Globalization vs. Europeanization: A Business Cycles Race*

This paper examines the relative cyclical affiliation in six industrialized economies. While the broad conclusions are consistent with the existing literature, the proposed empirical framework is not based on correlations and permits the analysis of relative groupwise synchronization under very few assumptions. The results allow us to conclude that an English‐speaking club (Canada, UK, USA) is emerging in the last decades, whereas explicit and formal commitments seem to have had a relatively weaker power in determining Euro‐zone (France, Germany, Italy) business cycle comovements. Altogether, the business cycle race is a cause for concern as regards the entry of the UK into the Euro‐zone.     

Capital Structure Decisions During a Firm's Life Cycle

The study reported here examines the financing choices of small and medium-sized firms, i.e., those most vulnerable to information and incentive problems, through the lens of the business life cycle. We argue that the controversy in the empirical literature regarding the determinants of capital structure decisions is based on a failure to take into account the different degrees of information opacity, and, consequently, firms' characteristics and needs at specific stages of their life cycles. The results show that, in a bank-oriented country, firms tend to adopt specific financing strategies and a different hierarchy of financial decision-making as they progress through the phases of their business life cycle. Contrary to conventional wisdom, debt is shown to be fundamental to business activities in the early stages, representing the first choice. By contrast, in the maturity stage, firms re-balance their capital structure, gradually substituting debt for internal capital, and for firms that have consolidated their business, the pecking-order theory shows a high degree of application. This financial life-cycle pattern seems to be homogeneous for different industries and consistent over time.     

Following the Tracks of Atkinson and Micklewright: the Changing Distribution of Income and Earnings in Poland from 1989 to 1995

MOCT-MOST: Economic Policy in Transitional Economies -     

The role of human sustainability in professional service firms. Evidence from Italy

Sustainability is a central topic for an increasing number of companies, as a part of their business strategies. Human sustainability, that is, preserving and improving the quality of human life, in other words, maintaining and advancing human capital, appears as one relevant issue in that context. Humans and human capital are the foremost resources for professional service firms. Their role in the international economic scenario will most likely depend on how they deal with human sustainability and the wellbeing of their people. In this perspective, the paper investigates the antecedents, and organisational implications, of human sustainability in such firms using a structural equation model (SEM) developed on 4,301 questionnaires filled by Italian Chartered Accountants. Findings shed new lights on some implications of human sustainability. Results show that human sustainability has a direct and significative impact on a firm's ability to innovate, fostering creativity and intellectual capital, thus being significant for corporate performance. As a practical implication, firms should accordingly shape their business strategies towards accounting for human sustainability aspects.     

Is the abandonment of traditional livestock farming systems the main driver of mountain landscape change in Alpine areas?

Agricultural land abandonment and the consequent natural forest regrowth in areas once cultivated has significantly transformed Alpine ecosystems and landscapes. In this paper, we estimated the loss of agricultural areas due to reafforestation in the Belluno Province (Eastern Italian Alps) and integrated socioeconomic indicators with topographical features to evaluate the drivers of this change. Land use mapping, obtained from photo-interpretation of aerial photographs and technical maps, was used to quantify changes in forest and agricultural areas (crops, meadows and pastures) during the period of 1980–2000. On average, the forest surface expanded by 21%, while the agricultural areas decreased by 40%. This loss increased in areas with steeper slope, which confirms that the areas that would be first abandoned are those that are less productive and more difficult to manage. The reafforestation rate was particularly strong in the north of the province, where the livestock sector experienced a dramatic decline. In light of this situation and using multiple regression models with a large set of socioeconomic and agricultural indicators, we found that the loss of agricultural areas in 69 municipalities was primarily counterbalanced by the maintenance of livestock farming. The loss of steeper agricultural areas was counteracted by traditional extensive systems; however, it was not counteracted by modern intensive systems, which has important implications because steeper areas have higher landscape and biodiversity values. In addition, tourism development had a positive, although smaller, effect on the maintenance of agricultural areas, while industry development had a negative effect. The results of this study suggest that efforts are needed to maintain a territorial network of traditional extensive farms to avoid further landscape deterioration in Alpine areas. Likewise, certain choices toward the economic development of local communities might have an impact on land conservation.     

Drivers,adoption, and evaluation of sustainability practices in Italian wine SMEs

Based on a survey with 64 small and medium‐sized enterprises (SMEs) in two Italian wine regions, this study aims to (a) identify key drivers and barriers of the adoption of sustainability and (b) compare the adoption and evaluation (use, financial/labor investments, and satisfaction) of sustainability practices in four management domains (marketing, chain, operational, and innovation). Results show that internal drivers were considered to be more important than external drivers. Economic sustainability‐oriented drivers scored significantly lower than drivers related to other dimensions, such as environmental sustainability and heritage. Key barriers refer to labor and investments costs, as well as concerns about greenwashing. Although there are substantial differences in adoption and evaluation of sustainability practices within and between management domains, this study confirms their widespread adoption in wineries. Among users, satisfaction levels outweigh the perceived investments. Except for innovation management practices, financial investments are considered to be lower than labor investments. Positive correlations between use‐satisfaction (within each management domain) and between investments or satisfaction levels (between management domains) further lend support for producers' adoption of multiple practices. At sustainability dimension level, heritage is negatively correlated with the evaluation indicators, indicating that it may act as a potential barrier to some sustainability practices. Segmentation analysis identified a low (30%) and high sustainability clusters (70%), which differ significantly in terms of sustainability perceptions and drivers, adoption, and evaluation of practices, as well as company characteristics. Future research needs to validate the findings on SMEs, compare our measures with more objective evaluation indicators, future adoption rates, and multidimensional sustainability practices.     

Financing technology transfer: assessment of university-oriented proof-of-concept programmes

This study analyses the characteristics of the proof-of-concept (POC) programmes initiated by university and public research organisations in Europe, as a mechanism to address funding gaps and improve the transfer of research-based inventions to markets. We contribute to the literature on investment readiness of new ventures and on financing technology transfer by assessing the structure of such funding instruments and identifying critical success factors for their design and implementation. The analyses rely on seven in-depth case studies of university-oriented POCs in Europe.     

Locational strategies of international hotel chains

An empirical study was undertaken into the expansion strategies of international hotel operators in five countries in Eastern Central Europe. A questionnaire survey was conducted of the leading chains, framed around an eclectic paradigm. The analysis was complemented with multivariate analysis of competitive and locational strengths, thereby permitting additional insights into the relative positions of the major companies. The major ownership advantages were knowledge of guest requirements, strategic planning, and reservation systems. Locational advantages identified consisted of the size and nature of the city in which the hotel was to be located, the infrastructure within the region, and the perception of the region as an attractive business destination.