Abdullah Altun, Taner Turan and Halit Yanikkaya
The study evaluates the effects of GVC participation on firm productivity and profitability. Hence this study aims to find evidence whether there is a clear difference between the…
Abstract
Purpose
The study evaluates the effects of GVC participation on firm productivity and profitability. Hence this study aims to find evidence whether there is a clear difference between the productivity and profitability effects of simple and complex backward and forward participations for Turkish firms.
Design/methodology/approach
The authors employ a firm level data from the Türkiye's both first and second top 500 industrial enterprises from 1993 to 2019. In addition, the authors calculate country-sector level both backward and forward GVC participation indices with their simple and complex sub-indices for each year from 1990 to 2015 from the Full Eora data of the Eora Global Supply Chain Database. The authors estimate the model with OLS and fixed effects. To understand the role of the 2008 global crisis, the authors also undertake estimations for the pre-crisis and post-crisis. The authors also divide the data by R&D intensity of sectors.
Findings
While backward GVC participation lowers both labor productivity and profitability growth, forward GVC participation promotes both. Moreover, simple and complex backward participation have similarly negative effects on productivity and profitability growth, simple and complex forward participation have the completely opposite effects though. The authors then provide substantial evidence for the differing effects of participation on productivity and profitability growth between pre-crisis and post-crisis periods. Interestingly, backward participation has a negative impact for both hi-tech and low-tech firms while forward participation boosts the productivity growth only for low-tech firms, probably due to the relatively more upstream position of low-tech firms.
Originality/value
To the best of the knowledge, no previous study has yet examined the profitability effects of GVC for firms. Second, in addition to overall backward and forward GVC participation rates, the authors also calculate and utilize simple and complex GVC measures in the estimations. Third, to reveal whether the global financial crisis leads to a shift in the productivity and profitability effects of GVCs, the authors separately run the regressions for the pre- and post-crisis periods. Fourth, the authors then investigate the argument that hi-tech sectors/firms could benefit more from joining GVCs compared to firms in low-tech technology sectors.
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Yun Song, Ruiqiu Zhang and Hui Sun
The purpose of this paper is to explore how emerging market firms (EMFs), in the face of intense international competition within global value chains (GVCs), continuously…
Abstract
Purpose
The purpose of this paper is to explore how emerging market firms (EMFs), in the face of intense international competition within global value chains (GVCs), continuously accumulate the knowledge and capabilities needed to support leapfrog upgrading. Based on this, this paper aims to construct a process model of the dynamic evolution of EMFs’ control over GVC core activities.
Design/methodology/approach
This paper conducts a longitudinal case study of Ninestar Corporation, a leading company in the Chinese printer industry, to investigate its leapfrog upgrading practices. From the perspective of dynamic capabilities theory, the study explores the dynamic processes and intrinsic mechanisms through which EMFs achieve the evolution of their control over GVC core activities.
Findings
It is revealed that the dual-dimensional expansion of controlling the core activities of GVC from vertical functional architecture to horizontal product architecture is the pathway for manufacturing enterprises in emerging economies to achieve leapfrogging upgrades. It is also found that the dynamic capabilities of EMFs undergo iterative evolution during the upgrading process. The self-reinforcing logic and the path-creation logic of dynamic capabilities are the internal mechanisms for controlling GVC core activities to achieve the breakthrough in both the vertical functional division chain and the horizontal product division chain.
Originality/value
This paper provides an insightful case for how EMFs can achieve leapfrog upgrading in the new normal of global trade patterns. It explores how these firms can gain control over GVC core activities through the evolution of dynamic capabilities. The research findings extend the boundaries of the theory of firm upgrading.
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Manuel Expósito-Langa, José-Vicente Tomás-Miquel and Andreea-Elena Fotă
This study aims to contribute to the debate on the firm’s innovative determinants. Drawing on the relevance of internal resources, such as the knowledge base, in developing the…
Abstract
Purpose
This study aims to contribute to the debate on the firm’s innovative determinants. Drawing on the relevance of internal resources, such as the knowledge base, in developing the innovative practices, it also considers the multiplier effect of network competence, defined as the ability to develop and consciously manage relationships with other actors in the territory.
Design/methodology/approach
The study is based on data obtained from personal interviews with managers and oenologists from the wineries that adhered to the Protected Designation of Origin in the Alicante province/region.
Findings
The results confirm the positive effect of the knowledge base. In addition, it shows that increased competence in managing the firm’s relational context allows it to obtain external knowledge inputs, which, combined with internal knowledge, benefits its innovative practices.
Originality/value
This study contributes to a better understanding of how companies can improve their innovation by combining internal knowledge with developing and strengthening links with other agents in the territory.
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Following Joseph Schumpeter's conception of innovation as ‘new innovations’, this chapter contends that innovations that transform lives in developing countries of Southern Africa…
Abstract
Following Joseph Schumpeter's conception of innovation as ‘new innovations’, this chapter contends that innovations that transform lives in developing countries of Southern Africa are not radically new and different novelties but rather ‘new combinations’ at the interface of new materialisations (creative expression) and exploitations of new opportunities (entrepreneurship). We argue that this posture is not a contestation of the reality that novelty enter the system through the development of new technologies, processes and new ways of organising, but rather such novelty is a process of recombining existing elements in new ways. I build on this argument to demonstrate that in resource-poor contexts where institutional voids frustrate entrepreneurs' potential to deploy innovation capabilities for generating groundbreaking innovation, innovations and entrepreneurship are outcomes of ‘tinkering’, improvision and refinement of unsophisticated creative ideas. Drawing on exemplars from health, education, finance and poverty alleviation interventions that support sustainable human development, I also demonstrate that high knowledge-intensive entrepreneurship (KIE) and low knowledge-intensive frugal innovations are mutually constitutive and recursive outputs of the interaction of knowledge application and innovation conversion rather than serial processes of cause and effect. Using combinative innovation, internal coupling and combinative capabilities as heuristics for understanding the entrepreneurship–innovation nexus, I provide empirical support to the view that entrepreneurial effectuation, new combinations, bricolage and improvision constitute useful cognitive arena for the conversion of entrepreneurial and innovation behaviours, practices and processes into KIE and frugal innovation outputs.
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Michele Rubino and Ilaria Mastrorocco
Due to the current context of human rights violations, especially by large companies, this study aims to analyse whether and how certain aspects of corporate governance, in…
Abstract
Purpose
Due to the current context of human rights violations, especially by large companies, this study aims to analyse whether and how certain aspects of corporate governance, in particular the composition of the board of directors, influence respect for human rights.
Design/methodology/approach
The authors have adopted a quantitative approach based on an ordinary least squares cross-sectional regression analysis for the companies of the S&P 1200 in 2022.
Findings
The results suggest that the board of directors plays an important role in human rights respect, particularly with regard to board gender diversity, attendance, the non-executive directors and chief executive officer (CEO) duality. In contrast, board size and board structure do not have a significant impact on human rights compliance.
Research limitations/implications
The results obtained offer useful implications for the existing literature and provide valuable insights for managers, regulators and policymakers. However, there are some limitations, particularly in relation to the time period analysed.
Originality/value
To the best of the authors’ knowledge, the present analysis is one of the first attempts to investigate the potential impact of corporate governance and various characteristics of the board of directors on respect for human rights.
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Irina Mihailova, Sini Rantanen, Veera Tahvanainen and Jouni Pykäläinen
This study aims to investigate how co-evolutionary interactions between multinational enterprises (MNEs) and local actors shaped resource-intensive industry development over…
Abstract
Purpose
This study aims to investigate how co-evolutionary interactions between multinational enterprises (MNEs) and local actors shaped resource-intensive industry development over several decades, examining the economic, industrial and social implications of these interactions. It details the long-term effects of MNEs’ activities on the host country’s economic and social development and unfolds the path-dependent sequence and mechanisms of occurrence.
Design/methodology/approach
In a historical case study of Uruguay’s forest-based pulp sector during the 1970s to 2023, the authors analyze data from interviews with local industry actors and from company archives, academic publications and public environmental organizations.
Findings
The findings untangle the path-dependent co-evolution between MNEs’ activities and local actors and the resulting gradual development of the local industry. The increasing commitment of MNEs to the host country and their engagement with business and social communities impact the development of the industry’s technology basis, activity networks, identity and market. Spillovers and linkages occur in these interactions, driving industry development processes forward. The authors also reveal how MNEs attempt to address the social and environmental tensions associated with their operations to support their long-term presence in the host country.
Research limitations/implications
The authors contribute to the MNE-assisted development literature by untangling the specific mechanisms of MNEs’ engagement in local industry development over a long-term period and elaborating on its industrial and social implications. The authors enhance knowledge about spillovers by capturing a wide range of spillover and linkage effects and assessing their long-term impacts on industry development.
Practical implications
The authors offer insights into how policymakers can tailor instruments for attracting MNEs by adopting a long-term perspective regarding the implications for local development and accounting for economic, industrial and social impacts. This approach can maximize beneficial outcomes from MNEs’ presence and limit tensions between MNEs and local actors.
Social implications
This historical case study illustrates the complexity of MNEs’ engagement with local actors over time, including various tensions and positive developments. It illustrates the importance of social acceptance in achieving quality linkages between local and foreign actors.
Originality/value
This historical analysis untangles the path dependency in the long-term impacts of MNE-assisted development, illustrating the value of a temporal perspective.
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Farzaneh Noori and Sohrab Delangizan
In the past 30 years, the subject of “Entrepreneurial University” has been very popular in scientific publications, according to the effects of the entrepreneurial university on…
Abstract
Purpose
In the past 30 years, the subject of “Entrepreneurial University” has been very popular in scientific publications, according to the effects of the entrepreneurial university on the urban economy. Researchers have conducted several studies to create an appropriate structure due to the new missions universities had after the introduction of this subject, but these efforts have sometimes led to the parallel work of the established units or the lack of responsible units for some goals within the university.
Design/methodology/approach
The main goal of this study is to achieve the structural and functional model of an entrepreneurial university. For this purpose, 54 articles that specifically dealt with the creation and activities of the entrepreneurial university were studied using the thematic analysis method. Two groups of themes were categorized, one related to the structure of the entrepreneur university and the other related to the functions of the entrepreneur university.
Findings
In the structural dimension; this study proposes to introduce the vice-chancellor of technology and entrepreneurship within the university, which has units such as the university incubator, the technology transfer office and other units related to entrepreneurship in its sub-category, and the government–industry relations office in charge of establishing government and industry relations within the university. In addition, to avoid the parallel work of the entrepreneurial units this study suggests using the level of technological readiness as an index for promoting to another unit.
Originality/value
The findings can be used by policymakers in higher education and the national and local governments.
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Marcello Risitano, Giuseppe La Ragione, Alessandra Turi and Marco Ferretti
The purpose of this article is to better understand the relevance of value creation in the interconnection amongst entrepreneurship, marketing and innovation by reviewing the…
Abstract
Purpose
The purpose of this article is to better understand the relevance of value creation in the interconnection amongst entrepreneurship, marketing and innovation by reviewing the literature.
Design/methodology/approach
The authors employed a systematic review methodology using the Preferred Reporting Items for Systematic Review and Meta-Analyses (PRISMA) protocol to analyse the literature in depth. The articles were selected from the Scopus database and dated from 1987 to 2021. An initial total of 1,158 articles was successively narrowed down to a final list of 123 papers matching the selection criteria. Moreover, content analysis on the sample was performed to explore and analyse whether value creation directly or indirectly appears as a goal or antecedent amongst entrepreneurship, marketing and innovation.
Findings
The findings suggest that the literature does not clearly define the topic linkage, and with the authors' results, the authors provide a comprehensive mapping of the contributions to a theoretical framework that synthesises knowledge. Moreover, the authors highlight that the interconnection between marketing and entrepreneurship, i.e. entrepreneurial marketing, requires an innovative approach for satisfying customer needs and creating value. Co-occurrence analysis of the keywords also allowed to identify four clusters that were open to new research streams.
Originality/value
Entrepreneurship, marketing and innovation are recognised research topics in the business and management literature. However, prior research has not provided clear and comprehensive evidence about how these three research topics are linked to each other. This work analyses the hidden relationship amongst them.
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Deping Xiong, Hanxiao Liu, Meng Yang and Yunlong Duan
In the context of severe environmental pollution and resource shortage, this study aims to examine how knowledge flows affect the green activities of firms. Specifically, this…
Abstract
Purpose
In the context of severe environmental pollution and resource shortage, this study aims to examine how knowledge flows affect the green activities of firms. Specifically, this paper explored whether the firms’ knowledge flows, namely, knowledge inflow (KIF) and knowledge outflow (KOF), play a moderating role in relationship between corporate environmental responsibility (CER) and green innovation in Chinese high-polluting firms.
Design/methodology/approach
The analysis was carried out based on a panel data set of 305 heavy-polluting Chinese listed firms from 2010 to 2020. Meanwhile, this paper adopted the fixed model to empirically attest the proposed hypotheses regarding the relationships among CER, knowledge flows and green innovation.
Findings
The results indicate that there is a U-shaped relationship between CER and green innovation, while the two dimensions of knowledge flows exert opposing effects on the nonlinear link between CER and green innovation. Specifically, KIF positively moderates the effect of CER on green innovation, whereas KOF negatively moderates the effect of CER on green innovation.
Originality/value
This study demonstrates how green innovation can be influenced by CER and, moreover, provides a more nuanced understanding of the value of knowledge management (KM) in firms’ green activities. In this way, this paper answers the call for understanding the importance of green transformation in the context of KM.
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Zaid Jaradat, Ahmad Mtair Al-Hawamleh, Mohannad Al Shbail and Allam Hamdan
In line with the noticeable trend toward automation in internal audit functions, and considering Saudi Arabia’s Vision 2030, which prioritizes technological innovation, the…
Abstract
Purpose
In line with the noticeable trend toward automation in internal audit functions, and considering Saudi Arabia’s Vision 2030, which prioritizes technological innovation, the purpose of this study is to explore the adoption of robotic process automation (RPA) within the KSA’s various sectors of internal auditing domain, with a particular emphasis on understanding the challenges and evaluating the impact on audit efficiency.
Design/methodology/approach
Using a quantitative research design, this study uses a bootstrapping approach and partial least squares structural equation modeling (PLS-SEM) to meticulously analyze data collected from 138 certified internal auditors around KSA.
Findings
This study reveals associations between the regulatory environment, data security, vendor reputation, intention to adopt RPA and internal audit efficiency.
Practical implications
The study findings offer valuable insights for auditors, policymakers and industry practitioners involved in RPA adoption initiatives. The organizations can use these results to develop informed strategies for navigating the challenges and maximizing the benefits of RPA implementation in internal audit functions.
Originality/value
This study contributes significantly to the existing literature by delving into the adoption of RPA, with a particular emphasis on understanding the challenges and evaluating the impact on audit efficiency, specifically in the context of KSA – an area that has not been extensively studied.