Global Business and Economics Review (41 papers in press)
The relative influence of Inter-generational co-residence on Healthcare Market and Labour 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 labour 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; labour 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 Turkey's 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.
Cost-Efficiency and Market-Power Effects in the Indonesian Banking Industry
by Rina Indiastuti, Maman Setiawan
Abstract: This study separates market-power effect from that of cost-efficiency effect of changes in industrial concentration and investigates their impact on output price in the Indonesian banking sector. The conduct parameter and market elasticity are also estimated in this research. This research uses the data of banks from the Indonesian Financial Service Authority (OJK) for the period from 2005 to 2016. The generalized method of moment (GMM) is applied to estimate the market power and the cost efficiency effects based on the industry-supply model and the demand equation. This research reveals that the market-power effect combined with the cost-inefficiency effect increase the output price when the industrial concentration increases. This suggests that policy makers evaluate the consolidation of the banks that may increase the industrial concentration.
Keywords: market power effect; cost-efficiency effect; Indonesian banking sector; industrial concentration.
Estimating a Stochastic Profit System using Homogeneity in Technology
by Yongseung Han, Myeong Hwan Kim, Eréndira Yareth Vargas López
Abstract: This paper estimates a stochastic profit system, which includes technical and allocative inefficiencies, in order to identify the source of profit inefficiency. Previously, the estimation of a stochastic profit system was not fully successful due to the entanglement of parameterized inefficiencies with a random error. We solve the problem by using homogeneity in technology since homogeneity enables a profit function to be separable into two parts: an output and a normalized profit function in which the parameter of technical inefficiency is absent. We apply our method to the Korean savings banks.
Keywords: Profit Efficiency; Banking Efficiency; Productivity; Korean Savings Banks.
How global are German corporations? An empirical investigation.
by Martha OHagan-Luff, Jessica Geiger
Abstract: The internationalization of firms has been subject of much debate in the field of international business, with many studies examining firm-level internationalization using a number of different measures, but few investigating changes in these measures over time. In order to contribute to closing this gap, we conduct a longitudinal study of the patterns of internationalization of 164 German firms from the Thomson Reuters Germany Equity index between 1998 and 2015, contributing to the debate surrounding regionalization or globalization at the firm level. To capture different aspects of multinationality, we measure both the extent and scope of internationalization, measuring extent using percentage foreign sales, and scope using the number of geographic segments that firms report material sales in and the number of world regions in which those sales occur. We further categorize these measures of internationalization over time within categories of age, size, and industry. A strong trend towards globalization is revealed, with most firms reporting foreign sales outside of Europe and very few operating in this region only.
Keywords: Longitudinal internationalisation; Geographic scope; Firm multinationality.
Social Entrepreneurship and Economic Thought: A Path to Rapprochement
by Philip Roundy, Michaël Bonnal
Abstract: Academics, practitioners, and policymakers are devoting heightened attention to social entrepreneurship: the creation and pursuit of innovative opportunities to produce positive externalities that improve conditions harmful to society. Scholars from across the behavioural, managerial, and organizational sciences are increasingly studying social entrepreneurs and their activities. However, one discipline economics is underrepresented in social entrepreneurship research. To address the lack of integration between economics and social entrepreneurship, we identify the unique economic characteristics of social entrepreneurship and explain how adopting an economic lens stands to generate important insights about the phenomenon. We then isolate three potential connection points between work in social entrepreneurship and economics: institutional economics and multi-logic hybrid organizations, narrative economics and social entrepreneurship discourse, and the economics of emotion and social entrepreneurs emotions. Our integration of social entrepreneurship and economics contributes to scholarship in both domains and identifies avenues for research at the intersections of the two disciplines.
Keywords: social entrepreneurship; social enterprise; social innovation; economic theory; externalities; social welfare.
Acceptance of e-services among Public Employees: An empirical Investigation from the Palestinian Public Sector.
by Wasim Alhabil, Mohammed Aboramadan, Mohammed Fares
Abstract: This study aims to uniquely investigate the factors associated e-services acceptance in the Palestinian public sector. Our study is based on the framework of the Technology Acceptance Model (TAM2). 612 questionnaires were collected from the employees of the Palestinian ministry of education and were valid for statistical analysis using smartPLS. The study findings show that there exist positive relationships between prior experience, job relevance, output quality, result demonstrability and Perceived Ease of Use and positive relationships between image, job relevance, output quality and result demonstrability and Perceived Usefulness. The findings also revealed that there are significant positive relationships between Perceived Ease of Use and Perceived Usefulness with users intention to use. Our results give evidence that TAM2 holds in the Palestinian context and provides useful recommendation including managerial intervention for better organizational e-services in the public sector. The study is one of the few studies that investigate the adoption of e-services in a non-western context.
Keywords: Intention to use; Palestine; Perceived Ease of Use; Perceived usefulness; Technology Acceptance Model.
Social Responsibility in Supply Chain: Bibliometric Analysis and Literature Review
by Pedro Fontoura, Arnaldo Coelho
Abstract: The objective of this study is to map academic publications on the subject and the intellectual knowledge contained therein, while covering past research and identifying potential future trends and paths of research in the fields of corporate social responsibility and supply chain management, identifying some of the most relevant research in this field and a selection of the latest trends according to information found in the Web of Science database. It was performed a systematic review of the literature in keeping with a bibliometric approach based upon VOSviewer, with a specific focus on drafting maps for visualising an underlying intellectual structure. This type of analysis encompasses the scope of the articles published and the annual number of citations for the period between 1900 and 2018, as registered by the Web of Science database. Several classifications were made, including an analysis of the most influential journals, the most cited papers of all time and the most productive and influential authors. The results make it clear that the implementation of social responsibility issues in supplier management is closely linked to the growing pressure from consumers in relating to socially responsible performance by companies, and the increase of regulation affecting companies in the most diverse areas. In addition, it was possible to verify that there is a growing academic appeal to empirical studies involving supply chain partners, uncovering and mapping the fields representing the greatest interest for future investigations, with potential to reveal new approaches to sustainable supply chain management. The main contribution of this study thus arises from identifying the main research trends in this field and the respective shortcomings and specific opportunities for future research.
Keywords: corporate social responsibility; supply chain management; bibliometric studies; systematic review; sustainability; literature review.
Revisiting a Green Design Model for the Deteriorating Items with a Closed Loop Supply Chain
by Hui Ming Wee, S.R. Singh, Neha Saxena, Temuch Chen
Abstract: Due to the rising consumer concerns and business responsibilities towards the environment, a closed loop supply chain with a green design is developed. In this study, we present a closed loop supply chain for short life cycle deteriorating products. We derive the optimal policy when the supplier and the buyer are collaborating with each other. In the model, the supplier fulfils the buyers demand for the new and remanufactured products with frequent small shipment deliveries. We have determined the replenishment policy for the buyer and the supplier using two optimization methods. They are the: (i) sequential optimization, (ii) centralized optimization. In the first method, there are two possible cases: the first case is when the decision of the sequential optimization is initiated by the buyer. In the second case, the decision of the sequential optimization is initiated by the supplier. For the second method, the decision is made simultaneously by the buyer and supplier collaboratively using the centralized optimization method. Solution procedures and algorithms are developed to derive the optimal total profit of the systems. The study can provide management insights to supply chain managers in making wise business decisions.
Keywords: Reverse logistics; Green design; Deterioration; Just-in-Time delivery.
Human Resource Flexibility and Sustainability: The Moderating Role of Environmental Uncertainty
by Amjad Tweiqat, Mohammad Adaileh
Abstract: The aim of this study is to investigate moderating role of environmental uncertainty perception on the relationship between flexibility and sustainability of HR. A purposive sample of 266 mangers in Jordanian banks were collected using a valid questionnaire. Data gathered were subjected to Confirmatory Factor Analysis to assure reliability and validity. Results showed that the measurement model fits the environment of the Jordanian banks as that fitness indices achieved the required acceptable level of goodness of fitness. The proposed model, hypotheses and moderator effect were then tested using Structural Equations Modelling. Results revealed a significant impact of HR flexibility (Functional, Behavioral) on HR sustainability. It also showed that the moderator negatively affects the relationship between functional flexibility and HR sustainability, and positively for behavioral flexibility. Results did not support the impact of skill flexibility on HR sustainability, nor did they support the impact of the moderator on that relationship. The study recommend that Jordanian banks can use the measurement scale developed to identify the functional, behavioral and skill aspects of HR. As well as important aspects of HR sustainability and uncertainties.
Keywords: Human Resources Flexibility; Human Resources Sustainability; Environmental Uncertainty Perception.
Forecasting Unemployment Rate in Poland with Dynamic Model Averaging and Internet Searches
by Krzysztof Drachal
Abstract: The aim of this research is to estimate Dynamic Model Averaging (DMA) model for unemployment rate in Poland and compare it with selected alternative forecasts. In literature one can find a multiple potential factors influencing unemployment rate. The point is that these factors can be significantly affecting unemployment rate only in certain periods. Therefore, a method incorporating time-varying parameters as well as the model uncertainty itself seems desirable. DMA is quite a new method in finance and econometrics; but it is also an extension of a commonly used Bayesian Model Averaging (BMA). Therefore, it is interesting to check this method in practice; and to compare it with some other conventional techniques (like ARIMA, etc.). However, additional aim of this research is to incorporate the Google search data into the econometric model. Based on some evidence from other studies, they are hoped to usefully correspond to market players' current interests; and, as a result to improve the forecast accuracy. Indeed, in some other previous economical researches it was found that certain data, which are officially available with a significant delay, can be satisfactory approximated by the Google Trends data. Herein, a similar conclusion is found. Also, some remarks about the usability of DMA forecasting scheme are provided.
Keywords: Bayesian Models; Dynamic Model Averaging; Macroeconomic Time-series; Unemployment Forecasting; Google Search Volume Index.
IMPACT OF MACROECONOMIC VARIABLES ON ISLAMIC AND CONVENTIONAL STOCK MARKET RETURNS: A PANEL DATA APPROACH
by Hazem Marashdeh, Sania Ashraf, Naeem Muhammad
Abstract: This study examines the impact of macroeconomic factors on both the conventional and the Islamic stock market returns and explores whether different macroeconomic factors influence returns on these two markets. It uses a multifactor model of five macroeconomic factors that include the inflation rate, the money supply, industrial production, exchange rates and short-term interest rates; and the panel data estimation methods of pooled ordinary least squares, fixed-effects estimation and the random-effects approach. Monthly data for ten countries was utilized for the sample period January 2009 to December 2016. The study finds that real effective exchange rates and the money supply influence conventional stock market returns, while exchange rates alone influence Islamic stock market returns. The study also finds that the other commonly reported macroeconomic factors of the inflation rate, interest rates and industrial production play no role in influencing the returns of either conventional or the Islamic stock markets for the countries included in our sample. These results have important implications for investors and policy-makers as they add new insight on the different impacts of macroeconomic variables on both Islamic and conventional stock markets returns.
Keywords: Multifactor models; macroeconomic variables; panel data; conventional and Islamic stock markets.
Is Unemployment Caused by a Socioeconomic Phenomenon in the case of Kuwait?
by Wael M. Alshuwaiee, Nayef Alshammari, Nour W. ALMubarak
Abstract: This study examines the main macroeconomic factors triggering unemployment in Kuwait. In particular, it examines the impact of GDP growth, inflation rate, government expenditure on education, oil prices, and population growth on unemployment. The yearly data sample covers the period between 1993 and 2016. The estimated model is tested using time series analyses, such as a unit root test (the Augmented DickeyFuller test), the autoregressive distributed lag (ARDL) model (bounds testing), the Error Correction Model (VECM), and the Granger causality test. The findings indicate that oil prices, population growth, GDP growth, and government spending on education Granger cause unemployment in both the short run and long run. Moreover, oil prices and government expenditure on education exhibited a significant negative effect on unemployment in the long run. Given the unique characteristics of the demographic features of Kuwaits population, this paper finds that the population growth rate contributes to unemployment in Kuwait, indicating that the increased population of expatriates causes unemployment among Kuwaiti nationals.
Keywords: Macroeconomic Development; Labour Market; Unemployment; Kuwait.
The Effect of Dividends Policy on the Stock Prices- The Jordanian Listed Commercial Banks Case
by Asem Tahtamouni
Abstract: This paper aims to investigate the effect of dividends policy on the fair value of stock prices of the Jordanian commercial banks listed in the Amman Stock Exchange (ASE). The paper used thirteen listed commercial banks during the period (2007-2017). It used two methods of data collection: the annual reports of the banks and the Jordanian shareholding banks guide. In order to clarify the sample, the paper utilized the frequency distributions and descriptive statistics. The paper found that stock price and dividends are correlated positively and significantly and hence there is an impact of dividends policy on fair value of stock prices in the Jordanian listed commercial banks. The paper concluded that the Jordanian listed commercial Banks should work to raise the wealth of shareholders by increasing the dividends payment overtime to improve the performance of the stock market.
Keywords: Dividends Policy; Stock Price; Fair Value; ASE; Commercial Banks; Jordan.
An empirical study of foreign direct investment, human development and endogenous growth
by Ngoc Quang NGO
Abstract: In the context of growing bodies of researching in foreign direct investment (FDI), what could be better than effective external financial source for developing countries? It is undoubtable to observe that FDI could foster the slow economic growth and improve the human development. Employing the predictive proxy called Human Development Index (HDI) commenced since 2010 by United Nation Development Programme (UNDP), this paper investigates the three determinants including life expectancy, education and income level of economic development in 102 developing countries during the period 1990-2015 by two-stage least squares method, correcting the endogeneity problem with particular instrumental variables. Our findings confirm the existing literature and emphasize the constructive role of foreign capital flows and human capital on economic growth and institutional quality as well as macroeconomic variables and gender equality.
Keywords: developing countries; economic growth; endogeneity; foreign direct investment; human development; HDI; inequality; institutional quality; instruments; international trade; poverty; welfare.
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.
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.
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.
THE SUCCESS OF STEM GRADUATES IN ENTREPRENERUSHIP TRAINING: A EUROPEAN CASE STUDY
by Simona Mihai-Yiannaki, Despina Marouchou, Elmos Konis, Vassilia Hadjichristodoulou
Abstract: Following the results of a 2 years ERASMUS+, KA2 project, called SCIENT: A European University-Business Alliance aiming to foster young SCIEntists ENTrepreneurial spirit, , we aim at shedding light on the success story of entrepreneurship training of STEM graduates.
Our study research educational methodologies were applied in the project,which ran for 24 months until end of 2017 in seven European Union countries: Cyprus, Malta, Portugal, Lithuania, the UK, Spain and Italy.
The project aim was to develop strong entrepreneurial skills for Ph.D STEM graduates in the quest for alternative professional careers apart from the academic one. The research shows varying feedback responses from three activities: training, internship and mentoring from participants, trainers, and guest speakers. The methodological tools employed are a set of online surveys on 98 participants and 34 trainers from the participating countries.
Findings show different countries, presenters, participants, facilities and scheduling provided variable impressions regarding the programme and its specific training modules. There were, however, some wide-ranging agreements across countries and throughout all the programmes. The overall findings indicate a high importance for organized such training programs at STEM graduates level.
Keywords: entrepreneurship; start-ups; education; training; European project; Knowledge alliance; knowledge transfer; STEM education.