Suwina Cheng, Kenny Lin and Richard Simmons
The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct…
Abstract
Purpose
The study aims to examine whether city-level investment climate, local government effectiveness and corporate income tax rates influence the spatial distribution of foreign direct investment (FDI) across cities in China.
Design/methodology/approach
The study uses regression analysis using city-level data sets.
Findings
The study finds that while city-level investment climate and effective local government influence the spatial distribution of FDI across Chinese cities, city-level tax rates have no such influence.
Practical implications
The results have implications for the design of policies aimed at enhancing FDI flows into emerging countries.
Originality/value
To date, few studies have investigated the investment location choice at the city level in a single country. The study contributes to the literature by examining the role of government in such investment decisions. It also adds to the previously limited research examining the role of investment climate at the micro level.
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This study aims to explore the high turnover intention issue in Taiwan’s tourist hotel industry. Due to a lack of empirical research regarding front-line employees’ psychological…
Abstract
Purpose
This study aims to explore the high turnover intention issue in Taiwan’s tourist hotel industry. Due to a lack of empirical research regarding front-line employees’ psychological contract breach perceptions in tourism literature, this study develops an integrated model to examine the causal relationship among transformational leadership behaviors, leader–member exchange (LMX), psychological contract breach and turnover intentions.
Design/methodology/approach
Data from the 226 frontline employees in Taiwan’s tourist hotel industry were employed to examine the proposed hypotheses by using a series of structural equation modeling analyses.
Findings
Statistic results revealed that transformational leadership behaviors influence LMX and LMX in turn influences psychological contract breach, which consequently leads to lower turnover intention.
Practical implication
The results of this study suggest that hospitality organizations should recruit individuals who have the potential to exhibit transformational leadership skills, along with designing leadership training programs for middle- and high-level managers.
Originality/value
This study provides hospitality organization leaders with the necessary information to formulate a beneficial relationship with their front-line employees, which, in turn, weakens their perception of psychological contract breaches and reduces their willingness to leave the organization.
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Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…
Abstract
Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).
The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.
This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.
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This paper aims to identify and test the key motivators and inhibitors for consumer acceptance of mobile phone banking (M‐banking), particularly those that affect the consumer's…
Abstract
Purpose
This paper aims to identify and test the key motivators and inhibitors for consumer acceptance of mobile phone banking (M‐banking), particularly those that affect the consumer's attitude towards, and intention to use, this self‐service banking technology.
Design/methodology/approach
A web‐based survey was undertaken where respondents completed a questionnaire about their perceptions of M‐banking's ease of use, usefulness, cost, risk, compatibility with their lifestyle, and their need for interaction with personnel. Correlation and hierarchical multiple regression analysis, with Sobel tests, were used to determine whether these factors influenced consumers' attitude and intention to use M‐banking.
Findings
Perceived usefulness, perceived risk, cost and compatibility were found to affect consumer acceptance of M‐banking. The results also support a mediation model, whereby attitude transfers the affects of the consumers' perceptions to their intention to use M‐banking.
Research limitations/implications
The sample used in this study contained a skew toward younger male consumers, affecting the generalisability of the results.
Practical implications
Developing marketing programs that focus on creating a positive attitude toward M‐banking should attract consumers to this emerging electronic banking channel. Specifically, marketers should emphasise M‐banking's usefulness and compatibility with consumers' lifestyle, in addition to designing M‐banking systems that minimise risk and cost to the consumer.
Originality/value
This paper validates and further develops an existing attitudinal model in the M‐banking context, answering the call for additional research to generalise and improve the explanatory power of self‐service technology acceptance models to other groups and countries.
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Minhyung Kang and Byoungsoo Kim
– This paper suggests embedded resources as a new dimension of social capital and aims to prove its value in the knowledge transfer context.
Abstract
Purpose
This paper suggests embedded resources as a new dimension of social capital and aims to prove its value in the knowledge transfer context.
Design/methodology/approach
Hierarchical multiple regression was adopted to analyse survey responses from 337 R&D employees. Barron and Kenny's mediation test was also conducted to test an indirect effect of embedded resources.
Findings
In addition to the traditional three dimensions of social capital, the embedded resources dimension showed direct and indirect effects on knowledge transfer. Additionally, cognitive similarity among R&D employees was from the professional tenure rather than company tenure.
Research limitations/implications
Despite the limitations of cross-sectional study and R&D focused sample, this study successfully extended existing research on social capital in the knowledge transfer context by validating the role of embedded resources as a new dimension of social capital.
Practical implications
Facilitating social networks among employees is not enough for active knowledge transfer. Each employee should be guided to connect to the right experts who have the right knowledge (i.e. embedded resources) for his or her job.
Originality/value
Traditional dimensions of social capital were biased towards social relationships. This paper emphasized social assets (i.e. embedded resources) as a new dimension of social capital.
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Thivashini B. Jaya Kumar, Thanuja Rathakrishnan and Nelvin XeChung Leow
This case involves a family-owned business that dealt with industrial tools and equipment and was experiencing strife between the first and second generations. The family firm was…
Abstract
This case involves a family-owned business that dealt with industrial tools and equipment and was experiencing strife between the first and second generations. The family firm was founded by two brothers, who later named their children to oversee the managerial side of the enterprise. The case serves as an example of how a family business can achieve new levels of success by adopting the appropriate tactics and carrying them out effectively among family members. The case also illustrates the need of succession planning in family businesses, involving the second generation, is regarded as a strategic move that will change the game. But a poorly executed or overly simple succession plan might also be problematic. Besides, the case also exemplifies miscommunication in family relationships, as seen in the argument between the uncle and nephew and its effects on business. Nevertheless, the issues must be resolved in order for the family business to proceed towards digitisation.
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Kofi Mintah Oware and Kingsley Appiah
The purpose of this study is to examine the effect of corporate social responsibility assurance practice (CSRAP) on the financial distress likelihood of listed firms in India. It…
Abstract
Purpose
The purpose of this study is to examine the effect of corporate social responsibility assurance practice (CSRAP) on the financial distress likelihood of listed firms in India. It uses the signalling theory to interpret the relationship among the variables of the study.
Design/methodology/approach
The study used the Indian stock market as the testing grounds and applied probit and panel probit regression to examine the data set with 800 firm-year observations from 2010 to 2019.
Findings
The study’s first findings show that firms with an assurance service have a negative correlation and are less likely to stay in financial distress situations for an extended period. However, corporate social responsibility (CSR) assurance has a positive but weak correlation with insignificance with financial distress likelihood of firms in India. The authors also find that the engagement of CSR assurance and level of assurance (limited assurance) does not cause a change in a firm financially distress likelihood of firms in India. However, as assurance service providers, auditing firms are more likely to reduce a firm’s likelihood of financial distress. Finally, the study shows that CSRAP (CSR assurance, assurance service providers and level of assurance) does not moderate the association between CSR expenditure and financial distress likelihood of listed firms in India.
Originality/value
The study findings are the first to examine the level of assurance and financial distress of firms according to the authors’ knowledge. This study also adds new knowledge to the factors that cause or reduces the financial distress of listed firms, including CSRAPs.