Social capital as a distinctive feature of Social Economy firms

In recent years, the growing importance in developed countries of the Social Economy sector and the contribution of social capital to regional economic development are being studied in depth. Linking these two fields of research, the aim of the present work is to analyse the social capital endowments of Social Economy firms in comparison to those in traditional profit-maximizing firms. To do so, a literature review will be firstly carried out to clarify both the concept of social capital and, more specifically, its relation with entrepreneurship and social enterprises. In the empirical section, the social capital endowments both of social firms (cooperatives and owned-worker enterprises) and traditional firms are compared using data from two surveys conducted in Andalusia, a lagged Spanish region with long tradition in the Social Economy sector. Results show that social capital endowments measured through cooperation agreements and company links with local suppliers and costumers are higher in cooperatives and worker-owned companies. Therefore, Andalusian authorities must continue with its support policy to these enterprises as a mean to reinforce the regional economic development.     

Growth vs. level effect of population change on economic development: An inspection into human-capital-related mechanisms

This paper studies the different mechanisms and the dynamics through which demography is channeled to the economy. We analyze the role of demographic changes in the economic development process by studying the transitional and the long-run impact of both the rate of population growth and the initial population size on the levels of per capita human capital and income. We do that in an enlarged Lucas–Uzawa model with intergenerational altruism. In contrast to the existing theoretical literature, the long-run level effects of demographic changes, i.e. their impact on the levels of the variables along the balanced growth path, are deeply characterized in addition to the more standard long-run growth effects. We prove that the level effect of the population rate of growth is non-negative (positive in the empirically most relevant case) for the average level of human capital, but a priori ambiguous for the level of per capita income due to the interaction of three transmission mechanisms of demographic shocks, a standard one (dilution) and two non-standard (altruism and human capital accumulation). Overall, the sign of the level effects of population growth depends on preference and technology parameters, but numerically we show that the joint negative effect of dilution and altruism is always stronger than the induced positive human capital effect. The growth effect of population growth depends basically on the attitude to intergenerational altruism and intertemporal substitution. Moreover, we also prove that the long-run level effects of population size on per capita human capital and income may be negative, nil, or positive, depending on the relationship between preferences and technology, while its growth effect is zero. Finally, we show that the model is able to replicate complicated time relationships between economic and demographic changes. In particular, it entails a negative effect of population growth on per capita income, which dominates in the initial periods, and a positive effect which restores a positive correlation between population growth and economic performance in the long term.     

资本账户开放、系统性金融风险与经济高质量发展

扩大资本账户开放是中国完善社会主义市场经济体制的重要举措。资本账户开放不仅对经济高质量发展存在直接传导渠道，亦可通过“撬动”金融稳定导致系统性金融风险，进而对经济高质量发展产生影响。那么，资本账户开放影响经济高质量发展的传导效应究竟如何？本文运用具备随机波动率特征的时变参数结构向量自回归模型动态识别资本账户开放、系统性金融风险及经济高质量发展的时变特征，并通过资本账户开放关键时点的选择，详细刻画资本账户开放的传导渠道。实证结果表明：一方面，“资本账户开放—经济高质量发展”直接传导渠道显示资本账户开放短期对经济高质量发展有显著的、波动性的影响，但中长期传导效应并不明确；另一方面，“资本账户开放—系统性金融风险—经济高质量发展”间接传导渠道表明，资本账户开放短期稳健抑制了系统性金融风险增长，但中长期易受国内外经济形势波动影响出现抑制弱化，增强系统性金融风险对经济高质量发展的负向影响，推进资本账户开放的积极作用不能通过金融渠道长期有效地传导至社会经济发展中。因此，中国应遵循自身发展实际，渐进、审慎地推进资本账户开放，在防范系统性金融风险的前提下，疏通金融支持经济高质量发展的渠道。     

Social Capital,Investment and Economic Growth: Some Evidence for Spanish Provinces

Abstract

This article analyses the impact of social capital on regional economic growth in Spain during the 1985–2005 period. The literature in this context is virtually nonexistent and, in addition, whereas most studies, regardless of their context, have used survey data in order to measure social capital, we use a measure whose construction is based on similar criteria to other measures of capital stock. Compared with more standard measures of social capital and trust, our measure is available with a high level of disaggregation, and with annual frequency for a long time period. Following a panel data approach, our findings indicate that social capital has a positive impact on GDP per capita growth in the context of Spanish provinces, implying that ‘social features’ are important for explaining the differences in wealth that one might find across Spanish provinces. We also explore the transmission mechanisms from social capital to growth, finding a highly positive relation between social capital and private physical investment.     

Interdependent capital structure choices and the macroeconomy

This study shows that capital structure choices of US corporations are interdependent across time. We follow a two-step estimation approach. First, using a large cross-section of firms we estimate year-by-year average capital structure choices, i.e., the average firm’s percentage of new funding that is secured through debt, its term composition, and the percentage of new equity represented by retained earnings. Second, these time series are included in a Factor Augmented Vector Autoregressive model in which three factors representing real economic activity, expected future funding conditions, and prices, are included. We test for the interdependence between optimal capital structure decisions and for the influence exerted by macroeconomic conditions on these decisions. Results show there is a hierarchical order in which firms make capital structure decisions. They first decide on the share of debt out of total new funding they will hire. Conditional on this they decide on the term of their debt and on their earnings retention policy. Of outmost importance, macroeconomic factors are key for making capital structure decisions.     

POLLUTION'S ROLE IN REDUCING URBAN QUALITY OF LIFE IN THE DEVELOPING WORLD

This paper surveys the recent literature exploring the consequences of urban pollution in the developing world for a city's productivity and resident quality of life. The environmental Kuznets curve literature predicts that developing nations will experience significant environmental degradation as a byproduct of economic development. In contrast, the recent literature that we review reverses this logic by arguing that geographic areas featuring lower levels of pollution will experience economic growth through improvements in health and human capital. In an economy where pollution reduces worker productivity, inhibits child development and repels the skilled from living in such an area, those cities featuring less pollution have a competitive advantage in attracting and retaining the skilled. Given the central role that human capital plays in urban economic growth, such cities will be more likely to achieve sustainable long‐term growth.     

Learning in owner-managed small firms: Mediating artefacts and strategic space

The authors focus on the way in which owner-managers in smaller firms improve their businesses through the creation of ‘strategic space’. The term ‘strategic space’ refers to the process by which owner-managers are able to access resources, motivation and capability to review existing practices. The starting point is the owner-manager's human capital and their capacity to engage in critical reflection about their business. We highlight three concepts central to the creation of strategic space, first, social capital, which refers to the network relationships that provide access to a wide range of resources and information. Second, absorptive capacity, which describes the way in which organizational members identify, acquire and utilize knowledge from external sources. Third, mediating artefacts, which represent existing knowledge but also facilitate the translation and transformation of understanding within and between communities of practice. This process is essential to the renewal of knowledge and knowing within firms. The contribution this paper makes is to bring together these elements – human and social capital, absorptive capacity and mediating artefacts – to offer a conceptual model that illustrates the mechanism by which owner-managers create strategic space. This model provides a deeper understanding of the evolution of knowledge in smaller organizations.     

基于博弈论及自组织理论群体性劳资冲突的理论研究

本文根据中国群体性劳资冲突的特点,通过博弈化及自组织理论的研究范式,发现群体性劳资冲突的根本原因在于劳资双方的利益冲突,但受偶然因素的刺激,其过程遵循一定的演化趋势。本文从理论上论证了正确解决群体性劳资冲突的可行性,并提出了建立长期稳定的劳资合作、构建有效的劳资双方沟通对话机制或平台、加强政府在劳资纠纷预防及处理中的作用等建议和措施。     

Evaluating human capital: an exploratory study of management practice

The article explores the development of systems of human capital evaluation in a number of large UK firms. Human capital is a much used term in business literature, and it is widely recognised that firms need to develop mechanisms to determine the value of their employee base. An extensive human capital literature has developed in which the authors propose elaborate systems for measuring a firm's human assets. This article does not seek to offer yet another human capital model. Rather, the aim is to examine the management practices through which human capital evaluation is undertaken. The article is based on an exploratory study of such practices in 11 major firms in the UK. The findings are highlighted as follows. First, we note the preference for internal over external (static accountancy‐based) reporting. Secondly, we highlight the diverse nature of human capital evaluation systems that exist across UK business. Thirdly, we explore the relationship between practices of evaluation and the role and position of the HR function within the firm. Finally, in conclusion, we address the implications of the human capital perspective for practitioners, arguing that there is no single formula that can be applied to its evaluation. We go on to suggest that the importance of the human capital concept and its measurement may lie in its ability to re‐frame perceptions of the relationship between the contribution of employees and the competitive performance of the business.     

Regional engagement of locally anchored firms and its influence on socio-economic development in two peripheral regions over time

Abstract

This article sets out to explore the ways locally anchored firms in peripheral regions influence regional social capital through regional engagement and how this contributes to socio-economic development. Through regional engagement firms shape regional contexts by generating concrete outcomes, such as setting up schools (structural aspect) and by possibly influencing regional bonding and bridging social capital (social aspect). To examine the effects of regional engagement and its possible influence on bonding and bridging social capital of regional firms, an analytical framework is developed distinguishing between inclusive/exclusive agency for inclusive/exclusive benefit. This article focuses on regional engagement in two Swiss peripheral regions, which have followed different development paths in spite of their common institutional framework and geographical proximity. This study aims to gain insight into the ‘how’ of regional engagement and its influence on regional social capital and to examine the assumption of higher levels of regional social capital in a dynamic region from a long-term perspective (ca. 1850–2015). The findings of the qualitative research show that the dynamic Rhine Valley indeed disposes of higher levels of regional social capital than the less dynamic Toggenburg, which is related to the willingness of firms and other actors to collaborate for regional interests.     

Emergent dynamics of a macroeconomic agent based model with capital and credit

In this paper we present and discuss a Macroeconomic Agent-Based Model with Capital and Credit (CC-MABM) which builds upon the framework put forward by Delli Gatti et al. (2011). The novelty of this model with respect to the previous framework consists in the introduction of a stylized supply chain where upstream firms – i.e. producers of capital goods (K-firms) – supply a durable and sticky input (capital) to the downstream firms, who produce consumption goods (C-firms) to be sold to households. Both C-firms and K-firms resort to bank loans to satisfy their financing needs. There are two-way feedbacks between firms and markets which yield interesting emerging properties at the macro level. We show that the interaction of upstream and downstream firms and the evolution of their financial conditions – in a nutshell: Capital and Credit – are essential ingredients of a “crisis” i.e. a sizable slump followed by a long recovery.     

Impact of EU exit on our UK industry forecasts

• We have lowered our forecast for UK economic growth following the vote to leave the EU on 23 June. GDP growth is now forecast at 1.1% in 2017 and 1.4% in 2018, and the medium‐term outlook has also been nudged down. We have also lowered our forecast for all of the main industrial sectors, with the biggest reductions in the long‐term forecasts for construction and manufacturing, although the weak pound could provide some short‐term boost to the latter.
• Our baseline forecast assumes that the government triggers Article 50 by the end of this year and that the UK leaves the EU by end‐2018. We assume that the government draws a red line under the freedom of movement and thus loses access to the single market. Trade relations revert to WTO rules.
• A number of factors determine the relative impact on each sector. First, in the short term, heightened uncertainty will hit business confidence, causing firms to delay capital spending. Second, less favourable trade relations with the EU could see export‐oriented sectors migrate production away from the UK. Finally, restrictions on migration will reduce the potential size of the labour force.
• Consequently, investment‐oriented sectors such as construction and machinery have seen some of the largest downgrades. Moreover, transport equipment is heavily exported to Europe, so increased trade barriers could see some production move out of the UK. Meanwhile, labour shortages could weaken growth prospects in labour‐dependent sectors. In addition, the vote has created uncertainties around the long‐term viability of London as Europe's major financial centre.
• The outlook for more consumer‐focused sectors is less downbeat, although an uptick in inflation may erode household purchasing power in the near‐term, and the multipliers from lower economic activity are likely to permanently reduce household incomes in the long term relative to our last baseline

     

Entrepreneurship,income distribution and economic growth

Traditionally different factors and variables have been considered in the economic growth models. Following Solow’s model, economists considered physical capital and technology during 1950s–1980s. With the introduction of endogenous growth models, new forms of capital were introduced in the production function; human capital, public capital and more recently social capital. However, the consideration of qualitative variables is necessary to improve the economic growth analysis. The improvement of statistical information has favored their introduction in the economic growth models. Recently, “entrepreneurship” concept has been considered in this type of analysis. Entrepreneurship considers the capacity and ability to create new business and production activity. It is an activity not an occupation. Some authors like Schumpeter have included it in their models and they have analysed its effects on economic growth. But it is also necessary to include the role of social climate, that in a schumpterian way it could be represented by income distribution. The main objective of the paper is to analyze the relationship between entrepreneurship, income distribution and economic growth following the ideas developed by Schumpeter and we will contrast them from a empirical analysis using the GEM (Global Entrepreneurship Monitor) data.     

The Pharmacia story of entrepreneurship and as a creative technical university1 – an experiment in innovation,organizational break up and industrial renaissance

While innovative technology supply has been the focus of much neo-Schumpeterian modelling, few have addressed the critical and more resource-demanding commercializing of the same technologies. The result may have been a growth policy focused on the wrong problem. Using Competence Bloc Theory and a firm-based macro to macro approach we abandon the assumed linear relation between technology change and economic growth of such models, and demonstrate that lack of local commercialization competences is likely to block growth even though innovative technology supplies are abundant.

The break up, reorganization and part withdrawal of Pharmacia from the local Uppsala (in Sweden) economy after a series of international mergers illustrate this. Pharmacia has ‘released’ a wealth of technologies in local markets. Local commercialization competence, notably industrially competent financing has, however, not been sufficient to fill in through indigenous entrepreneurship the vacuum left by Pharmacia. Only thanks to foreign investors, attracted by Pharmacia technologies that have opted to stay for the long term, the local Uppsala economy seems to be heading for a successful future.

The Pharmacia case also demonstrates the role of advanced firms as ‘technical universities’ and the nature of an experimentally organized economy (EOE) in which business mistakes are a natural learning cost for economic development.     

How do employment relationships enhance firm innovation? The role of human and social capital

Aiming to explore the effect of human resource management on innovation, this study examined how employment relationships (ER), human capital and social capital work together in influencing innovation in a sample of Spanish firms. We defined an indirect effects model in which both human and social capital mediate between ERs and innovation. We also expected that social capital would enhance human capital. Tests on a sample of 160 innovative Spanish firms confirmed that ERs are not directly associated with innovation. Nevertheless, there is an indirect effect of the mutual investment employment model on innovation through human and social capital. Finally, we observed a positive effect of social capital on human capital.     

Inside the black box of high-growth firms in a crisis-hit economy: corporate strategy,employee human capital and R&D capabilities

In an attempt to open the black box of high-growth firms within turbulent economic environments, this paper explores the role of corporate strategy, employee human capital and R&D capabilities in achieving exceptional growth performance in a crisis-hit economy. Relative and absolute growth measures based on both employment and sales are computed utilizing survey data on 1500 firms in the midst of the Greek crisis. Our findings indicate that adopting a geographical diversification strategy significantly increases the likelihood of becoming a fast-growing firm, irrespective of the growth metric used. Entering in diverse product markets and taking advantage of R&D capabilities appear to additionally contribute to relative employment change in HGFs of smaller size. Based on the absolute employment growth indicator, we provide some evidence that HGFs of larger size are able to grow fast through product diversification, acquiring other firms or by investing on training low-skilled employees. Nevertheless, hiring already highly educated persons seems to matter only for sales HGFs, while research collaborations are found to negatively affect the probability of growing fast in terms of sales.

     

自主创新与合作创新的绩效比较

将自主创新与合作创新结合起来,采用协整技术和误差修正模型,就两种不同的技术创新方式对经济发展的影响进行实证分析。得出结论:两种技术创新模式和经济增长率组成的系统在长期构成一个稳定的过程,其中自主创新模式和合作创新模式均对我国经济增长在长期产生了积极的促进作用;由两种技术创新模式和经济增长率所组成的协整系统在短期内对经济增长产生了正向的调节作用,但对经济增长的作用都不是特别明显,自主创新模式对经济发展的净效应为正,而合作创新模式对经济增长的净效应不明显,甚至为负;基于此,提出相应策略以提升国家的创新能力和构筑竞争优势。     

Information systems and technology sourcing strategies of e-Retailers for value chain enablement

In the e-Retail industry, a well-designed IT infrastructure is essential in creating a tightly integrated value chain and delivering high quality service. With intense competition for market share and profits, information systems and technology (IST) sourcing decisions are becoming increasingly important to e-Retail firms to support continued growth and market responsiveness. Drawing on the contingency theory, we examine organizational and environmental factors that influence an e-Retailer's IST sourcing strategy of make versus buy in enabling its value chain activities, and we also look at firm-level performance impacts of IST sourcing decisions that involve bundling across value chain activities. We test the proposed model and hypotheses using a panel data set of 307 firms over the period of 2006–2010. The results show that firms that make transformative IT investments tend to source a smaller portion of IST for their e-Retail value chain activities than firms that pursue automate or informate as their strategic role for IT investment. Capabilities are positively associated with IST sourcing. Firms experienced in e-Retail are more likely to build rather than buy their IST. In addition, we find mimicking behavior for IST sourcing among firms in the same merchandizer category. We find that IT strategic role is strongly associated with growth metric, whereas sourcing decisions predominantly impact operational performance measures. There is partial evidence that alignment between IT strategic role and IST sourcing decisions results in better performance effects. Moreover, complementary IST sourcing of synergistic marketing and sales activities positively impacts Web sales and conversion rate, but the sourcing combination of logistics, operations, and sales activities is associated with lower Web sales and conversion rate.     

Social capital,internationalization and absorptive capacity: The electronics and ICT cluster of the Basque Country

This article analyses the case of a successful young high technology cluster in an old industrialized European region, the electronics and information and communications technology cluster in the Basque Country (Spain). Based on the findings of this case study, we propose that social capital and internationalization play an important role in increasing the absorptive capacity of clusters (thus, the capacity of a cluster to absorb, diffuse and creatively exploit extra-cluster knowledge), and hence, in sustaining their growth and dynamism. Absorptive capacity depends on the capacity of firms to establish intra- and extra-cluster knowledge linkages. We put forward in this article the fact that social capital fosters intra-cluster knowledge linkages, and cluster's internationalization the extra-cluster knowledge ones. Therefore, social capital and internationalization are key elements to increase the absorptive capacity of a cluster and its growth. Given the accumulative, path- and place-dependent nature of social capital and knowledge creation and accumulation, we employed a largely qualitative and historical analysis, combining statistical and qualitative cluster data and interviews with key actors.     

Meta-organizing for open innovation under environmental and social pressures in the oil industry

Scholars have yet to address why and how open innovation model can be applied effectively within industries while diminishing its potential cost and challenges. In this paper, we extend open innovation model both theoretically and practically by identifying a) the boundary conditions that motivate firms within resource-based industries to apply the model and b) the approaches that have been implemented in practice in applying the model. In this multiple-case study, we explore why and how firms within the upstream Canadian oil industry have evolved to apply open innovation model over time to deal with the industry's challenges. First, our findings show that institutional forces, both normative and coercive—such as social and environmental pressures, were the primary drivers for adopting open innovation. Second, by building on the taxonomy of meta-organizations, we demonstrate that an industry-founded and not-for-profit innovation intermediary, as a meta-organization, is a necessary tool to address problems of adopting open innovation. We argue that the experiments of the upstream oil industry to develop a suitable organizational design for such innovation intermediaries suggest that a moderate level of stratification accompanying either close or open membership is the most suitable design. The findings from this study can be helpful to other industries, particularly other resource- based industries, which seek to effectively employ the open innovation model through innovation intermediaries.