Building entrepreneurial inter-firm networks in an emerging economy: the role of cognitive legitimacy

We take an organizational legitimacy perspective and use data from a large-scale nationally representative study on the state of small business in Saudi Arabia, in order to explore the antecedents to the formation of entrepreneurial ventures’ inter-firm networks in the context of an emerging economy (n?=?331). We argue that entrepreneurial ventures need to overcome a threshold of cognitive legitimacy in order to develop inter-firm ties with a diverse set of large, established firms. Results indicate that having a written business plan and a formal organizational structure are positively associated with the diversity of the new venture’s inter-firm network, while the education level of the entrepreneur does not have a significant effect. In addition, the effect of having a formal organizational structure is stronger for younger ventures. Implications are discussed.     

The role of On‐line communities on the internet for Sustainable Development

For the world to move towards a more sustainable future greater understanding is required about the links between society, reality, business activity, the environment, technology and sustainable development (Welford, 199816). Technological development of the Internet offers the potential, if appropriately utilized, to be an enabler of a more sustainable future. On‐line communications, via the Internet, is driving the evolution of cyber based communities in both domestic and commercial environments. Such changes in international communications are clearly at a relatively early stage of development, which raises many issues of fundamental interest but also concern. Security and control are issues of prime importance to all existing and future participants in cyberspace, due to the direct implications on both freedom and order. The Internet has evolved from a small specialist controlled environment, including both scientists and academic members, to on‐line activity that is currently viewed by many as anarchic in nature. The more recent rise of the World Wide Web (WWW), driven by corporate acceptance and adoption, appears to be pushing towards formalization of both the Internet infrastructure and also applications. In exploring the role of on‐line communities for sustainable development the paper addresses fundamental issues of importance. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Market risk disclosures,corporate governance structure and political connections: evidence from GCC firms

This paper investigates the joint effect of political connections, in the form of the royal family member on board, and corporate governance on the market risk disclosures of the Gulf Cooperation Council (GCC) financial firms from 2007 to 2011. Previous research suggest that politically connected firms reduce the level of transparency in the GCC. However, we find that better corporate governance improves transparency and can be used as an effective tool in curbing the potentially adverse impact of politically connected board members on firms’ transparency. Our results have important implications for policy makers and can be generalized to other emerging markets.     

Shareholder wealth responses to European legislation on bank executive compensation

This paper uses an event study approach to investigate the shareholder wealth responses to European legislation on bank executive compensation. Using a sample of 124 banks over 2009–2010 and over 20 legislative and related events, we find that in early stages bank shareholders react positively to broad discussion at the EU level on executive pay. When plans to regulate the pay process are considered, however, this results in a negative stockholder reaction. We also find that large bank shareholders are most affected by remuneration policy.     

And if the ball does not cross the line? A comprehensive analysis of football clubs’ performance

The football club market is changing fast in the social media era. In this global market, clubs must maintain or improve fans’ attendance at the stadium; simultaneously, they need, more than ever, to take care of social media. The aim of this article is to test and discuss a comprehensive approach to analysing the performance of football clubs regarding their multiplicity of objectives. We analyse the efficiency of English Premier League (EPL) clubs during three seasons (2012/13–2014/15). The methodologies employed are data envelopment analysis (DEA) and a bootstrapped DEA model. The input is the market value of the squad, and the outputs are sports results, total revenue, the ratio of stadium utilization during the season and an index of social media impact. The results are robust to alternative estimation methods and indicate that EPL clubs still have a margin for improving their overall efficiency, mainly the medium clubs. The analysis of football clubs’ performance with the proposed comprehensive approach provides a useful tool to help managers with evaluation and feedback considering the actual context of the market. The approach brings closer the opportunity to design appropriate strategies to improve clubs’ efficiency as well as competition policies.     

Do banking system transparency and competition affect nonperforming loans in the Chinese banking sector?

The increasing importance of transparency practices and the improving status of bank competition in China are rarely explored in nonperforming loans (NPLs) literature. Thus, the purpose of this study is to examine banking system transparency and competition along with macroeconomic and bank-specific variables as determinants of NPL. We use the two-step system GMM dynamic panel model for Chinese banks based on annual data from 2000 to 2014. Our results indicate that high transparency in the Chinese banking system decreases poor-quality assets but not in the case of government-owned banks, whereas increase in competition increases NPL. Moreover, we find mixed results in the context of macroeconomics and bank-specific variables. Our study has practical implications in risk management practices and macro prudential policies.     

The effects of macroeconomic stability on foreign trade. An analysis for Spain, 1986–2000

Two main factors underlie the rebirth of interest in the study of the influence of the real exchange rate on trade, the reduction of its volatility and the current trend towards price stability. The objective of this study is to analyse the effects of the process of nominal convergence, required of the European member states for the fulfilment of monetary integration, on foreign trade flows. The case of Spain, which is especially interesting in this context, is studied for the period 1986 to 2000. The results of estimating the aggregate functions of the export and import of goods shows how macroeconomic stability has altered the behaviour of trade with respect to the two basic determinants – income and prices – how it has caused a significant structural change in the real exchange rate and, finally, how it has laid the explanatory bases for transactions in the twenty-first century with the single currency – the euro.     

Advertising Effectiveness of Different Media in Promoting Technology-Oriented Ideas among Young Consumers: A Multidimensional Study

Historically, media choice criteria have mostly been company driven. This article offers a four-dimensional 17-item media effectiveness assessment index as perceived by young consumers. The methodology of the study is based on quantitative data collected from 1,257 respondents in Bangladesh. Radio was rated best in six out of 17 criteria whereas TV and billboard were found to be the second choice. Radio was found to be the most effective medium in creating purchase intention. As the study didn’t find complete domination by any single medium, the paper recommends a mixed-media strategy while dealing with young consumers.     

Are Gay Men and Lesbians Discriminated against in the Hiring Process?

This article presents the first field experiment on sexual orientation discrimination in the hiring process in the Swedish labor market. Job applications were sent to about 4000 employers in 10 different occupations in Sweden. Gender and sexual orientation were randomly assigned to applications. The results show that sexual orientation discrimination exists in the Swedish labor market. The discrimination against the gay male applicant and the lesbian applicant varied across different occupations and appears to be concentrated in the private sector. The results also show that the gay male applicant was discriminated against in typical male‐dominated occupations, whereas the lesbian applicant was discriminated against in typical female‐dominated occupations. Theoretical implications are discussed.