Survival of new firms in the Brazilian franchising segment: an empirical study

This paper investigates the survival patterns of Brazilian franchising firms for the period 1994–1999. First, we considered the (percentage) survival of newly created franchisors in the following years. Survival functions were obtained by means of the Kaplan–Meier estimator for the selected sectors and they indicated sharp declines in the survival rates over time but with differential patterns across sectors. Finally, an econometric analysis based on the Cox proportional hazard model considered the explanatory variables pertaining to size, age and support regarding the legal aspects, location choice and training. The evidence indicates that the supports provided by the franchisor have a positive impact on the probability of survival of new firms, whereas there is partial evidence favoring a positive effect of firm size on survival.     

Latin American franchise internationalization: The impact of institutional environment

We analyze the internationalization of Brazilian franchise chains in Latin America. A total of 119 observations verify international commitment in each country in relation to institutional environment factors and how they are moderated by chain size and industry. The results show that despite all institutional aspects having a significant effect, their explanatory power depends on chain size. Larger franchise chains usually choose countries with better institutional aspects in terms of contract compliance and business freedom, even if the efficiency of business conditions in these countries are not the best in Latin America. In this study, were used public data from international organizations that report on the ease of doing business, level of corruption, political risk, and legal regulations. Specifically, it contributes by using institutional theory in franchising in order to understand the process of chain internationalization originating from emerging markets. Our results, in part, contradict the idea that the origin disadvantage is always an advantage of internationalization.     

Strategy implementation for the 2030 agenda: Insights from Brazilian companies

While firms' engagement with Corporate Social Responsibility has been associated with positive performance impacts, little is known about the incorporation of the United Nations 2030 Agenda into business practices. Precisely, although the literature suggests that firms are pursuing the Sustainable Development Goals (SDGs), there are limited insights on their strategy to implement them in the context of developing countries. To address this gap, we conducted a comprehensive large-scale investigation of 2030 Agenda adoption by Brazilian companies. Accordingly, the analysis of our multicase study reveals (1) variations on the business opportunities brought by the SDGs depending on the firm position in the value chain, (2) which SDGs and target stakeholders are addressed through corporate policies and practices, (3) the different ways firms embrace the SDGs to pursue ambidexterity. Our findings clarify how firms in the developing countries interpret the institutional pressures and assemble their internal resources to respond to the SDGs challenges. Boundary conditions and policy implications are further discussed.     

Quantitative analysis of the implementation of educational plans in Latin America

In this paper an index of plan implementation is defined and applied to the 1960–1970 educational plans of Latin American countries. Statistical analysis is used to specify the determinants of the values of the index. It is shown that a lack of statistical data and of qualified personnel are the main reasons for insufficient plan implementation.     

An Austrian view on the middle income trap

This paper intends to give a nuanced interpretation ‘the middle income trap’ in the discussion on China’s economic future. A developing nation gets ‘trapped’ when it reaches a relatively comfortable level of income but cannot take the step into the next level. In this paper, the usually made connection between income trap and the structure of economy is critically examined and the ‘trap’ is interpreted as a bearer of information in itself. According to the Austrian school of economics (Hayek), prices represent the sum of information that is available to the markets. Stagnating incomes will consequentially be read as information concerning the lack of growth of the productivity of the work force and the industry. The ‘middle income trap’ has to be addressed at microeconomic level, focusing on the increase of productivity. Usually, the trap cannot be addressed by government policies, but has to be solved by increased entrepreneurship.     

Hospitality employees’ unrealistic optimism in promotion perception: myth or reality?

The present study examines the degree of optimistic bias in employees towards their career prospect, namely promotion opportunities. By comparing the expected promotion time of hospitality employees and the actual average promotion time of their respective job position, this study revealed that employees at the entry level position are the most optimistically biased towards their promotion expectations. This unrealistic expectation is rooted in infrequent appraisals and performance feedback that is translated into negative work outcomes (i.e. lower intent to stay and job satisfaction). Managerial implications are subsequently discussed.     

Do shareholder protection and creditor rights have distinct effects on the association between debt maturity and ownership structure?

This study examines the effects of the firm's ownership concentration and its institutional environment on corporate debt maturity choices. As ownership concentration and debt maturity are alternative governance mechanisms, we theorize and investigate whether their association is influenced by country-level governance factors that enhance outside monitoring by minority shareholders and debtholders. Our investigation is based on a dataset of 50,599 firm-year observations from 38 countries. We use a propensity-score matching approach and find that the effect of ownership concentration on debt maturity is conditional to country-level governance attributes. Ownership concentration has a negative effect on debt maturity in countries where both shareholder protection and creditor rights are weak. Ownership concentration, however, tends to lengthen debt maturity as protection increases, and this positive effect on the length of debt maturity is stronger in countries enhancing protection towards debtholders (instead of shareholders). We also explore other characteristics of ownership structure, such as the identity and presence of controlling shareholders. These results corroborate the view that entrenched shareholders may use debt maturity opportunistically. Our study provides new insights into the interplay between firm- and country-level governance mechanisms and a deeper understanding of cross-country differences in the association between ownership structure and debt financing.     

Employing the business model concept to support the adoption of product–service systems (PSS)

Although the existing literature indicates that the business model concept can be useful to implement product–service systems (PSS), there is still a paucity of guidelines to assist companies in this respect. Therefore, this paper proposes a framework to support the adoption of PSS employing the business model concept. This framework was developed based on literature review and intends to guide the company on the analysis of their business context, on the choice of the appropriate type of PSS and on the definition of their PSS characteristics. A single case study was then performed to illustrate an application of the framework in a machine tool manufacturer and provide research insights. Overall, results indicate that the framework can provide companies with a useful reference to PSS implementation, helping on the investigation of different PSS scenarios as well as the main barriers and challenges to be overcome.