Developed Western Economies Research Articles

China’s space sector, firm CSR and patent quality

PurposeThis paper examines firm-level accountability and performance implications under a state-dominated institutional environment, China, for firms engaged in the space economy. Extant studies on the rapidly evolving civil space economy predominantly focus on developed Western economies at national or sector levels, frequently ignoring alternative institutional contexts. Additionally, limited attention has been given to firm-level empirical evidence and analysis, including corporate social responsibility (CSR) practice-R&D quality relationships in the space economy. The paper addresses each of these areas.Design/methodology/approachThis paper utilises multiple regression, propensity score matching and split sampling methods applied to a proprietary dataset of Shanghai and Shenzhen Stock Exchange-listed A-share firms. Results are robust to endogeneity issues, alternative measurement of dependent variables and sampling.FindingsChina’s space firms demonstrate superior CSR performance to their counterparts in other sectors, supporting CSR‘s role in maintaining legitimacy. Their CSR practices also positively contribute to firm patent quality. The link is more pronounced among firms facing higher economic policy uncertainty and for state-owned enterprises (SOEs). The latter is due to SOEs’ government support, advantages in financing and attracting and retaining a high-quality workforce.Originality/valueThis paper adds to discussion on major space power’s, by examining China’s state-dominated civil space sector. It also addresses a lack of empirical firm-level evidence on space firm behaviour by examining the impact of firm-level CSR practices on R&D quality outcomes, areas in which there is a limited literature.

Corporate social responsibility and psychological capital during the COVID-19 pandemic: perspectives from India

PurposeThis paper aims to examine the relationship between employees’ perception of corporate social responsibility (CSR) practices in Indian business organizations and psychological capital (PsyCap) during the COVID-19 pandemic.Design/methodology/approachThis research design is conclusive, descriptive and cross-sectional. An online survey was conducted during COVID-19-related lockdowns in India in 2020–2021, using two standardized research instruments. Data was collected from 154 respondents; correlation and regression techniques were applied using SPSS version 25.FindingsResults indicate that employees’ perception of CSR practices was positively correlated with the components of PsyCap, namely, employee self-efficacy, hope, resilience and optimism. Findings indicate that 57.4% of the variance in PsyCap is explained by employees’ perception of CSR.Research limitations/implicationsStudies may be carried out to examine the difference in PsyCap between organizations having strong CSR vis-à-vis weak CSR. The impact of PsyCap on organizations’ performance during states of disruption and chaos is unexamined so far; studies on the said linkage are thus required. Researchers may also examine whether there is a significant difference in organizations’ PsyCap during crisis and non-crisis conditions. Studies on the linkages between EPCSR and organizational resilience, employee performance and employee engagement during crises, with PsyCap in the moderating role will provide further insights into this area of research.Practical implicationsThe findings imply that having effective CSR policies can help with the conservation and recovery of psychological resources. Employees’ enhanced self-efficacy, hope, resilience and optimism are the benefits of being a CSR-oriented organization as indicated by the study findings. Investing in CSR would therefore be a win–win situation for organizations, as besides giving back to society and building a great public image for themselves, it would also improve organizations’ PsyCap, which in turn would make businesses resilient and better able to navigate through crises.Social implicationsThis study makes a case for a macro- and micro-level focus on PsyCap. Increasing organizational psychological resources makes it possible to lessen the pandemic’s negative psychological toll and enhance workers’ coping abilities. As evidenced in this study, the CSR practice of organizations is one such way toward it. It is thus in the interest of society, organizations and employees that organizations strengthen their CSR and more so during times of widespread crises.Originality/valueExtant literature has mostly examined CSR from the macro-level lens during noncrises conditions, with a focus on external stakeholders and in the context of developed Western economies. This research has a micro-level perspective and focuses on the PsyCap of internal stakeholders, i.e. corporate employees in an emerging market, namely, India. It has been conducted in the background of an unprecedented global economic and mental crisis caused by the COVID-19 pandemic, thus making this study very unique and relevant.

OWN REVENUES IN THE PUBLIC SECTOR

The private and public sectors are complementary sectors of any economy. There is a clear interdependence between these two sectors, not competitiveness and exclusivity. At the same time, there are certain differences between these two sectors, which are conditioned by the ownership structure, business goals and the like. The public and private sectors have different roles in world economies. In developed western economies, which did not have “excursions” into socialist (planned) economic organization, private property has a long tradition of existence and, accordingly, plays a much more important role in the economic structure of the country. Underdeveloped countries and countries in transition, such as the Republika Srpska and Bosnia and Herzegovina, introduced the institute of private property after the collapse of socialist organizations. For this reason, as well as for many other reasons, the public sector in underdeveloped and developing countries has a more significant role in the overall economic structure than in developed western countries. The influence of the state on the economy is realized through various mechanisms. In most developed and transition countries, the public sector redistributes about 40% of GDP through taxes and public spending, and in some countries even more. In modern economies, the state is the largest employer employing a significant percentage of the workforce. We defined the research problem of this paper with the question: can and to what extent public institutions can generate their own / own revenues and what is the tax treatment of realized revenues? The subject of the research was the legal basis and a comparative overview of the current legislation in the field of taxes from the point of view of the public sector and the point of view of the private sector. In the first part of the paper, we analyzed the concept and role of the public sector, looking at certain characteristics of the sector in the European Union (EU) and other neighboring countries. In the continuation of our work, we dealt with our own revenues in the public sector in the Republic of Srpska, with a special focus on educational institutions. Guided by this problem, we analyzed the tax treatment of own revenues generated by public institutions in relation to the tax treatment of revenues within the private sector. According to the previous, and the discussion we had in the last part of the paper, we conclude that the basic hypothesis is: public institutions have the right to generate their own revenues, although they are not registered to perform revenue-generating activities, but tax revenues should be treated as and in the private sector, true. To conclude, public institutions are left free to generate their own revenues. However, the results of the conducted analysis raise certain questions, the answers to which need to be sought in future research. What measures need to be taken and what steps do public institutions need to take in order to use the recorded own revenues in order to improve the education system? Therefore, we suggest additional research on this topic, in order to offer quality answers to the questions asked.

Same old story: Hungary’s development over the 2000–2020 period

Hungary’s convergence to the developed western economies has been much slower than initially expected. Applying the FOI model, this study investigates whether there were any changes in the convergence process during the first two decades of the 21st century. It is found that the future potential (influencing the long-term competitiveness of the economy) and inside potential (determining the current well-being of the country) of the Hungarian economy did not improve at all compared to the 34 countries that were OECD members in 2010. Hungary’s position is in fact very poor; it is ranked 33rd in both areas. The country does somewhat better in the outside potential (characterising its world market position), prompting the conclusion that Hungary follows a growth model that is focused on external resources. This feature is not new, however: the same development model patterns were detected in 2010, too.

Women's entrepreneurship in developing countries from a family perspective: Past and future

AbstractStudies of the distinct experience of women entrepreneurs in non‐Western settings are rare. Extant studies of women's entrepreneurship focus, almost exclusively, on developed Western economies and tend to underplay the role of the family, which has become unnaturally separated from entrepreneurship research. Based on a structured literature review, this article advances the understanding of how family related issues shape women's gendered experience as entrepreneurs in developing countries. It addresses the diversity of experiences of women entrepreneurs, and discusses both the positive and negative aspects of familial issues, as well as some broader contextual features related to the family. It offers an agenda for future research on this topic, and provides a useful guide for policy makers and practitioners intending to facilitate women's entrepreneurship in developing countries.

Effect of university-enterprise alliance orientation on university’s innovation performance and market performance: evidence from Vietnam

ABSTRACT The study seeks to explore the influence of university-enterprise collaboration orientation on university’s performance. Specifically, the study investigates the effects of alliance scanning, alliance coordination, and alliance learning on university’s innovative performance and market performance. The effects were tested on the sample of 191 managers of 37 universities in Vietnam with a survey. Structural equation modeling (SEM) was used for testing these effects. The results show that all dimensions of alliance orientation including alliance scanning, alliance coordination, and alliance learning are significantly correlated with innovative performance. For market performance, only alliance coordination and alliance learning are significantly relevant to, but alliance scanning has a non-significant effect. As the pioneering study examing the effect of dimensions of university-enterprise alliance orientation on university’s innovative performance and market performance, this study extends the extant literature, particularly the modest research domain of university-enterprise cooperation. The study also added empirical evidence of Vietnamese context – an underexplored Asian developing context for studies of university-industry linkages which is vastly different from other contexts like developed Western economies. Furthermore, it offered a revised measure of market performance of university that will be useful for future research.

China y el arte de la guerra (tecnológica)

China se encamina a convertirse en una potencia tecnológica a mediados del siglo XXI. Este proceso se funda sobre cuatro pilares: sostenido incremento del presupuesto asignado al desarrollo científico-tecnológico, su directa vinculación con estrategias de innovación a fin de aumentar la productividad y sostener competitividad exportadora, creación e internacionalización de firmas tecnológicas, y expectativas gubernamentales por cerrar las brechas de conocimiento aún existentes que separan a China de competidores asiáticos y occidentales. A lo largo de cuatro décadas, las reformas pro mercado confirman esta senda de transformación y generación de capacidades en sectores tecnológicos de punta. La competencia estratégica con Estados Unidos acelera esta carrera y confirma objetivos sobre posicionamiento de firmas tecnológicas chinas como líderes en inteligencia artificial (IA), telecomunicaciones y redes 5G.

Consumer behavior and customer relationship management in mental health services

Mental health services are perceived differently in different socio-cultural settings. The connotations accorded to mental health, especially in terms of need awareness and evaluation of alternatives, vary from culture to culture. Understanding these differences is critical to attract and retain patients suffering from mental conditions. Generic literature on consumer behavior does not provide direct answers to many of the problems in this regard, primarily because such literature does not take into account the deviant mental states of these patients. In this paper, we review findings from mental health specific studies conducted in both Western and Asian countries, evaluate the importance of decision-making factors for both public and private service providers, and offer directions for future research. Interdisciplinary literature on customer relationship management, consumer behavior, mental health, and healthcare marketing, guided by the principles of systematic literature review constituted the methodology of this study. The research methods are analysis, synthesis, classification and grouping. The empirical base included about 250 peer-reviewed articles on the topic under consideration. We find that doctor-led service provision is still the most prevalent form of relationship building in the Eastern societies, especially in the less developed countries of South East Asia. Consumer-initiated mental health treatment schemes are more common in more developed Western economies. We also observe that, among the innovative set of providers, there is a trend of increased use of telehealth. Among other things, this includes more proactive and digitally-savvy identification, acquisition, and retention of patients. The results of the study can be used as the basis for marketing strategies of drug manufacturers and mobile application designers in the field of online medical services.

Developing poor communities through creative tourism

ABSTRACT The research on creative tourism is mainly focused on developed western economies. Studies about developing countries with a significant percentage of the population living in poverty are still scarce. As such, this study is based on extensive field research and in-depth interviews of four poor communities in two countries (Brazil and Peru). The main goal is to identify a group of factors and their inter-relation as they contribute to the development of poor communities using creative tourism approaches. The results point to a positive response, i.e. it is possible for poor communities to offer interactive experiences. But not directly. Instead, there are a number of requirements that contribute to this accomplishment. First, local development depends on the involvement of external entities. Their role includes not only the achievement of consensus but also the allocation of capital, skills and resources. Second, initial results develop entrepreneurial initiatives with a direct impact on further investments, especially in tourism. Third, tourism-related processes result from other non-tourism activities. However, tourism activities benefit from (1) the gains in popularity of the region and/or its products, traditions and culture; (2) increase in entrepreneurial activity.

The Impact of Governmental Pressure on Corporate Corruption Spending: Evidence from China

ABSTRACTCorruption creates both social and economic problems, and perhaps as much as any other country, China has faced corruption concerns for decades. Beginning in November 2012, Chinese leader Xi Jinping instituted one of the most widespread anti-corruption campaigns in the country’s history. We investigate its impacts on corporate corruption spending. We use reported Entertainment and Travel Costs as our proxy for corruption spending, and focus on a sample of 107 large Chinese firms with data available over the 2010–2015 time frame. We document significant decreases in our corruption spending proxy over the three-year period following implementation of the anti-corruption campaign relative to the preceding three-year period. We also find that reductions in the spending are significantly more pronounced for firms in industries targeted more directly under the anti-corruption campaign. These results hold when we control for status as a state-owned enterprise and changes in firm profitability. We conclude that, at least in the Chinese setting, governmental pressure was effective at reducing corporate corruption. While we cannot generalise our results to more developed Western economies, our findings would appear to be particularly relevant to developing economies where other forms of social constraints on corruption may be less prevalent.

Innovative Policies for Energy Efficiency and the Use of Renewables in Households

Renewable energy sources (RES) are gradually becoming one of the key elements in the process of achieving energy efficiency worldwide. This trend can be observed in many developed Western economies—for example, in the United States, as well as in the United Kingdom. Hence, the role of innovative policies for promoting energy efficiency is becoming crucial in transition to the post-carbon economy. The shift to the carbon-free future make all actors to face forgoing commitments Nevertheless, customers and residential households are the first and the most important players in the pursuit of the energy-efficient future. Without them, carbon-free economy based on RES would never take the shape as envisaged. Our paper focuses on the innovative strategies and policies studying the effect and the scope of RES penetration into the households. We employ and empirical analysis of the effects from using RES in households using an example of the residential households in the northwest region of the United Kingdom (UK) with and without solar photovoltaic (PV) panels and electric vehicles (EV). We analyse the four scenarios that are aimed at analysing the system dynamics and providing differentiation between systems in terms of the varying values of the gross demand, tariffs, metered import, and the total revenue. Our results demonstrate that the solar PV leads to the transfer of costs and wealth regardless of the ownership of PV and EVs. Solar energy generation reduces the share of UK solar PV households per kWh costs of the distribution system which causes the augmenting of the per unit charges as well as to the changes in payments for the electricity that impoverishes less wealthy customer groups. It also becomes clear that with the increase of EV penetration, the existing energy efficiency schemes would have to be revised.

Relation between Chinese consumers’ ethical perceptions and purchase intentions

PurposeMost business-related studies on ethics focus on consumers in developed western economies but ignore developing economies. Therefore, to fill this void in the literature and address the concerns of prior studies, the purpose of this paper is to examine the ethical perceptions of Chinese consumers as an example of effective and efficient management of company/brand strategies in an economy experiencing rapid socioeconomic growth.Design/methodology/approachThis study examines 328 Chinese consumers’ purchase intentions based on their ethical perceptions toward Apple and P&G through mediating (i.e. consumer–corporate identification (CCI) and brand trust) and moderating (i.e. consumer gender, age, education and residence) effects. Structural equation modeling is used to analyze the constructs and overall model.FindingsThe ethical perceptions of consumers translate into purchase intentions, both at the corporate and product brand levels. Similarly, a significant direct relationship between CCI and brand trust reveals that corporate-level ethical identification is a trivial matter to customers, although these perceptions do apply to product brands under a corporate umbrella. Furthermore, to identify target groups of Chinese consumers who are receptive to ethical appeals, moderating variables were found to be useful.Originality/valueThe results confirm that the mediating role of CCI is more influential in the context of Chinese consumers’ ethical perceptions, followed by brand trust. In relation to demographics, ethical perceptions affect CCI and brand trust more positively in females and highly educated consumers in China. Similarly, the relationship between consumers’ ethical perception and their trust in brand is revealed more influential in urban residents than they do in rural. This broadens the applications and contexts of this research model. The results provide managerial guidance on enhancing potential ethical perceptions.

РОЗВИТОК І МАЙБУТНЄ ЕКОНОМІКИ НА ОСНОВІ ЦИФРОВИХ ТЕХНОЛОГІЙ: КРИТИЧНЕ ОСМИСЛЕННЯ

In the global economy, deepening the crisis. Output many scholars see in changing the existing economic model, which is associated with the digital revolution and digital economy development. In the article the analysis of existing approaches to the definition of "digital economy". It is proved that from the point of view of the classical understanding of the economy, it is legitimate to use the term "digital economy". The possibilities of development of the digital sector of the economy, the consequences of the use of digital technologies in the financial sphere are critically considered.The positive effects of digitalisation in the economy is possible only if the management of this process from the state in the presence of moral and professional authorities, including able to build an independent financial and investment policy.The current crisis state of the economy, growing social problems make it impossible for public investment in the digital sector, even in developed Western economies. Development and investment sectors are the largest private IT companies and TNCs that seek profits and power, both economic and political, including international level.The introduction of digital technology already shows negative trends: the growth of financial speculation and the undermining of national economies; development of criminal business; the destructive effects on the consciousness of the population; an increase in the control and management of society. In the future, with the growth of moral and intellectual degradation of the government and society that will ensure the transition to a post-capitalist model of the distribution of the economy and totalitarian society.

Corporate social responsibility and employee engagement: can CSR help in redressing the engagement gap?

PurposeThis paper aims to examine the influence of employees’ corporate social responsibility (CSR) perceptions on their engagement level at work. In addition, the study looks into the contingencies of the relationship by proposing and examining gender as moderator of the proposed relationship.Design/methodology/approachThe study sample consisted of 187 business professionals from both public and private sector manufacturing and service firms operating in India. The study uses a non-experimental correlational field study design. The data were collected with the help of self-administered questionnaires via both personal visits to the organizations and internet-based questionnaire using snowball sampling. Hierarchical linear regression analysis was used to test the study hypotheses.FindingsThe study results clearly underscore the potential of firm’s involvement in CSR activities in influencing the employee attitude and behaviour at work. However, the study findings failed to show any significant effect of interaction between CSR and gender on employee engagement.Practical implicationsGiven the positive association of CSR with employee engagement irrespective of gender differences as reflected in the study results, CSR can actually be used across the organizations as tool for talent management.Originality/valueThe study bridges the macro-micro divide and addresses to the need for micro level research in CSR stream by examining the influence of CSR perceptions on work engagement level of employees. The study advances existing body of knowledge beyond developed Western economies by exploring the strategic value of CSR in India, which presents a unique cultural context to look at.

Who Benefits From IFRS Convergence in China?

We study the ex ante stock market reactions to events leading up to China’s convergence to International Financial Reporting Standards (IFRS). The literature consistently shows that the benefits of mandatory IFRS convergence are concentrated in countries with stronger legal enforcement and investor protection. Given that these institutional characteristics are weaker in China relative to more developed Western economies, whether mandating IFRS will benefit the Chinese capital market is an interesting and important, but unanswered question. We find that the Chinese stock market reacts favorably to events leading up to IFRS convergence, and this effect is more pronounced among firms with greater dependence on external capital. This result suggests the market anticipates that such firms will benefit more from IFRS convergence, possibly because of improved financial reporting quality and access to external financing. Additional tests confirm that the value relevance of accounting numbers for these firms is higher following IFRS convergence.

Who Benefits from IFRS Convergence in China?

We study the ex ante stock market reactions to events leading up to China’s convergence to International Financial Reporting Standards (IFRS). The literature consistently shows that the benefits of mandatory IFRS convergence are concentrated in countries with stronger legal enforcement and investor protection. Given that these institutional characteristics are weaker in China relative to more developed Western economies, whether mandating IFRS will benefit the Chinese capital market is an interesting and important, but unanswered question. We find that the Chinese stock market reacts favorably to events leading up to IFRS convergence, and this effect is more pronounced among firms with greater dependence on external capital. This result suggests the market anticipates that such firms will benefit more from IFRS convergence, possibly because of improved financial reporting quality and access to external financing. Additional tests confirm that the value relevance of accounting numbers for these firms is higher following IFRS convergence.

Creating a smart rural economy through smart specialisation: The microsphere model

The failure of most developed western economies to return to the rates of economic growth enjoyed in earlier times has raised the spectre of secular stagnation first identified by Hansen in the 1930s. Central to secular stagnation is the complex link between capital investment and innovation, prompting fears that the recent collapse in investment is both a cause and an effect of the so-called end of innovation. The emergence of so-called zombie companies suggests a curtailment of creative destruction. The paper looks to the smart specialisation agenda and demand-led strategies for innovation as a means of removing innovation activity from reliance on large-scale top-down capital investment, instead shifting the focus to the role of the entrepreneur in the innovation and growth process. Key features of smart specialisation are used to underpin the construction of a conceptual model (the microsphere) that presents policymakers with a framework to reconnect with the entrepreneur to boost innovation and growth at the level of the region. The model frames the microsphere within which smart specialisation takes place, and how this can encourage innovation among small non-growth rural firms. Influenced by New Industrial Policy and the social geographies underpinning reflexive capitalism, the model builds on the entrepreneurial discovery process inherent in smart specialisation. The model provides policymakers with a guide to operationalise a smart specialisation strategy. Finally, the model is tested in a case study based on the priorities of an economic strategy of a rural region of Scotland.

Wealth effect revisited: Novel evidence on long term co-memories between real estate and stock markets

Employing an innovative ECM-ARFIMA methodology, we set out to explore the dynamic interdependence of stock and securitized real estate markets for two developed western economies that exhibit different characteristics. The empirical analysis ran from 2/1/1990 to 13/06/2014. Our results provide support to the ‘wealth effect’ and to the fractional integration process in both countries. It is clear that non-linear co-integration, co-memory, long-run and short-run adjustment dynamics are fundamental concepts in understanding market integration/segmentation. Our findings entail significant implications for policymakers, market regulators and investors.

Individual tax compliance in China: a review

PurposeThe 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/approachThis 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.FindingsThis 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/implicationsThe 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/valueThis 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.

A sociocognitive approach to business ethics: lessons from early industrializing Japan

Understanding transgression of business ethics in developed Western economies is different from that in developing economies where the institutional matrix that frames the market and transactions is in the process of fundamental change. This is particularly so when entrenched historical practices of close business and government interaction continue into the new era. In this environment the study of ethical forbearance may be more illuminating than transgression. Seen from a New Institutional Economics’ perspective on the sociocognitive, our empirical study of Shibusawa Eiichi and Dan Takuma shows that ideology can play an important role in shaping ethical business practice.