Varieties of institutional systems,the belt-road initiative,and the patterned investment flows

Although the Belt-Road initiative (BRI), as a ‘model’ government initiative, has attracted great attention from both academia and industry, one central question related to the location choice of Chinese investment remains under-researched. Our study is motivated to reveal how institutional configurations of BRI participant countries that lead to a high volume of Chinese outward investment vary with the BRI. Utilizing the varieties of institutional systems (VIS) framework, we compare two Waves (2008–2013 and 2014–2019) of Chinese outward investment flows into 120 BRI participant countries. Using institutional elements—the roles of the state, financial markets, human capital, social trust, and corporate governance—as a holistic lens, some intriguing findings of patterned Chinese outward investment are observed. Instead of a single best form of institutional environment, various combinations of institutional arrangements are equally effective, but they differ subtly before and after the BRI in attracting Chinese outward investment. Four prototypes of institutional configurations of BRI participant countries are identified, including configurations with compatible institutional settings, institutional voids, ‘idealistic’ VIS conditions, and emerging institutional elements. Corresponding propositions are proposed for future theoretical advancement.     

The Role of Institutional Uncertainty for Social Sustainability of Companies and Supply Chains

Global sourcing largely occurs from so-called emerging markets and developing economies (EMDEs). In these contexts, substantial leverage effects for sustainability in supply chains (SCs) can be expected by reducing adverse impacts on society and minimising related risks. For this ethical end, an adequate understanding of the respective sourcing contexts is fundamental. This case study of South Africa’s (SA) mining sector uses institutional theory and the notion of institutional uncertainty to empirically analyse the challenges associated with establishing social sustainability. The case study research is informed by 39 semi-structured interviews with top management representatives and various state and non-state decision makers in SA. Our findings suggest that (social) sustainability in the institutional field is mainly shaped by the Social and Labour Plan institution, induced by state actors and mining companies’ practices. However, four weakening factors were identified that adversely affect this regulative institution, drive institutional uncertainty and allow for mining companies’ gradual decoupling. Contrastingly, complementing pressures of non-state actors limit institutional uncertainty and push toward mainstreaming the stipulations of the institution. This study contributes to the business ethics literature by providing an in-depth exploration of institutional uncertainty’s drivers and barriers within an upstream SC setting and shedding light on multiple actors’ interplay and relevance in sector-wide sustainability. The findings are condensed into three main propositions as well as an analytical framework as a basis for follow-up research. This case study helps practitioners understand and manage complexity that results from actor plurality and institutional uncertainty in EMDEs.

     

Stakeholder pressures,EMS implementation,and green innovation in MNC overseas subsidiaries

In this paper, we address the issue of green innovation by the overseas subsidiaries of multinational corporations (MNCs). Drawing upon stakeholder theory and institutional theory, we propose a conceptual model to explain how stakeholder pressures in host countries prompt MNC subsidiaries to undertake green product and process innovations. Our findings indicate that MNC subsidiaries need to meet market stakeholders’ pressures in order to achieve social legitimacy in host countries, and that the implementation of formal environmental management systems (EMS) is an important mechanism translating these pressures into green innovation initiatives. Furthermore, we find that the positive relationship between market stakeholder pressures and EMS implementation is reinforced by global ‘green’ institutional pressures in the different host countries.     

Tracing the utility of injury surveillance data in Pretoria (South Africa) and Borås (Sweden)

Our research attempted to study the factors that influenced the use of injury data in two cities, representing different injury and socio-economic profiles. In Pretoria, the South African capital city, injury data uptake was constrained by, among other factors, the transitional institutional environment, stakeholders' suspicion of research and the absence of safety promotion champions. In the Swedish city of Borås, injury data uptake was facilitated by well-established research agency–municipality partnerships, injury prevention champions, a receptive political and knowledge driven environment and dedicated resources. The study signified the role of a range of content issues, contextual arrangements, social actors who may or may not operate from a perspective of sufficient consensus and institutional communication processes that may either facilitate or hinder the multiple employment and rapid movement of data along the ‘ladder of knowledge utilisation’. Safety promotion researchers may need to expand their roles beyond data production to improve data utility.     

Path dependence,fragmented property rights and the slow diffusion of high throughput technologies in inter-war British coal mining

This article examines the importance of path dependence effects in impeding the diffusion of high throughput mechanized mining systems in the British coal industry. It demonstrates that the industry had become ‘locked in’ to low throughput underground haulage technology, on account of institutional interrelatedness between Britain’s traditional practice of extensive in-seam mining and its unique system of fragmented, privately owned mineral royalties. Fragmented royalties prevented the concentration of workings and introduction of high throughput main haulage systems that underpinned the rapid productivity growth of European producers. Meanwhile, technical interrelatedness between the haulage systems taking coal to the pit shaft and operations further ‘upstream’ created bottlenecks which both slowed the overall rate of mechanization and limited the productivity gains from the mechanization that did occur.     

A causal analysis of the role of institutions and organizational proficiencies on the innovation capability of Chinese SMEs

We attempt to advance the existing narrative about the role of local institutions vis-à-vis the organizational capabilities of Chinese SMEs, and the influence of such linkages on the innovation capability of these firms. Specifically, we complement recent work by investigating the impact of macro- as well as micro-level aspects of Chinese institutions (Government support; Guanxi) on the ‘Improvisation’ and ‘Learning’ capabilities of Chinese SMEs and, ultimately, these firms’ innovation capability. Our conceptual arguments are embedded in Institutional, Organizational learning, and Resource-based theories. We isolate, unpack, and discuss several inter-related, yet distinct, causal mechanisms that ultimately influence Chinese SMEs’ innovation capability development. Based on a Partial Least Squares analysis of more than 200 firms, we find empirical support for all six hypotheses which represent the above-mentioned relationships. Our findings offer insights pertaining to: (1) the relative impact of institutional versus firm-specific factors in developing organizational proficiencies, (2) the mapping of macro- and micro-level institutional effects on organizational proficiencies, and (3) the relative effect of organizational proficiencies on innovation performance.     

Drivers of training participation in low skilled jobs: the role of ‘voice’, technology,innovation and labor shortages in German companies

This article investigates the role of ‘voice’, technology, innovation (of products, services, or processes) and labor shortages in the training participation of low skilled workers in German companies. By building on the key findings of previous research, hypotheses on drivers of training participation are derived from filter theory and the concept of social embeddedness. Regression and cluster analysis based on the German IAB Establishment Panel (wave 2011) show evidence that training participation is shaped by ‘voice’‐related institutional company characteristics such as employee representation or formalized HR practices. Both characteristics often cluster together. Regression analyses confirm that companies in this cluster train a higher share of their low‐skilled workforce. The share is particularly high when companies in this cluster face labor shortages. Apart from that, advanced technology and recent innovations at the company level are not related to higher rates of training participation among low skilled workers.     

Framing social marketing as a system of interaction: A neo-institutional approach to alcohol abstinence

Abstract

We employ Giddens’ structuration theory to gain insights into the interaction between upstream/midstream and downstream social marketing perspectives. This is conducted through thirteen phenomenological interviews with informants who stand outside of the practice of alcohol consumption through their voluntary engagement in one month of sobriety. Our study identifies the ‘modalities’ located at the intersection between individual actions and the institutions of alcohol. By identifying these ‘modalities’, we conceptualise social marketing in interaction, which incorporates the institutional orders of domination, signification and legitimation, and the individual actions of power, communication and sanction. Specific domains of interventions are identified, namely marketplace offerings and promotional techniques, social grouping and positional status and rituals and traditions, through which social marketers can enact social change.     

eCCIq: The quality of electronic customer-to-customer interaction

Electronic customer-to-customer interaction (eCCI) becomes crucial in innovative business models (e.g., Ebay, Facebook) that are either intentionally built on such eCCI occurring completely on purpose or for providers that are embedding web 2.0 and social media techniques in their service offering. To enable a more active application and purposeful management of eCCI, it is essential to conceptualize its quality (eCCIq) as a start. In doing so we identify seven factors that constitute the domain of eCCIq: ‘Content’, ‘Security’, ‘Hedonic’, ‘Quantity’, ‘Atmosphere’, ‘Convenience’ and ‘Social’. Construct development is based on existing literature on CCI and various closely-related constructs as well as on an empirical study assessing eCCIq in a qualitative and quantitative manner. Our results enable firms to more selectively influence and control eCCIq and provide the basis to conduct any further research on the impact of eCCI and its quality.     

Constrained Morality in the Professional Work of Corporate Lawyers

In this article, we contribute to sociological literatures on morality, professional and institutional contexts, and morally stigmatized ‘dirty work’ by emphasizing and exploring how they mutually inform one another in lawyers’ work activities. Drawing on interview data with 58 practitioners in the commercial legal industry in Singapore, we analyze how they experience professional and institutional constraints on the expressions of morality in their work. Our findings illustrate how a dominant managerial and economic focus maintains and reproduces a constrained form of morality, limited to instrumental, utilitarian and commercial ends, and subordinated to lucrative client and firm interests. We discuss our findings in terms of the need to research and reform professions in ways that support more rounded and unconstrained moral reflexivity and autonomy in how work is undertaken and valued. This in turn has implications for how organizations and professions might achieve alternative moral institutional orders, and for legal work to avoid the moral and social taints of dirty work.

     

Sovereign Debt Restructuring: The Judge,the Vultures and Creditor Rights

What role did the US courts play in the Argentine debt swap of 2005? What implications does this have for the future of creditor rights in sovereign bond markets? The Judge in the Argentine case has, it appears, deftly exploited creditor heterogeneity – between ‘holdouts’ seeking capital gains and institutional investors wanting a settlement – to promote a swap with a supermajority of creditors. Our analysis of Argentine debt litigation reveals a ‘Judge‐mediated’ sovereign debt restructuring which resolves key issues of Transition and Aggregation – two of the tasks envisaged for the IMF's stillborn Sovereign Debt Restructuring Mechanism. For the future, we discuss how Judge‐mediated sovereign debt restructuring (together with creditor committees) could complement Collective Action Clauses in sovereign bond contracts.     

Practising gender: The role of banter in young men’s improvisations of masculine consumer identities

Abstract

Although consumer researchers have explored the social, cultural and consumption-related tensions involved in being and becoming masculine, prior research has tended to focus on individual men’s experiences. This paper reviews literature in this area together with theories of gender as performed, performative and social practice. Our ethnographic study of male friendship groups in central Scotland explores the gender processes involved in improvising their masculine consumer identities within and across various social settings and interactions. In particular, through consumption-related banter, they played for and played with their ideas of masculinity, thereby engaging in the practising of gender. The boundaries between ‘safe’ and ‘danger’ zones of consumption varied across social groups and contexts, highlighting the complexity and contingency of contemporary masculinities.     

COMMODITY CONTENT IN A GENERAL INPUT–OUTPUT MODEL

This technical paper provides a definition of ‘commodity content’ in extended von Neumann–Morishima models of production. Our definition admits as special cases the classical definition of ‘labour values’ in Leontief models, as well as Morishima's definition of ‘optimal values’ in a von Neumann model. Proper joint production, heterogeneous labour, durable consumption goods, household activities and disposal processes are all allowed for. We also propose a tentative mathematical criterion for defining bads and for distinguishing between unskilled and skilled labour.     

Institutional change and strategic choice: debating the ‘stage-model’ of strategy in emerging economies

The popular ‘stage-model’ of strategic choice amid institutional change is found unable to account for the diverse strategies in emerging economies, which, this essay argues, is due to the model’s misplaced search for standard strategies which are said to be (1) dictated by linear transition stages and (2) determining the performance of stylized ‘firm types’. Assuming historical inevitability and blind to human agency, the model is at odds with Knight’s notion of uncertainty, with North’s thesis of adaptive efficiency and with Schumpeter’s theorizing on entrepreneurship. Studies on strategy in emerging economies, such as in the case of contemporary China, are in urgent need of an actor-centred, process-oriented and uncertainty-sensitive reorientation. This step, we conclude, may emerge by learning from the ‘practice-turn’ in the social sciences, taking politics seriously, incorporating evolution/complexity insights and enriching the methodology toolkit.     

SOCIAL CONFLICT,GROWTH AND FACTOR SHARES

Standard growth theory is based on atomistic agents with no strategic interactions among them. In contrast, we model growth as resulting from a one‐off, strategic game between ‘workers’ and owners of capital (‘capitalists’) on factor shares, in an otherwise standard ‘AK’ growth model. The resulting distribution of income between factors further determines the marginal revenue product of capital and the rate of growth. We analyse the properties of four equilibria: competitive, Stackelberg equilibrium, a hybrid non‐cooperative regime and cooperative, in terms of labour shares, growth and welfare. Our model thus endogenizes key aspects of the ‘social contract’.     

Firm-Level Determinants of Political CSR in Emerging Economies: Evidence from India

Multinational companies (MNCs) frequently adopt corporate social responsibility (CSR) activities that are aimed at providing ‘public goods’ and influencing the government in policymaking. Such political CSR (PCSR) activities have been determined to increase MNCs’ socio-political legitimacy and to be useful in building relationships with the state and other key external stakeholders. Although research on MNCs’ PCSR within the context of emerging economies is gaining momentum, only a limited number of studies have examined the firm-level variables that affect the extent to which MNCs’ subsidiaries in emerging economies pursue PCSR. Using insights from resource dependence theory, institutional theory, and the social capital literature, we argue that MNCs’ subsidiaries that are critically dependent on local resources, have greater ties to managers of related businesses and to policymakers, and that those that are interdependent on the MNCs’ headquarters and other foreign subsidiaries, are more likely to be involved in PCSR. We obtain support for our hypotheses using a sample of 105 subsidiaries of foreign firms that operate in India. Our findings enhance our understanding of the factors that determine MNCs’ political CSR in emerging economies.     

PUBLIC MEASURES AFFECTING SMALL BUSINESS IN AUSTRALIA

Certain institutional arrangements in Australia seem to operate to the disadvantage of small business particularly in the fields of finance, taxation and access to specialized services. But the Australian Trade Practices Act is based upon two value judgements–the acceptance of competitive capitalism as a socio-economic system and the need to curb the misuse of economic power. This second aim, in particular has benefitted small businesses through the restriction of arrangements in restraint of trade (Section 45), through regulating monopolization (Sec. 46), through forbidding exclusive dealing (Sec. 47), through banning resale price maintenance (Sec. 48), through regulating price discrimination (Sec. 49) and through regulating mergers (Sec. 50). The misuse of economic power may be related to the concept of ‘public benefit’ or ‘social efficiency’ as contrasted to ‘economic efficiency’ and it is on these grounds that arguments for assistance to small business can be most convincingly made.     

Does religion influence location choice in the hotel industry?

Relying on data from the Spanish hotel industry, this paper analyzes the role of informal institutional factors (IIF) in location choice. Earlier studies mostly use an aggregate level of cultural differences as informal institutional factors. We, however, go deeper into this concept and study the impact of two distinct but interrelated informal institutional factors, religion and language, on the location decisions of hotel chains. We resolve the overlapping problem between these two highly correlated IIF by means of a ‘layer’ measurement in Confirmatory Factor Analysis. Our results show that the higher the informal institutional differences (IID), the lower the presence of the hotels in the foreign country. While physical distance plays a key moderating role, formal institutional differences (FID) did not show any effect. We contribute by unravelling the role of language and religion in location choice in the internationalization process of service firms. Moreover, we test the moderating role of formal institutions in these decisions, thus combining the impact of formal and informal institutions on location choices in service firms.     

Beyond ‘know-what’ and ‘know-how’ to ‘know-who’: enhancing human capital with social capital in an Australian start-up accelerator

Abstract

This study investigates the enhancement of human capital with social capital in a start-up accelerator and how this integration affects the entrepreneurial learning experience. In particular, it examines the relative importance of the three components ‘know-what’, ‘know-how’ and ‘know-who’. The study involved thematic analysis of semi-structured interviews with participants in an Australian start-up accelerator that is delivered using ideas such as Design Thinking, the Business Model Canvas and Lean Start-up methodology. We find that although the programme emphasised ‘know-what’ and ‘know-how’, ‘know-who’ was most significant for participant learning. The results indicate that mentors and experts were especially helpful in shaping learning and in developing entrepreneurial networks. Moreover, our results show that the processes of ‘know-what’, ‘know-how’ and ‘know-who’ are interrelated – by knowing ‘who’, participants learnt ‘what’ and ‘how to’ through social learning. The research contributes to entrepreneurial learning theory and application particularly in the Asia Pacific context, by providing evidence that ‘know-who’ closes the learning loop for ‘know-what’ and ‘know-how’ as ‘know-who’ can actually provide entrepreneurs with the means to enhance their entrepreneurial self-efficacy.     

On the relationship between sectorial and institutional structural changes

Successful development processes involve not only ‘sectorial structural change’, shifts of factors between different productive sectors, but also, ‘institutional structural change’, shifts of factors from unproductive activities (predation) to productive ones. This paper analyzes the feedback process between the sectorial and the institutional structural changes in a model in which the labor share in agriculture is lower than in other sectors. Along the transition sectorial structural change emerges: employment in agriculture declines. Consequently, total labor share increases, raising the reward for working (while discouraging predation) and so, fostering institutional structural change. This, in turn, encourages capital accumulation, promoting sectorial structural change. This feedback mechanism widens differences in productivity and institutions among countries. Whereas zero-cost policies aimed to build institutions have positive effects, costly policies have uncertain effects due to complex feedback mechanisms.