Drivers of CSR anchoring in transition economies: Evidence from Poland

We examine the drivers of corporate social responsibility anchoring in Poland, a country that has undergone a profound transition from a command economy to a free market system. We use a fine-grained theoretical framework to understand the influence of the interactions between regulative, normative, and cultural-cognitive aspects of institutions with firm organizational factors on the diffusion of corporate social responsibility. We show that, in Poland, companies use their slack resources to adopt corporate social responsibility only when facing strong normative or regulative institutional pressures in their organizational fields. When such pressures are absent, companies prefer value-enhancing functions of their resources other than investing in corporate social responsibility. We propose a multilevel approach for studying drivers of corporate social responsibility and show how the importance of organizational-level drivers emerges clearly only if the interactions with institutional-level features are considered. The main policy implication of our study is that corporate social responsibility may establish in Poland, as well as in other Eastern Europe countries, provided that designed and formalized institutional processes reach relevant organizational fields. Furthermore, we find that, for business managers, employing financial slack for social responsibility projects may be perceived as institutionally legitimate or not depending on the type of institutional pressures prevailing in each organizational field.     

The coordinating power of social norms

Experimental Economics - A popular empirical technique to measure norms uses coordination games to elicit what subjects in an experiment consider appropriate behavior in a given situation (Krupka...     

Not all group members are created equal: heterogeneous abilities in inter-group contests

Experimental Economics - Competition between groups is ubiquitous in social and economic life, and typically occurs between groups that are not created equal. Here we experimentally investigate the...     

European Technological Sovereignty: An Emerging Framework for Policy Strategy

Intereconomics - The COVID-19 crisis has revealed the deep technological and production dependencies of the EU on third countries in sectors deemed as particularly strategic and has thus fuelled...     

On the conceptualization and measurement of dynamic capabilities for sustainability: Building theory through a systematic literature review

We performed a systematic literature review to explore and understand how the 23-year long debate about dynamic capabilities has addressed sustainability issues. Based on this, we propose a unifying framework that distinguishes different facets of dynamic capabilities for sustainability (DCsS) based on the different types of performance they are more suitable to predict. The theoretical contribution is twofold. First, we add to the literature by highlighting the dependence of different forms of DCsS on different levels of the centrality of sustainability outcomes in corporate strategies. Second, we shed light on the operationalizations of DCsS by providing guidance on the adoption of pertinent constructs and measurement models. The review concludes with a discussion of the managerial implications of the proposed conceptual framework to help decision makers better understand, which strategic moves to make to achieve their intended sustainability goals.     

Open data for open innovation: managing absorptive capacity in SMEs

Open Data (OD) utilisation has been encouraged by governments because of its potential to fuel digital innovation. Despite this, there is a paucity of study into the role of OD for SMEs, in contrast to the growing literature that has focused on the collection and sharing of OD by the public sector. As such, our study contributes to open innovation research by analysing the main capabilities needed to overcome existing barriers to successfully manage OD in SMEs. Building upon the recent SME-oriented OI literature and adopting an interpretative absorptive capacity framework, we analyse the data collected from 30 semi-structured interviews with experts working in UK organisations adopting OD-based OI strategies. We find a number of core factors that shape OD acquisition, assimilation, transformation and exploitation by SMEs. Results show that without the specific OD capabilities identified in our study, it will be difficult for SMEs to successfully use OD, which may explain why the uptake of OD by SMEs more broadly has so far been limited. These unique OD capabilities need to be better developed by OD using SMEs, if this ‘raw material’ for the digital economy is to be fully exploited.     

Do investors value companies' mandatory nonfinancial risk disclosure? An empirical analysis of the Italian context after the EU Directive

In October 2014, the European Union adopted Directive 2014/95/EU (hereafter, EU Directive), mandating companies of a certain size to draft and publish corporate nonfinancial information (NFI) regarding society and the environment. In this study, we examine the mandatory disclosure of nonfinancial (NF) risks by listed Italian companies, as required by the EU Directive, focusing on both the state‐of‐the‐art of such disclosure and its usefulness for investors. For this purpose, the study adopts a two‐staged research approach; in the first stage, we employed a manual meaning‐oriented content analysis to investigate the NF declarations (NFDs) of the listed Italian companies that were obliged to disclose NFI, returning a quality NF risks disclosure index. In the second stage, we used the value relevance methodology to investigate whether the disclosed NF risk information affects the levels of equity prices, through a modified Ohlson model. Our research is one of the first to investigate the value relevance of mandatory disclosures of NF risks following the implementation of the EU Directive, in the Italian context. The research was carried out in 2017, the first year of the directive's application for listed Italian companies. The main findings support a positive association between NF risk information disclosure levels and companies' market value. Moreover, they provide evidence of a significant mediating effect of NF risk on the relationship between financial risks and market value.     

STATE DEPENDENCE IN LABOR MARKET FLUCTUATIONS

This article documents state dependence in labor market fluctuations. Using a Threshold Vector Autoregression (TVAR) model, we establish that the unemployment rate, the job separation rate, and the job-finding rate (JFR) exhibit a larger response to productivity shocks during periods with low aggregate productivity. A Diamond–Mortensen–Pissarides model with endogenous job separation and on-the-job search replicates these empirical regularities well. We calibrate the model to match the standard deviation of the job-transition rates explained by productivity shocks in the TVAR, and show that the model explains 88% of the state dependence in the unemployment rate, 76% for the separation rate and 36% for the JFR. The key channel underpinning state dependence in both job separation and JFRs is the interaction of the firm's reservation productivity level and the distribution of match-specific idiosyncratic productivity. Results are robust across several variations to the baseline model.     

Firms' efficiency and global value chains: An empirical investigation on Italian industry

This paper investigates the effect of participation in global value chains (GVCs) on firms' efficiency and explores heterogeneity in this impact across different firms, according to GVC governance, positioning in the chain and time length of participation. Our analysis takes advantage of survey data providing information on involvement in GVCs for a large set of Italian industrial SMEs between 2008 and 2012. We employ Data Envelopment Analysis (DEA) to retrieve a measure of firms' technical efficiency (i.e., DEA efficiency scores) and estimate the impact of involvement in GVCs on firms' efficiency through propensity-score matching techniques and truncated regression. Our results show that participation in GVCs induces significant efficiency premia, especially for suppliers, with stronger effects in the case of relational modes of participation.     

Macroeconomic Conditions at Entry and Injury Risk in the Workplace

Using a unique dataset from Italy, we show that the local unemployment rate at entry has a persistent positive effect on severe and non‐severe workplace injuries of young workers. Entrants during recessions, despite receiving marginally higher entry wages, also experience slower wage growth. The observed pattern in the differences between severe and non‐severe injuries indicates that entrants during recessions might under‐report non‐severe workplace injuries. Our findings suggest that workers entering during recessions are persistently locked into low‐quality jobs and that the mix of hazardous tasks endogenously adjusts to the business cycle.