Global Business and Economics Review (53 papers in press)
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.
Examining the Direct and Moderation Effect of Psychographic and Demographic Factors on Green Purchasing Behavior
by Yasar Shatnawi, Elham Hmoud Al-Faouri, Mohammad A Alhyari
Abstract: This study aims to investigate the effect of psychographic and demographic factors on the green purchasing behavior, and examine the moderation influence of demographics on the relationship between the psychographics and green purchasing behavior. The study uses a multiple regression and PROCESS analyses for a survey conducted with a total 360 Jordanian respondents. The results revealed that the environment attitude has the strongest positive effect on green purchasing behavior followed by social influence and personal norms. Whereas the effect of environmental concern, environmental knowledge, perceived consumer effectiveness, and skepticism is non-significant, the same results confirm for gender, age, educational level, and income level. However, the moderation influence of demographics is non-significant for most psychographics except for the interaction between age and attitude where it positively increases for people who are above 40 years old. For limitations, the lack of generalizability is presented since the study is a self-reported survey and the respondents have their own cultural and social values. So, furthermore research should be conducted in other countries. This paper provides plausible guidelines for marketers, business, and policymakers in developing social and sustainable strategies, encouraging the use of word-of-mouth, socializing agents, and as well adopting consumer citizen concept. Finally, the study adds insights of moderating effect of the demographic factors comparing with their direct impact.
Keywords: Green purchasing behavior; Demographic factors; Psychographic; Moderator; Environmental products; Green products.
Consumer perceptions of corporate social responsibility and its impact on purchasing in economic crisis
by Ana Pinto Borges, Paula Rodrigues, Francisco Castelo Branco
Abstract: We intend to evaluate whether consumers are concerned about the social responsibility practices of companies in the economic crisis. For this, we analysed how consumers perceive corporate social responsibility (CSR) and then we identified which factors influence purchase in the economic crisis context. We used a survey to assess the consumers behaviour and the questions were tested in two studies: the first, through confirmatory factor analysis and the second by logit estimation. For the first study, four main dimensions resulted of consumer perceptions of the corporate social responsibility in economic crisis: ecological reasons, no discrimination reasons, recycling reasons and communication reasons. The second study showed us that the main findings were that the purchase of socially responsible products is influenced by the knowledge on the part of the social responsibility practices consumer, the price of these products, the components perceived by consumers of social responsibility practices and by the economic recession.
Keywords: social responsibility; consumption; confirmatory factorial analysis; logit model; economic crisis.
Reflecting on the Innovative Performances of European Regions in the Age of Smart Specialization
by Joao Lopes, Luis Farinha, Joao Ferreira
Abstract: This study intents to identify which variables best explain the performance of innovative regions of Europe, based on regional strategies for smart specialisation. We follow a quantitative methodology, and a linear regression was applied as a method. For conducting this study data were collected from the Regional Innovation Scoreboard 2016. The results led to an explanatory model of the invocation performance in Moderate Innovator Regions, and some measures were identified and suggested that can be implemented in order to help decision-makers to improve the innovation performance in these regions.
Keywords: Innovation; Regions; Smart Specialisation; RIS; RIS3.
Does Auditor Education Affect Audit Opinion? An Empirical Study of Turkish Listed Firms
by Murat Ocak, Emine Serap Kurt
Abstract: This paper investigates the effect of formal education on audit opinion. We used Borsa Istanbul firms to test the hypotheses using logistic regression. The sample covers maximum 1060 observations between year 2008 and year 2013. The results show that auditors with masters or Ph.D. degrees and auditors with bachelors degree from the department of business administration are more conservative than their counterparts. They are more likely to issue a modified audit opinion. Besides, long tenured auditors with business and masters or Ph.D degrees more likely to issue a modified audit opinion.
Keywords: Auditor Education; Auditor Opinion; Borsa Istanbul; Emerging Markets.
The role of ethical positions on responsible consumption behaviours and consumption values regarding the green products
by Murat BURUCUOGLU, Evrim ERDOGAN
Abstract: This research aims to examine the relationships between consumers ethical positions, their consumption values regarding the green products, responsible consumption behaviours, social media behaviours, and responsible consumption reintention. The qualitative research conducted to better understand responsible consumption behaviours and its concepts. In quantitative research, the relationships analyzed using a structural model established with 643 survey data collected from Turkey. According to the results, the consumers ethical positions have significant relationships with other parameters but low significant predictive value on consumption values, responsible consumption behaviours, and social media behaviours. The sub-dimensions of consumption values, price and emotional value affets responsible consumption behaviours. The findings also suggest that there are significant relationships between consumption values, social media behaviours, responsible consumption behaviours, and responsible consumption intention.
Keywords: Idealism; Relativism; Responsible Consumption; Consumption Values; Green Product; Social Media.
The situation of disadvantaged groups on the labour market in Greece: Gap Analysis
by ALINA HYZ, KONSTANTINOS KARAMANIS
Abstract: The persistent problem of unemployment in Greece should be recognized as one of the most significant socio-economic problems of the country. The unemployment is related mainly to the deterioration of the economic situation, but also it is connected with structural mismatches between the demand and supply for labour in the qualifying, occupational and spatial aspect. The aim of this paper is to analyze the situation of the disadvantaged groups on the labour market in Greece. We investigate patterns across the following groups: women, young people, long-term unemployed, immigrants and low skilled using cross-dimensional analysis with the following main variables: gender, age, level of education and immigration status. Since the paper is destined for both academic and non-academic readers which are interested in the phenomenon of specific groups unemployment econometric calculations are not used in the paper. Main technical measures used in the analysis are rates of unemployment and employment by sex, gender employment gap, unemployment rates by age and by educational attainment level, long-term unemployment rates and unemployment rate by immigration status. Our analysis relies on the European Labour Force Survey reported by Eurostat using data for the last ten years. Comparing the results with the main targets set by European Union in the field of employment we concluded that Greece not only did not meet these objectives, but the gaps in employment and unemployment levels were explored during the economic crisis.
Keywords: Greece; Employment; Unemployment; Gender; Age; Long-term Unemployment; Young Unemployment; Immigrants.
The relative influence of Inter-generational co-residence on Healthcare Market and Labor Market Outcomes in Post Affordable-Care-Act USA
by Ibrahim Niankara
Abstract: This paper investigates the effects of Inter-generational co-residence on health care market, and labor market outcomes, to see whether or not living under the same roof with at least one parent matters in health care market, and labor market behaviors in post-Affordable-Care Act (ACA) USA. The analytical strategy involves not only looking at the gender differences in co-residence, but also accounting for co- residence endogeneity using a switching regression approach. This novel approach on the topic defines co-residence as an endogenous selection process using a binary probit equation, and modeled jointly with the extensive margins and intensive margins in the two markets, and estimated using penalized maximum likelihood methods.
The results suggest that ACA by reorganizing the US health care market, seems to have reduced significantly disparities in health care access among males and females based on race, region of residence, place of birth, and citizenship. However not only do we observe significant differences in inter-generational co-residence status between males and females, we also find significant inequalities in the effects of co- residence on health care market, and labor market outcomes. In fact, co-residence is found to increase health care expenditure by 56.7% among females, while this figure increases to 74.2% among males. In addition, co-residing individuals, while having a 69.7% higher annual family health care expenditure are 1.22 times more likely to access health care, but 31% less likely to use health care intensively during the year. In the labor market, co-residence is found to reduce significantly hours of weekly labor supplied by 41% for females, and 55.6% for males. Furthermore, co-residing individuals, while not significantly different in their likelihood of labor force participation, are 1.52 times less likely to work full time once they decide to participate, and also spend about 55.4% less time working in the labor market in post-ACA USA.
Keywords: Affordable Care Act; access to care; co-residence; labor supply; medical expenditure.
Impact of Aid for Trade, Foreign Direct Investment and Remittances Inflows on Recipient-Countries Export Quality
by SENA KIMM GNANGNON
Abstract: This paper investigates empirically the impact of financial flows for development, including Aid for Trade, Foreign Direct Investment inflows (FDI) and remittances inflows on the export quality of recipient-countries. The analysis is carried out over a sample of 118 countries, of which 34 Least developed countries (LDCs), with data spanning the period 2002-2010. Results suggest that over the entire sample, AfT interventions and FDI inflows are conducive to overall export quality's improvement. In contrast, remittances inflows influence negatively overall export product quality. The analysis has also shown that for LDCs, there are different effects of these inflows on each of the three types of export product quality.
Keywords: Aid for Trade; Foreign Direct Investment; Remittances; Export Product Quality.
Disability and Labour Force Participation in a Developing Country: Evidence from Turkish Males
by Burcu Duzgun Oncel, Deniz Karaoglan
Abstract: This paper examines the influence of disability on labour force participation of males aged between 25 and 64 according to socio-economic background by using the 2012 Turkish Health Survey (THS). We define disability as an impairment of long term health conditions that lasts more than six months which restricts individual in daily activities and categorize individuals as non-disabled, disabled with no limitations, disabled with some limitations and disabled with severe limitations. We observe that probability of being out of labour force is greater for disabled individuals at every age and low educated individuals experience more disabilities. Both probit and propensity score matching (PSM) results indicate negative association between severe levels of disability and labour force participation.
Keywords: disability; labour force participation; probit; propensity score matching; Turkey.
EFFECTS OF MARKET ORIENTATION AND LEARNING ORIENTATION ON ORGANIZATIONAL PERFORMANCE
by Diana Escandon-Barbosa, Andrea Hurtado-Ayala
Abstract: The current literature on market orientation and learning orientation has been characterized by comparing the positive impact that these variables have on organizational performance. However, it has been observed that these relationships could be non-linear and, additionally, that they might be affected by another type of condition, mainly related to changes in the environment. The present research examines the impact of market orientation and learning orientation on organizational performance by analyzing a series of quadratic effects. Additionally, it analyzes the possible moderating effects of environmental complexity on these relationships. To that end, a database of SME Colombian is used, such that the non-linear relationships between these orientations and organizational performance are proved, as well as the conditional effects of the environmental complexity on these non-linear relationships. According to the results, market orientation and learning orientation have decreasingly positive effects on organizational performance, and when environmental complexity increase, the positive effect of market orientation and learning orientation on organizational performance decreases.
Keywords: Market Orientation; Learning Orientation; organizational performance; developing country.
Revisiting the Impact of Financial Development on Economic Growth: The Case of Turkey
by Emrah Gulay, Joshua D. Cowley
Abstract: This study re-examines the impact of financial development on economic growth using time series data covering the period 2006 to 2015 in Turkey. The existing literature on the relationship between economic growth and financial development has focused on various proxies for financial development. When utilizing different proxies for financial development, the results of the models varied. The aim of this paper is to use one index, which represents financial development, without making any random decisions on the selection of financial development proxies. To this end, we focus on five popular financial development proxies in the literature. Our results confirm an unambiguously positive relationship between economic growth and financial development and highlight the importance of financial development on economic growth in Turkey. The autoregressive distributed lag bounds test (ARDL) model reports that, in the long run, the development of the Turkish financial sector promotes the economic growth of Turkey which is consistent with the Toda-Yamamoto test. Using the bounds test for cointegration, this study finds that the effect of the Arab Spring is captured in the short-run dynamic model and it has a temporary impact on the instability of coefficients in terms of the link between economic growth and financial development in Turkey.
Keywords: economic growth; financial development; cointegration test; Toda-Yamamoto causality test.
WHY INNOVATIVE FIRMS DO NOT RELY ON UNIVERSITIES AS INNOVATION SOURCES?
by Joana Costa, Carlos Rodrigues
Abstract: The science and technology (S&T) binomial is often considered in the literature as an innovation system per se. Different theoretical frameworks were proposed over time such as the National Systems (Freeman, 1987; Lundvall, 1992; Nelson, 1993; Edquist, 1997), Mode 2 (Gibbons et al., 1994), Regional Innovation Systems (Cooke et al., 1997) or the Triple Helix (Etzkowitz et al., 1998), conceptualising the role of the agents of the innovation processes of knowledge-based economies.\r\nThe conceptual framework of the RIS3 reinforces the importance of innovation and its diffusion in the entrepreneurial sector; under this policy design Universities have a potentially pivotal role to play not only in the production but also in its delivery.\r\nThe goal of this research is to discuss the importance of Universities as sources of knowledge for innovative activities in Portugal. A panel comprising three waves of the CIS was built to estimate a hurdle model, the discussion of the estimation results attempt to provide some policy recommendations on the role of Universities in knowledge production and diffusion and its connection to innovative firms.\r\n
Keywords: Universities; innovation; CIS; RIS3; hurdle.
European unemployment nonlinear dynamics over the business cycles: Markov switching approach
by Marianna Oliskevych, Iryna Lukianenko
Abstract: The dynamics of European unemployment showed considerable fluctuations and asymmetric behavior during business cycles over the past decade. The dynamic pattern of unemployment rate demonstrated the significant differences for different countries during its growth and decline periods. To describe the differences in dynamic properties of unemployment rate in different countries and economic situation, we developed the Markov switching autoregressive models with time-varying probabilities of transition between behavior regimes. The results revealed that the unemployment rate in EU countries during 20002016 behaved asymmetrically over the business cycle. Therefore, we got different processes for describing unemployment dynamics in each phase of the economy.
Keywords: unemployment rate; regime switching model; Markov chain; autoregression; labor market; econometric modeling; asymmetry.
Dragon meets Bull: The determinants of Chinese outward Foreign Direct Investment in Spain
by Federico Carril-Caccia, Juliette Milgram Baleix
Abstract: This study examines the characteristics and motivations of Chinese investors in Spain. First, we track Chinese investments by merging different sources and ends with a firm-level dataset that allow us to draw a more realistic picture of Chinese outward Foreign Direct Investment in Spain. Second, we gather qualitative information thanks to a unique and detailed questionnaire to check systematically the different hypothesis regarding FDI determinants. Third, the interactions among these factors are studied using Multiple Correspondence Analysis. Results confirm that Chinese investment in Spain mainly aims at supporting Chinese exports with a special interest in accessing third country markets outside the European Union. Respondents also validate the asset-seeking hypothesis, underlining a special interest in acquiring recognized brands or making their brands known, improving quality of their products and accessing new technologies. Chinese economic environment acts as an outstanding push factor, regardless the intrinsic motivations of the firms to invest abroad.
Keywords: asset seeking; China; Spain; market seeking; Multiple Correspondence Analysis; outward FDI.
A CROSS-CULTURAL ANALYSIS ON CAREER DECISION MAKING OF THE STUDENTS: THE ROLE OF SELF AWARENESS AND SELF EFFICACY
by Hande Özek, Alberto Ferraris
Abstract: The present study aimed at finding out the factors that affect the students career decision making in two different cultures (Italian and Turkish). The research evaluated the Career Decision Making Self Efficacy Scale- Short Form (Betz et al. 1996a; Chaney et al. 2007) and Self-Consciousness Scale (SCS) of the Scheier and Carver (1985a). Responses are collected from 291 undergraduate students of Yeni Yuzyil University in Instanbul and University of Torino in Turin. The objective of this study is to reveal significant factors to develop self-assessment, career awareness and goal setting competencies of the students in different cultural contexts. Our results show that there are differences between the two countries and that having a previous job experience have a strong effect on career decision making. Most importantly, in order to give more explanatory information about the factors that affect career decision making in university students, this is one of the first studies that tested and found evidence of the relevance of self-awareness.
Keywords: Career decision making; Self-Efficacy; Self-Awareness; Self-assessment; Career decision making difficulties; Lack of information; Lack of readiness; Perception; Dysfunctional thinking; Cultural differences.
Digital Mosaics and Weibull Probability Distribution Modelling of Regional Connectivity: A Diplomatic Economy Perspective
by Ejaz Gul, Imran Sharif Chaudhry
Abstract: Regional integration and cooperation promotes economic development of countries. Many regional blocs have been created in different regions of the globe to boost trade and socio-cultural ties between the member states. Pakistan has since been a great exponent of regional integration and cooperation. With emergence of China Pakistan Economic Corridor (CPEC), it is expected that Pakistan will move further closer to its historical ally China and other regional partners including Central Asian States. This paper investigates the gradual transition of Pakistan towards greater regional integration using data on eight selected variables from 2001 to 2015 (15 years) for ten selected countries of Asia. To ascertain the rate of transition of regional integration, digital analysis of data was carried out and digital mosaics were created with the help of latest digital software SURFER - 9. To know the effect of different variables on rate of transition of regional integration, data was analyzed by using Weibull Probability Distribution Model (WPDM). Results indicated that Pakistan is consistently moving closer to the regional countries and the rate of transition of regional integration is increasing with time. The land, air and sea routes of connectivity had greater effect on this rate of transition compared to other variables. This validated the conception that CPEC will play instrumental role in strengthening regional integration in the context of Pakistan.
Keywords: Regional; integration; connectivity; CPEC; transition; rate; digital; analysis; mosaics; Weibull; probability; distribution; model.
Cointegration and Adjustment Dynamics of REIT and Stock Markets during the Global Financial and European Debt Crises
by Umit Erol, Aydin Yuksel, Asli Yuksel, Hakki Ozturk
Abstract: This paper analyzes the cointegration relationship between the REIT and stock markets of ten developed countries during the 2005-2013 period, which is characterized by the global financial and the European debt crises. Given the structural breaks in the data, the effect of these two crises is examined separately by dividing the sample period into four equal parts and by using M-TAR cointegration analysis. The results suggest that the cointegration between the stock and REIT markets was not a globally observed feature prior to the twin crises. The strong and globally valid cointegration observed after 2007 was due to the common negative response of both markets to the unexpected massive shocks. These shocks also led to bilateral causality and strong feedback effects between these two markets, thus strictly limiting the diversification benefits of the REIT market during the crisis period.
Keywords: REIT; Stock Market; Cointegration; Crisis.
Does A Nonlinear Specification Methodology Better Capture the Link Between Host Country Corruption Levels and Inward Foreign Direct Investments? A study of 92 countries
by Chi-Hui Wang, Prasad Padmanabhan, Chia-Hsing Huang
Abstract: This paper investigates the link between inward Foreign Direct Investment flows and host country corruption levels using annual data for developed, developing and transitional countries, over the 2002-2015 period. We find that the nonlinear specification provides a better characterization of the relationship between corruption and inward FDI flows. Furthermore, we find that this relationship is a function of the development status of the host country. Finally, the marginal impact of corruption levels on FDI, seems to be statistically significant at a higher level when a nonlinear (as opposed to a linear) specification is used.
Keywords: Foreign Direct Investment; Corruptions Perceptions Index; nonlinear modelling.
The Relationship between Immigration, Labour Market Conditions and GDP:
Evidence from the States of the United States
by Burcu Ozcan
Abstract: This study aims at analyzing the relationship between immigration, unemployment, wage and income in the 15 host states in the United States that receive the most immigrants. The bootstrap panel Granger causality test developed by Konya (2006) is employed over the period of 19902016. The results indicate that immigration aggravates the unemployment level in the domestic labor market in the seven most populated host states, whereas it has no significant impact on the unemployment level in the remaining eight states. Based on these results, some crucial policy implications could be suggested.
Keywords: immigration; unemployment; wage; income; United States; panel causality test.
Telecommuting potential analysis
by Deveani Babu, Nelson Ramalho, Pedro Falcao
Abstract: Commuting is a problem for developed societies that translates into economic, social and environmental losses. This study is set to explore the potential of telecommuting. The empirical study started with interviews to build a survey that was answered by 126 Lisbon commuters. Results show interviewees perceived telecommuting consequences are in line with extant research and that attitudes towards telecommuting (productivity, and cost savings) are predictors of the intention to accept telecommuting offers. Likewise, professional tenure and work-to-home stress foster a more favourable attitude related to productivity / quality of working life while displacement mode (active) and home-to-work stress foster a more favourable attitude related with cost savings. The study concludes that there is considerable potential for telecommuting and that the process of implementing telecommuting as an HRM policy is doable based on the attitudes identified in the model developed.
Keywords: Commuting; Potential of telecommuting; Remote work; Attitudes towards telecommuting.
Foreign Direct Investments into 33 Indonesian Provinces: Is the Rupiah a Boon or a Bane?
by Khee Giap Tan, Mulya Amri, Nursyahida Ahmad
Abstract: The degree to which exchange rate movements and fluctuations affect foreign direct investment (FDI) inflows is a subject of policy importance for several emerging markets and developing economies like Indonesia. In particular, considering the heavily skewed nature of FDI inflows into Indonesia, it becomes important to understand the determinants of FDI to its provinces. Given the context, we undertake an empirical analysis to study the impact of Real Effective Exchange Rate (REER), both in terms of levels and volatility, on FDI inflows to Indonesian provinces. Using a panel dataset featuring data on 33 Indonesian provinces for 2000 to 2014, our panel estimation results strongly suggest that an appreciation of REER as well as greater volatility of REER deters FDI inflows to Indonesias provinces. Our findings are suggestive that the nature of FDI inflows to Indonesia is export-oriented. Our results remain consistent and robust to different model specifications.
Keywords: Foreign Direct Investment; Sub-national economies; Real Effective Exchange Rate; Indonesia.
How Advanced Manufacturing Technologies Make Difference in Turkeys Manufacturing Small and Medium-Sized Enterprises
by Arzu Karaman Akgul, Feride Doganer Gonel
Abstract: This research analyses the relationship between the use of advanced manufacturing technologies (AMTs) and the firm performance of small and medium-sized enterprises (SMEs). The purpose of this study is to reveal Turkeys manufacturing sectors response to the overwhelming competition and to understand the manufacturing parameters that affect the performance of manufacturing SMEs. Drawing on a structured questionnaire, data for the study was collected from a sample of 365 firms that are registered in the Istanbul Chamber of Industry (ISO) directory. Our findings indicate that AMTs are significantly effective on the performance of Turkish SMEs. However, these effects are not uniform; these technologies affect return on equity (ROE) more than other firm performance parameters such as profit, revenue or return on investment (ROI). Generalization of findings to other emerging countries and other sectors that may benefit from AMTs is precluded by the studys narrow focus on Turkish manufacturing SMEs. Data is also collected by using face-to-face technique with only one respondent from each SME, which in turn might cause a response bias. The main contribution of this study stems from its examination of the links between AMTs and business performance of SMEs within the context of a key emerging country, Turkey.
Keywords: advanced manufacturing technologies; small and medium-sized enterprises; firm performance; Turkey.
Human Resources Management and Job involvement: Evidence from the Nonprofit Sector in Palestine
by Mohammed Aboramadan, Belal Albashiti
Abstract: The purpose of this study is to examine the effect of human resources management practices on job involvement in a nonprofit organization in Palestine. Most of the previous studies that examined the HRM-job involvement relationship were conducted in the business setting and were investigated from a HR officers points of view. This study examines this relationship from employees perspective in the nonprofit sector. The study employed descriptive and analytical methods to examine the topic of the study. The population of this study included all the employees working in a Palestinian Nonprofit Maan Development Center. 400 questionnaires were distributed, and 267 questionnaires were returned and were usable for statistical purposes. Multiple regression results showed that of seven HRM practices, only five practices were significant and influenced job involvement (Job analysis, recruitment, performance appraisal, career management and job security). Job security was found to be the most predicting factor of job involvement. The paper recommends nonprofits managers and policymakers to invest in HRM practices as they promote positive employees attitudes and higher job involvement. This study is the first of its type in the nonprofit sector and contributes to the empirical body of HRM practices in general and nonprofits research in particular.
Keywords: HRM; Job involvement; Nonprofits.
Avoiding and escaping the commodity trap in development
by Mahdi Ghodsi, Robert Stehrer
Abstract: Based on the PrebischSinger hypothesis, a strand of literature has emerged that focuses on the phenomenon of commoditization and commodity trap in development. Following Kaplinsky (2006), we revisit the hypothesis on a countrys terms of trade in manufacturing trade. Offering high quality products and targeting niche markets in high-income countries are beneficial strategies for developing countries to improve their terms of trade and escaping a potential commodity trap. Barriers to entry via standards in the importing countries might even support such strategies. In this study we firstly propose a proxy to capture commoditization. Then, applying a gravity model on global bilateral intra-industry trade flows controlling for multilateral resistances over the period 1998-2014, it is shown that compliance with quality non-tariff measures (NTMs) reduces the negative impact of commoditization on industry-level terms of trade.
Keywords: Terms of trade; product quality; commodity trap; commoditization; non-tariff measure; technical barrier to trade; sanitary and phytosanitary measures.
Special Issue on: Triple Helix Dynamics for Innovation and Regional Growth
Towards combining the triple helix concept with competence-based approach of educational management theory
by Leyla A. Gamidullaeva, Sergey M. Vasin, Galina V. 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 characterising 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; regional development; transaction costs; synergistic approach; MS students; triple helix; educational management; regional innovation system; core universities; collaborative business model.
Analysis of the researcher's motivators to collaborate with firms as drivers of the triple helix dynamics
by Nuria Calvo, Sara Fernández-López, David Rodeiro-Pazos, María Jesús Rodríguez-Gulías
Abstract: This paper advances the study of the researcher's motivators to collaborate with firms from a triple helix perspective. Based on a conceptual framework that relates the agency theory assumptions with those variables that literature considers as motivators of the researchers and firms to collaborate, we worked with a sample of 420 research groups of eight regions of Spain, France and Portugal. First, we studied the determinants of the researchers' interest to collaborate and then, among those researchers who were previously interested, we studied if the determinants of the final engagement in private contracts of science commercialisation were the same than the determinants of the researchers' previous interest. Results suggest that the field of science is important in signalling those research groups more interested in collaborating, the research budget is a good motivator of the interest and final engagement of the researchers, previous experience in collaboration increases the future interest of researchers and country also matters.
Keywords: researcher's motivators; triple helix; research groups; university-industry collaboration; agency theory; Spain; France; Portugal; science commercialisation; research budget; scientific quality; field of science.
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 generalising 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.
National, regional or industrial explanation for firms' deaths in the European Union since 2010 until 2014 - a shift-share application
by Kseniia Shinkarenko, Alcina Nunes, Tatiana Khvatova
Abstract: The concept of business closure is one of the most important in business demography. Traditionally, firms' closure has been associated with regional factors. Still, a region can have different from the nation aggregate rate of activity because it has a different mix of industries and/or because it enjoys comparatively more favourable local conditions. Thus, business closure may be driven by the business cycle, industrial composition as well as a regional advantage. So, the present work is dedicated to analyse the factors that may drive business closure in European Union countries between 2010 and 2014, and to find out which of them has/have been the most important one(s). For this purpose, a shift-share decomposition analysis of business closure will be applied. The results proved that regional component had the highest impact on firms' deaths during the investigated period of time for almost all countries included in the analysis.
Keywords: business demography; firm deaths; firm closure; shift-share decomposition analysis; national component; industrial component; regional component; manufacturing; services; construction; European Union.
University spin-offs and triple helix dynamics in regional innovation ecosystems: a comparison of technology intensive start-ups in Sweden
by Jonas Gabrielsson, Diamanto Politis, Anders Billström
Abstract: This study offers novel insights into how university spin-offs contribute to triple helix dynamics and the evolutionary processes of industrial renewal in regional innovation ecosystems. We analyse three groups of technology intensive start-ups: university spin-offs, corporate spin-offs, and independent technology start-ups. We compare and analyse various characteristics, functions, and processes among the three groups using primary data from a questionnaire survey conducted at 341 young firms operating in two technology intensive sectors in Sweden. Our findings suggest that university spin-offs differ from the other two groups with respect to their contribution to triple helix dynamics in regional innovation ecosystems. University spin-offs cooperate more closely with universities, conduct more in-house R&D, purchase more R&D services, and offer more innovative products/services in the introduction stage of their industry life cycles.
Keywords: entrepreneurship; technology-intensive start-ups; triple helix dynamics; regional innovation; university spin-offs; Sweden.
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 organisations. 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.
Effectiveness of regional biotechnology clusters to support innovation activities: case of biotech cluster in Russia
by Dina Williams, David Tsiteladze
Abstract: In recent year's science and technology policy in Russian Federation experienced a burst of initiatives aimed on fostering innovation-based economic development. One of policy instrument deployed by the government is promotion of regional innovation clusters including innovation clusters in biotechnology. Development of the biotechnology sector in Russian Federation is grounded in significant science and technology legacy of Soviet era. The purpose of the study is to evaluate level of development of support infrastructure in regional biotechnology clusters in Russian Federation. This is an exploratory study is based on a case-study design involved semi-structured survey of 54 participants of a Russian biotechnology cluster. The paper revealed an immature nature of the support infrastructure which inhibits innovation in biotechnology companies. Based on the findings paper offers a conceptual framework of organising regional biotechnology cluster under conditions of 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 policymakers in regions with underdeveloped market conditions.
Keywords: regional biotechnology cluster; technology-based entrepreneurship; regional innovation systems; venture capital; innovation support infrastructure; Russia.
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 debate on regional development in the knowledge economy. The innovation ecosystems arise as suitable environment to address the challenges for the competitiveness of national systems as well as their successful positioning in the geography of innovation. This highlights the need of pragmatic policies and effective collaborations of government-university-industry as stipulated by the triple helix. 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. Aimed at contributing to the discussion on the knowledge-based development of countries, the paper focuses on Ghana by adopting a system dynamic approach for exploring the nature and impacts 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; Ghana.
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 gap analysis is done by means of a hierarchical regression model for five different sets of components of the ecosystem structure, apart from a control (dummy) variable to distinguish Bangalore from Hyderabad. The hierarchical regression analysis substantiated the entrepreneurial ecosystem structure for tech start-ups proposed in terms of relative importance of various sets of components, and ascertained the factors responsible for the ecosystem gap.
Keywords: start-ups; triple-helix; ecosystem; entrepreneurship; gap; Bangalore; Hyderabad; India.
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 analyse entrepreneur's perceptions about conditions to create new and growing firms and their significance in the economic development level (EDL) of countries. For this paper was used Global Entrepreneurship Monitor (GEM) project, in particular, the dataset NES 2013. To group the variables related to entrepreneur's perceptions about conditions to create new and growing firms a factor analysis was done and the variables more relevant are identified. Eight factors were obtained and renamed considering the entrepreneurial framework conditions (EFCs) defined by GEM. Next, in order to find out which variables contributed to economic development level of the countries, considering the entrepreneurs' perceptions, a discriminant analysis was carried out. With this study, we conclude that the levels of economic development are distinguished by the perceptions of entrepreneurs about new and growing firms.
Keywords: Global Entrepreneurship Monitor; GEM; entrepreneurship; economic development level; EDL; new and growing firms; entrepreneurs; entrepreneurial framework conditions; EFCs; economy countries; firms.
Agricultural entrepreneurship and the financial crisis
by Cláudia S.L. Dias, Ricardo Gouveia Rodrigues
Abstract: This paper aims to analyse the changes on the profile of the European agricultural entrepreneurs after the recent financial crisis, that began in 2008, 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 if after the 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; global entrepreneurship monitor; GEM.
Strategies and obstacles for marketing innovation activities
by Aldina Correia, Vitor Braga, Ana Machado, Alexandra Braga
Abstract: The recognised importance of innovation and their role in competitiveness of firms is well-known. Marketing innovation is one aspect of the general innovation process and, as such, deserves to be explored. Based on a sample of 6,840 Portuguese firms which replied the 2012 Community Innovation Survey, multivariate techniques (factor analysis and multivariate linear regression) have been used to measure the factors associated with main strategies and obstacles of marketing innovation, in order to better understand the role of marketing in firms' innovation processes. Our results suggest that the majority of Portuguese firms display a limited marketing innovation strategy, with some focusing on innovation in design or packaging, product promotion, placement and pricing. Five factors were found associated with main motivations and obstacles for innovation processes: costs; improvement of goods or services and cooperation; internationalisation; market-related motivations; and financial issues. In addition, our results also suggest that marketing innovation is, mostly, explained by one of the firms 'motivations: the improvement of goods or services and cooperation.
Keywords: innovation; marketing innovation; motivations; obstacles; factor analysis; multivariate linear regression; MLR.
Special Issue on: EUROMED 2017 Business Valuation, Change Management and Entrepreneurial Education Managerial Lessons across Industries
AN EXPERIENTIAL LEARNING PROGRAM FOR ENTREPRENEURSHIP EDUCATION
by Laura Castaldi, Enrica Sepe, Claudio Turi, Valentina Iscaro
Abstract: Despite extensive research into entrepreneurship education (e.g. Collins et al, 2004; Pittaway and Cope, 2007; Solomon, 2007; Blenker et al, 2014), many studies focus upon pedagogical good practice, rather than establishing its effectiveness. As well as achieving the social goals of any curriculum in terms of enabling students to fulfill their potential and ultimately to obtain gainful employment, entrepreneurship can also potentially be evaluated to establish whether it meets its desired objectives or learning outcomes. Our aim, therefore, is to conduct a critical appraisal of how experiential approaches can enhance the achievement of learning outcomes in entrepreneurship education. A Partial Least Square Path Modelling (PLS-PM) has been used to test the relationships involved in the research model.
Keywords: Entrepreneurship education; entrepreneurial learning and outcomes; partial least square path-modelling.
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.
Organizational ambidexterity, hard power management and smart power management at Amazon, a case study
by Andrew Schein
Abstract: This paper examines the management practices of Amazon one of the most successful companies in the world in the last twenty years. The paper presents first hand reviews from Amazon workers on working at Amazon. The employee reviews indicate that with regard to its blue collar workers, the workers in the fulfillment centers, Amazon follows a hard power management approach. With regard to its white collar workers, the workers in the high-tech units, Amazon attempts to implement smart power management by giving workers the ability to innovate and develop their ideas. This dichotomy is an example of organizational ambidexterity separation at Amazon. However, even by some of the white collar workers, the management practices are hard power management and not smart power management. Most likely, Amazon would be better served if it implemented a smart power management style throughout the company.
Keywords: Amazon; exploration management; exploitation management; smart power management; soft power management; Jeff Bezos; Taylorism.
Evolutions in Manufacturing Cost Deployment
by Guido Giovando, Chiara Crovini, Stefano Venturini
Abstract: The paper investigates the development of Cost Deployment and focuses specifically on the new aspects of this methodology as well as on the tangible benefit it brings within a World Class Manufacturing strategy. The research was conducted through a case study involving a plant of a multinational firm and presents findings regarding two specific research questions investigating the differences between current methodology and previous theories and practices and the ability to track cost savings. Our research suggests that Cost Deployment methodology has evolved from the framework previously developed and it can impact positively on manufacturing firms in terms of overall efficiency and quality. The research has strong practical implications for both managers and entrepreneurs. Future developments of this research are fundamental to test our hypotheses in other organisations.
Keywords: Cost Deployment; World Class Manufacturing; Management Accounting.
SOCIALLY RESPONSIBLE STRATEGIES IN SME: A STUDY IN 6 EUROPEAN COUNTRIES
by Zhanna Belyaeva, Edyta Rudawska, Yana Lopatkova
Abstract: This paper seeks to assess the management practices and to pinpoint drivers of socially responsible strategies for small and medium-sized businesses in food industry in Western and Eastern European countries. The study revealed same features and differences in the CSR practice in SMEs operating in countries with different levels of socio-economic development. The analysis singled factors that influence the application of social responsibility in SMEs at most: the level of depth and agile approach to business performance. The methodology is based on extended 5Ps social marketing index and analyses quantitative data to outline the social responsibility strategy from the SMEs perspective in 6 different countries. The quantitative data have been collected using an online questionnaire collecting 750 entries, which were analyzed using Stata software, and also qualitatively verified. This new assessment approach to the socially responsible concept provides rich material that can be explored to identify correlations between CSR and desired business performance indicators for SMEs.
Keywords: CSR-strategy; SME; food industry; Croatia; Poland; Russia; England; Germany; Spain.
Valuation of renewable energy investments: an explanatory mixed-methods study about applied approaches amongst practitioners
by Christian Hurlimann, Jasim Alali, Dolores S. Bengoa
Abstract: The purpose of this explanatory, sequential, mixed-methods study is to learn about the applied valuation processes for renewable energy investments in order to identify key value drivers and to explore corresponding best practice approaches and/or improvements amongst investment professionals in Switzerland and Germany. The studys inference is obtained by integrating quantitative and qualitative results. The quantitative results are from an online survey of 111 practitioners, and the qualitative findings stem from the subsequent research phase, which involved in-depth interviews with 16 purposefully selected individuals from the pool of participants from the previous quantitative phase, to explore those results in more detail. The applied mixed-methods approach allows us to explore issues and possible improvements in valuation, which would not be possible with a classic quantitative study. Particularly the inference analysis results help to increase the understanding of this complex topic and provide valuable insights into these usually hidden procedures. The results demonstrate that both systematic and unsystematic risks are relevant for performing valuations of the previously mentioned energy investments. Risk preferences and subsequently valuation are clearly influenced by experienced materialisation of risk. Discounted cash flow (DCF)-based valuation is state of the art in this valuation, while encountered risks are adjusted either in the cash flows or in the applied discount rate. The internal rate of return (IRR) approach is the most frequently applied valuation methodology, while the investment market has agreed to apply a simplified flow to equity (FTE) valuation approach. Market participants surprisingly still use the weighted average cost of capital (WACC) of the investing company, in contrast to the recommendation of finance theory, mostly as a basis for defining hurdle rates. Even if more consistent DCF methods such as the certainty equivalent (CE) and adjusted present value (APV) approaches are less known, they could be introduced as complementary methods to conventional approaches for assessing an investments value protection ability and performing an impairment test respectively.
Keywords: capital budgeting; cost of capital; risk assessment; risk mitigation; non-traded assets; private equity; renewable energy; practitioners; Switzerland; Germany.
Big data in SME - Findings of an empirical study
by Bernd Britzelmaier, Carolin Graue, Matthias Sterk
Abstract: The aim of this study is to provide an analysis of the relevance, challenges and potentials of big data analytics for small and medium-sized enterprises (SMEs) in Germany. Big data is a comparatively young topic and the literature indicates that little research has addressed big data in SMEs in a German context. Given the lack of knowledge in this field, this paper follows a rather explorative approach. Based on literature review there is a research gap for SMEs in terms of relevance of big data analytics, of affiliated challenges and risks as well as opportunities and potentials and responsibility issues. Following a multi-perspective approach, twelve experts with various backgrounds were interviewed in order to get a holistic view of the topic. Half of them are employed in SMEs, whereas the other six experts come from external consultancies and academic institutions.
Keywords: Big data analytics; small and medium-sized enterprises; SMEs; relevance; challenges; potentials; Germany.
Venture Capitalists and the internationalization of International New Ventures Portuguese Case Study
by Paulo Ribeiro, Raquel Meneses
Abstract: Internationalization is widely believed to be a very relevant dimension in companies across countries. Nevertheless, operating abroad might not be easy for new ventures. This study approached Venture Capitalist (VC) intervention in these firms. It comprises two main points of view: the VCs perspective and that of the INV. According to the VCs, industry knowledge, prior international experience or syndicated investments are some of the VCs most important characteristics operating abroad. However, for INVs, the VCs support is not considered important overcoming the international constraints, since there are no significant differences between backed and non-backed firms. There are a dissonance between what VCs believe are offering and what backed-firms are getting from this support. Nevertheless, this work includes a contribution of the changes in the backed firms management team and the industry experts role on the board. These changes are associated to the degree to which internationalization occurs in companies.
Keywords: venture capital; internationalization; international constraints; VC intervention; Venture Capitalists; New International Ventures; backed firms; non-backed firms; financial support; strategic support; industry experts.
NETWORKED ESTABLISHMENT PROCESSES IN TRANSITION ECONOMIES
by Aihie Osarenkhoe, Daniella Fjellström, Desalegn Abraha, Gabriel Awuah
Abstract: The purpose of this article is to examine the establishment processes of Scania in Croatia and Statoil in Estonia applying a model developed from the network approach. The findings show that Statoils ability to leverage significant actors in its network to support its establishment made the process less cumbersome and less resource-consuming. Scanias lack of home- and host country support, on the other hand, resulted in an arduous and costly process, with its market position changing several times as different problems cropped up. We also found that relationship orientation requires adaptation by the firm and, more critically, by its managers. A lack of cross-cultural competence is also observed to be an impeding factor in the process.
Keywords: networks; establishment processes; actors; resource exchanges; transition economies.
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.
Network resources and competitive advantage in productive cooperation networks
by Ana Azevedo, Rafael Pereira, Fernanda Meireles, João Boaventura
Abstract: Network resources are presented in the literature in a generic way with relatively little research analysing how results materialize in the network environment. Our aim in this study was to analyse which network resources are perceived as significant for the firms' competitive advantage. We conducted a survey of Brazilian firms engaged in a productive cooperation network. After factor analysis and canonical correlation analysis, the results showed two factors representing the network resources, one strategic and relational and the other rational and economic. The association of these factors with competitive advantage shows that strategic resources are perceived as being more influential over the firms' competitive advantage, mainly related to innovation outputs. We contribute to the systematization of network resources and empirical verification of how they are perceived by the actors and are associated with their competitive advantage, considering the characteristics of a specific type of network the productive cooperation network.
Keywords: Network resources; competitive advantage; productive cooperation networks; Brazilian networks; quantitative analyses; factor analyses; canonical correlation.
Multidyadic relationships: a multi-stage perspective
by Cláudia Ribau, António Moreira, Mário Raposo
Abstract: This paper analyzes to what extent the relationship among firms in downstream B2B activities in the supply chain stimulates the relationship in upstream B2B activities. This paper follows a qualitative methodology based on semi-structured, in-depth interviews in seven firms from the plastics industry, in three different countries that led to the preparation of seven case studies. Results and findings suggest that the business relationship with suppliers both encourages and results from a business relationship with direct and indirect downstream customers in B2B markets, driving the development of new products and the international presence of firms. Related to multi-stage B2B theory and NPD activities, the paper suggests that there is a feedback effect between the focal firm (plastics manufacturing firms), upstream suppliers and downstream customers, i.e. the relationship between the focal firm and the customers leverages the relationship between the focal firm and the suppliers. This symbiosis leads to a more technically innovative final product, which encourages more relational contact with the customer, giving rise to a more dynamic form of internationalisation. Moreover, relational links involving a multi-stage perspective in the supply chain are important to ensure a more effective bi-directional relationship among the different stages of the supply chain.
Keywords: Multi-stage marketing; Networks; Supply chain; Product innovation; International presence; Plastics industry.
INTER-ORGANISATIONAL NETWORK STRUCTURES AND KNOWLEDGE DIFFUSION THROUGH INNOVATION INTERMEDIARIES
by Leyla Gamidullaeva
Abstract: Today, organizations in Russia are struggling to perceive and embrace the latest achievements in the field of science and technology. Research and development is becoming a global phenomenon implemented on a purely collaborative basis. The purpose of presented research is to find ways of combining the innovation ecosystem concept with the theory of innovation intermediation, emphasizing specific types of innovation intermediation and fundamental mechanisms thereof, supporting incentives and the role in an innovation ecosystem. In the framework of systems approach to the presented research were used historical analysis, benchmarking and comparative analysis, and questionnaire surveys of managers and clients of Russian innovation intermediaries (technoparks and business incubators), in-depth interviews. The proposed model of a regional innovation ecosystem along with the use of innovation intermediation is capable of providing a system-based approach to innovation processes management and improving its efficiency. The main contribution of the present research into the theory and practice is that it allows to reconsider innovation ecosystem management processes, as well as to provide policy makers with a new effective mechanism of management, having them focused on innovation intermediaries as main control objects. The research results may be implemented into managerial practices in order to improve and increase the innovation feature and competitiveness of regional innovation systems of the Russian Federation and of concrete enterprises in particular.
Keywords: innovation intermediaries; innovation ecosystem; intermediary; collaboration; innovation network.
Causal Relationship of Economic Factors with GDP Growth of Two Emerging Markets of South Asia: Bangladesh and India
by Tanjila Tabassum
Abstract: Substantial change in world economy in last few decades has made emerging markets more influential than ever before. This study tries to investigate causal relationship of three economic factors (GCF, FDI, and trade) with GDP growth of two emerging markets of South Asia: Bangladesh and India. External factors like globalization (KOF index) and financial crisis (VIX index) have also been incorporated as and where deemed necessary. Time series data (1977-2015) of both countries taken from sources like World Development Indicator have been analysed. Johansen Cointegration method indicates that there exist long run equilibrium relationship among stationary form of the concerned variables for both countries. The results of Granger Causality test suggest that, 1) Trade and GDP growth granger cause each other, 2) GCF and KOF granger cause GDP growth, 3) FDI for India has bidirectional relationship with GDP growth for India.
Keywords: GCF; trade; FDI; globalization; emerging markets; time series data; causality test; stationary.
Key Performance Indicators for Enhancing the Export Potential of Indian Carpet Industry
by Navneet Gera
Abstract: The research aims to study the export performance to be determined through export knowledge, export strategy and export commitment. The study considers the determinants of export performance whereas the unit of analysis is the individual carpet exporting firm. Primary data has been collected through a questionnaire with leading exporters in the carpet industry, besides an interview with the officials of export promotion council and trade policy experts. A theoretical model has been developed and tested using primary data obtained from a sample survey of exporting firms drawn from key carpet exporters from Bhadohi (UP) and Panipat (Haryana). A quantitative analysis was performed using confirmatory factor analysis (CFA) and, due to covariate nature of the proposed research model, structural equation modeling (SEM) has been applied to evaluate the research hypotheses. Export knowledge has positive influence on export strategy. The results support that the export performance is dependent on export strategy, export knowledge and export commitment. The results clearly explain the role of export commitment as mediating variable between export knowledge and export performance.
Keywords: Export Performance; Carpet Exports; Carpet Export Promotion Council; Hand-Made Carpets.
PRODUCTION AND RETAILING OF SELF HELP GROUP (SHG) PRODUCTS
by Siddhartha Thyagarajan, Nambirajan Thangasamy, Ganeshkumar Chandirasekaran
Abstract: This research work was under taken to study the training, production and retailing of Self Help Group Products(SHG) in Puducherry region, Based on the Literature review relating to training, production and retailing activities of Self Help groups, a conceptual models were frame and the resulting hypotheses from the model were empirically tested. Primary data for the study was collected through the survey method and was used to test the proposed model and hypotheses. A random sample of 251 Self Help Groups were identified from the list of SHG maintained in the various banks, NGOs and Municipal bodies. The statistical Package of Smart PLS 2.0M3 were utilized to analyze the data using the statistical tools of Structural Equation Modeling. The findings of the structural equation model supports all the hypotheses pertaining to the positive influence of Training on Production, Training on Retail and Training on MSME in the Puducherry Region of the Union Territory of Puducherry. The research concludes with the implications and recommendations.
Keywords: Training; Production; Retailing; Self Help Group.