Lobbying as a potent political marketing tool for firm performance: A closer look

This study endeavors to enhance political marketing literature about the impact of lobbying on firm performance. Our sample is composed of 140 U.S. firms and spans the years 2007–2014 to encompass the 2007–2009 recession and the subsequent recovery period. Our findings indicate that lobbying expenses positively contribute to firm performance. Also, government contracts in both ways, dollar amount and number of government contracts, act as mediators between lobbying expenses and firm performance. In addition, organizational slack moderates the relationship between lobbying expenses and government contracts. The managerial implications suggest that lobbying expenses can be leveraged as a potent tool for firm performance. Firms with larger lobbying efforts acquired both, higher dollar amounts and a greater number of government contracts.     

Individual and organizational learning from inter‐firm knowledge sharing: A framework integrating inter‐firm and intra‐firm knowledge sharing and learning

Literature has highlighted but not explored links between knowledge sharing and learning at inter‐firm and intra‐firm levels. Using the single case of an aviation refuelling company as the basis for our research methodology and collecting data through 34 semi‐structured interviews, we develop a framework that integrates knowledge sharing and learning at inter‐firm and intra‐firm levels. We show that intra‐firm knowledge sharing capabilities facilitate the diffusion of inter‐firm learning within organizations. Moreover, inter‐firm trust manifests in different forms that affect individual and organizational learning. The purpose of collaboration determines what a firm learns or discards. The findings are important for organizations facing a shortage of skills. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Understanding instrumental motivations for social responsibility engagement in a micro‐firm context

Firms engage in social responsibility activities for diverse reasons. This study focuses on understanding firms' instrumental motivations for engaging in socially responsible activities. We suggest that the instrumental motivations underlying firms' corporate social responsibility (CSR) engagement are associated with their market, learning, and risk‐related behaviors; thus, we identify market orientation, learning orientation, and risk‐taking attitudes as three constructs that influence firms' CSR engagement. This research was conducted in the Norwegian firewood sector, in which CSR expectations are high and in which we expect CSR engagement to be encouraged by both instrumental and normative motivations. The firms in this study are micro‐firms with fewer than 10 employees and represent an important but highly neglected segment of firms in CSR research. Data obtained from 230 firms were analyzed using structural equation modeling. Our results indicate that market orientation, learning orientation, and risk‐taking attitudes affect social responsibility toward different stakeholder groups in different ways. In some cases, the size and age of firms also affect these relationships.     

Intra‐firm transfer of best practices in moral reasoning: a conceptual framework

In this paper, we develop a conceptual framework of the intra‐firm transfer of best practices in moral reasoning by integrating three streams of literature: internal knowledge transfer in strategic management, moral reasoning and epistemology in philosophy and business ethics, and leader–member exchange in human resource management. We propose that characteristics of moral reasoning (nature of moral knowledge, tacitness of moral reasoning and causal ambiguity), source characteristics (moral development of leaders), target characteristics (integrity capacity and moral development of subordinates), leader–member exchange and internal ethical climate influence the transfer of best practices in moral reasoning.     

Socially responsible downsizing: Comparing family and non‐family firms

This study seeks to investigate whether family firms are more likely to downsize their workforce than their non‐family counterparts. Drawing on socioemotional wealth approach, we first explore the effect of family presence on workforce downsizing. Furthermore, we examine the moderating role of R&D activity on the family presence–downsizing relationship. Our sample covers a panel of manufacturing SMEs in Spain over the 1993–2014 period. We find that family firms are less likely to downsize than non‐family firms. Our results also reveal a negative association between R&D activity and workforce downsizing. Finally, the relationship between family presence and downsizing is contingent upon R&D activity, that is, family firms engaged in R&D activities are less likely to downsize than non‐innovative family firms.     

Access to imported intermediates and intra‐firm wage inequality

We use Chinese firm‐level data from the World Bank Investment Climate Survey to examine the link between importing intermediates and intra‐firm wage inequality. Our results show that intermediate input importers not only have a significant wage premium but also have a greater intra‐firm wage dispersion than non‐importing firms. This pattern is robust when we control for productivity and use trade costs as the instruments. We further investigate the mechanism of how importing intermediates might contribute to both inter‐firm and intra‐firm wage inequality. Our evidence is consistent with three important channels. First, imported intermediate inputs complement skilled labour. Second, intermediates importers are more likely to use performance pay. Third, imported inputs complement innovation and employee training.     

Islamic business scorecard and the screening of Islamic businesses in a cross‐country setting

Screening of shari'ah compliant firms is incomplete without the inclusion of ethical and social responsibilities. The existing “activity screen” does not directly capture the ethical and social footprints of firms. The purpose of this study is to create and test an Islamic business scorecard that combines activity, ethical, and social responsibilities that Islamic businesses must comply with. This new Islamic business scorecard replaces the existing activity screens and is added to the financial screens to create an integrated business screening mechanism to identify shari'ah compliant firms. This study utilizes data from a sample of 410 shari'ah compliant companies listed with stock exchanges in Malaysia, Pakistan, and Bangladesh. Out of the five newly developed constructs of the Islamic business scorecard, the results indicate Islamic firms are less committed to social responsibilities and tend to push forward economic responsibilities that focus on profitability and growth. Of the three countries, this study reports Malaysian firms have the highest compliance scores, while Bangladesh displays characteristics of the “next‐big shari'ah destination”. Financial screens are more important than the Islamic business scorecard for firms in the construction, industrial, technology, and trading/services sectors. Because of its connection with the economic, ethical, and social dimensions, the scorecard helps to identify the true nature of shari'ah compliance as a useful decision tool for investors and policymakers.     

Dealing with downside risk in a multi‐commodity setting: A case for a “Texas hedge”?

This study analyzes the problem of multi‐commodity hedging from the downside risk perspective. The lower partial moments (LPM₂)‐minimizing hedge ratios for the stylized hedging problem of a typical Texas panhandle feedlot operator are calculated and compared with hedge ratios implied by the conventional minimum‐variance (MV) criterion. A kernel copula is used to model the joint distributions of cash and futures prices for commodities included in the model. The results are consistent with the findings in the single‐commodity case in that the MV approach leads to over‐hedging relative to the LPM₂‐based hedge. An interesting and somewhat unexpected result is that minimization of a downside risk criterion in a multi‐commodity setting may lead to a “Texas hedge” (i.e. speculation) being an optimal strategy for at least one commodity. © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 30:290–304, 2010     

A resource-based-view of the socially responsible firm: Stakeholder interdependence,ethical awareness,and issue responsiveness as strategic assets

In recent years the resource-based view of the firm has made significant headway in explaining differences in interfirm performance. However, this perspective has not considered the social and ethical dimensions of organizational resources. This paper seeks to provide such an integration. Using Kuhn's three stage model of adaptive behavior, the resource worthiness of stakeholder management, business ethics, and issues management are explored. The paper concludes by drawing on prospect theory to understand the reasons for this conceptual lacuna.Reginald A. Litz is assistant professor of business administration specializing in strategic management and corporate social responsibility at the Faculty of Management at the University of Manitoba in Winnipeg, Canada. His current research interests include corporate social responsibility and executive self-deception.     

Generativity and self‐enhancement values in eco‐friendly behavioral intentions and environmentally responsible consumption behavior

During the past 35 years, academic researchers have been examining the relationship between environmentally responsible consumption behavior and numerous antecedent variables. Because sustainability requires a long‐term perspective, the study included generativity, a construct developed by Erikson ( 1950 ) and self‐enhancement values (Schwartz, 1994 ) as antecedent variables for environmentally responsible consumption behavior. Generativity refers to individuals' beliefs that their current behavior has consequences that extend into future generations, while self‐enhancement refers to values relating to power, wealth, and influence. These variables are related in that generativity requires consideration of others while self‐enhancement generally refers to considering only one's self. This suggests that individuals high on generativity ought to be more aware of and concerned about the environment and should modify their behavior accordingly, and those who are high on self‐enhancement should be less concerned or willing to change behavior. The results of the study, including French and American respondents, indicate that individuals who score high on generativity are more likely to have eco‐friendly intentions and more environmentally responsible consumption behaviors, but generativity interacts with self‐enhancement, resulting in an interpretation that is different from that typically found in environmentally related studies. © 2010 Wiley Periodicals, Inc.     

Credit rationing and firm exports: Microeconomic evidence from small and medium‐sized enterprises in China

This paper examines the effect of credit rationing on export performance by small and medium‐sized firms in China. We use a detailed firm‐level data provided by the Small and Medium‐sized Enterprises Dynamic Survey (SMEDS) during 2015–16 to conduct this analysis. The SMEDS provides firm‐specific measures of credit rationing based directly on firm‐level responses to the survey rather than indirect ones, based on firm‐level financial statements. We find that, at the extensive margin, weak and strong credit rationing reduces export probability of small and medium‐sized enterprises (SMEs) by 15.1% and 39.6%, respectively. At the intensive margin, they decrease SMEs' export values by more than 20.0% and over 28.8%, respectively. Different than existing literature, we construct valid firm‐level instruments, firm‐level housing stock, for credit rationing rather than using province‐level instruments. We also employ county‐industry‐level instruments and obtain consistent estimates. In addition, credit rationing exhibits heterogeneous impacts on firms with different liquidity ratios, product portfolios, external collateral and capital utilisation rates.     

Reducing environmental uncertainty: How high performance work systems moderate the resource dependence‐firm performance relationship

Firm performance is a major concern for all organizations and involves a multitude of antecedents. Reducing environmental uncertainty and dependency through the use of strategic actions in the resource dependency theory (RDT) framework and enhancing work practices through high performance work systems (HPWS) lead to higher levels of firm performance. We reveal the interconnectivity between RDT and HPWS and develop propositions as to how components of HPWS positively moderate the relationship between firm performance and the environmental uncertainty‐reducing strategic actions proposed by RDT such as mergers and acquisitions, joint ventures, boards of directors, political action, and executive succession. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces

The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998–2007), we estimate a spatial dynamic panel model via a GMM estimator and analyze the short-run impact of specialization and variety on firm exit. Specialization negatively affects firm exit rates in the short-run. The effect is particularly significant for low-tech firms. The impact of variety on firm mortality rates at the industry level is instead less clear, although still negative and significant for low-tech firms.     

Mean‐field games with differing beliefs for algorithmic trading

Even when confronted with the same data, agents often disagree on a model of the real world. Here, we address the question of how interacting heterogeneous agents, who disagree on what model the real world follows, optimize their trading actions. The market has latent factors that drive prices, and agents account for the permanent impact they have on prices. This leads to a large stochastic game, where each agents performance criteria are computed under a different probability measure. We analyze the mean‐field game (MFG) limit of the stochastic game and show that the Nash equilibrium is given by the solution to a nonstandard vector‐valued forward–backward stochastic differential equation. Under some mild assumptions, we construct the solution in terms of expectations of the filtered states. Furthermore, we prove that the MFG strategy forms an ε‐Nash equilibrium for the finite player game. Finally, we present a least square Monte Carlo based algorithm for computing the equilibria and show through simulations that increasing disagreement may increase price volatility and trading activity.     

Good apples in spoiled barrels: A temporal model of firm formalization in a field characterized by widespread informality

Entrepreneurship scholars have devoted increasing attention to formalization (i.e., a firm's transition from informality to compliance with formal institutions). However, little is known about the actual process through which informal firms transition to pursue opportunities in a fully legally compliant way. This transition poses formidable challenges, especially in fields in which informality rather than formality is widespread. To understand how firms transition to full formality and manage the related institutional challenges in such contexts, we conduct a longitudinal, inductive case study of an informal firm, confiscated from the Mafia in Italy, and examine how it succeeded in operating formally in a field in which informality regulated transactions and was accepted across society. The findings suggest that formalizing in such contexts is a two-phase process that entails first extricating the enterprise from the influence of informal institutions and then cultivating formal institutions in the field to increase the firm's legitimacy. The study contributes to the literature on formalization, entrepreneurship, and institutional work by advancing the understanding of formalization as a dynamic and entrepreneurial endeavor that requires specific institutional work at different points in time to succeed.     

Digital transformation: Five recommendations for the digitally conscious firm

Digital transformation is one of the key challenges facing contemporary businesses. The need to leverage digital technology to develop and implement new business models forces firms to reevaluate existing capabilities, structures, and culture in order to identify what technologies are relevant and how they will be enacted in organizational processes and business offerings. More often than not, these profound changes require firms to revisit old truths as they develop strategies that thread the needle between beneficial innovation and harmful disruption. This article uses the Internet of Things (IoT) as a backdrop to demonstrate the concerns associated with transformative technologies and offers five recommendations as to how firms can develop the strategies needed for digital transformation and become digitally conscious: (1) Start small and build on firsthand benefits; (2) team up and create competitive advantage from brand recognition; (3) engage in standardization efforts; (4) take responsibility for data ownership and ethics; and (5) own the change and ensure organization-wide commitment. As such, this article shows that digital transformation should be a top management priority and a defining trait of corporate business strategy, and that by becoming digitally conscious, firms may get a head start on their transformation journey.     

Knowledge acquisition for the internationalization of the smaller firm: Content and sources

Internationalization process research emphasizes accumulated experience and networks as sources of knowledge for internationalization. Our understanding, however, as to what this knowledge is in practice for smaller firms, the challenges they face in acquiring it, and how they address those challenges is limited. Integrating organizational learning concepts with our theoretical understanding of the small firm internationalization process, we develop a new framework for understanding knowledge acquisition processes, which are examined with a case study of 10 Scottish internationalizing firms. We find smaller firms may not have relevant experience or useful networks, and rely on sources rarely recognised before. Firms used recruitment, government advisors and consultants to acquire indirect experience. Recruitment is a source of market and technological knowledge and government advisors and consultants a source of internationalization knowledge. Accessing internal information is important for firms that have internationalized. Our integrated theoretical framework identifies knowledge content and sources that are critical for internationalization, but that may be absent.     

CSR development in post‐communist economies: employees' expectations regarding corporate socially responsible behaviour – the case of Romania

Drawing on stakeholder theory and the evolutionary approach to institutions, this paper investigates the channels through which corporate social responsibility (CSR) is developed in post‐communist economies by focusing on the employee background factors that shape the employees' expectations with regard to corporate socially responsible behaviour. We identify three channels through which exogenous and endogenous CSR are developed: employees with work experience in multinational enterprises (MNEs) (leading to exogenous CSR), employees with CSR knowledge (leading to exogenous CSR) and employees with experience of the socialist system (leading to endogenous CSR). Furthermore, we argue that the interactions between these channels lead to hybrid CSR in transition economies. We use a questionnaire‐based survey with employees of domestic and MNEs in Romania and we conduct regression analysis. We find that employees with work experience in MNEs act as channels for exogenous CSR, while employees with experience of the socialist system act as channels for endogenous CSR. Furthermore, employees with experience of the socialist system and CSR knowledge or work experience in an MNE act as channels for hybrid CSR in transition economies. Based on our results, we put forward implications for theory, managers and policy makers.