Angus Young, Lawrence Lei, Brossa Wong and Betty Kwok
The purpose of this paper is to review research about China’s individual tax compliance. While empirical research in this jurisdiction is still in its infancy, the scale of the…
Abstract
Purpose
The purpose of this paper is to review research about China’s individual tax compliance. While empirical research in this jurisdiction is still in its infancy, the scale of the problem might be under estimated, or at least over looked. Comparatively, tax compliance as a subject matter has received considerable attention in developed Western economies, where the data had revealed an increasing trend of taxpayers not complying with their tax obligations. Although, this issue had not received as much attention by the Chinese government, as the world’s second largest economy and one of the most populous nations in the world, tax compliance is of critical importance to the Chinese economy and welfare of its citizens. Therefore, it is crucial that a review about China’s tax compliance research should be conducted to identify gaps in the literature.
Design/methodology/approach
This paper focuses specifically on a review of empirical research about China’s individual tax compliance. While, this work is primarily descriptive, it builds on existing research to make normative recommendations aimed at improving tax compliance in China.
Findings
This paper reaffirmed earlier findings in the literature that Confucianism influences both Chinese social and individual ethical values, any attempt to foster greater tax compliance in China should appeal to the importance of taxes as contributions to the public funding of family and community welfare. However, what was missing from previous research is that the assumption about Chinese ethical values was overly narrow. Apart from Confucianism, another Chinese philosophy known as Legalism is also influential in prompting ethical behaviour, in particular on regulatory issues. Therefore, tax compliance in China drawing on Chinese ethical values should include both incentives and disincentives to prompt individuals to comply with their tax obligations.
Research limitations/implications
The observations and recommendations put forward in the paper are principle-based solutions drawn from Chinese ethical values. Furthermore, no detailed discussions on enforcement are included, as it is beyond the scope of the paper. Hence, the recommendations will require further empirical testing and should be examined in future research.
Originality/value
This review draws attention to a subject matter in China that has been overlooked. Apart from revisiting the key and related literature on China, this paper identified a gap that had been neglected in earlier research. Legalism, a less known Chinese ethical school of thoughts, is an important to the design of tax regulations prompting individuals to comply with their tax obligations.
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Ali Taleb, Catalin Ratiu and Rick Molz
In this study, we explored the behaviour of two Canadian multinational companies operating in the context of Arab Spring events in Egypt in 2011.
Abstract
Purpose
In this study, we explored the behaviour of two Canadian multinational companies operating in the context of Arab Spring events in Egypt in 2011.
Design/methodology/approach
We conducted a fine-grained analysis of 171 documents of various secondary sources to understand the behaviour of the two firms in Egypt between 25 January 2011 and 30 June 2012.
Findings
We suggest that corporate diplomacy should be viewed as portfolios of interdependent actions rather than reactions to discrete events. We also underline the importance for organisations to have a proactive, holistic and inclusive corporate diplomacy strategy, with the objective to secure and balance both explicit political/legal licence and implicit social licence.
Research limitations/implications
We intentionally focused our empirical analysis on two Canadian firms operating in the same host country and belonging to the same industry. It would be useful to carry similar research in different organisational and institutional contexts.
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Nikolaos Kavadis and Xavier Castañer
To show that differences in the extent to which firms engage in unrelated diversification can be attributed to differences in ownership structure.
Abstract
Purpose
To show that differences in the extent to which firms engage in unrelated diversification can be attributed to differences in ownership structure.
Methodology/approach
We draw on longitudinal data and use a panel analysis specification to test our hypotheses.
Findings
We find that unrelated diversification destroys value; pressure-sensitive Anglo-American owners in a firm’s equity reduce unrelated diversification, whereas pressure-resistant domestic owners increase unrelated diversification; the greater the firm’s free cash flow, the greater the negative effect of pressure-sensitive Anglo-American owners on unrelated diversification.
Research limitations/implications
We contribute to corporate governance and strategy research by bringing in owners’ institutional origin as a shaper of owner preferences in particular with regards to unrelated diversification. Future research may expand our investigation to more than one home institutional context, and theorize on institutional origin effects beyond the dichotomy between Anglo-American and non-Anglo-American (not oriented toward shareholder value maximization) owners.
Practical implications
Policy makers, financial analysts, owners, and managers may want to reflect about the implications of ownership structure, as well as promoting or joining corporations with particular ownership configurations.
Social implications
A shareholder value-destroying strategy, such as unrelated diversification has adverse consequences for society at large, in terms of opportunity costs, that is, resources could be allocated to value-creating activities instead. Promoting an ownership configuration that creates value should contribute to social welfare.
Originality/value
Owners may not be exclusively driven by shareholder value maximization, but can be influenced by normative beliefs (biases) stemming from the institutional context they originate from.
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The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry…
Abstract
The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.
This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.
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This new measure of consumer law of some forty‐odd sections, a short Act by present standards but as far‐reaching as any legislation since the war, establishes a code of conduct…
Abstract
This new measure of consumer law of some forty‐odd sections, a short Act by present standards but as far‐reaching as any legislation since the war, establishes a code of conduct in commerce and trade which few will be able to ignore, from the manufacturer down to the counter‐hand. Operative from November 30th of this year, traders will require to urgently consider their sales practices, advertising, labelling and their trade descriptions; sales staff will need to be instructed in their new responsibilities. The new law is not just for consumer‐retailer transactions, but extends to trade between different branches of all trades, so that a retailer will be protected against misleading descriptions and misrepresentations by a manufacturer and the latter against misdescriptions of ingredients or components.
Based on a considerable degree of commonality between multinational enterprises (MNEs) and cross-border criminal organisations, the purpose of this paper is to identify ways and…
Abstract
Purpose
Based on a considerable degree of commonality between multinational enterprises (MNEs) and cross-border criminal organisations, the purpose of this paper is to identify ways and areas in which international business (IB) research could be of value in improving understanding of the operations of cross-border criminal organisations and in the development of effective countermeasures to global crime.
Design/methodology/approach
A review of the characteristics of legitimate MNEs and cross-border criminal organisations is undertaken to assess the applicability of IB research approaches in understanding the strategies and structures of organised criminal groups.
Findings
Despite some obvious differences there appears to be sufficient commonality between legitimate and illegitimate international commerce so that the firm-centric focus of IB research could provide valuable insights complementing the policy-oriented approach of criminology. Some adaptation of IB research tools may be required. The exchange is not one-way: studies of cross-border crime also offer lessons for IB scholars.
Research limitations/implications
IB scholarly work on cross-border crime could enrich both the fields of IB and transnational criminology. Better understanding of criminal enterprises could also facilitate the design of more effective interdiction policies.
Originality/value
Despite their commonalities and interactions, the two sectors of international enterprise have developed separately, and this paper identifies and explores possible synergies between the two.
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Cam Tu Nguyen, Kum Fai Yuen, Thai Young Kim and Xueqin Wang
Crowd logistics is a rising phenomenon in last-mile delivery that integrates technological applications and sources a large number of participants to do logistical activities…
Abstract
Purpose
Crowd logistics is a rising phenomenon in last-mile delivery that integrates technological applications and sources a large number of participants to do logistical activities, achieving sustainable shipping in urban environments. However, up until now, there has been limited literature in this field. This research aims to investigate the extrinsic and intrinsic factors that impact the participative behaviour of driver-partners in crowd logistics.
Design/methodology/approach
An integrated model is developed based on motivation theory, incorporating attitude as a contributor to both extrinsic and intrinsic motivations. A questionnaire was constructed and distributed to collect data from 303 respondents who are existing or potential driver-partners in Vietnam.
Findings
Our findings confirm (1) the influence of monetary rewards on extrinsic motivation and (2) the power of self-efficacy, trust and sense of belonging on intrinsic motivation. Further, we find that attitude positively impacts extrinsic motivation, whereas there is no effect between attitude and intrinsic motivation. Both extrinsic and intrinsic motivations are demonstrated to significantly influence driver-partners' participative intentions. Additionally, a positive association is found between extrinsic and intrinsic motivations.
Originality/value
Findings from this study theoretically enrich the literature on crowd logistics, especially on the supply side, and empirically contribute to implications that are valuable to crowd logistics firms on driver-partner recruitment and business strategy development.
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The purpose of the study is to examine the experiences of emerging adults transitioning from college to career and the implications of this transition on clothing choice and…
Abstract
Purpose
The purpose of the study is to examine the experiences of emerging adults transitioning from college to career and the implications of this transition on clothing choice and identity formation.
Design/methodology/approach
This study utilized a phenomenological approach to address how appearances are used by emerging adults during the transition from college to the workplace and how those appearances help form identity.
Findings
The study found that participants have a desire for high-status consumption, primarily fueled by social comparison and the desire to keep up with colleagues, a desire to express identity through clothing, even if they are working from home, and the tendency to convey maturity during this transitory time by dressing the part.
Research limitations/implications
The main limitation of this study is the homogenous nature of participants. Most are white females in their 20s who work in the fashion industry. It would be fruitful to consider a more representative population of emerging adults to examine the role of clothing choice on identity formation during this critical time.
Practical implications
This study highlights the need for change in the retail sector, regarding which garments create a professional wardrobe. Since the pandemic, many companies have shifted to a casual dress code, thus rendering the historically professional wardrobe of business attire obsolete.
Originality/value
Examining what it means to be an emerging adult joining the workforce in today's post-pandemic world is a complex and ongoing process. This study provides insight into how this experience is navigated via clothing and how identities are shaped during this transition in a person's life.
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Multinational structure has been linked to operational flexibilities that can improve corporate adaptability and a knowledge‐based view suggests that multinational resource…
Abstract
Purpose
Multinational structure has been linked to operational flexibilities that can improve corporate adaptability and a knowledge‐based view suggests that multinational resource diversity can facilitate responsive opportunities. The enhanced maneuverability from this can reduce earnings volatility and hence the corporate performance risk. But, the internationalization process may also require irreversible investments that increase corporate exposures and leave the risk implications of multinational enterprize somewhat ambiguous. Hence, the purpose of the paper is to present an empirical study of the implied relationships between the degree of multinationality and various risk measures including downside risk, upside potential, and performance risk.
Design/methodology/approach
The paper provides a brief literature review, develops hypotheses, and tests them in two‐stage least square regressions on archival data to control for pre‐selection biases.
Findings
The analyses indicate that multinationality is associated with lower downside risk as well as higher upside potential and leads to reduced performance risk. The study finds no trace of diminishing effects from higher degrees of multinationality.
Research limitations/implications
The empirical study uses a sample of large US‐based corporations, which could affect the generalizability of results. However, this is consistent with other studies and eases comparability of findings.
Practical implications
The findings add to the ongoing debate about the risk effects of a multinational corporate structure and confirms that a diverse multinational presence is associated with positive risk outcomes.
Originality/value
The paper complements a limited number of studies with equivocal results and adopts alternative risk outcome measures. The study extends the industry scope by introducing a comprehensive sample of firms operating in different manufacturing and service businesses.