Private Enterprise Research Articles

ЗАРУБЕЖНЫЙ ОПЫТ ФОРМИРОВАНИЯ ИНСТИТУЦИОНАЛЬНЫХ УСЛОВИЙ АДАПТАЦИИ АГРОПРОДОВОЛЬСТВЕННЫХ СИСТЕМ К ИЗМЕНЕНИЮ КЛИМАТА

The relevance of the study is due to the need to ensure sustainable development of agri-food systems (AFS) in the context of global climate change. The search for an answer to the climate challenge requires studying effective institutional mechanisms for adapting AFS in countries with developed climate economies. The article presents the experience of state support for adaptation measures implemented within the framework of the Common Agricultural Policy in the EU countries. The main national programs of the EU member states are analyzed and their distinctive features are identified. Particular attention is paid to financial instruments for supporting public and private initiatives in the direction of increasing the resilience of agri-food systems to climate change.

Reasoning, the Role of the Private Sector and Its Impact on Transforming Economies

In the last years of the 20th century, world economies moved towards greater economic freedom and openness within the framework of changing and reducing the role of the state in economic affairs, stimulating the role of the private sector, removing restrictions on foreign trade and supporting local and international competitors. In the context of the search for sources of economic growth and policies that improve it in the long term, private sector development activities have begun to appear on the scene in recent years as a necessary component to achieve the development goals of the new millennium in emerging markets. The importance of private sector development is to support economic growth, create jobs, reduce the number of poor and help people improve their living conditions. Without the dynamic power of private initiative organized by competitive markets, people will remain poor. The development of the private sector does not mean arbitrary privatization, but rather a reorientation of the role of the state to pave the way for and support free enterprise. When the private and public sectors complement each other, the desired economic development will be achieved.

The Interplay of Fairness and Performance-Based Pay: Insights into Employee Compensation Satisfaction

This study examines the relationships between performance-based compensation, internal salary fairness, procedural fairness in pay determination, external pay fairness, and employee satisfaction with compensation, using a structural equation model. Data was collected from employees working in state-owned and small-to-medium-sized private enterprises in Beijing and Xi'an through a combination of direct and outsourced survey distribution methods. The model was refined based on empirical analysis of the interactions among these variables. Results show that a stronger link between performance and pay enhances both the fairness of compensation procedures and external pay fairness. Additionally, the perceived fairness of salary allocation and procedures significantly contributes to improved overall salary satisfaction.

State-owned equity participation and greenwashing behavior: evidence from Chinese private enterprises

PurposeCan state-owned equity participation inhibit private enterprises’ greenwashing behavior? If so, what are the mechanisms involved? Is there any difference in the impact of state-owned equity participation on private enterprises’ greenwashing behavior in different contexts? The answers to the above questions not only fill the existing research gaps but also provide new research ideas for greenwashing governance in developing countries.Design/methodology/approachUsing a sample of Chinese A-share listed private enterprises from 2011 to 2022, we examine the impact of state-owned equity participation on private enterprises’ greenwashing behavior.FindingsThe results suggest that state-owned equity participation can significantly inhibit private enterprises’ greenwashing behavior. Mechanism analysis shows that state-owned equity participation suppresses private enterprises’ greenwashing behavior by alleviating financing constraints through the resource effect and reducing managerial myopia through the governance effect. Moderating effect analysis indicates that media attention can strengthen the inhibitory effect of state-owned equity participation on private enterprises’ greenwashing behavior. Heterogeneity analysis shows that the inhibitory effect of state-owned equity participation on private enterprises’ greenwashing behavior is more significant in areas with a low degree of marketization and non-heavy-polluting industries.Originality/valueThe findings enrich the governance factors of private enterprises’ greenwashing conduct from the standpoint of diverse shareholders, assist developing countries in formulating more specific policy goals and provide important insights into global environmental governance practices.

Surviving the COVID-19 pandemic: European and African SMEs and domestic public policies compared

Purpose The paper investigates factors that contribute to small and medium enterprises (SMEs) surviving major exogenous shocks. Global crises such as the coronavirus disease 2019 (COVID-19) have increasingly heightened scholarly interest in post-crises responses. However, studies that compare the relative responses to external shocks and the outcomes for SMEs operating in different institutional settings are limited. We examine the relative degrees of success European and African SMEs experienced in avoiding the worst consequences of the COVID-19 pandemic.Design/methodology/approachWe use the resource dependency theory (RDT) with variants of institutional theory since the RDT has been shown in practice to have greater explanatory power when used in this way. We augment our framework with a feminist theory dimension. To test our hypotheses, we apply regression analyses using cross-sectional data from the World Bank Enterprise Surveys (WBES), which include responses from private enterprises in 26 European and eight African countries. We construct our data by combining the COVID-19 follow-up surveys with relevant firm-specific characteristics from the WBES conducted in 2020–2021 using firm-specific unique IDs. After removing the firms with missing observations, the sample number of SMEs is 15,178.Findings Our empirical findings support the theoretically posited positive effects of innovativeness, institutional connectedness and governance capability on SMEs’ survival in the face of external shocks. Further, we confirm the importance of firm-specific characteristics (financial status, size and age) for SMEs’ survival. Female-owned SMEs are more likely to suffer during COVID-19, especially in Africa. The results are more nuanced when we consider industry specificity and heterogeneity of government support.Originality/value Our article helps answer the theoretical (and policy-relevant) question of whether SMEs that are resilient to major exogenous shocks may share certain characteristics despite operating in different institutional environments. If that is so, then it may be that lessons from one continent may have at least some relevance for the other. Our approach’s broad value lies in its capacity to test the degree to which established bodies of theory developed in the Northern Hemisphere may be deployed in Africa, well beyond the contexts which provided their initial empirical basis. This paper also contributes to the literature on the effect of environmental-change shocks on entrepreneurship performance outcomes.

Bank-firm common ownership, green credit and enterprise green technology innovation: Evidence from Chinese credit markets

Bank-firm common ownership can tackle the innovation dilemma of bank loans on firms' green development. This paper constructs indicators of common ownership and green technological innovation and then investigates the impact of bank-firm common ownership on corporates' green technological innovation using Chinese A-share listed enterprises samples from 2004 to 2021. Our conducted experiments reveal that bank-firm common ownership shareholders not only make banks and lending firms have the same goal, promote the total level, quantity, and quality of technological innovation for the green development of lending firms, and profit from the firms' short- and long-term market responses. Our findings are prominent in private enterprises, small-capitalization enterprises, and bull market cycles. In addition, we discover that shareholder reduction restrictions and policies restricting corporate shareholding in financial institutions enhance bank-firm common ownership shareholders on corporate green technological innovation development. Common ownership shareholders reduce information asymmetry between banks and lending enterprises and provide green loans to support enterprise green technology innovations. Furthermore, alleviating financing constraints and strengthening the supervisory role are important influence mechanisms. In this regard, carried PSE analysis indicates the direct effect of bank-firm common ownership shareholders to promote enterprise green development of technological innovation accounts for about 14 % of the total effect, the intermediary effect of “financing mechanism” and “supervision mechanism” account for about 82 % and 4 %, and the “financing mechanism” is more important than the “supervision mechanism.” The findings of this paper can optimize the credit market to serve the green and high-quality development of Chinese enterprises better.

Market-oriented reforms and wealth inequality in China

Over the last few decades, China’s growing wealth inequality has mirrored the contemporary global trend. We investigate the effects of China’s market-oriented reforms on wealth inequality using a dynamic general equilibrium model with an incomplete market and idiosyncratic risks. Focusing on the relaxation of private entry and the easing of financial constraints as two pivotal reforms, we show that our model-generated results closely match the actual wealth distribution from 1995 to 2018, with the reform of private enterprise entry accounting for most of the widening wealth disparity. We elucidate the underlying mechanisms of these two reforms using counterfactual simulations and discover that through the savings rate mechanism, the two reforms will collectively form an inverted U-shaped Kuznets curve in wealth inequality as reforms deepen in the future. By calculating the transition dynamics from 1995 to 2035, we confirm that the Kuznets turning point in China lies between 2020 and 2025.

From Policy to Practice: Evaluating the Role of Private-Sector Champions Like Elon Musk in Shaping Trump's 2.0 Climate Agenda

This paper explores the prospective influence of private-sector leaders, particularly Elon Musk, on the formulation of climate and energy policy in a possible second term of President Donald Trump. Historically, the goals of the Trump administration have been viewed as opposed to environmental advocacy; yet, this analysis explores the potential for public-private partnerships that reconcile economic objectives with climate-positive results. Musk's enterprises—Tesla, SpaceX, and SolarCity—are transforming clean energy, and his impact on federal climate policies may initiate a new phase of environmentally sustainable economic development within conservative administration. This study analyzes case studies where Musk has collaborated with public authorities to tackle environmental and energy issues, highlighting practical strategies for partnership. Potential synergies are seen in sectors including renewable energy, electric vehicle infrastructure, and sustainability-oriented manufacturing, underscoring their alignment with Trump's economic plan. Additionally, the article examines the policy mechanisms—tax incentives, regulatory reforms, and investments in clean technology—that may encourage private sector participation in a nationally endorsed climate agenda. This article advocates for a worldview in which leaders like Musk advance environmental progress by harmonizing innovation with conservative regulatory frameworks while preserving traditional economic objectives. Ultimately, it advocates for a revolutionary public-private partnership paradigm that utilizes private sector expertise to tackle climate challenges. This viewpoint enhances the current dialogue on sustainable development and the changing function of private enterprises in public policy, proposing a future where economic growth and environmental stewardship coexist within U.S. federal climate policy.

Short-term cross-border capital flows and corporate financialization

This paper selects relevant data from listed manufacturing enterprises in China from 2008 to 2021 as a sample and employs a fixed-effects model to examine the impact of short-term cross-border capital flows on corporate financialization. The study finds that cross-border capital inflows can enhance corporate financialization; when investor sentiment rises, it will, to a certain extent, facilitate the positive effect of short-term cross-border capital inflows on corporate financialization; moreover, the degree of financialization in private enterprises is more significantly influenced by cross-border capital flows.

Valuation of State-Owned Enterprises in the Process of Privatisation in Ethiopia: Procedures and Methods

Real property valuation is a vital component in the privatization of state-owned enterprises (SOEs). In Ethiopia, real property valuation is a difficult task as there is a lack of skilled manpower in the field, no adequate real estate market, and legal gaps in valuation. In addition literatures are scant about how real property valuation is done. Therefore, this study examines real property valuation procedures and challenges in the process of privatization of state-owned enterprises (SOEs) in Ethiopia. To achieve the objective of the study, qualitative research approach is applied. The target populations of the study were appraisers who participated in the valuation of SOEs. A purposive sampling technique was used to select respondents. Primary data were collected from appraisers using key informant interview (KII). Document review from different secondary sources was employed to triangulate the KIIs. The data were analyzed using thematic grouping and narration. The study found that for profitable enterprises Depreciated Replacement Cost (DRC) and Discounted Cash Flow (DCF) methods have been applied while for loss-making enterprises the DRC method has been used. These methods are selected based on the preceding three years of data. Moreover, these valuation methods are not applied in a proper way and the basis of selecting these methods are unjustifiable. The valuation result of SOEs, do not reported in a standard valuation reports formats. Lack of skilled manpower, inappropriate use of the valuation approaches, inappropriate base for selecting techniques of valuation, and organizational inefficiency are the key problems faced during valuation. To improve the situation market principles should be applied in the valuation of SOEs for privatization purposes in Ethiopia. These can be achieved by introducing strong institutions responsible for valuation regulations at the central level.

A Strategic Study on Cultivating Craftsman Spirit Based on Enhancing the Core Competitiveness of Private Enterprises

In the ever-changing market environment, the competitive pressure on private enterprises is increasing. The integration of craftsmanship provides strong support for private enterprises to shape unique competitive advantages and enhance core competitiveness. This paper analyzes the connotation and value of craftsmanship, emphasizes its key role in enhancing the core competitiveness of private enterprises, and comprehensively examines the current status and problems of cultivating craftsmanship in private enterprises, and points out the shortcomings. On this basis, a strategy for cultivating craftsmanship based on enhancing the core competitiveness of private enterprises is proposed.

Unions and workplace safety investment in Chinese private enterprises

AbstractThis paper examines the significant role of unions in workplace safety investment. Analyzing data from a national survey of Chinese private enterprises, we find that unionization has a positive effect on workplace safety investment. We test several mechanisms through which unionization may enhance workplace safety investment. Unionization increases investment in workplace safety by advocating for formal contracts between employees and firms. More importantly, unionization enhances workplace safety investment through the democratization of corporate governance structure. Furthermore, the employee representative assembly system, a fundamental mechanism for union participation in democratic management within Chinese firms, is also observed to augment safety investment.

The Relationship Between Governance Capacity and Business Performance: A Case Study of Vietnam’s Auto Auxiliary Industry

The purpose of this study was to assess the present business performance of Vietnam’s auto auxiliary industry. Another aim was to identify the factors, including organizational factors, internal capacities, and external networks, that positively and negatively impact the governance capacity of Vietnam’s auto auxiliary industry. Finally, the relationship between governance and business performance within the context of Vietnam’s auto auxiliary industry was examined in the study. The research methodology employed a comprehensive approach, combining Partial Least Squares Structural Equation Modeling (PLS-SEM) utilizing Smart-PLS 3.0, interviews conducted through the Delphi technique, and an exhaustive table study. Three hundred questionnaires were distributed, yielding 265 responses from diverse participants, including private enterprises, state-owned enterprises, joint-venture enterprises, and governmental bodies. The results of the study were that Governance Capacity mediated the relationship between organizational factors (Government Policies, Market Competition, Globalization and Supply Chains, Economic Conditions, Environmental and Sustainability Concerns, and Human Resources Expertise) and Business Performance within Vietnam’s auto auxiliary industry. The recommendations provided practical insights for industry stakeholders seeking to improve governance practices and optimize business performance within Vietnam’s auto auxiliary sector.

Public perceptions and attitudes towards wages for essential frontline workers during the COVID-19 pandemic

PurposeHow informed are people about the wage gap between those at the top and those at the lower end of the wage distribution? We analyse this question in the light of the debate that arose during the COVID-19 pandemic about the importance of essential frontline workers and how these are paid compared to other occupations.Design/methodology/approachThe study uses wage data for managers in private and public enterprises in Norway in addition to data on wages for two groups of essential frontline workers: cleaning operatives and nurses. We compared this data with what a sample of Norwegians believe the different occupational groups earn and what they think they ideally should earn.FindingsRespondents overestimate the wages of cleaners and nurses, and they think that both groups should be paid more than they actually earn. Respondents also report ideal wage gaps between managers and essential workers that are significantly smaller than the actual wage gap.Originality/valuePrevious research shows that people on average underestimate actual wage gaps in society and that most people want wage gaps that are far lower than these underestimates. This study adds to this literature by looking at what people know about the pay conditions of essential frontline workers and what they think essential frontline workers ideally should be paid compared to other types of work.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2024-0222

Robot adoption and firm export: Evidence from China

Whether the robot adoption can lead to a new competitive advantage in international trade has become an urgent problem for firms that export from China. Using matching data from the International Federation of Robotics (IFR) Database and the China Industrial Enterprises Database and China Customs Database for 2011 to 2013, this study examines the impact of robot adoption on firm export and its mechanism. We find that the robot adoption significantly promotes firm export, including the value and intensity of firm export, mainly owing to an improvement in firm productivity. This effect remains robust after using instrumental variable to account for endogenous factors and replacing core explanatory variables. Heterogeneity analysis shows that, first, robot adoption plays a greater role in promoting firm export by foreign enterprises and private enterprises than by state-owned enterprises. Second, robot adoption has a stronger effect on labor-intensive industries than on non-labor-intensive industries. Third, with the increase of firm scale, innovation and human capital, the promoting effect of robot adoption on firm export increases. Our research provides empirical evidence on the positive impact of robot adoption on firm export and sheds light on how to maintain the competitiveness of manufacturing firms in China.

A strategy for development and economic progress: challenges and opportunities of rural entrepreneurship

Employing the Economic Performance Model to gauge rural places' attractiveness, this study investigates the opportunities and threats of rural entrepreneurs in underdeveloped regions. With 85.7% of its citizens residing in impoverished regions, rural areas play a crucial role in Bangladesh's economic development, according to World Bank research. While prior research has mostly concentrated on finances, innovation plays an essential role in rural growth. Using a semi-structured interview approach, we surveyed several local businesses to learn about their experiences involving entrepreneurs who own small businesses and the challenges and possibilities they encounter. We looked towards the Innovation Operations Approach and found the main opportunities and threats. To reduce unemployment and economic hardship, rural businesses must flourish in Bangladesh. To compile this data, we consulted other sources and spoke with rural business owners in Bangladesh. The study recommends policies and rules put in place by governments to support small-scale farming, highlighting its significance in rural growth. Academics in Bangladesh are particularly interested in studying the characteristics and backgrounds of founders from the country, plus the challenges and possibilities associated with the expansion of private enterprise in the country. Evaluation, summary, and recommendations for further research are included.

Beyond formal politics: the epistemic facet of business power

Abstract This article introduces “epistemic business power” as a distinct facet of corporate influence. Epistemic business power refers to the strategic communication of firms to influence the perceptions and beliefs of policymakers, experts, media, and the public regarding which issues, goals, norms, methods, and instruments to be politically considered. Rather than influencing decision-making and policy formulation directly, this form of power enables firms to intermediate the anticipatory dynamics of structural forms of business power and shape issue salience as well as the definition and recognition of topics as political problems. The article explores the scope conditions of epistemic business power, detailing the interaction of material aspects, corporate communication and issue salience dynamics. Based on quantitative and qualitative content as well as reception analyses, ownership data and interviews, a case study of the world’s largest asset manager BlackRock illustrates how today’s finance capital can use epistemic channels with regard to fundamental questions about the role of state capacity and private enterprise in capitalist democracies. By foregrounding the political nature of corporate public relations, the conceptual endeavor and its empirical illustration contribute to a deeper understanding of corporate power and its multifaceted role in shaping politics in capitalist democracies.

Industrial robots and export product quality: evidence from China

ABSTRACT In this study, we first construct a theoretical framework for a heterogeneous product quality model to analyse how robot adoption affects international trade through quality upgrading. Then, we use micro-level data from Chinese Customs Trade Statistics and the Annual Survey of Industrial Firms to examine the heterogeneous effects of industrial robots on export product quality. Both theoretical analysis and empirical research show that industrial robots promote export product quality upgrading through effectively improving firms’ total factor productivity and reducing marginal production costs. Moreover, industrial robots have different effects on firms based on product types, ownership properties, and factor intensity. The results show that the effects of industrial robots on export product quality are stronger for homogeneous products, foreign and private enterprises for homogeneous products, foreign and private enterprises, and labour-intensive industries. These findings align with the literature on the wide-ranging impact of industrial robots, while offering a distinct opportunity to empirically investigate enterprises’ diverse responses to a uniform general-purpose technology. This study also diverges from previous research by examining a previously overlooked dimension: productivity-boosting and marginal cost-reducing effects.

O CRESCIMENTO DAS MULHERES EM CARGOS DE LIDERANÇA NA ÚLTIMA DÉCADA EM PERNAMBUCO

The article discusses the growth of female leadership in Pernambuco in recent years, driven by public policies and business initiatives. From projects like #TáComElas, which train women for leadership positions, to the inclusion of women in executive roles in large companies, there is a positive movement towards gender equality. However, wage disparity persists, with women earning on average 78% of men's salaries in similar positions. The theoretical foundation explores the historical and cultural context of women's integration into the workforce, the role of public policies and private initiatives promoting female leadership, and the challenges women still face, such as cultural biases and difficulties balancing personal and professional life. Studies indicate that women's participation in leadership roles is on the rise, but challenges remain. Practical examples, such as those of Laís Xavier and Taciana Medeiros, highlight the relevance and impact of female leadership in the state. The methodology includes exploratory research based on journalistic reports and interviews with women in leadership positions. The interviewees share their career paths, emphasizing the importance of perseverance and the constant pursuit of growth. Lastly, the case study presents the experiences of two businesswomen from Pernambuco, Elaine Ferreira and Juliana Werner, who discuss their success stories and the challenges they face in their respective fields.

Spanish informalist art exhibitions in the Federal Republic of Germany, 1960

ABSTRACT This article explores the international reception of Spanish Informalism during the years of aperturismo, when this artistic trend was chosen to represent the Franco dictatorship at international art exhibitions and biennials. In contrast to the readings that study this phenomenon as a strategy of cultural diplomacy, the aim here is to pay attention to the local contexts where the Informalist avant-garde was exhibited, in order to analyse the ways in which the work of Spanish artists was re-signified when it came into contact with geographically situated curators, critics and audiences who had their own agency. Taking the example of the Federal Republic of Germany as a case study, this article examines a series of exhibitions that arose from private initiative in 1960, basing mostly on periodical and primary sources from the archives of the institutions that hosted the exhibitions.