Private Sector Firms Research Articles

Collectivist Cultures and the Emergence of Family Firms

Using a sample of 1,103 Chinese private-sector firms that went public during 2004–16, we find that founders of firms from regions with stronger collectivist cultures engage more family members as managers, retain more ownership in the family, and share the controlling ownership with more family members. These findings are robust to a battery of diagnostic tests to account for alternative institutional factors that may induce the relationships. The results are consistent with the hypothesis that because the collectivist culture reduces information asymmetry, shirking problems, and associated monitoring costs among family members, more family ownership and management are expected in firms when founders are from collectivist regions. The overall evidence supports the theory of the firm pioneered by Harold Demsetz and his coauthors.

The non-financial private firms’ sector of Spain in 2011 – 2017: the financial fragility hypothesis-based analysis

ABSTRACT The paper analyzes the financial relations of non-financial private sector firms in Spain based on the financial instability hypothesis developed by Hyman Philip Minsky. We suppose that in the private sector of the Spanish economy after the 2008–2013 crisis there was an increase in the number of firms characterized by the hedge regime of financing. We test this hypothesis using the 2011–2017 data for 163 Spanish private non-financial companies from Thomson Reuters. Three indices were constructed according to three methodologies that distinguish firms as hedge, speculative and Ponzi, in order to determine the degree of financial fragility of the private sector of the Spanish economy. The results showed that the economy of Spain in 2011–2017 was in the process of escaping from financial fragility. This occurred despite austerity policies. Such policies diminish economic activity, in general, and the flow of business profits in particular. It makes it difficult to escape from a fragile financial position. Nevertheless, in the case of Spain, the negative consequences of austerity policies were offset by other government measures, tourism and export diversification.

Expert Systems: Commercializing Artificial Intelligence

The articles in this special section focus on expert systems as it applies to the commercial use of artificial intelligence in various industries. Thoroughly commercial AI is placed at the center of discussions about geopolitics, military affairs, finance, labor, health, and art. This Special Issue of the Annals began with the observation that today’s commercial AI, and breathless discussions about its future implications, has a history. Starting in the 1970s, a very different form of AI from today’s machine learning developed and gained great attention: expert systems. Expert systems used logical reasoning to draw conclusions based on large sets of “If, Then” rules, engineered to represent the knowledge of domain experts. The 1980s witnessed a wave of commercialization of expert systems, by startups, by private sector firms, and by the U.S. military and its contractors. Throughout the decade, and accompanying this commercialization wave, scientists, engineers, and commentators put forward sweeping views of the importance of commercial expert systems for industry, the military, and culture.

Remote, Mobile, and Blue-Collar: ICT-Enabled Job Crafting to Elevate Occupational Well-Being

Blue-collar remote and mobile workers (BC-RMWs) such as repair/installation engineers, delivery drivers, and construction workers, constitute a significant share of the workforce. They work away from a home or office work base at customer and remote work sites and are highly dependent on ICT for completing their work tasks. Low occupational well-being is a key concern regarding BC-RMWs. The objective of this research is to understand how BC-RMWs can use information and communication technology (ICT) to elevate their occupational well-being. Drawing from the job demands-job resources theoretical framework in occupational psychology, we theorize that the distinctive work characteristics faced by BC-RMWs can be viewed in the conceptual framing of job demands. We conceptualize BC-RMWs’ practices of ICT use as possible ways to gather resources to tackle these demands. We conducted a study of 28 BC-RMWs employed in two private sector firms (telecom service provision and construction industries) in the UK across 14 remote work sites. Based on our findings, we developed the concept of ICT-enabled job crafting and theorized how ICT-enabled job crafting by BC-RMWs can help them increase their job resources to tackle their job demands and consequently increase their occupational well-being. The empirical context of the paper, i.e., the study of BC-RMWs, provides further novelty because these kinds of workers and their distinctive and interesting work conditions have not received much attention in the literature.

Reflections on the link between digitalisation and firm performance during the pandemic: the case of Albania

This article focuses on an analysis of the digitalisation of enterprises in Albania and its impact on their performance with a view to understanding better the role of digitalisation and the experience of private sector firms in this area. The research draws on an econometric analysis of World Bank data examining firms’ experiences and their perceptions of their operating environment. After setting the scene with an overview of the types and size of enterprises in Albania, the article focuses on digitalisation, the level of which is generally low, and seeks answers to a number of research questions. The authors conclude that, while the impact of digitalisation on performance is positive and statistically significant, achieved chiefly via increased business activity online, there is a need to understand better what this means in practice as well as to explore the lack of statistical significance, despite the presence of a positive relationship, of other variables examined in the course of the analysis. Further work is also needed to understand how firms will approach digitalisation in the future after the economic shocks of Covid-19.

Leadership Style and Work Engagement: A Comparison of Private and Public Sector Firms in India

Post-privatization, public sector organizations were encouraged to borrow and learn from private sector firms. The popular belief was that the human resource practices followed by private sector organizations were far superior and more effective than those of the public sector organizations. However, this claim lacks empirical proof. This study adds to this body of knowledge by comparing the level of work engagement in private and public sector firms of India. Given that the leadership is crucial in setting the tone of an organization, the study also analyses the dominant leadership styles and their relationship to the levels of work engagement. The study is descriptive in nature and utilizes a structured questionnaire to collect data. Individuals currently employed in Indian public and private sector firms, in managerial roles, were invited to record their responses. The final sample consisted of 240 employees, with equal representation from both sectors. The collected data was then analysed using SPSS. The findings suggested that the dominant leadership styles were not significantly different in public and private sector organizations. Private sector employees were found to be more engaged and the leadership style appeared to be significantly related to the levels of engagement in public sector firms only.

The development of green skills across firms in the institutional context of Thailand

The development of green skills across firms in the institutional context of Thailand

Executives’ gender pay gap and financing constraints

This paper investigates the effect of financing constraints following the 2008-9 financial crisis on executives’ gender inequality. We use linked employer-employee data for the universe of private sector firms in Portugal, and exploit pre-crisis variation in external finance dependence across industries for identification. We find that the crisis had a positive effect on female executives’ pay in exposed firms. Firms in financially more constrained industries reduce the gender pay-gap and increase the share of females in executive positions after the crisis. At the worker-level, females in exposed industries are more likely to be promoted to executive and less likely to be demoted. We discuss channels and interpretations for the effects. Our results are consistent with female managerial characteristics, such as attitudes toward risk, being more valued after the crisis in exposed firms. A reduction in preference-based discrimination cannot be discounted.

Cost and Efficiency in Government Outsourcing: Evidence from the Dredging Industry

This paper investigates the how government outsourcing affects efficiency and expenditures by considering how outsourcing decisions are determined along two dimensions: (i) cost differences between private firms and government suppliers of public goods and (ii) dynamics arising from cost complementarities and capacity constraints. I formulate and estimate a dynamic model of government outsourcing using project-level data from the dredging industry. Model estimates indicate substantial cost savings due to outsourcing but also that government presence in the market yields cost reduction. A counterfactual policy featuring direct competition between government and private sector firms finds a total expenditure reduction of 15.7 percent. (JEL D44, H41, H57, L84)

Workforce localization, women workers and gendered power relations in Saudi Arabian private sector workplaces

PurposeThe paper investigates the implications for gendered power relations at work of Nitaqat, a workforce localization policy operating in Saudi Arabia which, by regulating the employment of Saudi nationals in private sector firms, has stimulated greater feminization of employment.Design/methodology/approachBased on an interpretivist, phenomenological research approach, rich qualitative data were collected in two case study organizations – a retail company and an architectural firm. The mixed-method design involved in-depth interviews with managers and women workers and extensive non-participant observation.FindingsIn exploring gendered power relations in Saudi private sector workplaces under the Nitaqat regime, the paper highlights the importance of patriarchal power. However, increased feminization of employment provides women workers with access to power resources of their own, producing complexity and variation in gendered workplace power relations.Originality/valueDrawing on Bradley's (1999) relational conception of gendered power, the paper illuminates how a Nitaqat-inspired feminization of employment, by increasing firms' dependency on women workers, has influenced the dynamics of gendered power relations in Saudi workplaces.

Party Building as Institutional Bricolage: Asserting Authority at the Business Frontier

AbstractThe Chinese Communist Party (CCP) is expanding its organizational infrastructure in the private sector, revealing the dynamics of CCP-style institutional change. Party building follows a distinct version of adaptive governance. Hesitant to rely on innovative tools alone, organizers productively tinker with traditional and disparate elements. Grassroots Party organs, sanctified by their venerable history, are redeployed – initially for modest purposes that fall short of their original revolutionary potential. The Party's surge in private-sector firms was triggered by technocrats overhauling Leninist systems to reconnect to Party members; the search for a broader mission came later. To empower CCP organs in companies, organizers use tactical precedents ranging from incentives to negotiations around Party financing, and membership discipline. Combining tactics from different eras, overseas Party building deploys old organizational arrangements to new ends, whereas digitization gives time-worn procedures a second life. The inclination for institutional bricolage is a deeply rooted hallmark of innovation in Chinese statecraft.

Induced Innovation in the Public Sector: Evidence from Landfill Methane Emissions Regulation

The concept of induced innovation suggests the ability for policy makers to design and implement economically efficient regulation, both limiting negative environmental impacts from corporate activity and providing firms opportunities to improve performance through innovation in regulatory response. While extant research has substantially addressed aspects of both induced innovation among regulated private sector firms and managerial innovation among public sector organizations, we know relatively little about the nature of innovation taken by public sector entities in response to environmental regulation. An improved understanding of induced innovation in the public sector is important because public organizations are increasingly subject to regulation, with implications for regulatory efficiency and local government viability. We address the problem by analyzing prevalence and determinants of induced innovation among both publicly and privately owned entities subject to regulation in a unique context: methane emissions from municipal solid waste landfills in the United States. We find that induced innovation is more prevalent among public than private organizations, whereas private organizations are more effective at implementing induced innovation projects. We also find unexpected effects of various institutional factors on innovation uptake. The study contributes to literatures on induced innovation and public sector innovation, provides insights to guide future research, and offers guidance for efficient regulatory design.

What Works? Measuring the Efficacy of Cyber Policy Interventions with Quasi-Experiments

What works? How would we know? As states pass new cybersecurity and privacy legislation, natural experiments present themselves that allow us to start measuring policy efficacy. One measure of this efficacy is the number of reported state data breaches. More and more states have modified their data breach notification legislation to publicly report this data. Yet, datasets like the Data Breach Clearinghouse don't retain state level dummy variables. Without these variables, researchers cannot identify non-equivalent control groups for interrupted time series experiments. To this end, this research presents the data and a methodology to integrate 21 state level datasets of breach reports into a national dataset that retains state level metadata. Supplementing those states which publicly report breach incidents are state level data sources acquired from open records requests. This methodological progress is necessary to begin to address the research question, do state level cybersecurity policy interventions reduce the frequency of data breaches in the target population? The data for this kind of analysis has, until now, been limited to private sector firms like Advisen. Consequently, this paper leverages its data source to produce descriptive statistics on the characteristics of data breach incidents similar to findings in industry reports. Further findings include the rate of breach incident frequency and breaches per-capita over time in reporting states. Evidence demonstrates that breaches have historically been rising by ~20% per year, however, incidents plateaued starting in 2016. Annually, breach incidents per-capita are shown to be quite similar in states with shared reporting requirements. This per-capita normalization enables state level rankings of breach likelihood. However, while industry breach reports have historically limited themselves to descriptively characterizing breach activity, this methodology is also intended to enable traditional policy evaluation. Quasi-experiments of state level regulatory interventions, like the Massachusetts Data Security Law, present a case study for further policy evaluation studies. Monthly time series analysis comparing pre and post treatment with a relevant control group, presents the best means for these evaluation studies. This research consequently provides tangible code, data sources, and lessons learned for future researchers to employ to identify which regulatory interventions work. If we can start to learn from this laboratory of democracy, perhaps new regulatory interventions can be designed to protect customer data and reduce incidents of identity theft.

What are the drivers and barriers for green business practice adoption for SMEs?

The depletion of natural resources as a byproduct of widespread, global economic growth has urged entrepreneurs to think about the environment when starting or conducting business. However, several of these smaller-sized firms struggle with implementing environmentally conscious business practices, especially Small and Medium Enterprises (SMEs), which represent more than 95% of all private sector firms. This study uses a survey method to assess and better comprehend the key drivers and barriers of green business practices by SMEs in the State of Ohio (USA). Results from our study show that a majority of respondents reported that they have implemented green practices, broadly defined, within their business. The two main drivers for deciding to engage in such practices are internal motivations and the opportunity to obtain a better public image. However, respondents also noted a lack of capital as the central barrier to implementing green business practices. We also observe that smaller firms, and firms located in urban areas, are more familiar with green business practices than larger firms and firms that are located in rural areas. Our results can be used by government and business actors alike, especially in states comparable to Ohio, as a benchmark to consider better strategies, programs, and policies for implementing green business techniques. Overall, this research helps to better discern best practices and ways to develop more prosperous SMEs without undermining the quality of the environment.Supplementary InformationThe online version contains supplementary material available at 10.1007/s10669-021-09821-3.

Building a multilevel integrated framework of ambidexterity: The role of dynamically changing environment and human capital management in the performance of Greek firms

AbstractThe purpose of this study is to investigate the serially mediating mechanisms of human capital management practices and organizational ambidexterity, expressed by exploration and exploitation, in the relationship between environmental dynamism and organizational performance, expressed by creativity and productivity. The study is based on 1,183 employees working in 83 Greek private sector firms. By applying multi‐level structural equation modeling, the findings show that the dynamically changing environment has a positive impact on human capital management practices, which in turn have a differential positive impact on exploration and exploitation, which then have a positive influence on organizational creativity and productivity. The study contributes to the literature on organizational ambidexterity by examining whether human capital management practices constitute an antecedent of organizational ambidexterity, and whether organizational performance constitutes a consequence.

Entry deregulation, firm organization, and wage inequality

This paper identifies a causal link between changes in product market competition, firm reorganization and within-firm wage inequality. We exploit a unique episode of comprehensive firm entry deregulation as a quasi-natural experiment and use exceptionally detailed linked employer-employee data for the universe of private sector firms and workers in Portugal. Following deregulation affected firms flatten their hierarchies: the number of layers is reduced and managers’ span of control increased. Dropping a hierarchy layer is accompanied by a significant reduction in wage inequality within the firm, by 8% for the average pay ratio between the top and the bottom layer and 4.4% for the 90-50 percentile wage ratio, showing that there are real changes arising from firm reorganization. Overall wage dispersion, measured by the standard deviation of hourly pay, is also reduced. We discuss mechanisms and interpretations for these changes.

Balancing Public-Private Partnerships in a Digital Age: CBDCs, Central Banks and Technology Firms

What roles exist for public and private partnerships within the context of central bank digital currencies (CBDCs), in an increasingly digitalized global system? Do central bank digital currencies (CBDCs) serve as public goods rather than tools which should primarily remain within the realm and governance of private sector firms? What challenges or risks are presented through the use of CBDCs and how can such risks be mitigated through current existing structures - as well as models which have been propounded in relation to public – private partnerships? This paper aims to contribute to the literature on the topic through a consideration of several variants and models of CBDCs under which the public private partnership would function, namely the synthetic CBDC (sCBDC) and the two-tiered CBDC. Further, two other types of CBDCs, namely the wholesale CBDC and the retail CBDC will be distinguished - as well as the account based CBDC, which is contrasted to CBDCs based on digital tokens. Whilst concerns for privacy and security remain paramount and cannot be undermined, particularly from the perspectives of distributed ledger technologies (and blockchains – through which such platforms operate), such concerns need to be weighed against the need for identification since regulators will be better supported in their goals in enforcing the law, as well as identifying fraudulent operations, where sufficient identification procedures have been put in place

Internationalization pathways of Chinese private firms: A closer look at firm-specific advantages

Abstract Using a unique date set, we explore the internationalization processes of Chinese private sector firms. We show that variations in internationalization of private Chinese firms can be better explained by traditional internationalization theories than by the typical approach proposed in the recent literature that centers on state-created advantages. The firm-specific advantages of productivity, proprietary knowledge, and technology competence explain Chinese private foreign direct investment (FDI) in a similar way as they do typical FDI from western developed countries. Further, firm-specific advantages such as technology leadership, exporting experience, and ability to signal quality to partners abroad can explain differently motivated outward FDI by private Chinese firms. Our results fill an important gap in the literature, where the validity of the existing frameworks for explaining the internationalization of Chinese multinationals is hampered by the conflation of state-sponsored internationalization, knowledge-seeking FDI, and firm-specific advantages.

The 2nd International Annual Meeting on STEM education (IAMSTEM 2019)

Since, the 1st International Annual Meeting on STEM education (IAMSTEM) 2018 was organized based on seed funding of Thailand Ministry of Education and Khon Kaen University with aiming to bring STEM education researchers and teachers together for building up STEM education community. The ASEAN Research Network for STEM education (ARN-STEM) was formed in 2018 when the group of STEM education researchers in Southeast Asia jointly organized the IAMSTEM 2018. The primary objective was to encourage the creation of links, and the exchange of ideas and information among the academic community, private-sector firms and organizations, and government policy makers, leading to a better understanding on STEM education related policy and innovations in the ASEAN region.In 2019, our group is growing up. The 2nd International Annual Meeting on STEM education (IAMSTEM 2019) was held in 27-29 September 2019 at Thai Nguyen University of Education, Thai Nguyen, Vietnam. It gives us great pleasure to announce that the 2nd IAMSTEM 2019 was a resounding success, with over 250 participants from throughout Vietnam and from other countries. On behalf of the organizers, ASEAN Research Network for STEM education (ARN-STEM), ASEAN Comparative Educational Research Network (ACER-N), Science Education Association of Thailand (SEAT), Thailand Office of Basic Education Commission (OBEC); Khon Kaen University, Rajabhat Yala University, Thailand; Universiti Kebangsaan Malaysia, Sekolah Tinggi Agama Islam Negeri (STAIN) Sorong, State University of Malang, Indonesia; Mindanao State University–Iligan Institute of Technology, the Philippines as well as other corporate sponsors whose generous contributions made this a successful meeting. IAMSTEM 2019 provided a unique opportunity for experts, academics, and educators to exchange knowledge and build friendships. The meeting consisted of four keynote speakers, and a number of contributed oral and poster presentations. Resulting from the success of IAMSTEM 2019 are qualified full research articles from the presentations, which have been reviewed and compiled in this IOP Journal of Physics: Conference Series. It is our sincere hope that these proceedings will contribute to advancing our understanding of STEM education and applications and serve as initiators for even greater achievements in the field.List of Committees are availble in this pdf.

Creating Public Value: The Core Idea of Strategic Management in Government

Creating Public Value: The Core Idea of Strategic Management in Government