Family small and medium-sized enterprises (SMEs) face both general bounded rationality challenges and a unique expression of bounded rationality in their internationalization process: the bifurcation bias, a concept aligned with modern transaction cost theory (TCT). We argue that efficient governance in family SMEs, and especially features of the Board of Directors’ composition, can help alleviate bounded rationality. Complementing TCT with upper echelons theory (UET), we investigate which Board characteristics in family SMEs contribute to efficient governance and the ensuing strategy decisions. We focus specifically on strategy decisions in the internationalization sphere. Our empirical analysis of survey data from 328 Belgian family SMEs, operating out of a small open economy, reveals that family SMEs internationalize more if their Boards are ‘open’, ‘inclusive’, ‘experienced’ and ‘active’. These Board characteristics, all reflective of efficient governance, i.e., providing the Board with the capacity to alleviate bounded rationality constraints, positively contribute to internationalization, especially (and perhaps paradoxically) when the family SME is managed by a CEO who is also a family member.
Investor sentiment may not only influence financial instability, it may also be shaped by it. Moreover, such causal links may differ over time, in crisis and non-crisis periods. This is a groundbreaking paper that tests these two hypotheses from a macro-financial perspective using the bootstrap rolling window sub-sample Granger causality approach to look at the case of the U.S. financial market between January 1990 and January 2021. We find that bullish sentiment can reduce financial instability as it promotes financial market entry and then liquidity during non-crisis periods, while higher financial instability is associated with less bullish sentiment leading to a shift to crisis periods. The results also reveal a positive (negative) effect of bearish (bullish) investor sentiment on financial instability during crisis periods, including the 2007–2008 financial crisis, the 2010 flash crash, the 2015–2016 Chinese stock market turbulence, and the February 2020 stock market crash. Finally, the study highlights the important role of the “betting against beta” strategy in the U.S. financial market, showing a negative effect of financial instability on bearish investor sentiment during several pre- and post-crisis periods.
Informal lending is more common in less developed countries, regions and among more disadvantaged communities. While the literature advocates that social capital affects access to informal credit through many mechanisms, there is little empirical evidence on the effect of social capital at individual and community levels. This paper uses a longitudinal dataset to examine the impact of social networks at both levels on the access to informal credit among rural households in twelve rural provinces across Vietnam. Our empirical results show a stronger effect of community's social network on informal credit access. In the case of negative shocks, households become more reliant on informal credit, and the effects of social capital become stronger. Additionally, households with family relatives holding political positions are more likely to obtain informal credit. Our results are robust as possible endogeneity issues have been accounted for by the fixed-effect estimator and "E-value"—a new tool to assess the robustness of findings to unobserved confounders.
It is well known that the satellite attitude motion exhibits the chaotic phenomenon. This article addresses the challenging problem of chaotic attitude synchronization and anti-synchronization for master-slave satellites under unknown moments of inertia and disturbance torques. First, a fixed-time adaptive synchronization controller is designed by combining the fixed-time control technique and adaptive control technique. The parametric adaptation laws are adopted to identify the unknown parameters in the synchronization error system. Benefiting from the adaptive identifications, the proposed controller is highly robust to unknown moments of inertia and disturbance torques. The practical fixed-time stability of the resulting closed-loop system is strictly achieved. The proposed controller can guarantee all error variables in the closed-loop system regulate to the small residual sets around zero in fixed time. Then, a fixed-time adaptive anti-synchronization controller is developed in a similar way. Finally, simulations studies are conducted to demonstrate the effectiveness and excellent control performance of the proposed controllers.
The interplay between policy-setting by the Federal Reserve and inflation is explored during a period with significant and diverse episodes from 1979 onwards. Our unrestricted estimates reveal a stable target path for the policy rate with a strong response to inflation and an effective control over it. We identify moments of discretionary and rule-based policy-making throughout three different chairmanships and quantify the degree of policy inertia. Including the ‘great recession’ and the first years after the crisis leaves the above-mentioned characteristics unchanged and shows that the adjustment to deviations from the target path becomes less gradual. Replacing the federal funds rate with a shadow rate yields ineffective inflation control, indicating that the dynamic behaviour of inflation is affected by the implementation of unconventional policy when the zero lower bound applies.
This paper explores whether economic globalization is (de)carbonizing the MENA region. Based on a comprehensive econometric analysis including ARDL and NARDL models for a panel of 17 MENA countries over the 1980–2018 period, it reveals the existence of asymmetric long-term impacts of economic globalization on CO2 emissions. As economic globalization increases, CO2 emissions increase, but the effect is much stronger for trade globalization than for financial globalization. On the other hand, the decrease in globalization has no effect. The study also shows that, the effects of financial globalization are different between OPEC and non-OPEC MENA countries. It appears that financial globalization pushes OPEC MENA oil-exporting countries to reduce their CO2 emissions with the transfer of technologies and the development of their financial market. These different results between OPEC and non-OPEC MENA countries allow us to propose differentiated policies for these two groups of countries.
This article provides some analytical proofs for the effects of loss aversion and diminishing sensitivity on portfolio choice. We use the performance index (Omega ratio) of return distribution to characterize the threshold value that determines non-zero investment in the risky asset and show the impact of stochastic improvement of risky return on the threshold. We propose the measure of greater diminishing sensitivity and examine the loss aversion characterizations for large and small stakes. Moreover, we demonstrate that diminishing sensitivity and loss aversion may make opposite predictions on willingness to invest in the risky asset. Specifically, although loss aversion decreases the investment in the risky asset, diminishing sensitivity in the loss domain will predict the opposite.
The family business literature has not addressed the role of information systems (IS) in the development of trust in family businesses. Through an in-depth analysis of a Chinese industrial family business in Qingdao, this study shows how several IS contribute to trust within the organization. Trust is conceptualized according to three dimensions, namely interpersonal trust, competence trust, and systems trust. Three main IS have been identified in the organization, namely WeChat, DingTalk, and the Enterprise Resource Planning system (ERP). This exploratory study analyzed how eight departments use these IS to understand which institutional logic is embedded within each IS. Each information system is conceptualized as embedded in a specific institutional logic which is not neutral in terms of trust building. These findings highlight the fact that Chinese executives use specific information systems to develop trust. ERP (here SAP) has a specific inherent institutional logic, namely rational managerialism, which contributes to system trust. Social media such as WeChat and DingTalk are embedded in their own institutional logic which makes them more adapted to specific activities. Unlike rational managerialism, the institutional logic associated with WeChat includes a strong focus on interpersonal communication, cooperation and problem-solving. WeChat is associated with the development of interpersonal trust whereas rational managerialism is rather associated with transparence and formality, thus unsuitable for developing interpersonal trust. Chinese executives use WeChat to create an informal and dynamic social space which promotes the development of stronger social ties with each other. DingTalk is associated with another logic which promotes formal information sharing, reliability and internal management. This information system contributes to the development of another type of trust, namely competence trust. The two social media contribute to sustaining interpersonal trust and competence-based trust which are critical in the development stage of a family business. Findings also show that family members need to create a forum without their presence for employees to exchange freely, thus creating a space in which trust can blossom. This paper concludes with theoretical contributions and implications for practitioners.
The concept of habitus is instrumental in generating sociological understanding of governance and sustainability from an environmental perspective. In this study, the concept has been brought into play to better understand agents’ disposition and conditioning towards sustainable practices in the supply chain. Based on Bourdieu’s formulation of habitus and on prior literature, four theoretical propositions are defined and assessed. A multiple case study in the field of shipping is the focus of this research, intended to shed light on how agents´ habitus conditions the way sustainable development goals, such as climate action and life under water, are practiced in the maritime industry. The results highlight the role of several types of habitus that predispose agents to certain ways of mobilising supply chain material, legal, and institutional assets towards the practice of environmental sustainability. We discuss these findings, stressing the role of boundary objects as instrumental in supporting sustainable practices. Moreover, we discuss the transposition of habitus from one field to another and its implications for sustainable practices in the supply chain. We conclude with the theoretical contributions and practical applications stemming from this research.
We study competing-mechanism games, in which multiple principals contract with multiple agents. We reconsider the issue of non-existence of an equilibrium as first raised by Myerson (1982). In the context of his example, we establish the existence of a perfect Bayesian equilibrium. We clarify that Myerson (1982)’s non-existence result is an implication of the additional requirement he imposes, that each principal selects his preferred continuation equilibrium in the agents’ game.
The banking system in developing countries is much less developed than in other parts of the world; hence it is more common for households to borrow money through informal channels. Informal loans are characterized by social collateral rather than physical collateral. The literature shows that social networks and social trust are important components of social collateral. While many studies show empirical evidence of an association between social networks and informal borrowing, there is a lack of empirical evidence of the way in which social networks and social trust play as social collaterals. This paper uses a longitudinal dataset to examine the role of generalised trust and social networks, under organisational networking resources, in informal loans among rural households in twelve provinces across Vietnam. Empirical results show that community social networks impose a positive effect on obtaining informal loans and on repayment performance, while generalised trust is associated with the probability of falling into arrears.
Plain English Summary Leveraging Autonomy as a Stress-Coping Resource for Entrepreneurial Well-Being. External environmental disruptive events have promoted an urgent need for a better understanding of the factors associated with entrepreneurial burnout. We explored whether entrepreneur autonomy is a liability or a coping strategy. Insights from the conservation of resources and psychology theories were used to explore burnout reported by entrepreneurs in France. Entrepreneur emotional demands (i.e., strains) increased the risk of burnout. This risk was reduced when entrepreneurs had autonomy and job satisfaction resources. While the autonomy resource enabled the buffering of emotional strains that increase burnout, this was not the case with regard to the job satisfaction resource. Entrepreneurs need to obtain and maintain autonomy over time, which enables them to recuperate from emotional strains. Practitioners can play a role in encouraging entrepreneurs to be aware of the need to accumulate autonomy and job satisfaction resources, and the need to invest in coping strategies to reduce the risk of burnout.
The aim of this research is to understand why some family firms perform better than others. To do so different configurations are identified based on familiness resources such as human, social, and financial capital, as well as the degree of entrepreneurial orientation that are considered to impact family firms’ performance and transgenerational survival. We test our theoretical contention on a sample of 1,344 family firms from 21 countries through fuzzy-set qualitative comparative analysis. Our main findings suggest that there are several configurations of resources and entrepreneurial orientation that increase the level of family firm performance. In three out of the seven main configurations, family firm specific resources alone lead to better financial performance, while the other four rely on entrepreneurial orientation combined with family firm specific resources. All identified configurations relate to different degrees of family involvement and thus emphasize the heterogeneity of family firms and their paths to financial performance.
In this paper, we examine how mutual fund managers behave to fluctuations in market volatility. We use a sample of daily return from countries around the world to evaluate how manager perform to publicly available information. There is a lack of empirical studies that examine the relation between conditional market returns and conditional volatility on a global scale; we provide evidence across countries to answer this question. Our study provides new evidence about conditional mutual fund performance across countries. We find that during periods of high market volatility mutual funds reduce market exposure across all countries; this implies that systemic risk is particularly sensitive to changes in market volatility around the world.
The main purpose of the present study is to address the existing research gaps by examining the motives of customers for writing online fake reviews for cosmetic products. Based on the self-determination theory, 20 customers from South Korea and 31 from France were interviewed in order to conduct a cross-cultural comparison. The results demonstrate the extrinsic and intrinsic motivations of South Korean and French customers for posting fake reviews for cosmetic products and highlight the similarities and differences between the two cultures. Both theoretical and managerial implications were presented. This study helps cosmetic brands better understand the motives of customers for posting fake reviews and how to deal with them.
Knowledge sharing (KS) is key for a successful supply chain (SC), and the role of information systems has been widely studied as a means to facilitate formal KS. Although critical in practice, the role of social media in informal KS within the internal SC is not sufficiently examined, even though they are intensively used for that purpose in certain specific cultural contexts. To what extent do social media contribute to KS within the internal SC functions in a cultural context where informalization is preferred? The article relies on a case study conducted in a manufacturing company in China where ERP implementation failure allowed two social media (WeChat and DingTalk) to play a growing role in the KS within the internal SC. The case study analysis follows the knowledge-based view dimensions: transferability, capacity for aggregation, and appropriability. The findings highlight the distinct role of these social media and illustrate the role of cultural dimensions in a context where informalization is preferred.
This study aims to analyze the spatial and temporal characteristics of the transfer of pollutants, including Carbon Monoxide (C.O.), Ammonia (NH3), non‐methane volatile organic compounds (NMVOCs), Sulfur Dioxide (SO2), Nitrogen Oxide (NOX), and Particulate Matter with particle size below 10 microns (PM10), which are embodied in the bilateral trade between China and India, and the transfer paths between various industries. A multiregional input‐output model (MRIO) is constructed based on the EORA Database to track the economic connections and the effects of specific products across regional supply chains. The empirical results indicate the following significant findings. China is a net exporter of embodied pollutants in bilateral trade, and India is a net importer. C.O. accounted for the most significant amount of pollutants emitted by the bilateral trade between China and India. The energy intensity has mainly adverse effects on emissions of six pollutants, while the consumption scale has overall positive effects. Metal products and mining and quarrying are the top two industries producing the highest emissions at the export ends. The emissions of certain pollutants, such as SO2, are also particularly pronounced in individual sectors. Construction and electrical and machinery are the highest C.O.‐importing sectors of China and India.
This study aims to identify and analyze factors determining the adoption of digital technologies in SMEs. Drawing on the technology–organization–environment framework, the study highlights enabling factors from three different contexts and hypothesizes their relationship with digital technology adoption. The data used were collected from 15 346 European Union and non-European Union SMEs to test an ordered logit regression model that highlights the factors associated with an increased level of digital technologies adoption in SMEs. The empirical results show that the technology context (IT infrastructure and digital tools) along with the existing level of innovation are the main drivers that act as stepping stones in digital technology adoption. Corporate regulation, available skills, and financial resources (as organizational variables) also play a significant role in the adoption decision. Unexpectedly, the influence of the environmental context is marginal. The implications of this study are emphasized for theory and practice, laying a foundation for further empirical studies in this field. Managerial relevance statement: This article reviews the empirical research on digital technologies adoption and examines the drivers of such adoption in SMEs. The factors identified provide guidance for practitioners adopting digital technologies in SMEs, by suggesting they assess the readiness of their firms before investing in digital technology. This research helps advance the conversation on digitalization drivers especially by bringing the discussion into the organization boundaries, as our findings highlight the predominance of organizational drivers over the technological and environmental ones. SMEs have to overcome the challenges associated with constructing an IT infrastructure capable of implementing new technologies. Indeed, while striving to adopt new digital technologies (e.g., AI, big data, IoT), many SMEs are still unprepared. Therefore, rather than adopting mimetic behaviors based on external pressure, SMEs that aim for digitalization should first assess their existing technologies, and further develop a meticulous technological roadmap that includes skills upgrades and investments in upskilling employees’ capabilities. Therefore, developing a fully integrated strategic approach is crucial before the adoption of digital technologies</p
This paper aims at the imbalanced characteristics and proposes a novel evolutionary cost‐sensitive support vector machine (CSSVM) by integrating cost‐sensitive learning, support vector machine, and genetic algorithm for carbon price trend prediction. Firstly, carbon price trend prediction is converted into a binary‐class prediction problem for CSSVM, in which a higher misclassification cost is imposed on the minority samples. In comparison, a more negligible misclassification cost is imposed on most samples. Secondly, a genetic algorithm (GA) is used to optimize all parameters of CSSVM synchronously. Taking Beijing, Hubei, and Guangdong carbon markets as samples, the empirical results show that the proposed model has a higher classification accuracy and lower misclassification costs compared with other popular prediction models. Furthermore, the sensitivity analysis verifies that the proposed approach is robust.
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