Implications For Industrial Policy Research Articles

The Relationship Between Sustainable Human Resource Management and Green Human Resource Management- A Case of Medical Sector in Hyderabad, India

Background: Human Resource Management (SHRM) and Green Human Resource Management (GHRM) are the subjects of this investigation of their interplay in Hyderabad, India's industrial sector. There is a growing need to include eco-friendly practices into HRM due to the increased global focus on sustainability in medical industry. Aim: Sustainable The study's overarching goal is to deduce how green HRM (GHRM) programs and SHRM practices—which prioritize the well-being of employees and the longevity of organizations—are compatible with one another. Method: The study surveyed 409 medical employees in Hyderabad using a quantitative research approach based on questionnaires and the data was analysis using SMART PLS. Results: There is a strong positive relationship between SHRM and GHRM, according to the results, thus businesses that use thorough SHRM are also more likely to use GHRM strategies that work. Human resource managers can help promote a sustainable culture, gain a competitive edge, and advance environmental goals by implementing the sustainable and green practices suggested in the study's conclusion. Conclusion: The study adds to the expanding corpus of literature on sustainable business practices and have important implications for industrial policy and practice.

Global Trends and World Order: Implications for New Industrial Policies in Developing Countries

Global Trends and World Order: Implications for New Industrial Policies in Developing Countries

Industrial robots and firm innovation: big data evidence from China

PurposeRobots are widely used in industrial manufacturing and service industries around the world. However, most of the previous studies on industrial robots use data at the national or industry level in the context of developed countries. This study examines the impact of imported industrial robots on firm innovation at the firm level in China.Design/methodology/approachDrawing on a large dataset of more than three million records in China, including non-publicly traded small and medium firms, the authors adopt a difference-in-differences method to investigate the impact and channels of industrial robots on firm innovation.FindingsThe authors find that the application of industrial robots increases firm innovation. Two possible channels are identified through which robots promote innovation: alleviation of financial constraints and the improvement of human capital. Further analysis shows that the effect of robots on innovation is more pronounced for firms that are highly dependent on external financing, belong to high-tech industries, import high-end robots, have insufficient supply of skilled labor and private firms (non-SOEs). The authors also find that industrial robots increase the firms' innovation quality and the marginal contribution of innovation to firms' total factor productivity.Originality/valueThis study provides big data evidence of the unintended positive consequences of industrial robots on firm innovation. The results are helpful to clarify the controversy of industrial robots. It also has important implications for government industrial policy making, firm innovation and human resource management.

Green industrial policy, information asymmetry, and repayable advance

AbstractThe energy transition requires the deployment of risky research and development programs, most of which are partially financed by public funding. Recent recovery plans, associated with the COVID‐19 pandemic and the energy transition, increased the funding available to finance innovative low‐carbon projects and called for an economic evaluation of their allocation. This paper analyzes the potential benefit of using repayable advance: a lump‐sum payment to finance the project that is paid back in case of success. The relationship between the state and innovative firms is formalized in the principal‐agent framework. Investing in an innovative project requires an initial observable capital outlay. We introduce asymmetric information on the probability of success, which is known to the firm but not to the state agency. The outcome of the project, if successful, delivers a private benefit to the firm and an external social benefit to the state. In this context a repayable advance consists in rewarding failure. We prove that it is a superior strategy in the presence of pure adverse selection. We investigate under what conditions this result could be extended in the presence of moral hazard. Implications for green industrial policy are discussed.

Envisaging creative tourism through boutique hotels: an integrated framework of transformative experience

ABSTRACT Experience co-creation as a distinguishing aspect of creative tourism has garnered significant scholarly attention. However, there remains a dearth of studies that investigates the phenomenon of value co-creation in innovative spaces such as boutique hotels. The present study examines boutique hotels in the creative city of Jaipur in India as potential vehicles of creativity. The study aims to identify boutique hotel attributes that facilitate value co-creation and their association with transformative tourism experiences. By utilising value co-creation theory and transformative learning theory, this study has proposed a research framework which has been empirically validated by performing structural equation modelling on data collected from 508 tourists. The results indicate that the three boutique hotel attributes, namely interactive authenticity, emotional authenticity, and novel atmosphere, are significant predictors of perceived value co-creation and transformative experiences. Further, we find that ethnocentrism, as a pre-trip emotion, exerts a positive moderating effect on the association between emotional authenticity and value co-creation. This study highlights the key attributes of boutique hotels envisaging creative tourism which can be strategically incorporated by hotel managers and destination planners. The findings offer insightful implications for industry practice and policy towards developing business opportunities and entrepreneurial ventures for creative tourism.

The role of unit labor costs in African manufacturing investment and export performance

AbstractSeveral studies have pointed out that manufacturing wages are relatively higher in African countries than in other countries at similar levels of development, and that this contributes to the continent's lower levels of manufacturing competitiveness. This paper derives unit labor costs (ULCs)—average wages relative to productivity—for two‐digit manufacturing sectors across a sample of 79 developed and developing countries, including 13 African countries, over the 1990–2015 period. We benchmark the ULCs to China and estimate the relationship between relative ULCs and manufacturing sector investment rates and export performance. We find that relative ULCs have a smaller association with exports in Africa relative to other developing regions. There is some evidence that investment responds to changes in relative ULCs in Africa; however, the estimated effects are smaller than in the full sample. Further, we find that for Africa, the level of labor productivity has a quantitatively stronger and more robust association with manufacturing performance than the level of real wages. The results have important implications for industrial policy in African countries.

How corporate development activities resolve the legitimacy-adaptation dilemma: A case study in technological substitution

Technological substitution (TS) requires firms to employ corporate development activities (CDAs) to survive. However, how firms employ CDAs is constrained by their financial market identity wherein investors classify firms as value- or growth-oriented. This results in a dilemma for value and growth firms due to opposing mandates of legitimation (alignment with identity) and adaptation (surviving TS). How can firms resolve this dilemma? I theorize that firms resolve the dilemma by modifying the degrees of exploration and exploitation in their CDAs. For value firms, the likelihood of survival increased by 51% and 32% on increasing the degree of exploration in alliances and acquisitions. For growth firms, the likelihood increased by 39% and 60% on increasing the degree of exploitation in internal development and acquisitions. This study contributes to the literatures on investor reactions to firm strategies during TS, CDAs, and ambidexterity. It presents implications for industrial and innovation policy during TS.

Make-or-buy strategies in a multi-stage manufacturing process and the role of learning effect in relocation decisions

Current global problems like the pandemic or the war in Ukraine have raised new aspects of make-or-buy decisions. Many companies consider shortening their supply chains or even reshore production. We are modelling the cost-related consequences of possible strategies, jointly considering the effect of productivity knowledge and interdependencies of consecutive production stages in the manufacturing process, assuming varying learning rates based on task complexity. The dynamic optimization problem enables us to investigate the role of learning effect in both outsourcing and insourcing (reshoring) decisions. In general, we find that firms should stick to or insource production processes where learning potential is high; however, keeping activities with low learning potential but higher interdependencies may also be beneficial as they can contribute to increase productivity at other stages. Optimal decisions might dynamically change from one period to the other. Reasons include that it might be reasonable to keep a production stage in-house until its cross-stage learning effect sufficiently contributes to decrease production costs at other stages. Accordingly, if a firm partly re-establishes its in-house manufacturing, the rest of the production stages may also be brought back over time thanks to the accumulated productivity knowledge. This may provide further implications for industrial policies that foster reshoring: pursuing activities with considerable learning potential or possible interdependencies with other corporate functions would trigger further relocation decisions and may result in upgrading in the value chain. We show numerical examples to illustrate the rationale behind different strategies, highlighting the key role of cross-stage learning.

The potential of biofuels from first to fourth generation.

The steady increase in human population and a rising standard of living heighten global demand for energy. Fossil fuels account for more than three-quarters of energy production, releasing enormous amounts of carbon dioxide (CO2) that drive climate change effects as well as contributing to severe air pollution in many countries. Hence, drastic reduction of CO2 emissions, especially from fossil fuels, is essential to tackle anthropogenic climate change. To reduce CO2 emissions and to cope with the ever-growing demand for energy, it is essential to develop renewable energy sources, of which biofuels will form an important contribution. In this Essay, liquid biofuels from first to fourth generation are discussed in detail alongside their industrial development and policy implications, with a focus on the transport sector as a complementary solution to other environmentally friendly technologies, such as electric cars.

Determinants of High-tech Exports: New Evidence from OECD Countries

High export capacity is a key element for sustained long-term economic growth. To achieve this goal, the technological sophistication of exports plays a key role. To enhance exports with a high level of technological sophistication, it is critical to target key drivers of high-tech exports. Hence, this article studies the determinants of international trade flows of manufactures according to their technological content in the case of OECD countries. Given a panel of 35 countries and 15 years (2004 to 2018), panel data estimation techniques are used in the analysis. In addition, two alternative measures have been considered to measure the importance of high-technology content manufacturing exports: High-tech manufacturing exports and high-tech manufacturing exports as a share of total employment. Results obtained show strong evidence of the relevance of variables such as gross fixed capital formation on total employment, the land area per capita, the percentage of university graduates relative to the population group, R&D expenditure in terms of GDP, the stock of inward foreign direct investment in terms of GDP, imports of high-tech manufactures as a share of GDP, the quality of national governance and regulation, the country population and EU membership as determinants of technology-intensive exports. Moreover, the findings have significant implications for trade and industrial policies in OECD countries, to ensure the effectiveness of policies targeting the technological upgrading of exports.

Intensive and Extensive Margins of Export: Determinants of Economic Growth in Russian Regions under Sanctions

The impact of foreign trade on the Russian economy’s growth remains debatable. In 2014, the economy faced initial sanctions, leading to export restructuring and affecting growth. In 2022, a second unprecedented wave of sanctions necessitated export restructuring and intensified the challenge of sourcing economic growth. This study evaluates the impact of intensive and extensive export margins on Russian regions’ growth from 2015 to 2021 and discusses post-2022 implications. It is hypothesised that new export goods and markets are vital for economic growth in Russian regions. The study shows that both intensive and extensive margins are positively related to the level of development in Russian regions, and developed regions with diversified economic structures had higher values of export margins. The methodology uses panel regression with random and fixed effects. The empirical results show Russian regions’ market share in the products they export and in the countries where they export (i. e. intensive product and geographic margin) is important for the economic growth of Russian regions, while the results for extensive margin are ambiguous. The obtained findings have implications for industrial policy, which should prioritise the development of measures aimed at supporting existing exporting companies in expanding their presence in familiar markets. The task of export diversification should primarily be addressed through working with existing exporters and export products, while the export of innovative products should be viewed as a gradual evolutionary process within the framework of long-term planning.

Fine-Scale Monitoring of Industrial Land and Its Intra-Structure Using Remote Sensing Images and POIs in the Hangzhou Bay Urban Agglomeration, China.

China has experienced rapid industrial land growth over last three decades, which has brought about diverse social and environmental issues. Hence, it is extremely significant to monitor industrial land and intra-structure dynamics for industrial land management and industry transformation, but it is still a challenging task to effectively distinguish the internal structure of industrial land at a fine scale. In this study, we proposed a new framework for sensing the industrial land and intra-structure across the urban agglomeration around Hangzhou Bay (UAHB) during 2010-2015 through data on points of interest (POIs) and Google Earth (GE) images. The industrial intra-structure was identified via an analysis of industrial POI text information by employing natural language processing and four different machine learning algorithms, and the industrial parcels were photo-interpreted based on Google Earth. Moreover, the spatial pattern of the industrial land and intra-structure was characterized using kernel density estimation. The classification results showed that among the four models, the support vector machine (SVM) achieved the best predictive ability with an overall accuracy of 84.5%. It was found that the UAHB contains a huge amount of industrial land: the total area of industrial land rose from 112,766.9 ha in 2010 to 132,124.2 ha in 2015. Scores of industrial clusters have occurred in the urban-rural fringes and the coastal zone. The intra-structure was mostly traditional labor-intensive industry, and each city had formed own industrial characteristics. New industries such as the electronic information industry are highly encouraged to build in the core city of Hangzhou and the subcore city of Ningbo. Furthermore, the industrial renewal projects were also found particularly in the core area of each city in the UAHB. The integration of POIs and GE images enabled us to map industrial land use at high spatial resolution on a large scale. Our findings can provide a detailed industrial spatial layout and enable us to better understand the process of urban industrial dynamics, thus highlighting the implications for sustainable industrial land management and policy making at the urban-agglomeration level.

Media Framing of Disasters and Its Implications for Tourism Industry Policy: Case of Surabaya terrorist attack 2018 and Mt. Agung eruption 2017, Indonesia

Tourist destinations worldwide are periodically jeopardised by natural disaster events that threaten tourists’ safety; consequently, the tourism industry is impacted. Mass media has a role to communicate and warn the public about disaster. Media portrayal on disaster events is likely to contribute to the tourism industry recovery and resilience. However, media has played a role in sending a negative message to tourists, making them hesitate to visit the destination. Limited researches have focused on how the media frames disaster events, and how policy makers could intervene. Based on analysis of media coverage of the Surabaya terrorist attack in 2018 and Mt. Agung eruption in 2017, this paper looked at how media framed disaster events and its consequences to the tourism industry policy. A content analysis of mass media from both national and international newspapers of Australia, Malaysia, and Singapore were conducted. The research identified five different framings on the two disasters, including source of problems, impact, solution, responsibility, and adaptive versus maladaptive. Findings also highlights the limited policy response towards these potentially negative media portrayal. Based on these findings, partnership between media and the government should be fostered to encourage post-disaster recovery.

Understanding Tourists’ Attitude Toward Online Travel Health Information During and Post-COVID-19: A Health Belief Model Application

Due to people’s anxieties about COVID-19, it may take years before international tourism returns to pre-pandemic levels. Thus, it is crucial to understand how tourists’ health beliefs influence their travel decision-making processes during and after the SARS-COV2 pandemic, and to develop new strategies to support and meet tourists’ current needs and concerns. The current study employs a Health Belief Model (HBM) perspective to examine the influence on tourists’ health risk prevention – and subsequently on their travel intention – of reading travel health information online, while considering tourists’ perceptions of threat susceptibility and severity, and usefulness of travel health information. As risk perception is influenced by individual differences such as gender and previous experience, the study model includes the demographic factors of age, gender, and health status. The model was tested using a survey questionnaire completed by 261 respondents in Saudi Arabia who were considering travelling abroad for tourism. Results were analyzed using PLS-SEM. The study found that perceived susceptibility and perceived usefulness each significantly and positively influenced the perception of importance of reading health information, and the perception of importance of reading travel health information online significantly and positively influenced travel intention. The discussion includes additional findings as well as implications for industry practice and policy regarding online pandemic-related information, in order to improve protection efficacy and enhance information content and style to adequately serve the needs of tourists from a health belief perspective.

Governing digital platform power for industrial development: towards an entrepreneurial-regulatory state

Abstract Data and digital platforms have simultaneously upended entrenched positions in some industries, opening-up greater and disruptive competition, while driving overall higher levels of concentration through the growing power of multi-sided digital platforms. The coexistence of rivalry and collusion – a key feature of Cowling’s monopoly capitalism – persists and takes new forms in the digital economy. Taking into account the heterogenous nature of platforms, this paper analyses the relationships between large digital platforms and the development of industrial capabilities, especially in middle-income countries and the implications for industrial and competition policies. We advance an analytical-policy framework connecting the different dimensions and sources of platform power responsible for value capture and extraction, and the different platform capability-functions responsible for value creation. Building on this recasting of Hymer’s ‘efficiency contradiction’ and Cowling theory of monopoly capitalism, we advance an integrated industrial-competition policy approach to overcome it and propose a conception of an ‘entrepreneurial-regulatory state’. Complementary industrial and competition policies are required to foster optimal rivalry, being a rivalry which rewards the development of dynamic capabilities and enables contestation by different business models.

Integration of Electric Vehicles into Microgrids: Policy Implication for the Industrial Application of Carbon Neutralisation in China

With the dynamic development of renewable energies, energy storage devices, and electric vehicles, microgrids have been playing an increasingly vital role in smart power grids. Under the recent development of carbon neutralisation, microgrid systems containing multiple clean energy sources have become significant modules for energy conservation and emission reduction. Considering technological and environmental elements, we investigated the economic operation of microgrids with the integration of electric vehicles. In this paper, carbon trading mechanisms and operation scheduling strategies are analysed in the simulation models. Then, transaction costs and power balance are discussed. Industrial applications and policy implications are also presented.

An Analysis of Supply and Demand of High-skilled Labor and Implications for Industrial Workforce Policy

An Analysis of Supply and Demand of High-skilled Labor and Implications for Industrial Workforce Policy

PRODUCT MARKET COMPETITION PROFITABILITY AND STOCK RETURN: EVIDENCE FROM PAKISTAN

This study explores the issue of competition in Pakistan economy through industry concentration and examining the link between concentration and stock return both at firm and industry level. For this purpose, it uses all non-financial sectors listed on PSX from 1999 to 2020. The results show that concentrated industries (least competitive), on average, are more profitable and results are robust not only to different empirical strategies but also to different proxies of concentration. A positive relation between concentration and stock returns using Fama-MacBeth regressions is observed both at firm and industry level even after controlling for other determinants of returns like: size, B/M, past returns and leverage. Time-series tests of concentration premium on various risk factors: market, SMB, and HML support the positive relation. However, these results diminish in significance when portfolios are value weighted both at firm and industry level. The study has implications for industrial policy as well as for portfolio manager. Keywords: Industry Concentration, Fama-MacBeth regression, Size, B/M, Past returns, Leverage, SMB, HML.

Changes in sustainability in the global wine industry

PurposeThe wine industry is the one that is tightly linked to sustainability as its processes both impact and are impacted by the environment, society and companies’ financial well-being. However, data show that this may not be recognized in practice. Thus, this research paper aims to examine what has changed with respect to sustainability practices over the past 10–15 years in this industry.Design/methodology/approachA development-based multi-method approach was used to examine the purpose. In Phase 1, a grounded theory study conducted between 2009 and 2015 from wine businesses in 12 different global regions brought to light a potential disconnect between theory and practice in the importance of sustainability. In Phase 2, a comprehensive literature review and analysis of updated online content from the Phase 1 companies was conducted to paint a picture of the progression of sustainability focus and its implementation in company processes.FindingsUsing legitimacy theory as a foundation, it was found that the choice to pursue sustainability in this industry generally begins with a focus on environmental practices followed by financial sustainability and more recently social sustainability. Producers are also starting to emphasize overall sustainability often encompassing all three dimensions. The industry has also progressed through “levels of sophistication” in the different major supply chain processes (supply, production and distribution) over the years with their environmental efforts.Originality/valueA framework of sustainability growth in the industry through a matrix of process sophistication is developed from the data. The results offer implications for theory, practice and industry policy and informs the future trajectory of sustainability within global business.

Effects of digital transformation on electricity sector growth and productivity: A study of thirteen industrialized economies

This study examines growth patterns and sources of labour productivity growth and catch-up in the electricity sector. The study uses decomposition analysis to examine 13 industrialized economies from 2000 to 2015, a period of high growth in the sector. The study finds that total factor productivity and digital assets are the most powerful drivers of labour productivity growth and catch-up, while non-ICT assets have only a minor effect. Furthermore, labour quality outpaces R&D as a determinant of productivity. This study has implications for labour and industrial policy in the context of technological transformation and institutional restructuring in the electricity sector.