Towards a ‘new normal’ growth strategy: China in comparative perspective

China’s move towards a new normal has been motivated by domestic factors and accelerated by the decline in export opportunities to developed countries. This decline, combined with the knock-on effects of China’s growth adjustments, is disrupting the favourable external environment that made developing countries’ export-led development strategies viable. This paper concentrates on a rebalancing of developing countries’ growth strategies towards a greater weight of household consumption as a potential alternative and discusses three challenges – market size, domestic purchasing power and balance-of-payments constraints. Concentrating on the latter, it analyses changes in sectoral compositions of consumer demand and patterns of international trade. Results point to the risk that a shift in growth strategy causes an import surge. The paper’s findings indicate the scope and speed of required product innovation that would prevent a rebalancing of growth strategies towards a greater role of consumption from running into balance-of-payments constraints.     

How young firms achieve growth: reconciling the roles of growth motivation and innovative activities

This special issue focuses on entrepreneurship, innovation and enterprise dynamics, as these key components of any prospering economy are at the heart of the current policy discussion. It gathers the latest national and comparative cross-country evidence about: new business venture formation and the role of framework conditions in fostering entrepreneurial activities; the determinants and outcomes of firms’ innovative activities and, more generally, of business and innovation dynamics; and the determinants and patterns of post-entry firm growth performance. The contributions synthesised in this introductory piece all rely on sound micro-level data and robust econometrics and propose novel findings that are relevant for policy making. Among them, that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs; and that while micro firms may grow when they are young, they are less likely to do so when old.     

Job protection,housing market regulation,and the youth

Young Europeans experience high unemployment rates, job instability, and late emancipation. Meanwhile, they do not support reforms weakening protection on long‐term contracts. In this paper, we suggest a possible rationale for such reform distaste. When the rental market is strongly regulated, landlords screen applicants with regard to their ability to pay the rent. Protecting regular jobs offers a second‐best technology to sort workers, thereby increasing the rental market size. We provide a model where nonemployed workers demand protected jobs despite unemployment and the share of short‐term jobs increases, whereas the individual risk of dismissal is unaffected. Our theory can be extended to alternative risks and markets involving correlated risks and commitment under imperfect information.     

The effect of social media communication on consumer perceptions of brands

Researchers and brand managers have limited understanding of the effects social media communication has on how consumers perceive brands. We investigated 504 Facebook users in order to observe the impact of firm-created and user-generated (UG) social media communication on brand equity (BE), brand attitude (BA) and purchase intention (PI) by using a standardized online survey throughout Poland. To test the conceptual model, we analyzed 60 brands across three different industries: non-alcoholic beverages, clothing and mobile network operators. When analyzing the data, we applied the structural equation modeling technique to both investigate the interplay of firm-created and user-generated social media communication and examine industry-specific differences. The results of the empirical studies showed that user-generated social media communication had a positive influence on both brand equity and brand attitude, whereas firm-created social media communication affected only brand attitude. Both brand equity and brand attitude were shown to have a positive influence on purchase intention. In addition, we assessed measurement invariance using a multi-group structural modeling equation. The findings revealed that the proposed measurement model was invariant across the researched industries. However, structural path differences were detected across the models.     

Computer assisted text analysis in the social sciences

We use the term “Computer Assisted Text Analysis” in a broad sense to refer to a range of current techniques from quantitative social science and content analysis to ‘data mining’ and ‘text classification’, including the analysis of open-ended survey questions, transcribed interviews and speeches, wherever, in fact, the researcher is confronted with data in the form of natural language texts of social scientific interest. These methods are often used in exploratory data analysis, but can also be applied systematically with moderate statistical rigour in the development and testing of hypotheses at various theoretical levels, ranging from the statistics of word usage to changes within or between discourses over time. The general approach is in the tradition of content analysis, by which words which occur together in relatively close proximity in the same context are interpreted as relating to a common theme or concept in the discourse studied. We review a comprehensive set of tools to identify and visualize structures of co-occurrence of words and concepts both within, and in comparing, a number of texts. These produce results not essentially different from those reached by representing word co-occurrences in terms of network analysis or neural network programming using schematic linguistic templates of various kinds. A comparison of the relational data analysis vs. a dictionary-based MDS approach shows that these provide very close if not identical results, despite the fact that the underlying assumptions are frequently represented as different theoretical approaches.     

Information technology developments of logistics service providers in Hungary

The objective of this research is to examine the role of sector-specific information technology (IT) developments and their significance in terms of the revenue and earnings before tax of Logistics Service Providers (LSPs), as well as the impact of these developments on the flexibility and integration of LSPs. A survey questionnaire was conducted with 284 LSPs participants. The data provided by the 51 responding enterprises provided a representative sample for the analysis of the sample population and the drawing of general and relevant conclusions related to basic population. It can be concluded that their revenue, earnings before tax and degree of integration into the supply chain depend on the sector-specific IT developments carried out by the given enterprise. IT investments will remain important in the future and the introduction and leveraging the best technologies may yield competitive advantages and higher financial rewards for LSPs.     

Differences and similarities between female students and male students that succeed within higher technical education: profiles emerge through the use of cluster analysis

This study focuses on female and male students who succeed in engineering programmes in Sweden, and why they have success. Data were collected through a questionnaire sent to all engineering students in Sweden registered for their seventh semester during year 2012 and about 30 % of the students in the cohort responded on several questions. The answers were then analysed and interpreted using Pierre Bourdieu’s theory and the concept of capital. The female-students as well as the male-students emerged as homogeneous groups, but SPSS-clustering shows differences and similarities between four female student-profiles and five male students-profiles. The female students who come to graduate as engineers have experiences and resources that seem to be fruitful: well-educated parents, positive attitudes to the engineer students’ traditions, and a positive view of the engineering profession. In addition, they value the traditional teaching with lectures and self-studies. They seem not to have been inspired by compulsory school teaching or teachers there. The male students have the same experiences and resources but there are differences. Among female students, a profile emerges which is absent among the male students and which emphasises the importance of doing good for society, people, and the environment in their future professional roles. Among male students, the student profiles which emerge include one with a primarily practical and technical capital despite the lack of a high degree of educational or scientific capital.     

How Media Coverage of Corporate Social Irresponsibility Increases Financial Risk

Research summary: This article explores the relationship between corporate social irresponsibility (CSI) and financial risk. We posit that media coverage of CSI generates risk by providing conditions that increase the potential for stakeholder sanctions. Through analyzing an international panel of 539 firms during 2008–2013, we find that firms receiving higher CSI coverage face higher financial risk. We show that the reach of the reporting media outlet is a critical condition for this relationship. Once the outlet has a high reach, the severity of CSI coverage is a boundary condition that further reinforces the effect. Our findings complement existing theory about the risk‐mitigating effect of corporate social responsibility by illuminating the risk‐generating effect of CSI coverage. For executives, these insights suggest complementary strategies for corporate risk management. Managerial summary: This article examines the effect of negative news on financial risk. It shows that negative media articles regarding environmental, social, and governance (ESG) issues increase a firm's credit risk. It also provides a detailed analysis of the impact of an article's reach and severity, i.e., how many readers are exposed to the article and how harshly it criticizes the firm. The results allow to quantitatively assess the risk that emanates from negative ESG news. For executives, three strategies are derived for limiting a firm's exposure to this risk: balancing corporate social responsibility programs with operational safety programs, reporting suboptimal environmental and social performance transparently and proactively, and avoiding acquisition targets and markets with a legacy of negative news. Copyright © 2017 John Wiley & Sons, Ltd.