Creation Of Capital Research Articles

Uneven Distribution Possibilities of Creative Capital Development in Rural Aareas (Case Study of the Podkarpackie Communes, Poland)

Abstract This paper presents the results of the research, which is an attempt to modify the assumptions of R. Florida’s theory regarding the creative class. The measurement is based on indices that are the basis for the measurement of three categories: talent, technology, tolerance is not always possible due to the lack of data. The purpose of the study was to identify factors determining activation of creative capital in the areas of communes (local level). The objective results from the need to determine whether or not such conditions are present at the local level. Using the available literature, a questionnaire was prepared. Its results obtained from a survey among the Podkarpackie residents, were presented in the paper. It was found, as in the case of the results of the work of other authors, that in municipal communes there were better conditions for the development of creative capital.

Creating Intangible Capital

We propose a new framework modelling intangible capital creation as the joint investment of firm resources and skilled human capital. High-intangible firms require less ex-ante cash spending yet must offer more deferred compensation to retain employees, creating unhedgeable risk. A human capital retention motive for financial prudence thus arises, even absent traditional precautionary needs. Insuring unvested claims requires more net cash in good states and equity rather than debt financing. Because intangibles can be easily diverted, firms need more inside equity and unvested employee claims can exacerbate turnover. The model offers an explanation for recent puzzling trends in corporate financing.

Income Share Agreements: A Better Way to Encourage Human Capital Creation

The growth and preservation of Human Capital impacts our quality of life. Education is the dominant factor for increasing human capital. Recently there has been a wave of financing opportunities that utilize risk-sharing features. These Income Share Agreements are gaining traction as a popular form of education financing, offering students more flexibility in meeting their financial obligations than traditional student loans. In this white paper we describe the general structure of the Income Share Agreement (ISA), illustrate the advantages of ISAs compared to student loans through Expected Utility analysis, and discuss the reasons why we believe ISAs will continue to gain momentum as a preferred mechanism for funding human capital development through education.

Macroeconomic Policy Options for a Savings Constrained Economy: The Case of South Africa

Abstract The extensive diagnostic studies and policy recommendations that exist for South Africa typically focus on microeconomic constraints to growth. Higher potential growth certainly requires structural reforms to boost productivity growth. But these will also be more effective if macroeconomic policy no longer impedes the needed relative price adjustments and consequential factor allocations to achieve higher productivity. We assess the performance of macroeconomic policy over the last 10 years. Our conclusion is that a different policy mix could have generated higher growth outcomes and provided the fiscal space to respond to the current Covid-19 crisis more effectively. In the post–global financial crisis era, fiscal resources were wasted in trying to stimulate in the face of a structural decline in economic growth. Restoring South Africa’s growth requires a comprehensive change in economic policy to target fiscal consolidation, shift the composition of expenditure to investment and human capital creation and permanently embed lower inflation. Macroprudential policy should better support long-term private sector investment. And, the country urgently needs an ambitious and rapidly implemented structural reform agenda that targets higher productivity growth.

Recognition and description of synergy conditions in team work in view of the grounded theory

Developing an organisation of the future requires growing potential that will create the foundations for entrepreneurship, innovative activities and sustainable development. Every unit in the organisation's structure is to be a part of this but only team work gives the opportunity to engage the multi-directional potentials in the process. The enhanced cooperation enables any team to achieve exceptional results and the synergy effect. In this context, the value for the development of an organisation is the ability to recognise this phenomenon and indicate the circumstances of its occurrence. In the article, the grounded theory strategy applied in the research, is presented as a method enabling recognition and description of synergy conditions in a team. And based on the methodology, the author aims at explaining the factors deciding on the quality of team work. Given, however, the multidimensional nature of the research on synergy, the main objective of the article is to outline the developed research procedure first stage’s endeavours and to discuss the qualitative findings. The employed approach allow keeping apt sequence of delivering empirical evidences proving that synergy is a function of state. The applied concept of grounded theory enabled the researcher to see the key definitions and to indicate variables that would explain the conditions influencing the effectiveness of teams functioning. The ability to present the first part of the findings is, in fact, an opportunity to fortify the voiced arguments that the creative approach, entrepreneurial activity, and social capital are vital to establish the synergy effect in team work. Furthermore, the findings clearly support the concept that synergy is a feature of a team that emerges at specific time, when the team reaches a particular level of relation quality. On top of that, the acquired findings also present that team proficiency and potential growth are, at all times, strengthened by the ability to perceive and implement the synergy effect.

CONCEPTUAL PRINCIPLES OF MANAGEMENT OF �GREEN� BUSINESS TAKING INTO ACCOUNT EXPERIENCE OF INTERNATIONAL FINANCIAL MANAGEMENT

Topicality. The actuality of problem of �green� business stimulation and creation of favourable climate rises nowadays because of the necessity of additional resources engaging in socio-economic development of Ukraine and due to the reform progress that causes new possibilities for communities �green� business. At the period of active global modernization of humanity in scientific and political circles, issues related to the "green" business began to be discussed more and more, in which the necessity of intensifying the development of the branches of the national economy, creation and increase of natural capital was foreseen. Aim and tasks. The article is devoted to defining features of �green� business and the basic tools of transformation in social-oriented system. The contradictions of its forming have been reflected. The perspectives of development of �green� business as functional form of �green� economy have been defined. Using three groups of tools: economic, marketing and corporate are proposed to improve the implementation of the basic principles of �green� business. Research results. Developed a conceptual model of development of entrepreneurship in the sphere of �green� business and as a result of the region whose main idea is to increase the level of interest in the development of business, government, based on certain criteria, through the promotion of entrepreneurship in the regions, as well as the result of which is the elimination of inconsistencies of socio-ecologic-economic development of regions by applying organizational and economic levers of influence. Usually, economic development, based on the principles of the "green" economy, is quite difficult to fulfill, since in the world models of megaeconomics and assess of their effectiveness are already formed. In global and domestic practice, the "green" business is becoming increasingly competitive every year. "Green" business is not only the refinement of income from the production of environmentally friendly products and the provision of environmental services, but also the preservation of the environment and natural resources. Conclusion. The article substantiates the expediency of the principles of sustainable development to preserve the environment and minimize environmental risks in the country's national strategy, regional development programs and strategies in Ukrainian companies. Green "business can be considered as a business activity, which is based on the recognition of the principle of non-alternative environmental activities. At the same time it is necessary to assimilate the potential of the natural environment in the form of expanded reproduction of business resources, and the most important criteria are the formation of systems for assessing the quality of the product, competitive advantages, investment attractiveness and the effectiveness of business activities in general.

Decomposing and relating user engagement in festivals’ virtual brand communities: An analysis of Sónar’s Twitter and Facebook

Festival branding is undergoing a revolution based on the consolidation of new communicative behaviours in virtual brand communities (VBCs), above all, channelled through social media platforms. Although the literature on festivals has analysed engagement in VBCs, this study provides an in-depth observation of the profiles of festival VBCs users, how they modulate engagement attributes and behaviours and how these relate to their engagement focus, highlighting festival branding while also considering other main focuses (i.e. social capital creation and place-making). Thus, this article aims to characterize these elements in festivals’ VBCs through a multidimensional analysis of nearly 2150 entries in the Twitter and Facebook VBCs of one of the most prominent music festivals in Europe, Sónar (Barcelona). Moreover, it does so through a longitudinal observation covering a whole year, showing the relevance of ongoing communication to festival success. The results show the benefits (for organizers as well as other users) of understanding these elements and their mutual relationships.

Capital Criativa da Europa: aspectos da criatividade urbana em Lisboa

Esse estudo tem como tema central a cidade de Lisboa e sua relação com a criatividade. Os investimentos na indústria criativa utilizados como um dos pilares estratégicos para o fim da crise, renderam a transformação de Lisboa em um polo de artistas, pensadores e criadores de várias partes do mundo, se destacando na área da cultura e da criatividade em nível mundial. Nesse contexto, este trabalho tem como objetivo analisar se os elementos que tornaram Lisboa a Capital Criativa da Europa são percebidos pelos residentes e visitantes. Para tanto, utilizou o método exploratório descritivo por meio de revisão bibliográfica e pesquisa de campo com análise de cunho qualitativo. Entre os resultados foi possível identificar que tanto os residentes quanto os visitantes de fato a reconhecem como uma Cidade Criativa. Pode-se destacar como os principais elementos presentes de Lisboa sob o ponto de vista dos participantes da pesquisa: uma cidade que busca melhorar as oportunidades aos cidadãos e gerar desenvolvimento mantendo a cultura e tradição do seu povo; uma cidade que se reinventa e está receptiva a novas ideias; uma cidade que busca inovação mantendo as tradições e a historicidade local; investe na proposta da economia criativa como fator de desenvolvimento; uma das cidades que mais preserva sua história ao mesmo tempo que incorpora novos atrativos; após atravessar uma crise, teve que se reinventar. Festivais, oportunidades, apresentações. Cidade receptiva a várias culturas; uma mistura do tradicional com o tecnológico, possui diversos espaços disruptivos, startups, etc e a população está inserida nestes espaços; assim como sua história e tradições são preservadas e cultuadas, há uma Lisboa moderna, voltada para o futuro. Os participantes também consideram Lisboa uma cidade com bastante talentos, tecnologia e tolerância, o que constitui os 3 Ts desenvolvidos por Florida. A pesquisa realizada espelhou muito bem os conceitos de uma Cidade Criativa trazidos pelos renomados autores da área.

Institutional Efficiency, Entrepreneurship, and the Premises of Economic Development in the Eastern European Countries

Abstract The development gap between the “Old” and “New” member countries of the European Union is an important problem challenging the efficiency and strength of the European single market. In this regard, a subsequent question arises: which actions in the policy making must be undertaken, by both national and supranational authorities, to stimulate cohesion in the EU and which directions should be followed? The present paper tries to answer this question considering the perspective of the Eastern European nations and their economic development premises analysing the aspects of governmental participation in the economy and the influence of entrepreneurship upon long run competitiveness. The research results explicitly underline that entrepreneurship in the Eastern European nations is a determinative driver of long-term economic competitiveness due to its favourable impact upon the formation of human capital, enhancement of innovation potential and overall intellectual resources of nations. The effects of governmental participation in the economy upon the economic growth premises are heterogeneous including on the formation of physical and intellectual capital. Consequently, it was reached the conclusion that the Eastern European Nations should prioritise entrepreneurship since it is capable of boosting human capital creation and, at the same time, they should improve the institutional quality to minimise the factors undermining the business including corruption and red-tape, etc. In such a way, the Eastern European countries can overcome, in the long run, the development gap with the Western EU states and raise their economic potential.

Intensitas Fungsi Modal Sosial untuk Penguatan Posisi Tawar Pengrajin dalam Pemasaran Souvenir Olahan Limbah Kelapa

A weak bargaining position in product marketing is a serious problem for farmers including those who diversify their livelihood patterns as souvenir craftsmen. Collector traders and retailers are dominant to set prices for souvenirs. Souvenir craftsmen surrender to accept any price level determination. As a consequence, souvenir craftsmen in the villages of Baturaden and Purbalingga Wetan have difficulties in earning profits from micro-souvenir businesses. The results of this study found that a solution to overcome the problem of the weak bargaining position of craftsmen in marketing souvenir products is through the use of a social-capital creation approach. The intensity of network functions of cooperation, mutual trust, values, and norms have different values in each bargaining position activity. Price domination by collectors and retailers is not only due to the dilemma of patron-client relationships. The qualities of souvenir products that are still not qualified turned out to be the cause of the weak bargaining position of craftsmen. The creation of social capital has a real function to strengthen the bargaining position of craftsmen in marketing souvenirs. The intensity of the function of social capital needs to be increased through the development of product quality, bargaining courage, and the ability to make price decisions in an agreement.

TERRITORIAL PUBLIC SELF-GOVERNMENT: RESOURCE FOR DEVELOPMENT

The article is devoted to territorial public self-government as a mechanism of public participation in solving local issues and socio-economic development of municipalities. The study reveals a lack of relevant information on the number of organizations of territorial public self-government in the country. This does not allow to take into account their potential during planning the development of territories. The author analyzed the activities of organizations of territorial public self-government in the Vologda region, summarized the practice of initiative budgeting in Vologda and Cherepovets. The researcher attempted to explain the influence of organizations of territorial public self-government on socio-economic processes and the creation of social capital. In this connection, a list of indicators for assessing activities of organizations of territorial public self-government has been proposed. It is necessary to improve the efficiency of work with organizations of territorial public self-government in the region including through the creation of a coordination structure, resource centers and a pool of consultants. There is a need for further research on this topic.

Social Capital of Business in Hybrid War Conditions: Concept, Components, Functions

The main approaches to the definition of the category “social capital” in the historical context are considered. Elements of social capital (social norms, social network, trust) have been defined as well as its main functions have been identified, which were formed during the evolution of this concept. The influence of the hybrid war on the formation of social capital in the context of public trust in business structures in Ukraine is determined. The role of social networks as a source of creation, accumulation and restoration of social capital has been investigated. The importance of the existence of network links that affect the socialization of society and the expansion of its communicative borders in the conditions of the development of modern socio-economic relations has been noted.

Industrial policy, social capital, human capital, and firm-level competitive advantage

Despite the popularity of governmental action devised to foster firm performance, the link between industrial policy and firm-specific human capital and social capital has received scant attention in the strategic management literature. In this paper, we build a dynamic optimization model which bridges concepts from industrial policy, social capital, human capital, and firm-level competitive advantage. We derive theoretical and policy implications from our competitiveness model, concluding that it increases in the opportunity cost of social capital reduce the production of human capital, so the optimal opportunity cost of social capital under feasible industrial policy should be set equal to zero. A government’s optimal industrial policy to help accumulate and churn human capital should reduce the opportunity cost of social capital to zero and reduce the probability of human capital leaving the community to zero. Thus, the model not only expands the potential determinants of competitive advantage in the context of governmental intervention, but also broadens the human capital theory and social capital theory in the creation of firm-specific human capital.

Contribution of language to the creation of corporate social capital

With increased globalization of trade and business in a knowledge-based economy, and increasing diversification of the workforce, there is increasing pressure on multinational companies to report, and even measure, their social capital. This article explores the role of language in the creation of corporate social capital. The language used in a corporation is an asset, which creates value and corporate social capital in the use and exchange of ideas. Linguists have long attempted to assess the value of language as a commodity, but with little success. This article offers an approach to overcome this difficulty and to measure the value of language as an element of corporate social capital. To do so, it draws an analogy between the functions of language and functions of currency. The article goes on to suggest that multinational corporations should hold a portfolio of language skills, much as it does a portfolio of currencies.

University’s Catalytic Effect in Engendering Local Development Drives: Insight into the Instrumentality of Community-Based Service Learning

The context of this paper is Africa, where communities have historically looked up to universities within their locality to maximize their intellectual capital and knowledge creation to foster regional development. How well these universities are actively responding to the demands of economic and social development require attention. This paper reports an instrumental case study involving in-depth interviews and focus groups within a bounded locality in Cameroon to address what universities can do to enhance their contribution to local development. Findings suggest that whilst a university’s community-based service learning (CBSL) scheme can be ascertained as an instrument that can engender local development, this requires the fostering of relevant education for informed participation of different stakeholders in the framing but also firming up of CBSL objectives and processes. Furthermore, in order to optimize the prospect for local development instigated by CBSL activities, relevant stakeholders should go beyond short-term planning and adopt futuristic sustainable strategies. There is need to promote deeper dissemination, as well as follow-up on field findings for sustained implementation and outcomes.

Absolute Capitalism

Although neoliberalism is widely recognized as the central political-ideological project of twenty-first-century capitalism, it is a term that is seldom uttered by those in power. Behind this particular ruse lies a deeply disturbing, even hellish, reality. Neoliberalism can be defined as an integrated ruling-class political-ideological project, associated with the rise of monopoly-finance capital, the principal strategic aim of which is to embed the state in capitalist market relations. Hence, the state's traditional role in safeguarding social reproduction—if largely on capitalist-class terms—is now reduced solely to one of promoting capitalist reproduction. The goal is nothing less than the creation of an absolute capitalism. All of this serves to heighten the extreme human and ecological destructiveness that characterizes our time.

Corporate Diplomacy and Family Firm Longevity

We discuss family firm longevity building upon a new conceptual lens, informed by transaction cost economics (TCE), but augmented with corporate diplomacy thinking. Family firms, because of their superior foundation of bonding social capital (interpreted here as a firm-specific, transaction cost-reducing governance mechanism), have an intrinsic advantage vis-à-vis nonfamily firms with regards to utilizing network ties supportive of longevity. Most family firms, however, fail to leverage effectively this governance tool to achieve longevity, due to bifurcation bias (BB), that is, the unchecked prioritization of assets and relationships that hold affective value for the family. We propose that corporate diplomacy, through its three process steps, familiarization, acceptance, and engagement, can help the family firm augment its baseline reservoir of social capital, and allows improved economizing on contracting challenges that endanger its survival. Externally, corporate diplomacy helps economizing on expressions of BB in relationships with outside stakeholders, thus augmenting bridging social capital. Internally, it can address biased treatment of family versus nonfamily human assets, thereby augmenting bonding social capital. Intergenerationally, corporate diplomacy supports access to, and improved reliance upon the firm’s social capital by next generation family members. The family firms that focus on corporate diplomacy processes and the resulting social capital creation greatly improve their chances of longevity.

INCREASING ECONOMIC IMPORTANCE OF HIGHER EDUCATION AS A COMPONENT OF HUMAN CAPITAL

Human capital is a key production resource that is available to the greatest part of population. The investments in education and training contribute to the growth of economic efficiency. There are many proofs in support of the thesis that investment in education is stimulating to economic growth, course of average labour productivity and growth of real earnings. There is a strong correlation between the education and earnings: higher educational level implies higher level of wages, while higher salaries further motivate people to acquire permanent education. Human capital practically vanishes unless it is used. In such cases, human capital acts consistently nearly equally to financial capital, by displacing into the environments where higher yields are expected. The above explicated approach to research is often criticised, especially bearing in mind its static character. In real life, the degree of material embodiment of human capital is mostly the function of ability of involvement in activities of lifelong education and acquisition of practical skills. Economic value of human capital depends on its contribution to creation of values of goods and services. Hence, the possibility that certain components of human capital are highly evaluated at specific time and in particular environment, while without any significance in other circumstances should be always borne in mind. Relative value of particular components of human capital greatly depend on the stage of economic and social development of a country where their meaning is perceived. In present conditions of earning, in the process of creation of human capital, the activities directed towards lifelong education and professional advancement and digital literacy have become increasingly significant. Education, and especially higher education, contributes to economic and social development of certain communities in most various ways. In accordance with the approach to basic needs, education is increasingly recognised as an elementary need which helps to satisfy many other needs and contributes to the life quality improvement. In the educational policy, rapid development of technology imposes two key conclusions. The first is that education should be directed towards the capability of acquisition of new knowledge during lifetime (the ability to learn is learnt), while the other is dissemination of education to all social strata. The competence of human capital includes the application of new knowledge in everyday practice. Therefore it is not surprising that this form of capital permanently increases its participation in the structure of total capital in all contemporary economies. At the same time, the attitude that human capital is a backbone of overall development of each nation (economic, social etc.) is predominant in economic science today, while education is its most significant framework.

The role of culture-moderated social capital in technology transfer – insights from Asia and America

This study examines the impact of cultural differences on the creation of social capital in technology transfer processes. The aim is to understand the influence of culture on relationships, particularly the structural, relational and cognitive dimensions of social capital created in relationships associated with university-industry links, specifically technology transfer (TT). The research builds on a culture-moderated social capital perspective; observing that the characteristics and usefulness of social capital are determined by cultural practices prevailing in social structures. The influence of culture on social capital in case studies of six American and ten Asian technology transfer offices and organizations involved in technology transfer has been investigated. Using university research technology transfer and commercialization as the centerpiece of the empirical work, we examine basic Hofstede's cultural characteristics and the way they influence TT practices in two different culture types. Our findings suggest cultures can influence creation and utilization of social capital in university-industry links. Culture can influence not only relationships with external stakeholders in technology transfer (industry, governmental bodies) but also internal relationships and management styles in TT offices (influences on organizational culture). We propose that the awareness of cultural characteristics and influences is important not only in cross-cultural technology transfer but also domestic operations. Using this awareness to build trust lies at the heart of interactions with internal and external stakeholders. The research results should be useful for entrepreneurs, universities and technology transfer officers in order to better understand the nature, and role, of culture-moderated social capital in technology transfer and to support effective processes for scientific research commercialization.

Integration v. polarisation among social media users: Perspectives through social capital theory on the recent Egyptian political landscape

There has been a growing debate about the extent to which social media has influenced the Arab World's recent revolutions described as the “Arab Spring”. Despite difference in views concerning this issue, the role that social media played in enacting socio-political change is undeniable, a matter which attracted the interest of academia. Here, the power of social media in widening and strengthening relationships renovated and reinforced the concept of “social capital”, which could lead to integration or acculturation among affected societies. Underpinned by a social capital theory and the acculturation process, this commentary article adopts a critical approach and draws on historical events from the 2011 Egyptian revolution and beyond. We claim that, social media lead to social capital creation and integration when some fundamental associated factors exist namely: the bonding, bridging and linking factors. Social media adoption lead to political integration when these factors existed during the Egyptian revolution and lead to polarisation when there was no contextual triggering factor before the revolution and no access to resources after the revolution. We provide some insightful perspectives on the role of social media in social-political change.