla Gamidullaeva, Sergey Vasin, Galina Surovitskaya
Abstract: The purpose of this study is to find ways of combining the concept of the Triple Helix of university-industry-government relationships with competence-based approach of university management theory. The methodological framework is based on a number of theoretical provisions, which integration allowed to substantiate the concept of improving mechanisms of master students research competencies formation in universities. Correlation analysis with the use of datasets characterizing the effectiveness of the mechanisms of research competencies formation was carried out. The approach to improving master students research competencies, presented in this research, is in line with the world and national trends of development in higher education sphere, which creates assumptions for the shift to the new quality of training competitive staff for regional innovation systems. The obtained research results are of interest to the regional development authorities, because they may be incorporated into management practices to improve the efficiency and competitiveness of regional innovation systems.
Keywords: research competencies; MS students; Triple Helix; educational management; regional innovation system; core universities; collaborative business model.
The new triple-helix policy of Lombardy region: evidence from nine innovation clusters
by Jessica D. Giusti, Stefania Ferrario, Federica Belfanti, Fernando G. Alberti
Abstract: Innovation clusters represent a concerted effort to bring together research, industry and government in line with the triple-helix framework. Clusters affect and are affected by their regional context where they are located. From this perspective, clusters are regarded as an integral part of regional innovation systems. A regional renewal based on innovation clusters may end up into incremental change, diversification or radical change and may involve the regional government, regional clusters association and cluster organizations. Nevertheless, little is known about how regions drive the implementation of renewal policies based on innovation clusters, differentiating among regional development paths and levels of regional governance. Hence we collected data according to an embedded comparative case study research design on Lombardy region, where the regional government promoted a triple-helix inspired policy of implementing nine innovation clusters. Findings have both conceptual and policy implications with regard to triple-helix, clusters and regional innovation systems.
Keywords: triple helix; innovation; cluster; region; regional innovation system.
Supporting the regional development in the knowledge economy: the adoption of a system dynamic approach in Ghana
by Pasquale Del Vecchio, Nana Boakye Oppong
Abstract: The adoption of a systemic and dynamic approach to innovation is a significant feature in the scientific and institutional debate on regional development in the knowledge economy. The innovation ecosystems arise as suitable environment to address the challenges associated with the competitiveness of national systems as well as their successful positioning in the geography of innovation. Thus, the need for pragmatic policies and effective collaborations of Government-University-Industry as stipulated by the Triple Helix Model is fundamental in ensuring sustainable growth. However, the dynamic comprehension and foresight of alternative evolutionary paths available are a further challenge for scientists and decision makers, called to afford the complexity and turbulence of a socio-economic context in continuous change. This becomes largely challengeable if applied to developing countries that are in the meantime involved in implementing policies on structural development. Aimed at contributing to the discussion on the knowledge-based development of countries, the paper focuses on Ghana as an empirical context of analysis. Starting from the evidences on the gaps of competitiveness emerging from the analysis of the Global Innovation Index (INSEAD, 2014), the study debates the huge disconnects among the major actors in the Ghanas innovation ecosystem. The adoption of system dynamic approach, based on the usage of VENSIM, a recognized modelling tool, will explore the impact of the interactions between academia (university) and industry (market), by highlighting areas of causality, relationship and addictions.
Keywords: Innovation System; System Dynamics; Ecosystem; Knowledge Based Economy; Triple Helix.
Innovation Centres as Anchor Spaces of the Knowledge City
by Arnault Morisson
Abstract: Since the late 2000s, collaborative spaces have been emerging in post-industrial cities around the world. A recent trend in collaborative spaces is the concept of the innovation centre. The paper defines innovation centres and investigates their role in the making of the knowledge city. The research methodology uses a multiple case study in which three cases were selected: Barcelona Growth Centre in Barcelona (Spain), Ruta N in Medellin (Colombia), and Station F in Paris (France). The case studies were selected for the purpose of generalizing findings about the concept of an innovation centre. Innovation centres are collaborative spaces that cluster diverse knowledge-based actors, namely private companies, entrepreneurs, public institutions, and universities, within the same building. Innovation centres provide a wide range of amenities in order support face-to-face interactions and the spread of tacit knowledge. This paper finds that innovation centres are initiatives that participate in the making of the knowledge city.
Keywords: innovation centre; knowledge economy; open innovation; triple helix; creative city; innovation district; urban regeneration; cluster.
NEW AND GROWING FIRMS ENTREPRENEURS' PERCEPTIONS AND THEIR DISCRIMINANT POWER in EDL COUNTRIES
by Maria De Fátima Pilar, Mariana Marques, Aldina Correia
Abstract: This work aims to analyze entrepreneurs perceptions about conditions to create new and growing firms and their significance in the Economic Development Level (EDL) of countries. To address this research thematic Global Entrepreneurship Monitor (GEM) project, in particular, the dataset NES_2013 was considered and multivariate statistical analysis tools are used. First, a factor analysis was done to group the variables related to entrepreneurs perceptions about conditions to create new and growing firms, in order to understand which of these variables are more relevant, grouping them into factors, in order to reduce the variables and be easier to work with. Through this analysis, eight factors were obtained, which are a bit towards meeting the Entrepreneurial Framework Conditions (EFCs) defined by GEM. Next, a discriminant analysis was carried out to find out, which variables (considered in the previous analysis) contributed to economic development of the countries, taking into account the entrepreneurs perceptions. Thus, taking into account the level of development of the country and the environment in which it is uncertain, different factors will contribute to its growth and development. With the use of this analysis, it was funded that approximately 55.2% of the data analyzed were correctly analyzed, concluding that there is statistical evidence that confirm that the levels of economic development are distinguished by the perceptions of entrepreneurs about new and growing companies.
Keywords: Global Entrepreneurship Monitor; Entrepreneurship; Economic Development Level; New and Growing Firms; Entrepreneurs'; Entrepreneurial Framework Conditions; Economy Countries; Firms.
Special Issue on: EUROMED 2017 Business Valuation, Change Management and Entrepreneurial Education Managerial Lessons across Industries
Customers intention to adopt proximity m-payment services: Empirical evidence from Greece
by Apostolos Giovanis, Evangelos Tsoukatos, Demetris Vrontis
Abstract: The purpose of this study is to analyze the factors that determine consumers intentions to adopt NFC proximity mobile payment services. An extended version of the Decomposed Theory of Planned Behavior (DTPB), a model that incorporates the most relevant theoretical approaches in the mobile payment adoption literature was selected to investigate the consumers adoption process. To empirically test the proposed models nomological validity, data were collected from 513 consumers of mobile internet service providers in Greece and were analyzed using PLS. The results indicated that consumers Attitude about the NFC proximity mobile payment services is the main driver of consumers intentions to use it, followed by their normative, control and risk beliefs. As far as the behavioral intentions determinants structure is concerned, consumers perception about service attributes compatibility and performance (i.e. usefulness, easiness, and reduced riskiness), the availability of knowledge, resources, and opportunities necessary for using the service and the support of the interpersonal and the external social context toward the usage of the technology found to be adoption facilitators. Theoretical and managerial implications, limitations and suggestions for further research are provided at the end of the study.
Keywords: m-payment; NFC proximity m-payment; technology-based services adoption; on-line consumer behavior; perceived risk; extended DTPB.