Governance Capabilities Research Articles

The historical basis and ideological resources for building an education strong country in the new era

In the grand tapestry of socialist construction with Chinese characteristics for the new era, the implementation of the strategy to forge an educational powerhouse holds profound significance for the modernization of socialism with Chinese characteristics and the great rejuvenation of the Chinese nation. Delving into the essence and objectives of this educational powerhouse strategy, it becomes evident that transcends mere expansion of educational scale and enhancement of quality. Rather, it accentuates education's pivotal role in buttressing national competitiveness and sustainable development. This strategy aims to cultivate socialist builders and successors who are comprehensively developed in moral, intellectual, physical, aesthetic, and labor dimensions, thereby providing the talent reservoir and intellectual bedrock for realizing the great rejuvenation of the Chinese nation. The backdrop of a new wave of globalization, the twin challenges of constructing a modern educational system, modernizing educational governance capabilities, and nurturing a cohort of innovative talents aligned with the demands of our times have emerged as critical issues confronting humanity collectively.

The landscape of city‐level GHG emission accounts in Africa

AbstractCities are important actors in the global challenge of tackling climate change. They are not only responsible for the majority of emissions but also highly capable of taking action. An important precondition for effective climate mitigation is a city‐level greenhouse gas emission inventory to guide mitigation action. Yet, most cities in developing countries, in particular African cities, lack that crucial information. This study aims to assess the current state of the development of African cities' emission inventories. A total of 270 inventories from 137 cities across 54 African countries were identified from 15 research articles, 5 reports, and 3 data platforms. We find the lack of standardized protocols results in inventories that are often not comparable, while data scarcity emerged as a common problem. We observe that insufficient engagement from local governments impedes the creation of a data‐rich environment. Additionally, current inventory protocols do not fully address the data limitations faced by African cities, further hindering inventory development. To mitigate these challenges, multi‐agent collaboration is essential to enhance the accounting capabilities of local governments. Developing refined protocols that consider data constraints is necessary. Moreover, advanced technologies may provide opportunities to overcome data bottlenecks.

Government green procurement and corporate ESG performance

This study utilizes data from China's A-share listed companies from 2009 to 2022 and manually collects government green procurement lists published on the Chinese government procurement website. By matching this data with listed companies, we employ a multi-period Difference-in-Differences (DID) model to examine the impact of a firm's inclusion in government green procurement lists on its Environmental, Social, and Governance (ESG) performance. We find that government green procurement significantly improves firms' ESG performance. In the mechanism analysis, we find that executive green perceptions and media and analyst attention amplify the positive impact of government green procurement on firms' ESG performance. Through the heterogeneity analysis, we find that government green procurement promotes ESG performance more significantly when the listed company is a state-owned enterprise, and this promotion is more obvious in central state-owned enterprises. In addition, we find that government green procurement enhances ESG performance more significantly when the company is located in a region with higher levels of market integration. Further research find that government green procurement effectively inhibit “greenwashing” behavior and reduce the probability of negative events. Our findings provide important micro-empirical evidence for understanding the effects of market-based policy instruments on corporate ESG performance and contribute positively to the practice of improving corporate governance capabilities.

Physical climate change exposure and firms' adaptation strategy

AbstractResearch SummaryThis article examines whether and how firms adapt to physical exposures to climate change. I build a novel dataset that compiles information on the adaptation strategies of publicly traded companies around the globe and merge it with climate science data. I find that firms are sensitive to the nature and level of forecasted climate change exposures, and that they adapt more often and more completely to those most salient to their business. Increased physical climate exposure heightens the perceived impact of climate change, leading to a higher degree of adaptation. Furthermore, the positive relationship between firms' climate change exposure and their adaptation is stronger for firms with greater environmental, social, and corporate governance capabilities and those with longer time horizons.Managerial SummaryCompanies are increasingly exposed to the physical impacts of climate change, yet little is known about how they adapt to these long‐term, systemic, and uncertain changes. This study investigates corporate adaptation strategies in response to climate change. By analyzing climate science data and climate change disclosure information from publicly traded companies worldwide, I find that most firms do not adapt to different physical climate change exposures. They adapt more often and more completely when facing higher forecasted climate exposures. Furthermore, firms' environmental, social, and corporate governance capabilities and their time horizons influence their adaptation to greater climate exposures. These findings suggest that targeted interventions may be necessary to improve corporate adaptation to climate change.

Measuring IT Governance in ERP Systems: a COBIT 2019 Evaluation of SAP Material Management Module

Information technology systems such as Enterprise Resource Planning (ERP) are crucial for companies to meet their business needs. However, as companies grow, challenges arise, particularly in the Material Management (MM) module within SAP. This study aims to identify issues such as data inaccuracies and material duplication during the interfacing process with SAP MM and assess IT governance capabilities using the COBIT 2019 framework. The methods used include interviews and literature review, focusing on the domains of APO12 (Managed Risk), BAI03 (Managed Solutions Identification & Build), and DSS03 (Managed Problems). The results show that APO12 reached capability level 4, while BAI03 and DSS03 are at level 3, with a target of level 4. Recommendations include enhancing proactive system design evaluation, developing systematic procedures to address data issues, and implementing permanent solutions to prevent data duplication and inaccuracies during interfacing.

Implementing data governance in financial systems: Strategies for ensuring compliance and security in multi-source data integration projects

This study explores the complexities of implementing data governance within financial systems, focusing on strategies to ensure compliance and security in multi-source data integration projects. The primary aim was to identify challenges and establish a comprehensive framework to enhance data integrity, confidentiality, and regulatory adherence in the financial sector. Using a mixed-methods approach, the research included an extensive literature review, case studies, and expert interviews to gain insights into current practices, challenges, and emerging trends in data governance. Key findings reveal that while multi-source data integration offers significant opportunities for enhanced decision-making, it also presents substantial risks, including data breaches and regulatory non-compliance. The study underscores the pivotal role of data governance frameworks in mitigating these risks through the establishment of clear data policies, the implementation of robust cybersecurity measures, and the promotion of a compliance-focused organizational culture. Additionally, the analysis highlights the necessity for harmonized global data privacy laws to address the diverse regulatory environments that financial institutions operate within. The research concludes that effective data governance is crucial for financial institutions to safeguard their data assets, ensure regulatory compliance, and maintain stakeholder trust. Recommendations include the adoption of advanced technologies like artificial intelligence and blockchain to enhance data governance capabilities, the provision of ongoing employee training to foster a culture of compliance, and the implementation of dynamic compliance monitoring systems to keep pace with evolving regulatory demands. By embracing these strategies, financial institutions can develop a resilient data governance framework that not only ensures compliance and security but also drives operational excellence, competitive advantage, and sustained trust in the increasingly digital financial landscape. Keywords: Data Governance, Financial Systems, Multi-Source Data Integration, Regulatory Compliance, Cybersecurity, Data Privacy.

Crafting Combinations to Govern Groundwater: Knowledge, Motivation, and Agency

Groundwater is a vital common pool resource for water supply, irrigation, and ecosystems, but can be difficult to govern due to invisibility, conflicting interests, and limitations of available institutions. While there are many policy and technical instruments (tools) available, efforts to apply them are often ineffective. This special issue of the International Journal of the Commons presents a set of papers with insights into policy instruments and other methods for groundwater governance. The relevance and effectiveness of tools and combinations of tools (toolboxes) in addressing problems that emerge from groundwater use is related to how they fit with diverse physical and social contexts. Drawing on research and applied experience, including that presented in this issue, we outline a conceptual framework for groundwater governance that emphasizes attention not just to knowledge, but also to motivations, and to agency for effective coordination among key actors. Articles in the special issue analyze groundwater governance in areas of Africa (east, south, and north), Central Asia, India, and the United States. The articles cover a range of scales from small groups playing experiential games to international agreements about transboundary aquifers. Several papers illustrate the crucial role of knowledge about groundwater, and the need for governance instruments and interventions to go beyond only changing knowledge. Three papers focus on groundwater games and their use to understand and change behavior, especially when combined with other tools that facilitate collective deliberation and action. Several papers illustrate how understanding of the ways people care about and practice care for groundwater illuminates examples and capabilities for groundwater governance. Highlights There are many institutional tools for governing groundwater, but no panaceas, and successes are rare Effective groundwater governance requires that key stakeholders have combinations of knowledge, motivation, and agency to act together effectively Groundwater co-management can combine stakeholders’ knowledge, values, and collective action with external science, resources, and authority Participatory processes can craft combinations of tools to fit contexts and pursue shared gains

EVALUATION OF IT GOVERNANCE USING COBIT 2019 ON REGIONAL ASSET MANAGEMENT AGENCY OF DKI JAKARTA

An adequate level of IT availability can obtained by implementing IT Governance, which pay attention to all related issues service readiness, including services and resources. This research aimed to assess the IT Governance capability at the Regional Asset Management Agency (BPAD), a government institution responsible for asset management. The study specifically focused on issues related to data and information management, including leadership and risk management challenges. Using the COBIT 2019 Framework, data were collected through interviews and observations. The respondent of this research are 4 who work in the Data and Information Sub-Sector and one Head of Asset Administration. The findings revealed that the EDM 05 process achieved a capability level of 4, surpassing the organization's target. However, the APO 08 and APO 12 processes were rated at level 2, highlighting areas in need of improvement. The study provides recommendations to enhance BPAD's performance and optimize its business activities.

The impact of the exercise on the social mentality of the Chinese people.

Engaging in exercise not only encompasses its intrinsic attributes but also signifies its social dimensions. It reflects an underlying emotional tone and cumulative value attributed to exercise by individuals, forming a broad, macro-level socio-psychological relationship in alignment with the conceptual definition of societal mentality. The social mentality is an indicator of a nation's governance capacity and mirrors the overall socio-psychological profile and needs of its citizens. This study, therefore, aims to investigate the influence of exercise, specifically through the lens of sports, on the sociall mentality of the Chinese population, encompassing aspects of social trust and social equity. Additionally, we explore the distinct mechanisms underlying differences in social class, generation disparities, and spatial dimensions. This inquiry aims to contribute to enhancing governance capabilities and societal stability. Data for this study was sourced from the 2023 China General Social Survey. We selected 20 variables and analyzed a sample of 6,746 individuals. We employed Ordinary Least Squares (OLS) multiple linear regression models to construct our analysis. The findings indicate that exercise has a positive influence on the social mentality of the Chinese population. A higher frequency of participation in sports correlates with a more advanced level of social mentality development. Notably, significant disparities exist between the macro-level and micro-level impacts of exercise, suggesting ample room for improvement. Social class, generational disparities, and spatial dimensions demonstrate substantial impact, each exhibiting unique characteristics depending on the specific research question. Furthermore, the weightings of social trust orientation and social equity orientation within the societal mentality dimensions exhibit variability and fluctuations. When exploring the topic of social mentality, it is recommended to separately discuss the various dimensions it encompasses, thus providing a comprehensive, detailed, and precise portrayal of specific issues. To bolster the influence of exercise on the social mentality, as well as to enhance governance capabilities and societal stability, the following recommendations are proposed: (1) In-depth exploration of differences within social strata to optimize the mechanisms through which exercise influences the social mentality; (2) Balancing generational disparities to establish a solid foundation for the influence of exercise on the social mentality; (3) Recognizing spatial dimensions to harness the spatial dynamism of exercise in shaping the social mentality.

Governmental Capabilities and Responsiveness: Global Investigations into CO2 Emissions and Decarbonization. The Ultimate Super Wicked Problem!

ABSTRACT We consider how the governmental and political contexts of societies affect the delivery of decarbonization agendas. Data on government effectiveness and political stability (capability) and voice and accountability (responsiveness) are related to emission levels in high and middle/low-income countries. The analysis implied that greater government effectiveness initially decreased, but then increased emissions. Alternatively, improvements in political stability had no effect in high-income countries, but lowered emissions elsewhere. Increasing voice and accountability had no effect on the emissions of high-income countries, but raised then (at higher levels) lowered emissions in middle and low-income countries. Findings are used to develop a scholarly understanding of the effects on complex public policy outcomes.

Effect of Technical NTMs on Indian Exports to ASEAN: What Role Do Logistics and Governance Capabilities Play?

Technical non-tariff measures (NTMs) represent a commonly employed set of trade policy tools with well-documented implications for international trade. However, this study seeks to delve deeper into the underlying factors shaping these trade effects, focusing specifically on Indian exports to the Association of South-East Asian Nations (ASEAN). This study posits that domestic institutional and infrastructural conditions play a pivotal role in influencing the impact of regulatory measures such as technical NTMs. By leveraging logistics and governance indicators to assess these conditions, the research adopts a novel two-stage analysis approach. Initially, the study quantifies the trade effects of technical NTMs, which subsequently serve as the dependent variable in the second stage. The findings uncover nuanced patterns specific to indicators and NTM categories, with a notable emphasis on the significance of importer (ASEAN) indicators over exporter (India) indicators. Moreover, this article introduces an innovative methodological framework that transcends conventional analyses of technical NTMs, aiming to pinpoint the precise factors driving their effects for targeted improvement strategies.

Entrepreneurship and Corporate ESG Performance—A Case Study of China’s A-Share Listed Companies

This paper examines the contemporary implications of entrepreneurship and utilizes panel data from Chinese A-share listed companies spanning 2011 to 2022. Based on the five aspects of Chinese entrepreneurship, namely “patriotism, courage to innovate, integrity and law-abiding, social responsibility, and international vision”, the findings suggest that fostering entrepreneurship enhances the environmental, social, and governance (ESG) performance of firms. Mechanism analysis indicates that green technology innovation, social performance enhancement, and governance capability optimization mediate this relationship. Furthermore, factors such as corporate market power, regional marketization processes, and advancements in artificial intelligence technology influence the link between entrepreneurship and ESG performance. Robust entrepreneurship equips firms to navigate environmental uncertainties, but entrepreneurship cannot improve corporate governance performance. This article elucidates the distinctive significance of entrepreneurship, expanding the institutional economics research perspective, offering practical insights for cultivating entrepreneurship and elucidating potential determinants of corporate ESG performance. This article also provides spiritual guidance for sustainable development.

Evaluation of IT Governance at Credit Union XYZ Financial Institutions Using COBIT 5 Framework

Since 2002, Credit Union XYZ has been utilizing information technology in its lending operations. However, the utilization of IT governance has not been optimal due to various weaknesses, obstacles, and issues such as server problems, downtime for maintenance, system change requests, human resources, and recurring IT-related problems. This research aims to assess the current IT governance capabilities at Credit Union XYZ. The method used is the COBIT 5 standard with a focus on the APO and DSS domains tailored to the existing issues. Data were collected through questionnaires distributed to the IT team and relevant stakeholders. The selected COBIT 5 processes include APO06 (Manage budget and costs), APO07 (Manage human resources), DSS01 (Manage operations), DSS02 (Manage service requests and incidents), and DSS03 (Manage problems). The eval_uation reveals a 1 level gap in IT governance capabilities, with the current level at level 2 in Credit Union XYZ, while the target is level 3 in the future. The researcher's recommendation to Credit Union XYZ is to align IT processes with the standards and regulations established by COBIT 5.

Technological revolution and regulatory innovation: How governmental artificial intelligence adoption matters for financial regulation intensity

In the realm of modern financial regulation, the integration of artificial intelligence (AI) is considered to be a potential game-changer. With rapid technological advancement, AI can enhance regulatory capabilities by efficiently processing and analyzing complex financial data. This approach allows for more precise predictions and prevention of market risks, effective monitoring of potential market abuses, and a deeper understanding of financial markets. As a result, AI can substantially improve the efficiency and impact of government regulatory frameworks. This study examined the impact of governmental AI adoption on financial regulatory intensity in China, revealing significant findings across 30 provinces and municipalities from 2012 to 2022. The relevant findings are fourfold. (1) Governmental AI adoption for financial regulation significantly strengthens financial regulatory intensity. (2) The institutional environment and government transparency have respective promotional and restraining influences on this process. (3) Further tests reveal a nonlinear impact of governmental AI adoption for financial regulation on regional financial regulatory intensity. (4) Heterogeneity analysis demonstrates that the enhancing effect of governmental AI adoption is more pronounced in regions located in the east, with strong governance capabilities and well-developed digital environments. The conclusions of this study provide empirical evidence and practical guidance for local governments to develop and refine financial regulatory frameworks by adopting AI.

정부의 관리역량, 정치역량 그리고 민첩성이 시민의 정부대응 인식에 미치는 영향에 관한 연구 - 코로나19 정보만족도의 조절효과를 중심으로

This study analyzed the effect of people’s perceptions of government capabilities on the government’s response to COVID-19 and the moderating effect of people’s satisfaction with COVID-19 information on the effect of government capabilities on government response. Government response was defined in terms of people’s perceptions of government performance and institutional responses and satisfaction with COVID-19 policies. Government capabilities consisted of management capabilities, political capabilities, and agility. The results of the analysis showed that political capacity, government agility, and people’s perceptions of COVID-19 information had positive effects on government performance, institutional response, and policy satisfaction. In addition, satisfaction with COVID-19 information reduced the strength of the positive effects of management capacity on government performance and satisfaction with COVID-19 policies. Information satisfaction reduced the strength of the negative effect of political capacity on government performance, institutional response to COVID-19, and policy satisfaction. Information satisfaction reduced the strength of the positive effect of government agility on institutional response. Therefore, it can be concluded that in the event of a large-scale disaster or a disaster with high uncertainty, strategic management of government capabilities and information is necessary to respond to the disaster.

Enhancing the synergy governance capability of urban communities based on Bayesian network: A case of Jinan city

The rapid pace of urbanization has brought about a plethora of challenges for urban communities, prompting the advocacy of collaborative governance as a means to tackle management issues effectively. However, fostering strong collaboration among multiple governance entities remains a significant hurdle in urban communities governance. This study addresses this challenge by exploring the complex structure of urban communities' collaborative governance systems, with a focus on enhancing collaborative governance capability. Drawing on Bayesian network (BN) theory and utilizing the case of Jinan, this article investigates the intrinsic mechanisms of achieving collaboration in urban communities. This study establishes a Bayesian network model for collaborative governance of urban communities, providing a visual representation of the intricate interactions among multiple governance entities. We employ a data-knowledge-driven approach for BN structure learning. This approach tackles issues such as the lack of cyclic dependency capability and the impact of small datasets on model accuracy. Furthermore, we analyze the collaborative mechanism through Bayesian reasoning. The findings underscore the pivotal entities and five key factors that significantly influence collaborative governance capability. Lastly, policy implications are drawn to enhance the collaborative governance capability of urban communities.

The Economic Governance Capability of the Government and High-Quality Development of China’s Tourism Industry

The economic governance capacity of local government in China is instrumental in fostering tourism development quality and sustainability from the aspects of leading resource allocation, maintaining market fairness, and promoting enterprise innovation, yet this important aspect has received limited attention in present research. China’s tourism development quality is evaluated in five dimensions in this study: innovation, greenness, coordination, openness, and sharing. Employing a fixed-effects model with data from 2000 to 2019 for 30 Chinese provinces, the paper empirically tests the influence of government economic governance capacity on the tourism development quality. Our findings reveal several key insights: (1) The economic governance capacity of the government significantly contributes to enhancing the tourism development quality. (2) It is shown in the regression results of the sub-indexes of the government’s economic governance capacity and tourism development quality that the innovative development and green development of the tourism industry can be accelerated strongly by the government’s economic governance capacity, while tourism development quality can be improved significantly by the development of non-state-owned economy, the development of factor market, the development of market intermediary organizations, and the legal system. (3) It is shown in mechanism analysis that the government’s economic governance capacity can stipulate regional competition, industrial structure upgrading, improve the level of informatization, and eventually improve tourism development quality. This comprehensive analysis sheds light on the intricate relationship between local government economic governance capacity and tourism development quality, offering a novel research perspective and valuable reference points for policymakers and scholars engaged in the analysis and construction of sustainable tourism development strategies.

Mobile Government Service Promotion Strategies: Exploring Sustainable Development Pathways Based on Provincial Government Practices in China

The level of mobile government services has become a crucial metric for modernizing a government’s governance capabilities, and it plays a significant role in promoting sustainable development. This study aims to explore the key factors influencing the level of mobile government services across 31 provinces in China, along with their combinatory pathways. Using the technology–organization–environment (TOE) framework and employing fuzzy-set qualitative comparative analysis (fsQCA), this study conducts an in-depth analysis of mobile government service levels across these provinces, focusing on the dimensions of technology, organization, and environment. The results identify three pathways that promote high levels of mobile government services: technology–organization, technology–environment, and internal–external linkage-driven pathways. These pathways offer viable strategies for achieving sustainable development in mobile government services. Additionally, this study identifies two pathways associated with lower service levels, technology deficiency, and organization–environment misalignment, highlighting key factors that hinder sustainable development. The findings suggest that organizational and environmental factors can complement each other based on technological conditions, internet penetration rates, and citizen participation levels. Based on these insights, this study recommends that provincial governments proactively explore sustainable development pathways, optimize the “technology–organization–environment” conditions to harness synergies, and work towards enhancing mobile government service levels, thereby reducing inter-provincial disparities and advancing sustainable development.

Institutional structure and governance capability in universities: an empirical study from the perspectives of time, space, and quantity dimensions

Institutions are pivotal in university governance, symbolizing stable organizational power reflective of governance capacity. The strategic organization of a university’s internal structures aims to align with its developmental goals. The effectiveness of these arrangements is evaluated by their congruence with the university’s characteristics and norms, aiming to enhance governance for growth and sustainability. Thus, the primary aim of this study is to determine whether this layout can strengthen the university’s governance ability, enhancing its prospects for survival and development. This study introduces a novel theoretical framework across the dimensions of time, space, and quantity, utilizing governance elements to assess the impact of institutional layouts on governance capabilities. Data were gathered through a self-developed survey questionnaire, with a total of 742 valid responses collected, and by employing a high-dimensional fixed-effects model, we found that the three-dimensional institutional layouts significantly impact governance capabilities, with effects varying by the institution’s affiliation. Furthermore, the mechanism analysis shows that university governance capabilities are also manifested through different configurations of governance elements under institutional layout, and are influenced by the responsiveness, collaboration, and expansion of the entire institutional system. Moreover, our analysis indicates a threshold effect in the tenure of institutional members, where both excessive and insufficient enthusiasm impact governance capabilities differently. This suggests the importance of a strategic institutional layout that aligns with the governance elements’ dynamics of timeliness, flexibility, distribution, and scarcity across time, space, and quantity. Achieving an optimal arrangement enhances the university’s governance efficiency significantly. In light of these findings, policy implications were proposed.

Digital governance and carbon emission reduction: Evidence from “National Pilot Policy of Information Benefiting the People” in China

Promoting digital governance is crucial for the Chinese government's governance reform. This study utilizes panel data covering 280 cities in China to examine the influence of government digital governance on reducing carbon emissions. The "National Pilot Policy of Information Benefiting the People," implemented in 2014, serves as the quasi-natural experiment for the analysis. The study employs the difference-in-difference (DID) methodology to indicate that improving the government's digital capacity contributes to reducing carbon emissions, which is robust to several robustness tests. Government digital governance facilitates the reduction of carbon emissions primarily via three mechanisms: developing green finance, gathering green talents, and promoting green technology innovation. Enhanced digital governance by the government exerts a more pronounced effect on reducing carbon emissions in cities in the eastern region, smaller municipalities, and resource-dependent municipalities. Additionally, current policies have notably decreased carbon emissions in the pilot cities, though a lag exists in the policy spillover effect affecting neighboring cities. This study investigates the influence of government digital governance on reducing carbon emissions through the lens of digital transformation. It offers valuable empirical insights for enhancing the governance capabilities of the Chinese government in the new era and facilitating the achievement of carbon reduction targets in urban areas.