On the relation between currency and banking crises in developing countries, 1980–2010

This paper investigates the relationship between the occurrence of currency and banking crises using high-frequency data for a sample of 94 countries during 1980–2010. The two types of crises are proxied by continuous, multi-categorical and dummy variables based on market pressure indexes, and a dummy variable from the Laeven–Valencia banking crises database. Results suggest that a bidirectional leading relationship exists between the two types of crises. However, banking crises do not lead currency crises robustly when banking crises are proxied by dummies based on market pressure indexes. Finally, currency crises have robust state dependence, but this is not the case for banking crises.     

On stochastic comparisons of minimum order statistics from the location–scale family of distributions

We consider stochastic comparisons of minimum order statistics from the location–scale family of distributions that contain most of the popular lifetime distributions. Under certain assumptions, we show that the minimum order statistic of one set of random variables dominates that of another set of random variables with respect to different stochastic orders. Furthermore, we illustrate our results using some well-known specific distributions.     

Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service

In this article, the authors examine how, when and to what extent HR practices affect performance at the employee level. As performance is a multi-faceted and complicated concept, HRM outcomes were used as mediating factors between HR practices and employee performance. The data were collected among civil servants in Eritrea, Africa's youngest and poorest country. Although the results generally are in line with previous studies using Western data, their implications in this particular country may be different. Therefore, the challenges and prospects of HR practices in Eritrean civil service organizations are critically analysed and discussed. In the authors' opinion, that the Eritrean economic and political environment within which HR practices operate has not been conducive in maximizing the impact of HR practices on performance. These findings highlight the situation of most developing countries.     

On startups and doublethink – resistance and conformity in negotiating the meaning of entrepreneurship

Startup entrepreneurship is – in the literature, in the discourse of those engaging in it, and in cultural representations of the same – presented both as resistance against prevailing corporate logics and as a path towards becoming a corporate entity. Resistance, claimed or otherwise, is not just a reaction to a perceived outrage or a power imbalance, but is in itself a constitutive part of contemporary entrepreneurship, particularly as this is culturally constructed. We study this paradox, where a discourse of resistance becomes a productive part of entrepreneurial culture, by way of a case study of a successful startup. We analyze the manner in which people working in the startup utilize ‘doublethink’ to portray the organization both as resistance to an assumed, more corporate, ‘Other’ and also as a budding corporation unto itself. By doing so, we highlight how a discourse of resistance works as a value in entrepreneurship culture as well as a productive element of the same. In our case, resistance and corporate conformity come together in a way that defies easy classification; one where notions of resistance exist as easy-to-adopt identity positions and where doublethink becomes a productive way of dealing with corporate success.     

Historicizing the ‘ethnic’ in ethnic entrepreneurship: The case of the ethnic Chinese in Bangkok

This paper aims to come to a better understanding of the meaning of ‘ethnic’ in ethnic entrepreneurship for second- and third-generation ethnic Chinese entrepreneurs in Bangkok, Thailand. Research on ethnic Chinese entrepreneurship in Southeast Asia typically investigates the dominance, attributed to specific ‘Chinese’ cultural values and strong intra-ethnic networks, of the ethnic Chinese in business and entrepreneurship. Our research among second- and third-generations shows an inclination of the interviewees to emphasize the irrelevance of their ‘ethnic’ Chinese background in entrepreneurship. To understand the meanings of the expressed irrelevance, we argue that it is constructive to incorporate a historical/generational approach of the ethnic group (migration history, nationalism) and of the business (social organization) into the study of ethnic entrepreneurship. The contribution to ethnic entrepreneurship research is threefold. Firstly, we show how a generational lens provides a more nuanced understanding of the ‘ethnic’ in ethnic entrepreneurship. Secondly, we show how incorporating the historical context helps to position business conduct in the social/societal experiences of entrepreneurs. Finally, our case study of ethnic Chinese entrepreneurs in Thailand brings an Asian perspective to ethnic entrepreneurship debates that generally concern European and North American research studies and thus hopes to inspire future comparative research.     

Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment

The discussion on which institutions determine entrepreneurial activity – and the role of institutions in the aggregated output for developing countries – is as yet unresolved. The extant literature about entrepreneurship recognizes new ventures as potential mechanisms for long-term development. Yet, there is a consensus on the lack of evidence, particularly for these countries. Drawing on institutional economics, this article explores the interrelationships among institutional environment, entrepreneurial activity, and economic growth. To this end, we use simultaneous-equation panel data models for a sample of 14 developing countries (78 observations) over the period of 2004–2012. The main findings suggest a causal chain running from institutions to opportunity entrepreneurship, which is linked to the economic growth of emerging economies. In particular, we find that institutional factors – such as the number of procedures to start a new business, private credit coverage ,, and access to communication– influence entrepreneurial activity driven by opportunity. Policy implications for developing countries could be derived in order to enhance their economic performance through entrepreneurial activity.

     

Variation in the average leadership behaviour of managers across countries: Finnish expatriates’ experiences from Germany,Sweden, France and Great Britain

This paper presents the experiences of Finnish expatriates (n=36) from four European countries representing proposed cultural clusters in Western Europe. The focus is on variation in manager–subordinate interaction, i.e. on leadership behaviours of managers across countries. Based on cultural theory and existing comparative research, the national origin of managers is expected to influence their leadership behaviour. By reviewing various earlier comparative studies, working hypotheses are formed about expected variation across countries. The results indicate that variation could be identified in the average styles of managers across countries, although in most cases differences also emerged between expatriates’ reports. This variation in expatriates’ experiences indicates that variation within countries should also be kept in mind when discussing variation across countries. However, it was regarded as possible to form a model of typical characteristics of leadership styles of managers across countries from the perspective of Finnish expatriates based on the identified variation. The implications of variation identified across countries for expatriates and multinational companies are also discussed.     

A new US definition of ‘Minority Business’: lessons from the first four years

The purpose of this paper is to discuss current definitional issues regarding minority business in the USA and the policy-oriented implications of these issues with regard to European ethnic minority enterprise.

After an introductory discussion of the concept of ‘minority business’ and related terminology, this paper then examines a major change in the definition of such businesses made by the National Minority Supplier Development Council (NMSDC), the principal link between large US corporations and the minority business community. In line with US government minority assistance programme requirements, a ‘minority business’ previously had to be at least 51% minority-owned. Under the new NMSDC policy, a firm can have as little as 30% minority ownership and still be eligible for corporate minority-targeted contracts. This paper explains this re-definition and discusses the experiences of the first four years of this new policy and the lessons and implications for the USA. The discussion is then extended to the European context – the rise of immigration and the related increase in ethnic minority business enterprises, the current nature of public policy toward such enterprises in terms of programmes and legislation, and the implications of the US experience for Europe. Finally, future issues with regard to European ethnic minority enterprise are raised, along with areas for future research focus.     

Opportunity motivation and SME internationalisation in emerging countries: Evidence from entrepreneurs’ perception of institutions

Institutional studies based on cross-country comparisons and founded on a determinist perspective analyse the behaviour in emerging economies. The current research, in contrast, looks to neo-institutionalism and the literature on entrepreneurship to pose two research questions based on individuals’ discretion: (1) How does the entrepreneur’s perception of the institutional dimensions influence their decision to involve their SME in international operations? (2) What role does opportunity motivation play in the impact of those perceptions on the internationalisation decision? We analyse a sample of 296 entrepreneurs who had founded their businesses in Brazil (Federal State of Sergipe), and our results confirm that the individual’s perception of the normative and regulative aspects of institutions, the interaction between the two, and the interaction between the normative and cognitive aspects of institutions, explain the decision to embark on international operations. Opportunity motivation mediates the impact of the normative aspects of institutions on that decision.     

Counteracting innovative constraints: insights from four case studies of African knowledge-intensive metalworking and automotive clusters – ‘the Akimacs’

We respond to repeated calls over the years to further develop cluster theory specifically in an African context. Our contribution is to construct a framework which integrates theories focusing on path dependency, transaction cost economics (efficiency and systemic interdependency models) and regional development (lock in models). Our focus is on the innovativeness of African clusters and constraints on such innovation. Thus, drawing on cluster literature on constraints to innovation coupled with insights from current empirical work within African automotive clusters, we examine the challenges of counteracting the multilevel constraints which hinder innovation in African clusters. We develop a model for counteracting cluster constraints focusing on the impact of variations in innovative frequency, diffusion of innovations, innovative speed and protection of innovation. The model emphasizes the opportunities that arise when new entrant and incumbent firms interact to neutralize constraints at transactional, social, ecological and knowledge levels.     

“Openness” of public governments in smart cities: removing the barriers for innovation and entrepreneurship

International Entrepreneurship and Management Journal - Open innovation practices have been found to positively affect innovation and entrepreneurship due to the complementarities and uniqueness of...     

Rowing against the wind: how do times of austerity shape academic entrepreneurship in unfriendly environments?

Academic spin-offs (ASOs) help universities transfer knowledge or technology through business projects developed by academic staff. This investigation aims at analyzing the critical factors for spin-off creation at universities operating in crisis-raven, entrepreneurship-unfriendly environments. Such factors revolve around four types of resources: environmental, institutional, organizational, and personal. Focusing on a Southern European context, as an example of an unfriendly environment affected by economic crisis, an entrepreneurial university (the Technical University of Valencia in Spain, UPV) is our research setting. Through a case study approach, we examine the potential of UPV as a springboard for ASOs. Our results show an adverse local environment, a rather favorable influence of institutional and organizational drivers, and a mixed role of personal factors. Our findings illustrate that UPV consistently supports spin-off creation due to a greater (rather positive) reflexivity from its institutional, organizational and personal resources than the (negative) imprinting of the unfriendly environment. This helps counter-balance the structural unfriendliness for academic entrepreneurship, and trigger a crisis-led risk-taking attitude by academic staff. Hence, UPV should continue with its current strategy of supporting academic entrepreneurship, and might transfer best practices to other universities also affected by unfavorable environmental conditions. Generally speaking, we would advise universities facing adverse circumstances to develop rules and mechanisms for academic entrepreneurship, carefully revise and improve malfunctions, and become involved throughout the whole process of spin-off development. All in all, our study advances understanding of how the different drivers for ASO creation can be revamped by universities located in unfriendly environments, having in mind the key role that universities play in fostering social and economic development through academic entrepreneurship in such environments.     

On the feasibility of monetary union among Gulf Cooperation Council (GCC) countries: does the symmetry of shocks extend to the non-oil sector?

GCC countries’ output is heavily dichotomized into oil and non-oil. Oil shocks have similar effects on all member countries but little is known about their responses to non-oil shocks. This paper sets out to determine (1) whether aggregate demand (AD) and non-oil supply shocks (AS) are symmetrical across these countries to justify their suitability for monetary union; and (2) whether there is any commonality of shocks with the United States and the three major European countries, namely France, Germany, and Italy, which can warrant the choice of either the US dollar or the Euro as the anchor for the expected common currency of the bloc. We use bivariate structural vector autoregression models identified with long-run restrictions to extract the shocks. Our results show that (a) AD shocks are unequivocally symmetrical but non-oil AS shocks are weakly symmetrical across GCC countries thereby suggesting a monetary union is feasible, but not overwhelmingly; (b) neither AD nor AS shocks are symmetrical between GCC countries and the selected European countries; (c) GCC’s AD shocks are symmetrical with the US but non-oil AS shock are not. Furthermore, there are no significant changes in the results when we aggregate the GCC countries as a bloc. We therefore surmise that the US dollar is a more appropriate anchor for the new currency than the Euro since US monetary policy can at least help smooth demand shocks in GCC countries.     

Focus on cash transfer programs: assessing the eligibility of the Bolsa Família program in Brazil

Quality & Quantity - Income transfer programs are important public policies in fighting poverty and reducing inequality. However, such a strategy is often criticised as being ineffective, as...     

Opening entrepreneurial ecosystem’s black box: the power of networks in African low-income countries

What makes one type of entrepreneurial ecosystem (EE) more conducive to entrepreneurial dynamics than another? EE research is a hot topic, and considerable progress has been made as regards its elements, network, and actors’ components. However, some scholars regret the absence of an empirical analysis of EE as a whole to understand how EE configuration operates. To introduce this perspective, we propose an unexplored inter-organizational ties analysis among all EE actors, at a country-level scale. Based on the network theory perspective, we conduct an exploratory research in five low-income African countries, using innovative research methods (the quantitative graph theory, web scraping, the fuzzy-set qualitative comparative analysis) to understand the organizational patterns in these EEs, and their impact on entrepreneurial outcomes. At the core of this perspective lie inter-organizational ties measures of closeness, cohesiveness, and inter-connectedness, which are key causal conditions for high entrepreneurial dynamics levels and rates in low-income countries. This research underlines the importance of EE network attributes to facilitate the easy distribution of entrepreneurial nurturing components to entrepreneurs. It also highlights the importance of ease of information and knowledge flow, as well as a strong collaborative and coopetitive environment to make an EE more conducive to entrepreneurial dynamics.

     

In what sense ‘regional development?’: entrepreneurship,underdevelopment and strong tradition in the periphery

This paper explores whether entrepreneurship can help less successful regions to improve their regional economic situation, without all the benefits that entrepreneurship brings when being ‘stripped out’ to more successful regions. The paper uses the idea that peripheral regions possess qualities of tradition and underdevelopment, and that these help to anchor new firms into these regions, resistant to their concentration in core regions. The paper explores whether particular entrepreneurial events can be regarded as ‘densifying’ the regional entrepreneurial environment, thereby making a positive contribution to its economic development. The paper explores the role of these negative anchors to the entrepreneurial events and the densification process by following a sequence of high-technology spin-out firms in the North East of England. Using a realist methodology attempting to interview all the firms within the sequence which could be found, the paper discovers that quite positive advantages exist within these negative qualities.The paper then considers whether these processes, such as plant closure, might drive entrepreneurship in all regions.     

Large,entrepreneurship and regional development policy: ‘growth poles’ in the Mezzogiorno over 40 years

Large firms are often perceived by economists and policy-makers as ‘growth poles’ to promote development in backward regions. The idea behind the ‘growth poles’ is that large firms may have a leverage effect on the birth and growth of small and medium sized firms. Regional policy in Italy, particularly in the Mezzogiorno, has subsidized large external plants since the 1950s. A new wave of planning agreements in the 1990s is going to redesign and to strengthen this policy orientation. This paper offers empirical data on plant location and growth at provincial level over 40 years. There is no evidence of overall long term growth impact of large acternal plants in the Mezzogiorno, while there are interesting variations by sectors. A theoretical interpretation of the impact of large firms on local entrepreneurial resources is offered, pointing to the negative effects of large firms on the supply of local entrepreneurship. Policy implications are discussed.     

Patterns of university–industry interactions in Brazil: an exploratory analysis using the instrumental of graph theory

The article seeks to explore the evidence related to the sectoral patterns of structuring of the university–industry relations in Brazil, departing from the information extracted from the database of the Brazil Survey Research, with the analytical contribution of graph theory and its centrality measures. The empirical results allow us to identify some important constraints of the university–industry interactions in Brazil. In particular, we highlight the importance of locational aspects in conditioning the actions of universities as producers of science and technology for the productive sector and a tendency to relatively more intense interaction with less knowledge-intensive sectors, compared to so-called science based sectors.     

Emotional competencies and cognitive antecedents in shaping student’s entrepreneurial intention: the moderating role of entrepreneurship education

This paper focuses on the analytic thinking of emotional competencies and their influence, in particular, in shaping university students’ entrepreneurial intentions, backed by an extended model of Ajzen’s Theory of Planned Behaviour, and analyses the moderating role of entrepreneurial education among the variables under study. The results, derived from an ex-ante and ex-post questionnaire addressed to Spanish university students engaged in a compulsory entrepreneurship course, were subjected to structural equation modelling analysis. Our findings show that entrepreneurship by university students is favoured by the development of their emotional competencies, due to the direct influence of the latter in shaping entrepreneurial intention and its positive impact on their cognitive antecedents (entrepreneurial attitudes and perceived self-efficacy), and suggest that students with a higher degree of emotional competencies who receive entrepreneurship education will have a more positive attitude towards entrepreneurship and will perceive themselves more capable of becoming entrepreneurs. The primary contribution of this paper is to spotlight the use of emotional competencies in encouraging entrepreneurship, and to heighten awareness of the positive effect of education on emotionally-competent students, a factor that should be taken into account to improve entrepreneurship education programmes.