Local Firms Research Articles

Reshaping the Irish Economy: The Impact of International Mergers and Acquisitions on the Irish Technology Sector (2021-2023)

Purpose: This dissertation examines the impact of international mergers and acquisitions (M&A) on the Irish technology sector between 2021 and 2023. It aims to assess how M&A activities have reshaped corporate strategies, influenced organizational culture, and contributed to the broader economic landscape, while identifying challenges and opportunities for involved firms. Methodology: A mixed-methods approach was employed, integrating quantitative survey data from technology sector professionals and qualitative insights from structured interviews with senior executives of companies engaged in M&A. The survey captured organizational perspectives on strategic realignment, cultural integration, employee morale, and economic implications. The interviews offered deeper context on leadership decisions, cultural adaptation, and strategic shifts post-acquisition. Findings: The research reveals that successful post-M&A outcomes were strongly linked to strategic realignment toward global expansion, product innovation, and operational efficiency. Firms leveraging M&A synergies experienced improved market positioning, faster innovation cycles, and streamlined operations. However, challenges such as cultural integration and maintaining employee morale were significant hurdles. Ireland's regulatory environment emerged as a facilitator, ensuring smooth transitions and compliance, although increased global competition posed both challenges and growth opportunities for local firms. Unique Contribution to Theory, Policy, and Practice: This study advances academic discourse by highlighting the interplay between strategic realignment, cultural integration, and regulatory frameworks in post-M&A success. It provides actionable recommendations for technology firms to optimize integration strategies and for policymakers to maintain a supportive yet competitive regulatory environment. The findings also lay the groundwork for future longitudinal studies and cross-industry comparisons to deepen understanding of M&A dynamics.

Monopoly Power: Impacts of Location on the Cost of Credit for Small Firms in Brazil

The objective of this study is to observe the impact of bank monopoly power on credit costs for micro and small firms in different regions of Brazil. The finance literature offers a wide range of results regarding the effects of bank monopoly. However, few studies explore how these impacts vary according to the location of firms. The central hypothesis is that monopoly power allows banks to discriminate prices across regions of Brazil. To test this hypothesis, a panel data structure was used at the municipal level, covering the period from 1995 to 2022. The results indicate that monopoly power amplifies credit constraints for micro and small firms in the North, Northeast, and Central-West regions, while exerting an opposite effect in the South and Southeast regions. Thus, this study suggests that geographic location modifies the effects of bank monopoly power on credit conditions for smaller firms.

Application of Risk-Based Audit Approach by Sole Practitioners and Local Audit Firms: Towards Fully-Compliant Financial Reports

The study examined the factors influencing the implementation of the Risk-Based Audit Approach (RBAA). Key variables identified were auditor capability, availability of audit professionals, integration of information technology, job pressure on auditors, competitiveness of audit firms, and audit fees. The respondents included sole practitioners and employed auditors in local audit firms. The research used a quantitative method, employing structured questionnaires to capture respondents’ perceptions. The findings revealed that auditor capability is the most critical factor in applying RBAA. For effective implementation, auditors need industry-specific experience, sufficient training hours, balanced staffing leverage, investment in IT and productivity tools, compliance with firm regulations, and a good ratio of audit hours to risk areas and audit phases. Skilled auditors are more adept at identifying and addressing potential issues. Future research could explore factors affecting auditor capability and the availability of audit professionals.

Does provincial gambling culture affect corporate innovation? Evidence from China

We examine the impact of provincial gambling culture on the local firms’ R&D expenditure. We find that local gambling culture, measured by the regional lottery sales revenue per capita, promotes local firms’ R&D expenditure. Further tests show that provincial gambling culture produces more innovation outcomes and results in high innovation quality in the long run. Our result is robust to endogeneity corrections using the instrumental variable and PSM-DiD approaches and controlling for firm fixed effects. The mechanism tests reveal that our main finding works through two channels to increase local firms’ risk-taking: hiring young CEOs and using more equity. In addition, we rule out the impact of neighbouring regional gambling culture on the local firms’ R&D investments by using geographic RDD analysis. Finally, our results are more pronounced for firms in provinces with high levels of social trustworthiness, more young ageing populations, and non-SOEs.

Investigating the role of brand love on brand advocacy in the local eco hijab fashion industry

Purpose The study analyzes brand love in local eco-hijab fashion (LEHF) by discussing the value of collectivism, fashion consciousness, environmental value, religiosity and brand advocacy. LEHF becomes the trend pursued by consumers, so this can create market opportunities to optimize marketing strategies. The focus on LEHF in a sustainable fashion would allow local businesses to develop local values-based companies. This study uses the value attitude-behavior model to analyze data. Design/methodology/approach This research uses a quantitative survey to obtain data. The questionnaire is spread to 300 respondents with a purposive sampling approach, especially respondents who have worn LEHF. Findings This study shows that collectivism values, fashion consciousness, environmental values and religiosity influence brand love, while brand love influences brand advocacy related to LEHF. On the other hand, consumers are the target market with a fashion consciousness to follow the trend of hijab clothes. This also shows they wear clothes to fulfill religious values while prioritizing the latest styles. Research limitations/implications Since this study focuses on LEHF, this product is only relevant to hijab fashion. This takes into account the potential of Muslim-dominated Indonesian society. The fashion category can be enlarged to include more local products in future studies. A large selection of goods may promote greater use of regional interests. Practical implications For business actors, particularly micro and medium firms that are just starting to grow to support the local hijab fashion industry company, this research has managerial implications. This presents a chance for business actors to improve the local economy and opens doors for establishing more employment possibilities. The growth of the regional hijab fashion market offers an opportunity to satisfy the demands of customers who favor regional goods. Brand love in LEHF may foster business revenue growth and help local firms compete favorably with international brands. Marketers for LEHF are anticipated to intensify their efforts to advance socialism, the environment and fashion sensibility. Additionally, LEHF marketers emphasize the importance of religiosity when promoting their products to the target population. Marketers are also aware that the study’s environment is Indonesia, which has 90% Muslim population. Marketers have an excellent opportunity to maximize this scenario. Social implications This study also had social implications. The goal of producing locally made eco-hijabs is to benefit nearby communities and the environment. This aligns with the more general objectives of ethical and sustainable fashion. Sustainable methods are used in production, such as using eco-friendly colors, water conservation and waste reduction. Sustainable manufacturing methods are designed to reduce their adverse effects on the environment and encourage ethical production. Empowerment and community engagement may be involved in the manufacturing of locally-made eco-hijabs. This can entail educating and hiring regional craftspeople or incorporating neighborhood residents in manufacturing. Originality/value The study focuses on religiosity and environmental value to further analyze its influence on LEHF. The context of the products analyzed in this study is LEHF, which prioritized local production and strengthened local wisdom through pro-environment. The study used the VAB (value, attitude, behavior) model to analyze the concept.

Media Conglomeration, Local News, and Capital Market Consequences

We examine the effect of news media consolidation on local business coverage and its consequences for firms, investors, and capital markets. Using television transcripts, we find a substantial drop in coverage of local firms following the consolidation of local television stations associated with Sinclair acquisitions. Local information search, institutional portfolio local bias, and overall retail trading decrease for firms in treated geographic areas. Results are most pronounced for small firms, for stations with higher ex ante viewership, and for stations with greater reductions in local coverage. Our results provide insight into the consequences of media consolidation for local business coverage, firms, investors, and capital markets. This paper was accepted by Eric So, accounting. Funding: Financial support from the Brigham Young University Marriott School of Business, Purdue University Mitch Daniels School of Business, and Kenan-Flagler Business School is gratefully acknowledged. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.02247 .

Unlocking growth potential: investigating the significance of firm location for music startups

Unlocking growth potential: investigating the significance of firm location for music startups

Women helping women? Female local official and gender gap in bank credit

This study examines whether and how female local officials benefit female-led firms by focusing on the gender gap in bank credit. Using a sample of Chinese listed companies from 2007 to 2021, we find that female local officials can facilitate access to bank credit for female-led firms, particularly for long-term loans. Mechanism analysis reveals that female officials can reduce the impact of gender bias and provide greater policy support for female-led firms, thereby helping to narrow the gender gap in bank credit.

Luxury fashion brands in metaverse retailing – a review of literature and practice

Purpose The purposes of this study are to identify the ways that luxury fashion brands can leverage in metaverse retailing, and give insights to practitioners in the fashion industry who are planning to launch metaverse retailing. Design/methodology/approach To offer a balanced view of available evidence, this study adopted a literature review approach and attempted to collect all existing academic journal articles on the issues related to metaverse retailing and luxury fashion brands. A comprehensive literature search was conducted in electronic databases Google Scholar, Web of Science, Scopus, Pro Quest and Science Direct from January 2023 to April 2024. Based on the results of the research in literature, real-life examples of luxury fashion brands were used to explain the ways that luxury fashion brands in the metaverse retailing can be put into practice. Findings The findings have revealed that there are many ways that luxury fashion brands can leverage in the metaverse retailing. The fusion of metaverse-related technologies provides brands with a wide platform of choices that can create immersive, personalized marketing experiences for customers. Four roles of metaverse are identified: (1) enhance of immersive experience; (2) provide big data interface to smart decision-making; (3) form high-fidelity simulated space; and (4) maintenance economic system and making of identification. To further enhance the four roles of metaverse, four types of technologies and 15 components for metaverse can be adopted by luxury fashion brands. Research limitations/implications While this paper provides a literature review and real-life examples of luxury fashion brands in the metaverse retailing to explain the findings, further research is needed to evaluate the effectiveness of current efforts in the development of luxury fashion brands in the metaverse retailing through collecting both quantitative and qualitative data. Also, future studies may attempt to explore the challenges of investigating consumers in response to luxury fashion brands in the metaverse retailing. Practical implications The metaverse is turning imagination into reality through the integration of multiple technologies and is gaining momentum in tech. With technology leading the way, business leaders and brands must not only rethink retail but also bring immersive shopping experiences into the future. Metaverse has immense potential to transform the retail industry, thus the leading global and local firms must embrace innovation and new technologies, and prioritize “metaverse transformation” for their business. Based on the results of this study, some emerging practices pertaining to metaverse retailing are provided. Originality/value To the best of the authors’ knowledge, it would seem that this is the first work that conducts a literature review of the relevant academic journal articles addressed to the practitioners or managerial audiences in the area of luxury fashion industry who are concerned about the development of metaverse retailing. This paper identifies the ways that luxury fashion brands can leverage in the metaverse retailing and gives insights to practitioners in the luxury fashion industry who are planning to launch metaverse retailing.

Effects of importing second-hand clothes on supply chains: insights for Africa’s textiles and apparel industry

ABSTRACT Some African countries import a large number of second-hand clothes. This paper examines how importing second-hand clothes affects Africa’s textile and apparel (TA) supply chain. We find that the availability of second-hand clothes could benefit consumers because it provides a new option to consumers. However, import bans and the importation of second-hand clothes may help or hurt local TA manufacturers and workers’ incomes depending on the cost structures for new and second-hand clothes. Imposing import tariffs restrains the second-hand clothing business, helps local TA manufacturers and improves consumer welfare if the quality of new clothing is competitive. Our findings provide insights into how governments use distribution management to protect local TA manufacturers in Africa. Encouraging agents to sell in the local market is desirable if a government wants to help local manufacturing firms and workers. However, if a government wants to collect more tariffs, not allowing second-hand clothing importers to sell through retailers is wise.

Amenities and housing market dynamics: Implications for population change, urban attractiveness, innovation, and productivity

This introductory essay aims to provide a comprehensive overview of a collection of 17 articles, previously published in the Urban Studies journal, now consolidated as a ‘virtual special issue’. The articles contribute to numerous strands of what has, over the decades, become an extremely voluminous literature concerning the interplay between population change and productivity within cities. It is important to acknowledge that the volume of this literature makes it effectively impossible to summarise effectively in a single essay. This article instead presents a contextual overview, a glimpse into the various thematic strands arising from the literature, and an introduction to each of the selected virtual special issue articles themselves. It briefly highlights the unique contributions of these articles to the overarching objective of the Urban Studies journal, which is to advance our understanding of the urban condition. Yet, it is also worth noting that the literature does not neatly segregate into distinct strands. Indeed, several contributing authors within the virtual special issue rightly emphasise the significant interdependencies between population change, migration patterns, specialisation, firm location, urban and natural amenities, agglomeration economies, and productivity. This essay attempts to progress logically from one strand to another, with a specific focus on labour and housing markets, as well as transportation costs or systems, as mediators of these complex relationships. Finally, the essay concludes by bringing attention to several strands of future inquiry that might prove fruitful and would be of interest to the readership of this journal.

Bank competition and ESG performance‐evidence from Chinese listed firms

AbstractThis study employs a two‐way fixed effects model to investigate the influence of bank competition on ESG performance of local firms and its underlying mechanisms based on the geographical distribution of bank branches and firms. Our results show that the increased level of competition among banks contributes positively to the ESG performance of firms and the promotion effect is more prominent in small firms, young firms, and nonstate‐owned firms. Industry heterogeneity analysis indicates that bank competition could be more beneficial for the sustainable development of low‐pollution, low‐tech industries, and industries that have a higher linkage with the financial industry. The mechanism analysis further reveals the mediating effect of financial constraints, green innovation, and moral hazards on firms' ESG performance. This study extends the existing understanding of the firm‐level consequences of bank competition and sheds light on the financial development drivers of corporate ESG performance in emerging market countries.

Does micro-geographical proximity matter for knowledge spillovers? Evidence from the quasi-natural experiment of university relocation in China

With the rapid development of knowledge economy, much attention has been paid to establishing university-based innovation zones, which are often believed to facilitate knowledge spillovers from universities to enterprises. However, relatively little is known about the impact of micro-geographical proximity between universities and firms on knowledge spillovers. This paper employs university relocation as a quasi-natural experiment to explore the effective scale and the causal impact of geographical proximity on knowledge spillovers of 98 Chinese universities, as represented by patent citations. Empirical results, based on difference-in-difference strategy and an instrumental variable approach, suggest that university relocation significantly promotes knowledge spillovers to both local and non-local firms. Moreover, universities that have established their new campuses in areas with more local enterprises tend to generate more knowledge spillovers after relocation. The effect of micro-geographical proximity is further verified through a comparative analysis of two specific cases.

The Use of Artificial Intelligence in Financial Statement Audit

The rapid advancement of Artificial Intelligence (AI) has transformed various industries, including financial auditing, by improving efficiency, accuracy, and fraud detection. This study investigates the extent of AI adoption in financial audits in Indonesia, with a focus on both Big 4 audit firms and smaller, local firms. Through a literature review and interviews with auditors from eight firms, the research explores the current state of AI utilization and the barriers to its implementation. The results indicate that while Big 4 firms are in the developmental phase of integrating AI into their auditing processes, smaller firms face significant obstacles, such as financial limitations, lack of expertise, and regulatory uncertainties, which hinder AI adoption. Despite the challenges, auditors from larger firms anticipate that AI will play a crucial role in future audits. The study concludes that AI adoption in Indonesian financial audits is uneven, and further efforts are required to support smaller firms through accessible AI tools, clearer regulations, and targeted training. These measures are essential for closing the gap in audit quality between large and small firms, ensuring broader AI implementation in the auditing sector.

Challenges and Solutions in Scaling Operations Globally: A Guide for U.S. Food and BeverageExecutives

Abstract—This paper explores the challenges and solutions associated with scaling operations globally in the food and beverage sector from a U.S. executive’s perspective. It examines why expanding internationally makes sense for companies with successful domestic products, highlighting the advantages of U.S. innovation and lower costs of innovation compared to local markets abroad. The paper outlines a strategic roadmap for global expansion, including test markets, partnerships with local firms, and focusing on countries with positive sentiments toward U.S. food safety standards. A hypothetical case study illustrates the growth process, emphasizing the need for internal buy-in, patience, and a long-term view. Potential pitfalls and strategies for success are discussed, along with competitive analysis and the role of disruption in scaling products. Index Terms—Global Expansion, Food and Beverage Industry, Consumer Packaged Goods (CPG), International Operations, U.S. Innovation, Market Entry Strategy, Competitive Analysis, Disruption

The foreign firm wage premium in the Israeli tech sector

Foreign tech multinationals, which have entered Israel en masse in the past two decades, are known to use high wages to draw in the best talent. While paying higher wages no doubt contributes to the domestic economy, local tech firms have argued that the competition for talent inhibits their growth, and that foreign multinationals contribute less in terms of overall economic value compared to local firms. It is thus of great importance to estimate the foreign firm wage premium – by how much do foreign multinationals pay more for comparable talent? Using an extensive micro-level education data and exploiting worker movement and firm shutdowns/downsizing as an unbiased alternative to AKM methodology, this paper finds the foreign firm wage premium to be in the 3%–4% range, much less than previously estimated.

Assessment of the Current Situation and Solutions to Attract Australian FDI Capital to Vietnam in the Context of International Integration

Foreign Direct Investment (FDI) has played a pivotal role in Vietnam’s economic transformation, significantly contributing to industrialization, job creation, and export growth. Since the introduction of the Law on Foreign Investment in 1987 and Vietnam’s accession to the World Trade Organization (WTO) in 2007, the country has emerged as a leading destination for foreign investors in Southeast Asia. Key sectors attracting FDI include manufacturing, real estate, and services, which have driven economic development and facilitated Vietnam’s integration into the global economy. Despite these successes, challenges remain that hinder FDI’s full potential, including administrative inefficiencies, complex regulations, corruption, and inadequate infrastructure. The shortage of highly skilled labor, especially in technology-driven fields, also limits the country's ability to attract higher-value FDI projects. Moreover, there are regional disparities in FDI distribution, with major urban centers like Ho Chi Minh City and Hanoi receiving most investments, while rural areas are often overlooked. The impact of new-generation Free Trade Agreements (FTAs), such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), is also examined. These agreements enhance market access, legal protections for investors, and reduce trade barriers, making Vietnam increasingly attractive for high-tech and service industries. This paper assesses the current FDI landscape in Vietnam, identifying opportunities and challenges for foreign investors. Recommendations include simplifying business procedures, implementing anti-corruption measures, improving infrastructure, and enhancing workforce training to address skills gaps. By adopting these reforms, Vietnam can attract higher-quality investments, strengthen ties with global supply chains, and foster sustainable economic growth. Additionally, the research emphasizes the importance of building stronger partnerships between FDI enterprises and local firms to ensure the widespread distribution of investment benefits across the economy. With a more favorable investment climate, Vietnam can reinforce its position as a premier destination for global investors and enhance its role in the international market.

Government affiliation, analyst behavior and the economic consequences

AbstractA significant number of regional brokerage firms in China are owned by their respective local governments. We use this context to examine how local government affiliation affects brokerage firms’ research activities. Using a sample of analyst reports from 2013 to 2021, we find that analysts working at local government‐affiliated brokerage firms are more likely to cover firms within the local government's jurisdiction than non‐affiliated analysts. Local government‐affiliated analysts enjoy an information advantage, as evidenced by the issuance of more accurate earnings forecasts for local firms, compared to those of non‐affiliated analysts. The effect is stronger for local firms with lower information quality. Additionally, local government‐affiliated analysts show more optimism in stock recommendations, but not in earnings forecasts, for local firms, compared to non‐affiliated analysts. The effect is more pronounced for local firms that receive more local government subsidies, operate in regions with greater local government intervention or during the COVID‐19 pandemic and the National Congress conferences, and require more capital market support. The results of this study advance our understanding of the key determinants of analyst performance and provide new evidence in the debate on the role of government intervention in financial institutions.

The productivity effects of regional anchors on local firms in Swedish regions between 2007 and 2019—evidence from an expert-informed machine learning approach

The productivity effects of regional anchors on local firms in Swedish regions between 2007 and 2019—evidence from an expert-informed machine learning approach

Winners and losers in Africa: a longitudinal examination of market-share gains by advanced and emerging market multinationals versus local firms

Purpose Market share gain is one of the key objectives for all firms for seeking growth. It is also a fundamental aspect of competitive rivalry. The extant review of the literature points to a gap among market share performances of emerging market multinationals (EMNEs) firms, advanced economy multinationals (AMNEs) and local firms. The purpose of this study is to delineate and contrast the market share performance of EMNEs, AMNEs and local firms in Africa. Design/methodology/approach The study used available longitudinal data (2013–2022) of six industries across four African countries from Euromonitor Passport, a rich, proprietary database. Findings Applying contingency theory, the study shows that, over time, there is no clear-cut winner in all markets and industries. Rather, market share gain is contingent on country and industry settings in Africa. Empirical analysis demonstrates that high-tech EMNE firms operating in Africa will exceed those of high-tech AMNEs and local firms. The findings also show that local firms generally performed better during the pandemic. Originality/value As Africa is a region of interest for scholars and practitioners, critical international business (IB) research contributions in Africa have predominantly focused on foreign investments from a particular nation. The present study enriches the literature by comparing the market share performance of AMNEs, EMNEs and local firms in this important region – during and prepandemic. The study offers theoretical and managerial implications for understanding the long-term performance of these three types of firms.