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Article
Publication date: 23 September 2024

Rui Mu and Yuting Wang

To fill the gap, this article examines the inter-governmental collaboration mechanisms behind the platform curtain.

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Abstract

Purpose

To fill the gap, this article examines the inter-governmental collaboration mechanisms behind the platform curtain.

Design/methodology/approach

Behind the curtain is to look at what makes things happen backstage. For collaborative e-governance platforms, scholars have assumed that technological factors and user characteristics are the determinants for platform success. Little attention has been paid to the issue of how multiple governments, acting as platform co-builders and co-operators, interact and collaborate backstage to provide integrated e-services.

Findings

Based on data from survey questionnaires sent to government employees, the results show that governments’ information processing capacities cannot directly affect collaboration; however, these capacities can impact collaboration via the mediating variable of horizontal relations. In addition, we found that higher-ranking authorities are better suited to intervene once horizontal relations have been established and that more adaptable organizations are better at forming horizontal relations with peers. For governments participating in collaborative e-governance platforms, our findings are practically applicable.

Originality/value

The research question reads as: How do various government departments acting as platform co-builders and co-operators judge their collaboration performance, and what collaboration mechanisms contribute to it? We study this research question by constructing a conceptual model based on the Organizational Information Processing Theory (OIPT) and the Collaborative Governance Theory (CGT), both suggesting information processing capacities, organizational flexibility, horizontal relations and vertical intervention as indispensable factors influencing collaboration performance in ICT-supported groupwork. We propose and test four hypotheses on the relationships among these four factors to reveal the inter-governmental collaboration mechanisms for cross-government platformisation projects.

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Article
Publication date: 5 July 2024

Paulo M. Gama and Elsa Pedroso

Does societal trust influence short-term financial management? Recent papers uncover the importance of societal trust for financial management in specific countries and large…

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Abstract

Purpose

Does societal trust influence short-term financial management? Recent papers uncover the importance of societal trust for financial management in specific countries and large firms. Our paper aims to provide a comprehensive analysis of the impact of societal trust on short-term financial policies of SMEs, namely working capital management and cash holdings.

Design/methodology/approach

We rely on a sample of 14,711 privately owned medium-sized manufacturing firms from 26 European countries with a sample period between 2014 and 2020. For estimation, we use pooled OLS and hierarchical linear models and control for several firm-specific and country-specific known determinants of short-term financial management. Moreover, our results are robust to the specific measurement of trust, financial constraints, and corruption.

Findings

We show a positive relationship between trust and working capital requirements investment and a negative relationship between trust and the level of cash holdings. Moreover, we show that trust attenuates the negative impact of being a financially constrained firm and the positive impact of national perceptions of corruption. Finally, in higher trustworthy environments, firms operate with relatively higher inventories and relatively lower trade credit granted and obtained.

Research limitations/implications

Results suggest that policies supporting societal trust may also foster business development and that when dealing with clients or suppliers from different trustworthy environments, firms may have to adapt their business models to incorporate trust differences between business environments.

Originality/value

Firstly, the comprehensive analysis of the impact of trust on working capital management and cash holdings while controlling for different firm-level and country-level known determinants of short-term financial management. Secondly, it addresses a European sample of unquoted, medium-sized firms. Thirdly, it studies the combined effect of trust and financial constraints and trust and corruption.

Details

International Journal of Managerial Finance, vol. 21 no. 1
Type: Research Article
ISSN: 1743-9132

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