Corporate Affiliation Research Articles

Are corporate affiliations conducive to nascent entrepreneurship?

Founding an entrepreneurial venture does not comprise a dichotomous choice between market entry and non-entry; instead, a wide variety of entrepreneurial strategies are available to the nascent entrepreneur. Using data from the second Panel Study of Entrepreneurial Dynamics (PSED II), a representative sample of nascent entrepreneurial activity in the United States, this study documents that nascent entrepreneurs generally choose between founding an independent new venture and following a type of corporate-affiliated entrepreneurial strategy (CAES), such as a franchise, spin-off, or similar approach. The success of this decision is contingent upon entrepreneurs’ stock of human capital. Relevant industry experiences tend to reduce the likelihood of an entrepreneur employing a CAES, while managerial experience and previous start-up experience increases the probability. Overall, those nascent entrepreneurs who follow a CAES are more likely to achieve a first positive cash-flow; this highlights the benefits of corporate affiliations in the field of new venture founding.

Subsidiary networks, connectivity, and urban-regional economic development

ABSTRACT This paper argues that urban-regional income development depends on a larger fabric of economic relations at the national and international levels. Focusing on Core-Based Statistical Areas (CBSAs) in the US, the paper identifies firms’ subsidiary networks across space and their changes over time. These networks form a basic architecture through which important growth impulses in production and innovation are transmitted that impact urban income levels. Using a balanced panel of U.S. CBSAs with LexisNexis Corporate Affiliations data from 1993 until 2017, we develop a model that examines the relationship between national and international connectivity and urban income levels, differentiated by origin/destination of ties, industrial sectors, and various interaction effects. Our results strongly support that linkages at both the national and international scale (particularly linkages with European locations) are significantly related to urban-regional income development.

THE IMPACT OF BOARD DIVERSITY AND THE MODERATION EFFECT OF COVID-19 PANDEMIC ON FREE CASH FLOW

In this study, we propose pandemic Covid-19 as moderating effect on the role of board diversity in enhancing the allocation of free cash flow. The board diversity variables are examined using least squares regression for panel data by exploiting the variables to board gender diversity, board member affiliation, board specific skills, and board size variables for an observation of 279 Indonesian listed firms over the period 2015–2021. We found that the presence of female gender on the board, the presence of board members who have either an industry specific background or a strong financial background, and enough board members deter the opportunistic conduct of managers and likely to reduce excess funds through dividend pay-outs. The results demonstrate that a diverse board reduces agency conflicts and enhances resource allocation supporting governance practices. During the Covid-19 pandemic, the presence of female gender in the board, the presence of boards member with other corporate affiliations, and the adequacy of board size proved to provide more effective supervision of the company's cash flow allocation. The findings are beneficial to policymakers since this explains the significance of implementing measures to enhance the efficacy of the board's role by instituting a diversity requirement.

Poster 302: The Influence of Industry Affiliation on PRP Randomized Controlled Trials

Objectives: Industry funding and corporate sponsorship have played a significant role in the advancement of medical research and technology. However, this relationship raises concerns of how industry association may bias research findings and influence perception of results. As novel therapies continue to emerge, it is necessary to evaluate the literature for reliable and evidence-based clinical research before implementing these therapies into practice. The purpose of this study was to determine whether industry affiliation plays a role in the outcome of randomized controlled trial (RCT) studies investigating platelet-rich plasma (PRP) versus hyaluronic acid (HA), corticosteroids (CS), or placebo for knee osteoarthritis (OA). Methods: A search of the PubMed, Cochrane, and MEDLINE databases for RCTs of Level 1 or 2 evidence published from 2011 to present comparing PRP versus HA, CS or placebo for the treatment of knee OA was performed by two independent reviewers. To determine industry affiliation, the conflicts of interest, funding and disclosure segments of publications were assessed and all authors were reviewed through the AAOS Disclosure and Open Payments databases. Industry affiliation by financial conflicts of interest were identified as license or royalty fees, paid consultant fees, advisory position or speaker, employee, stock options, or research funding from companies that synthesize PRP or manufacture devices to administer PRP. Studies were classified as industry affiliated (IA) or non-industry affiliated (NIA). The outcomes of each study were rated as favorable, analogous, or unfavorable according to predefined criteria based on previously published protocols and also statistical significance by comparing patient reported outcome measures. Favorable studies showed superior results, analogous studies demonstrated no significant difference, and unfavorable studies had inferior outcomes when comparing PRP to HA, CS or placebo. Results: A total of 37 (6 IA and 31 NIA) studies were available for analysis. All studies were of level 1 (67.6%) or level 2 (32.4%) evidence, with no statistically significant difference between IA and NIA studies (p = 0.4443). Nineteen (51.4%) studies reported PRP as favorable compared to other treatments, while 18 (48.6%) studies showed no significant differences between PRP and other treatments. No studies showed worse outcomes with PRP compared to HA, CS, or placebo. There was no significant difference in qualitative conclusions between the IA and NIA cohorts, with the IA cohort having 3 favorable studies and 3 analogous studies, while the NIA group included 16 favorable studies and 15 analogous studies (p = 0.8881). When comparing IA versus NIA studies, using 6 and 12-month WOMAC and IKDC scores, there were no significant differences in outcome measures. Conclusions: The results of this study demonstrate largely favorable and analogous results with PRP compared to other intra-articular injection therapies for knee OA in randomized controlled trial studies. Qualitative conclusions and outcome scores were found to not be associated with industry affiliation. Although the results of this study suggest there is no influence of industry association on RCTs involving PRP, it is still necessary to carefully evaluate pertinent corporate affiliations in published literature. [Table: see text][Table: see text][Table: see text]

THE INTERACTION OF FANATICISM AND EFANGELISM IN FOOTBALL: STRUCTURAL MODEL REVIEW

In football, the fans can be qualified as the tremendous power of teams that are thought to have a significant share in the success. The fans support their team both materially and morally by integrating with the team emotionally. Sometimes, the emotional bond possessed goes beyond the normal and results in the understanding of seeing one's team as superior to other teams. This research aims to examine the interaction between football fans' fanaticism and football team evangelism (eFANgelism). As part of the study group of the research, 448 football fans participated. Research data were collected with the football fanaticism scale and the sports eFANgelism scale. In the study, comparisons were made between fanaticism and eFANgelism in terms of the variables of the participants. Among the models created in the research, it was suggested that Model1= football fans' eFANgelism levels had a positive effect on their fanaticism, Model2= violence tendency and corporate affiliation had a positive effect on eFANgelism, and the hypothesis was tested. As a result of testing the hypotheses, H1= eFANgelism has a two-way positive and significant effect on the violence tendency of football fans (p<0.01).

Second Acts: Giving Back through Social and Serial Entrepreneurship

The last two decades have seen increasing calls for commercial enterprises to create value beyond that which can be captured by their shareholders. While effective approaches to generating stakeholder value at the organization level are increasingly well-understood, relatively little empirical research examines the factors that influence how direct social impact can be generated at the individual level, i.e., by private sector founders, managers, and employees acting outside their corporate affiliations. The papers in this symposium address this gap through two lenses. First, they explore how individual-level characteristics, either formed in early life or developed through earlier career experiences, shape entrepreneurs’ choices about how to create public and/or private value at a later stage in their careers. Second, they focus on critical events in the entrepreneurial process and examine how they facilitate action-taking by individuals with philanthropic preferences to make social impact. Collectively, the papers in this symposium highlight different pathways on which entrepreneurs might embark at an advanced stage in their careers to create value beyond their current for-profit entrepreneurial endeavors, including engaging in philanthropy, and supporting the larger entrepreneurial ecosystem as experienced founders, joiners, and impact investors. Who Gives Back? Evidence from India on Successful Entrepreneurial Exit & Involvement in Philanthropy Presenter: Leena Kinger Hans; Indian School of Business Presenter: Balagopal Vissa; INSEAD Spinning an Entrepreneurial Career: The Role of Motivation & Attribution in Entrepreneurial Careers Presenter: Hyeonsuh Lee; West Virginia U. Presenter: Sonali Shah; U. of Illinois at Urbana-Champaign Forming Ties for Impact: Cognitive and Emotional Resonance between Entrepreneurs and Investors Presenter: Esther Leibel; Boston U. Presenter: Denise Falchetti; George Washington U. The Making of Social Entrepreneurs: Big Tech Acquisitions & Founder Mobility into Social Initiatives Presenter: Ming zhu Wang; Washington U. in St. Louis, Olin Business School Presenter: Daniel Walter Elfenbein; Washington U. in St. Louis

Learning or Leaking? Intra-firm Spillover of Environmental Capacity and Performance from Enforcement

Sibling units within multi-unit firms are closely connected with each other, and the connections have important implications for their responses to institutional pressure. In this article, we study the implications by examining how a unit’s capacity to comply with environmental regulation is affected by penalties on its sibling units. Theory suggests that a unit can learn from the experience of its siblings, which would lead its environmental capacity to increase. Such learning can be decomposed into inter-organization learning, which would occur among both sibling units and non-sibling units (regardless of corporate affiliations), and intra-organization learning, which is the additional learning that happens only because of their sibling status. A unit’s capacity also may decrease if its corporate parent redeploys non-scalable compliance resources away from or shift production to the unit following penalties on its siblings. We test the four mechanisms in the context of the Clean Air Act. With a facility-level panel dataset from 2005 to 2017, our general difference-in-differences based analyses show that a facility is more likely to violate the Clean Air Act in the following year if its same-state-same-industry sibling facilities are targeted by environmental penalties. However, its production level does not change following penalties on its siblings and its probability of violation is not affected by penalties on non-sibling facilities in the same state. The combined results support compliance resource redeployment as the dominating mechanism and contradict the predictions of inter-organization learning, intra-organization learning, and production shifting. The findings contribute to institutional theory regarding how organizations respond to external pressure and add nuanced insights into corporate parenting advantage of multi-unit firms in dealing with institutional pressure.

STEREOTYPES OF CORPORATE LEGAL AWARENESS IN THE CONTEXT OF CRIMINAL PROCEDURE INSTITUTIONS

Abstract. Membership of the professional community whose representatives carry out criminal procedure activities invariably influences the procedural behavior of specific participants in the proceedings and the decisions taken by them in criminal procedure. In this context, the author identifies and analyses certain stereotypes of corporate thinking and legal awareness of officials involved in criminal proceedings. Purpose: using the example of the implementation of specific criminal procedure institutions – a special sentencing procedure with the consent of the accused to the charge against him, reviewing criminal cases due to newly discovered or new circumstances, checking reports of crimes, maintaining public prosecution – to show how corporate affiliation of officials affects law enforcement. Methods: the author applies structural and system analysis and synthesis, historical analysis, specifically sociological, as well as the method of integrated observation. The main conclusion of the study is that the requirements of the criminal procedure law and legally significant circumstances of criminal cases, as the main objective factors determining the moment of adoption, the form and content of the criminal procedure decision, in practice often cease to be the main ones, since the decisions are taken largely on the basis of rules of professional conduct adopted by a particular state body.

What is hiding behind the money accumulating in Utah?

Taking up the geographer's task of following and defetishizing the commodity, this research taps into the United States (US) federal banking data to locate the commodity “money”. Law is used to specify money's locations. Relative to the size of its economy, Utah's banks report a lopsided share of US money. This paper unmasks important social relations embedded in the money commodities located in Utah's banks by tracing the history of US banking law, which has played a leading role in the processes responsible for Utah's outsized share of the sub-national monetary landscape. Banking law determined the scope and type of business in which banking firms and their corporate affiliates could engage. Throughout the 20th century, investment banks and commercial firms struggled to claim legal rights to engage in business combinations once deemed illegal: combining non-banking business with a commercial bank. The state of Utah, in coordination with financial and commercial firms, has expanded the legal and financial space of Industrial Loan Banks (ILBs), historically idiosyncratic chartered banks exempt from regulations separating banking firms from non-banking business. Utah marketed their banking charters to global, systemically important financial institutions and large commercial conglomerates, which then established or acquired ILB subsidiaries within the state. From Utah, the die had been cast: the largest non-banking firms on the planet were now legally empowered to accumulate capital in ways that had heretofore been forbidden at other locations. American banking had been transformed.

EMNC technological competence creation: key mechanisms and innovative performance

PurposeConsiderable attention has been paid to the motives and process of idiosyncratic internationalization trajectory of Multinational Corporations from emerging economies (EMNCs). Yet, the ability to undertake strategic asset-seeking foreign direct investments (FDIs) is not the same as the ability to achieve subsequent investment success (Buckley, 2018). Since an ultimate goal of strategic asset-seeking FDIs is to tap advanced knowledge in host locations to accelerate EMNC competence creation, and the current study aims to shed light on the question of whether, and if so how, EMNCs have been able to build competences after strategic asset-seeking motivated FDIs.Design/methodology/approachThis study tests the US patent and citation data from 2000 to 2014 of leading innovation-oriented MNCs from China and India, complemented with data from LexisNexis Directory of Corporate Affiliations and Mergent Online databases. Wilcoxon rank sum test is employed to compare EMNCs with control group MNCs from mature industrialized countries to identify key technological competence creation mechanisms of EMNCs. Negative binomial regression technique is then employed to test the relationship between the key mechanisms and EMNC innovative performance in terms of quantity and quality of patented inventions.FindingsIn contrast to the extant EMNC literature, the author finds that EMNC parents adopt a hands-on and less of an orchestrating approach. They are playing critical roles in accessing and transferring knowledge from international host locations. The empirical analyses indicate an absence of reverse transfers of knowledge from subsidiaries to the parent. Instead, EMNC parents directly access and absorb explicit knowledge from external sources in subsidiary host locations, which significantly contributes to EMNC innovative performance. Meanwhile, the author finds that the employment of intra-firm and inter-unit inventor teams and associated internal tacit knowledge access and transfer significantly contribute to EMNC innovative performance.Originality/valueThis study investigates the post-internationalization performance of EMNCs and contributes to the reconciliation of theoretical debates, as well as the generation of a comprehensive understanding of the MNC. Managerial implications are also discussed.

Authentic or cosmetic: stakeholders’ attribution of firms’ corporate social responsibility claims

PurposeTo date, many firms tend to use corporate social responsibility (CSR) communication and marketing as a means to offset their irresponsible behaviors and unscrupulous business practices. Often time, they can easily get away with this in the context where the institutional settings are weak, and corporate social irresponsibility (CSIR) and corruption are widespread. The purpose of this study is to explore stakeholders’ attribution concerning CSR claims of four beverage manufacturing companies operating in America’s poorest country (Haiti) where CSIR and corruption remain widespread. This study also explores whether there are differences in demographic characteristics (e.g. gender, corporate affiliation and education) regarding stakeholders’ attribution of CSR claims of these companies.Design/methodology/approachGiven the exploratory nature of this study, an inductive research approach (qualitative plus quantitative) and supported by an interpretive approach were used.FindingsThe overall results of this study show that internal (employees) and external stakeholders alike consider the CSR claims of these companies as “cosmetic,” with no significant difference in their affiliation. The results also show no significant differences in the age groups but significant differences in gender and level of education regarding stakeholders’ attribution of firms’ CSR claims.Originality/valueBy addressing firms’ CSR claims from the perspectives of internal and external stakeholders through means of a mixed methods approach, this study adds an important contribution to the relevant literature.

The Impact of Business Group Affiliation and Country-Level Institutions on Corporate Governance of Emerging Market Firms

This study outlines how the corporate governance of emerging market firms is influenced by corporate affiliation and institutional embeddedness. We argue that the stronger the business group affiliation, the less likely is the emerging market firm to adopt shareholder value enhancing corporate governance, and that this relationship is moderated by institutional quality and tribalism. Based on189 initial public offerings (IPOs) from 22 African countries between 2000and 2016, we find a significant negative relationship between business group ownership and IPO firms’ quality of corporate governance. We also find this relationship to be significantly negatively moderated by country-level institutional quality and positively by indigenous tribalism. The result adds to the understanding of barriers to a convergence towards one uniform global corporate governance model.

Роль бренду в сталому розвитку підприємства

In today's competitive environment, the brand is one of the main prerequisites for effective development of the enterprise, allows to ensure the fulfillment of social obligations to employees and society, identify products or enterprises, acts as a guarantor of product quality, forms a positive image of the business entity. This necessitates the study of theoretical and practical experience of the possibilities of using the brand to increase the competitiveness of the business entity. Another factor that determines the relevance of this study is the limited practical experience in brand management by domestic companies in the globalization of the economy. The goal of the research is to establish the role of branding in improving the efficiency of domestic enterprises. The key tasks include: outlining the characteristics of the enterprise sustainable development; determining the degree of the brand influence on the business entity effectiveness; consideration of the order of interrelation between branding and social responsibility in modern conditions of competition; proving the importance of brand identity, by detailed coordination of personalization. The research methods were: monographic, comparison, analysis and graphic. It is determined that the main prerequisite for sustainable development of domestic enterprises in the context of economic globalization, limited resources, technology development is the process of brand management. The brand will be one of the main competitive advantages of businesses in the future. Priority will be given to the demand, simplicity and "humanity" of the brand, rather than technology. It has been proven that in order to protect the reputation of its brand, a business must recognize that its success requires a holistic approach to promoting its product or service, including greater social responsibility. A company's reputation and corporate affiliation often affect an entity's ability to operate outside the country or to influence consumer behavior. Prospects for further research in this area are the application of a holistic approach to branding: from brand development to the implementation of marketing programs. It is advisable to study the impact of internal and external environment on the effectiveness of the brand.

How can the integrity of occupational and environmental health research be maintained in the presence of conflicting interests?

BackgroundThe sciences, and especially the research subspecialties of occupational and environmental health, are being misused. The misuse serves to interfere with the advancement of policies that depend on rational evidence needed for policies to protect public health.MethodsWe selectively surveyed the independent scientific literature. In addition, the efforts of respected international professional organizations of scientists whose focus is on maintaining and improving public health have been considered. This commentary is unique in assembling not only the factual basis for sounding alarms about significant bias in occupational and environmental health research, but also about the manipulative mechanisms used, and, in turn, the methods needed to keep science honest.ResultsScientific integrity is based on the principle that research is conducted as objectively as possible; it cannot be compromised by special interests whose primary goals are neither to seek truth nor to protect human health. Evidence demonstrates a significant risk of bias in research reports sponsored by financial interests. Practices of corporate malfeasance include the orchestrated contamination of editorial boards of peer-reviewed scientific journals with industry apologists; interference with activities of national regulatory bodies and international review panels engaged in safeguarding occupational and public health; constructing roadblocks by capitalizing on uncertainty to undermine scientific consensus for much-needed government regulation of carcinogenic, endocrine-disrupting and/or immunotoxic agents; promoting “causation” criteria that lack foundation and effectively block workers’ access to legal remedies for harms from occupational exposures resulting in morbidity and premature mortality; and, violating standards of professional conduct by seducing reputable scientists with financial incentives that make them beholden to corporate agendas.ConclusionsWell-orchestrated assaults on science continue unabated and must now be met head-on. Success could be achieved by promoting and protecting the integrity of research. Furthermore, avoiding influence by conflicted corporate affiliates in occupational and public health regulations is needed. Identifying, managing and, ideally, eliminating corporate influence on science and science policy are needed to protect research integrity. Protecting the public’s health, preventing disease, and promoting well-being must be the unambiguous goals of research in occupational and environmental health.

China Inc. goes global. Transnational and national networks of China’s globalizing business elite

Within the debate of China’s rise and its implications for the liberal order this research focuses on China’s global posture through its transnationalizing firms and capital. On the basis of a detailed and systematic mapping and network analysis of a novel database on China’s largest firms, across a variety of sectors and ownership types, and their boards of directors, the study assesses if and how China is engaging with existing transnational business communities at the heart of the liberal international order. The article finds substantial transnational linkages between the globalizing Chinese business elite and the corporate elite networks of Western globalized capitalism – through corporate affiliations and policy-planning affiliations. At the same time the analysis reveals the strong ties of the Chinese state-business elites to the party-state. Rather than presenting an outright threat to the liberal order and the corporate elite networks at its core, or indicating a co-optation scenario, the article finds evidence for a more hybrid scenario in which China as a corporate actor within the liberal world reveals its two faces: partially and pragmatically integrating and adapting to the liberal modes of networking, while simultaneously holding on to its distinctive state-directed capitalism and the (Party) direction this entails.

Earth science education: The current state of play

Earth science education: The current state of play

Transmedia Theory’s Author Discourse and Its Limitations

Transmedia Theory’s Author Discourse and Its Limitations

Information for authors and editorial policies

Information for authors and editorial policies

Do Company Builders Create Jobs? Examining the Rise of Incubation Finance in Germany

Over the past decade, new types of business incubation have been developed. One particularly prominent example is company builders, which use their own resources to build up companies, establishing numerous companies in a series. In doing so, this investor type facilitates internal and external business ideas. It offers a new organizational solution that combines both the innovative capacity of founders and the financial resources of a large company with the desire for long-term employment and corporate affiliation. This article examines the economic impact of company builders in Germany compared with other venture capital (VC) investor types on the basis of employment trends in the portfolio companies from 2011 to 2015. It is shown that company builders promote more dynamic employment growth than do other types of investors. This finding suggests that this type of investor is particularly well positioned to take advantage of the institutional deficiency in the German VC market. The results are also discussed in the context of the growth of the Berlin-based VC and start-up ecosystem.

Does motivation matter? The influence of the agency perspective on temporary agency workers

PurposeBased on agency perspective on temporary agency workers, the purpose of this paper is to explore the relationship between firms’ agency problems and agency cost on agency workers; moreover, intrinsic motivation and extrinsic motivation are considered in seeking to understand how they moderate this relationship.Design/methodology/approachUsing the Hsinchu Science Park directory of corporate affiliations as a sample frame, the authors adopted a paired questionnaire which included two parts in order to consider the possible problem of common method variances. The first part is completed by the manager of the firms and the second part is completed by his/her temporary agency workers. Finally, 94 firms completed questionnaires, providing a total sample of 94 R&D managers and 458 temporary agency workers. The rate of participation was 31.65 percent.FindingsUsing a questionnaire survey of 94 high-tech firms, from which a total of 94 R&D managers and 458 temporary agency workers participated, the results show that firms’ agency problems have a positive influence on the agency cost of monitoring temporary agency workers. In addition, while this relationship is negatively moderated by extrinsic motivation, intrinsic motivation has a non-significant moderating effect.Originality/valueThe managers of firms should consider not only the short-term flexibility of employing temporary agency workers, but also the long-term cultivation of promoting great agency workers. This could maximize the efficiency of the interaction between intrinsic motivation and extrinsic motivation. Of course, the firms should think about how to reduce the agency problems created by goal conflict, information asymmetry and risk sharing with temporary agency workers, because this could also provide a chance for the firms to decrease agency costs spent on monitoring.