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The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle

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Abstract

Schumpeter first reviews the basic economic concepts that describe the recurring economic processes of a commercially organized state in which private property, division of labor, and free competition prevail. These constitute what Schumpeter calls "the circular flow of economic life," such as consumption, factors and means of production, labor, value, prices, cost, exchange, money as a circulating medium, and exchange value of money. The principal focus of the book is advancing the idea that change (economic development) is the key to explaining the features of a modern economy. Schumpeter emphasizes that his work deals with economic dynamics or economic development, not with theories of equilibrium or "circular flow" of a static economy, which have formed the basis of traditional economics. Interest, profit, productive interest, and business fluctuations, capital, credit, and entrepreneurs can better be explained by reference to processes of development. A static economy would know no productive interest, which has its source in the profits that arise from the process of development (successful execution of new combinations). The principal changes in a dynamic economy are due to technical innovations in the production process. Schumpeter elaborates on the role of credit in economic development; credit expansion affects the distribution of income and capital formation. Bank credit detaches productive resources from their place in circular flow to new productive combinations and innovations. Capitalism inherently depends upon economic progress, development, innovation, and expansive activity, which would be suppressed by inflexible monetary policy. The essence of development consists in the introduction of innovations into the system of production. This period of incorporation or adsorption is a period of readjustment, which is the essence of depression. Both profits of booms and losses from depression are part of the process of development. There is a distinction between the processes of creating a new productive apparatus and the process of merely operating it once it is created. Development is effected by the entrepreneur, who guides the diversion of the factors of production into new combinations for better use; by recasting the productive process, including the introduction of new machinery, and producing products at less expense, the entrepreneur creates a surplus, which he claims as profit. The entrepreneur requires capital, which is found in the money market, and for which the entrepreneur pays interest. The entrepreneur creates a model for others to follow, and the appearance of numerous new entrepreneurs causes depressions as the system struggles to achieve a new equilibrium. The entrepreneurial profit then vanishes in the vortex of competition; the stage is set for new combinations. Risk is not part of the entrepreneurial function; risk falls on the provider of capital. (TNM)

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... In The theory of economic development (TED), Schumpeter [1911] initiated the discussion about the close relationship between finance and innovation. In Schumpeter's conception, not every innovative firm can mobilize by itself all the capital necessary to finance research projects, the expansion of production, the development of prototypes, and the launching of new products. ...
... To break through this situation, Schumpeter emphasizes the essential role of the entrepreneur and innovation. The entrepreneur is responsible for promoting revolutionary changes by exploring new combinations, such as i) the development of new goods; ii) the introduction of new production methods or new ways to commercially handle a commodity; iii) the opening of new markets; iv) the discovery of new raw materials; and, v) the development of new organizational forms (SCHUMPETER, 2012(SCHUMPETER, [1911, p. 66). As these new combinations emerge, they are incorporated by new firms and alter forever the previously existing state of equilibrium. ...
... To break through this situation, Schumpeter emphasizes the essential role of the entrepreneur and innovation. The entrepreneur is responsible for promoting revolutionary changes by exploring new combinations, such as i) the development of new goods; ii) the introduction of new production methods or new ways to commercially handle a commodity; iii) the opening of new markets; iv) the discovery of new raw materials; and, v) the development of new organizational forms (SCHUMPETER, 2012(SCHUMPETER, [1911, p. 66). As these new combinations emerge, they are incorporated by new firms and alter forever the previously existing state of equilibrium. ...
Article
This article discusses the financing of innovation based on the evolutionary theory. The goal is to bring together elements that elucidate a firm's behavior towards the innovation process. These elements include technological regimes and the relationship between finance and innovation. The discussion goes further into the evolutionary theory by incorporating the stages of growth of an innovative firm and the preference of innovation funding sources. The conclusion is that for each technological pattern and at each stage of development, a firm tends to present a different type of behavior in seeking financing for innovation.
... He stated that the distinction between principles of economic statics and principles of economic dynamics was not clear. This idea was shared by J.A. Schumpeter (Schumpeter 1949), who in his famous work 'Theory of Economic Development' linked the development (self-development) of the economy only with those changes that were not implemented in the form of a cycle, systematic repetition of events and their oscillatory movements around a specific center. ...
... -revealing the role of private business during the systemic transformation of modern economic systems caused by the pandemic and often serving as a testing ground for most recent technologies and practices of business, -explaining the growing importance of the partnership of the state and business under Western sanctions against Russia, which is based on the ability of private companies Schumpeter's (1949) 'creative destruction' , ...
... We formulate methodological approaches to interpreting self-sustaining companies' special role in structuring the post-crisis reality using a theoretical heritage of representatives of the general systems theory (Haken 1977), synergetics (Von Bertalanffy 1968), tectology (Bogdanov 1922), catastrophe theory (Arnold 1986;Guckenheimer 1973;Zeeman 1977;Thom et al. 1969Thom et al. , 1974, the modern theory of complexity economics (Arthur 1999;Arthur et al. 1997;Anderson et al. 1988;Hausmann et al. 1996), et al. Besides, many our thoughts have been inspired by the geniuses of the past and present who anticipated the distant future (Hegel 1892;Marx, Engels 1955-1974Bogdanov 1922;Keynes 1936;Schumpeter 1949;North 1981North , 1996, and many other prominent researchers. ...
Article
Efficient organization of public-private partnership (PPP) has become especially urgent amid the economic crisis caused by the COVID-19 pandemic and numerous sanctions imposed on the Russian Federation. The importance of this issue stems from the fact that the Russian economy has found itself at a crossing of at least two fundamental systemic transformations. On the one hand, all economic systems of the world, to a greater or lesser degree, have experienced limits to the development of a static economy. On the other hand, companies that have suffered the most from sanctions against Russia have leading-edge practices in organizing and participating in technological platforms and corporate ecosystems using B2C and B2B strategies. Therefore, a qualitative change in the economy to resolve the societal crisis is a universal challenge, and Russia is not the only country facing it. In this light, the transformation of the static economic system into a dynamic one moves up the agenda. Such change usually starts with building new structural ties by sustainable big companies that must conform to the dynamic reality. Dynamics for an economy mean new development perspectives and enormous expansion potential. This new status bases on the principles of human-centrism and an important new role for talented, intellectually autonomous individuals in corporate and other structures. This article outlines the author's interdisciplinary perspective on innovative and emerging evaluation knowledge and practice related to the environment, natural resources management, climate change, and development. In recent years, evaluation has emerged as an increasingly important function in determining the worth and value of development interventions in terms of their relevance, impact, performance, effectiveness, efficiency, and sustainability. We aspire to prove that PPP for Russia, following the pandemic-caused economic crisis and under Western sanctions, may perform a fundamental mission far more important than participation in producing public goods for budget funds. It could help the country to ensure a leap in its economy from statics to dynamics. This leap and respective transformations in corporate and social structures based on the human-centric principles could bring a multiplicative effect to the economy, quality of life, public policy, governance, and other spheres.
... Innover oui, mais avant tout d'un point de vue technologique. Ainsi, dans la majorité des courants de recherche, c'est bien l'innovation technologique qui est présentée comme une composante essentielle de cette transformation (M.M. Crossan et M. Apaydin, 2010 ; J.A. Schumpeter, 1934). En parallèle de cette conception contemporaine techno-centrée émerge une approche plus organisationnelle, qui insiste sur la dimension collective et systémique d'une innovation dite non technologique ou innovation organisationnelle. ...
... Le terme « innovation organisationnelle » a été introduit pour la toute première fois par Schumpeter en 1934(J.A. Schumpeter, 1934 dans son oeuvre « the theory of economic development » pour définir une forme de l'innovation technologique. Il la considère comme le cinquième type d'innovation, « a new way of organizing ». ...
... Définitions Terme associe (J.A. SCHUMPETER, 1934) Nouvelle façon d'organiser Innovation organisationnelle (R.L. DAFT, 1978 ;G. DOWNS ET L.B. MOHR, 1976 ;W.M. EVAN, 1966 ;W.M. EVAN ET G. BLACK, 1967) Idée novatrice relative au recrutement du personnel, à l'allocation des ressources, à la définition des tâches, au mode de management ou à la valorisation du personnel. ...
Thesis
Les grandes entreprises évoluent dans un environnement social, climatique, économique et désormais sanitaire, complexe et incertain qui remet en cause le déterminisme mécanique et la logique cartésienne. A cela, s’ajoute une 4ème révolution industrielle. Pour survivre, elles doivent donc évoluer et accroitre leur capacité d’innovation. La majorité des études existantes se sont alors concentrées sur l’innovation technologique, négligeant la dimension non technologique de l’innovation, couramment nommée : « innovation organisationnelle ». Pourtant, cette dernière permet aux grandes entreprises de prendre en compte un ensemble de facteurs qui favorisent leur capacité d’innovation et l’ancre dans leurs routines. L’objectif est alors, grâce à une approche systémique et transdisciplinaire, d’identifier ces facteurs, que nous nommons « capacités d’Innovation Organisationnelle ». Elles regroupent les capacités dynamiques de l’entreprise ainsi que les antécédents de l’innovation organisationnelle. En effet, bien souvent l’innovation non technologique est perçue comme un concept flou et hétéroclite. Il apparait donc nécessaire de doter les entreprises de modèles, méthodes et d’outils qui permettent de rendre le concept concret et opérationnel. Néanmoins, de nos jours, la modélisation d’entreprise présente des limites pour d’une part, la représentation d’une grande entreprise que nous assimilons à un système« Organique » sociotechnique complexe et ouvert et d’autre part pour la représentation et pilotage des capacités d’Innovation Organisationnelle. Ainsi, dans le cadre d’une convention CIFRE avec l’entreprise SNCF Réseau, le laboratoire IMS de l’Université de Bordeaux et le laboratoire Icube de l’Université de Strasbourg, nous proposons un cadre conceptuel de la grande entreprise, de l’innovation organisationnelle ainsi qu’une démarche d’analyse et de préconisation des capacités d’Innovation Organisationnelle, basée sur notre propre modèle de l’innovation organisationnelle pour une grande entreprise.Ce travail de thèse a donc abouti à l’élaboration d’un méta-modèle qui permet à la grande entreprise d’avoir une vision systémique d’elle-même dans le but d’améliorer sa capacité d’innovation. Le modèle se compose de trois systèmes « Organisation-Territoire- Réseau d’acteurs, » et permet de mettre en évidence les capacités d’Innovation Organisationnelle au sein des systèmes dans une logique de caractérisation et de pilotage de celles-ci notamment grâce à l’évaluation de leurs impacts et de leurs priorités. Notre démarche repose sur une étude de cas basée sur une méthodologie quantitative multicritères.Au final, cette thèse est à l’origine de plusieurs contributions. Tout d’abord, le décloisonnement des sciences nous permet d’étudier les antécédents de l’innovation organisationnelle liées au territoire, et aux réseaux d’acteurs, au-delà des approches classiques qui privilégient en général les antécédents internes à l’organisation. Ensuite, nous concédons une place centrale aux dimensions humaines et sociales qui s’avèrent essentielles tout comme l’est une meilleure compréhension de leurs interactions à la fois formelles et informelles (ex : culture d’entreprise, climat social, connaissances, leadership…). Enfin, l’étude de l’impact des capacités d’Innovation Organisationnelle que nous proposons n’a jamais été réalisée auparavant pour une grande entreprise (des travaux sur les PME existent). Ainsi, la capacité d’innovation d’une grande entreprise est dépendante des interactions entre le territoire, les systèmes qui le composent, ses réseaux d’acteurs et les systèmes socio technique de l’organisation. Ces résultats débouchent sur des recommandations pour un meilleur pilotage des capacités d’Innovation Organisationnelle favorisant la capacité d’Innovation qui s’ancre dans la culture de l’entreprise.
... La creación de una economía competitiva basada en la perspectiva schumpeteriana (Schumpeter, 1934), exige un cambio de enfoques gerenciales que están orientados al desarrollo de productos innovadores. Para aquellos que están enfocados al desarrollo de innovaciones de productos, procesos y modelos de negocios disruptivos (Tidd y Bessant., 2021). ...
... A partir de lo anterior se considera que la innovación tecnológica tiene una dinámica interna, que no sólo se adapta a un entorno cambiante, sino que resulta determinante en la configuración del mismo". Schumpeter (1934) Fuente: Elaboración propia. ...
Article
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Objetivo. El propósito de este trabajo es demostrar visualmente la estructura del conocimiento y la evolución de la valuación de patentes de innovación en los centros públicos de investigación. El documento utilizó VOSviewer para analizar los registros disponibles de valuación de patentes de innovación en las Bases de datos de Scopus desde el año 2000 al 2022. Metodología. Este documento es valioso por que presenta una descripción de los artículos científicos en las bases de Scopus analizándolo con el programa VOSviewer (Análisis Bibliometrico), por países, instituciones educativas y autores, con énfasis en la evolución de las investigaciones referentes al tema en cuestión. Finalmente, un mapa de visualización, de referencias citadas y análisis de co-citas se proporcionan para detectar la base de conocimiento a la vanguardia de la innovación. Hallazgos y Originalidad. Este capítulo es una aproximación al estado del arte de la investigación de valuación de patentes de innovación en los centros públicos de investigación; y, demuestra una estructura de conocimiento visual así como la evolución del tema en cuestión. Además, proporciona una referencia importante para los académicos para visualizar la situación actual y las tendencias de colaboración en este campo. Contribución Teórica. Los autores nos muestran como el capital intelectual es uno de los principales factores a la hora de valuar patentes de innovación, pero en la práctica solo se utilizan los métodos tradiciones enfocados en costos. Contribución Práctica. Cuando se incluye el capital intelectual en la valuación de patentes de innovación se cubren mejor los aspectos intangibles de la patente, obteniendo una valuación más acertada que con una valuación tradicional enfocada en los costos.
... We aim to complement J. Chen et al. (2004), who illustrated InnoC using Skandia Navigator as an example. In Section 3, we further elaborate on InnoC, defined as SC, based on Schumpeter's (1934) seminal definition. Edquist et al. (2001) supported Schumpeter's (1934) view on innovation. ...
... In Section 3, we further elaborate on InnoC, defined as SC, based on Schumpeter's (1934) seminal definition. Edquist et al. (2001) supported Schumpeter's (1934) view on innovation. Tavassoli and Karlsson (2015) argued that the Schumpeterian definition of innovation, as a process, product, organisational, and marketing innovation, remains important today. ...
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This study investigates the mechanisms of intellectual capital (IC) in knowledge-intensive research centres and universities in the Minalogic cluster of Grenoble, France. We use structural equation modelling to analyse responses from 248 PhD holders. Our results show a positive relationship among human, relational, structural, and intellectual capital outcomes. We first contribute to the early understanding of IC mechanisms in research centres and universities by conducting a quantitative empirical study, which is novel to IC. We support the relation between knowledge-based human capital and relational alliances capital and highlight the importance of employing PhD. holders. Second, unlike past studies, we offer empirical support that (a) relational alliances capital relates to structural innovation capital and (b) knowledge-based human capital relates to structural innovation capital. We suggest that research centres and universities should develop an alliance portfolio for innovations. Third, we uncover that structural innovation capital relates to IC outcomes, contributing to the assessment of the economic and social role of public research centres and universities. This study presents managerial implications for policymakers and practitioners engaged in research centres and universities by highlighting the importance of key components of IC.
... A company that doesn't innovate may become outdated and tends to disappear. Innovation, according to Schumpeter (1939), is a central force in the dynamism of the capitalist system and it is considered necessary to maintain the economic development and the competitive capacity of the companies in their sectors. Therefore, companies need to seek innovation as a competitive differential from their competitors. ...
... International Journal for Innovation Education and Research Vol. 10 No. 11 (2022), pg. 126 Schumpeter (1939) suggested four basic types of innovation: product, process, marketing, and corporative, a definition that was followed by the Oslo Manual (2005), as can be visualized in chart 1, which shows a synthetic definition of each one of these types. Although this definition seems to be clear, innovations in marketing might be, at times, confused with a new product. ...
Article
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This work the theme is on innovation in marketing has as its aim to present and discuss marketing strategies developed by a shoe company in Vale dos Sinos/RS, focusing on innovation with its clients, and, consequently, increasing its sales. The analysis of such strategies suggests that they represent innovation not only for the company itself, but also for its clients that, by utilizing them, reduce its costs, the average time of receiving its products, and increases its profits. This company only utilizes these marketing strategies, so they are seen as innovative. Besides, they may be characterized as radical innovation, as they completely modify the company's relationship with its clients.
... Entrepreneurship is one of the most promising fields for researchers (Shane and Venkataraman, 2000), and has created interest amongst academia and policy makers. The recognition of entrepreneurship is much higher because it is linked to value creation, economic development [Schumpeter, 1934[Schumpeter, (2008] and increases market efficiency and welfare of the society. Entrepreneurial activities bring innovation, provide employment opportunities and increase competitiveness (Zahra et al., 1999). ...
... Entrepreneurship is one of the most promising fields for researchers (Shane and Venkataraman, 2000), and has created interest amongst academia and policy makers. The recognition of entrepreneurship is much higher because it is linked to value creation, economic development [Schumpeter, 1934[Schumpeter, (2008] and increases market efficiency and welfare of the society. Entrepreneurial activities bring innovation, provide employment opportunities and increase competitiveness (Zahra et al., 1999). ...
... Financial inclusion is one of the growing research topics that has recently gained popularity in the literature and received considerable attention from scholars, academics, and policymakers alike. However, the theory of financial inclusion emerged during the 1930s (see, inter alia, [1]), but the root of a wide-ranging empirical literature dates back to the early 2000s [2,3]. Besides, since the spark of the millennium development goals by the United Nations, the policy orientation of the financial inclusion nexus with socioeconomic indicators, specifically economic growth, among all others, has gained prominence in the formulation and implementation of strategies for sustainable development regardless of the social and economic structure of the countries. ...
... The existing literature on the finance-growth nexus owes to Schumpeter's [1] initial theory, stating that financial intermediaries are essential to advance technical innovations in businesses to ensure stable economic growth through saving mobilization, project evaluation, risk analysis, transaction, and money circulation conduits [30]. The theory predicts that missed opportunities are caused by inactive assets held both at personal and organizational disposal due to the absence of financial intermediaries to mobilize savings and enlarge money circulation. ...
Article
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Financial inclusion is critical to inclusive growth, proffering policy solutions to eradicate the barriers that exclude individuals from financial markets. This study explores the effects of financial inclusion on economic growth in a global perspective with a large number of panels classified by income and regional levels from 2002–2020. The analysis begins with the development of a comprehensive composite financial inclusion index comprised of penetration, availability, and usage of financial services and the estimation of heterogeneous panel data models augmented with well-known variables. The results obtained from the panel cointegration test support a long-run relationship between economic growth, financial inclusion, and the control variables in the full panel, income-level, and regional-level economies. Furthermore, the study employs a GMM (generalized method of moment) approach using System-GMM estimators to examine the effects of financial inclusion and the control predictors on economic growth. The results of the GMM model clearly indicate that financial inclusion has a significantly positive impact on economic growth across all panels, implying that financial inclusion is an effective tool in fostering rapid economic growth in the world. Finally, the study delves into the causality relationship between the predictors and provides statistical evidence of bidirectional causality between economic growth and financial inclusion, whereas it only supports unidirectional causality relationships from credit to the private sector, foreign direct investment, inflation rate, the rule of law, school enrollment ratio, and trade openness with no feedback causality. Moreover, the study fails to provide causality evidence from the age dependency ratio and population to economic growth.
... Entrepreneurship is one of the most important factors in economic development (Otache et al., 2022) this is because entrepreneurs play a role in creating innovation, employment and welfare (Schumpeter, 1934), so that the more businesses that are created in a country, the higher the economic growth. Data presented by the Bureau of Communication, Information Services, and Sessions of the Coordinating Ministry for Economic Affairs (Limanseto, 2021) shows that business activities in Indonesia, especially Micro, Small and Medium Enterprises (MSMEs) contribute 61.07 percent to gross domestic product, this makes The government is increasingly pushing to support the development of MSMEs to increase economic growth. ...
Article
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This study adopted the Theory of planned behavior (Ajzen, 1991) and Social cognitive theory (Bandura, 1986) to examine student interest in entrepreneurial activities (entrepreneurial intention). The sample taken is 100 students who have received introductory entrepreneurship or business courses. The results of the study were analyzed using the analysis of the outer model and inner model with the help of SmartPLS 3.0 software. The results showed that self-efficacy had a significant positive effect on entrepreneurial intentions, while subjective norms and attitudes had no significant effect on entrepreneurial intentions. Entrepreneurship education shows a significant positive effect on self-efficacy, and does not significantly affect entrepreneurial intentions, but when self-efficacy mediates the relationship between the two, the analysis shows that entrepreneurial education can significantly affect entrepreneurial intentions. The moderating variable of motivation is proven not to be able to strengthen or weaken the relationship between entrepreneurship education and self-efficacy on entrepreneurial intentions.
... Por último, el desarrollo de estas capacidades y habilidades deberán ser las necesarias para sumergirse en una organización inteligente que sea capaz de adoptar el nuevo paradigma de producción de conocimiento científico en el marco de una universidad emprendedora comprometida con las necesidades sociales y productivas de la región en donde se insertan. Schumpeter (1934), considera a la iniciativa empresarial como la dinamizadora del desarrollo económico, para lo cual se asienta en la existencia de personalidades emprendedoras, creativas, innovadoras y visionarias con un fuerte liderazgo para transformar las organizaciones promoviendo una ventaja sobre otras. ...
Book
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... Over the last few years, entrepreneurship has been treated as a significant force to enhance product quality [9], economic growth [10], innovative products [11], changes in societies [12], and sustainable entrepreneurship [13]. Entrepreneurship is the ability to grab an attractive and desirable opportunity in the market or add value through introducing novel combinations within the present product/service [14]; but Masaro [15] stated that a new combination is not a necessary element of entrepreneurship. Entrepreneurship is a process of opportunity identification and idea generation [16,17], product development [18], and opportunity exploitation [19]. ...
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The purpose of this research paper is to explore the antecedents and consequences of circular entrepreneurship in emerging markets. The consequences of circular entrepreneurship will be explored through the lens of three dimensions of sustainability: social, economic, and environmental. This study used a multi-case approach, which is frequently applied in circular business literature. The study used convenient and purposeful sampling techniques to identify circular entrepreneurs starting a business by recognizing opportunities in CE. We interviewed the 15 entrepreneurs (all participants engage in plastic circular entrepreneurship) with more than 8 years of experience. We employed a semi-structured interview method because respondents explored important information during the interview. Atlas.ti, a prominent qualitative software package, was used for analysis. This study portrays the antecedents and consequences of circular entrepreneurship identified when circular entrepreneurs take the initiative to serve low-income customers. This study points out that circular entrepreneurs can be motivated both intrinsically and extrinsically. The consequences of circular entrepreneurship show how such enterprises impact on society, sustainability, and the economy. The study points out that circular entrepreneurship can have both positive and negative impacts on the environment. By investigating the determinants and consequences of circular entrepreneurship in emerging markets, the authors make a significant contribution to the field of circular economy and entrepreneurship. We have limited logistics and resources, thus we did not collect data from stakeholders, who might provide a richer picture and insights into how circular products affect their lifestyle. Policymakers can get a better understanding of such enterprises from the findings of this study. They should reassess policies regarding circular entrepreneurship and suggest ways to promote open innovation within circular entrepreneurship. Circular enterprises serve low-income customers by offering an affordable product with attractive features. The government should develop an open innovation action-packed forum to find, design, and create prototypes, as well as introduce more comprehensive sustainable solutions for wastable plastic products.
... Theoretical studies have established the relationship that exists between financial intermediation and economic growth. For instance [5], Goldsmith [6], McKinnon [7] and Shaw [8], in their studies, strongly emphasized the role of financial intermediation in economic growth. In the same vein, Greenwood and Jovanovich as cited in Akiri and Adofu [9] noted that financial development can lead to rapid growth. ...
... Other proponents of the direct linkage envisage that improved financial inclusion will enhance entrepreneurial possibilities and strengthen the productive asset capacity of especially the poor, thereby leading to the potential to achieve sustainable livelihoods (Demirgüç-Kunt et al., 2008;Jalilian & Kirkpatrick, 2002). Dating back to scholars such as McKinnon (1973) and Schumpeter (1934), the proponents of the indirect linkage between financial inclusion and household welfare argue that improved financial inclusion will induce economic growth which will lead to job creation, and increased government spending on areas such as education, health, and social protection which tends to improve the welfare of mostly the poor (Abosedra et al., 2016;Perotti, 1993). ...
Article
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Despite an improving financial inclusion situation across the developing world, there still exist wide gender gaps in financial inclusion, especially in fragile and post conflict countries. Our study designed and implemented a survey consisting of 860 households across urban and rural Burundi to examine the effect of financial inclusion on household asset-based welfare from a gendered perspective. The study used the two-stage least squares (2SLS) regression method to overcome the endogenous nature of the financial inclusion index. The data revealed that most Burundian households preferred saving their money at home rather than at a financial institution. Also, mobile money was mainly employed as a means of receiving and withdrawing cash. Results from our 2SLS indicate that improved financial inclusion has a greater effect on the welfare of female-headed households than on male-headed households. This study recommends developing regulatory and institutional frameworks that can best encourage higher financial inclusion for female-headed households. Additionally, there is need for policies that can permit access to credit through the mobile money platform since that is the widely used financial inclusion avenue for female-headed households in Burundi.
... The concept of entrepreneurship has a long history in economic theory and has been a central economic issue. Schumpeter's [2] assertion that entrepreneurship is the principal engine of economic development has had a significant impact on the history of entrepreneurship. Entrepreneurship, according to Reynolds et al. [3], is any attempt to start a new business, including self-employment (i.e., individual-level activity), the establishment of a new business organization, or the growth of an existing business (i.e., firm-level activity). ...
Article
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The aim of the present paper is to demonstrate the viability of using data envelopment analysis (DEA) in a regional context to evaluate entrepreneurial activities. DEA was used to assess regional entrepreneurship in Greece using individual measures of entrepreneurship as inputs and employment rates as outputs. In addition to point estimates, a bootstrap algorithm was used to produce bias-corrected metrics. In the light of the results of the study, the Greek regions perform differently in terms of converting entrepreneurial activity into job creation. Moreover, there is some evidence that unemployment may be a driver of entrepreneurship and thus negatively affects DEA-based inefficiency. The derived indicators can serve as diagnostic tools and can also be used for the design of various interventions at the regional level.
... For example, the aforementioned study by Tkachev and Kolvereid (1999) tested the TPB as an explanation of entrepreneurial intentions, whereas Ardichvili and Gasparishvili (2003) studied the degree of variance in cultural values between entrepreneurs and non-entrepreneurs relying on Hofstede's cultural framework. Thus, some prominent theories in entrepreneurship, such as the economic theories of the effect of entrepreneurial activity on economic growth (Kirchhoff, 1994;Schumpeter, 1934), the TPB (Ajzen, 1991), or Akerlof's (1982) implicit gift exchange model of labor contracts have been validated in the Russian context without the need to be amended through context-specific moderators or mediators, or otherwise contextualized. ...
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To better understand the role of context for theory development in entrepreneurship, we build a theoretical framework which captures four aspects of the “theory to context” and “context to theory” interplay. We use the results from a literature review of entrepreneurship research on Russia published in leading journals over the past 30-year period to test our framework and show how contextualization enhances theoretical development in the entrepreneurship field and how context theorizing leads to the development of new theories. We propose ideas for the development of indigenous theory of Russian entrepreneurship based on the specificity of history and geography.
... Innovation was initially described in a conceptual way by Schumpeter (1934) when he was discussing factors of economic growth. He discovered that innovation was a significant factor involved in organizational growth and success. ...
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The manufacturing sector is an indispensable part of a country's economic system. For Malaysia, it not only helps in transmuting raw material to finished goods but also an essential driver to the country's economic growth. Owing to this sector, Malaysia holds a remarkable position in exports across the world. It is also a principal contributor to the employment of the country. Although, the manufacturing industry is deemed as the backbone of a country's growth, however, the industry also faces many challenges with technological advancements due to the industrial revolution known as Industry 4.0.The aim of Industry 4.0 is to realize productivity and improve efficiency. Its potential disruptive technologies are altering the way of work. Correspondingly, it poses challenges for organizations to innovate and in analyzing their readiness for Industry 4.0. Thereby, current research aimed to investigate the key role of organization innovation and its enablers including electronic human resource management, knowledge-oriented leadership and decentralized organization structure. In addition, change in demographics has shaped another snag in the form of an aging workforce for manufacturing companies. Ergo, the moderating role of the aging workforce was gauged in support to readiness for Industry 4.0 by using Structural Equation Modelling.A quantitative method was adopted to establish the relationship between the variables. By using self-administered questionnaire, a total of 218 useful responses from manufacturing companies of Malaysia were collected and examined through SmartPLS 3 software. The results highlighted the important dual role of organization innovation for readiness of Industry 4.0. It further confirms the moderating act of aging workforce in relationship between organization innovation and readiness for Industry 4.0.Current research contributed to the body of knowledge a detailed vision of Industry 4.0 and its significance for manufacturing sector in Malaysia. The research findings confirmed a noteworthy knowledge concerning high dependency of readiness for Industry 4.0 on organization innovation and moderating effect of aging workforce between them. Additionally, electronic human resource management and knowledge-oriented leadership were also identified as an enabler of organization innovation through empirical examination. The moderating role of organization innovation is of high interest for keen researchers. Current research provides a directive for practitioners to pave the way for successful implementation of Industry 4.0. Forbye, the research outcomes are thoughtprovoking to national policymakers which can aid in development of impressive policies for Industry 4.0 while considering the vital role of organization innovation and aging workforce.
... Novelty refers to new products or processes, radically departing from past practice (Abernathy and Clark, 1985). Novelty could also be based on new combinations of past practice, constructed within social networks (Schumpeter, 1982). Apart from novelty, innovation is firmly based on the premise of commercial deployment and profit from it (Teece, 1986). ...
Article
Purpose Rapid advancements in blockchain technology transform various sectors, attracting the attention of industrialists, practitioners, policymakers and academics, and profoundly affect construction businesses through smart contracts and crypto-economics. This paper explores the blockchain innovation ecosystem in construction. Design/methodology/approach Through a qualitative study of 23 diverse interviewees, the study explores how open or closed the blockchain innovation ecosystem in construction is and who its emerging orchestrators are. Findings The data showed that construction aims towards an open innovation blockchain ecosystem, although there are elements of hybridisation and closedness, each system pointing out to different orchestrators. Practical implications The study has implications for governments and large companies in construction, showing that open innovation initiatives need to be encouraged by policymakers through rules, regulations and government-sponsored demonstrator projects. Social implications The data showed that there is lack of readiness for business model change to support open innovation blockchain ecosystems in construction. Originality/value This is the first study applying the open innovation theory in the construction industry and sheds light into the phenomenon of blockchain, suggesting routes for further democratisation of the technology for policymakers and practitioners.
... Financial inclusion is often regarded as essential to overall economic growth. Schumpeter (1911) underlined the significance of the basic services offered by financial intermediaries in driving economic development and advancing technology. He also claimed that the financial sector has the potential to redefine the path of economic progress by influencing the allocation of financial resources. ...
Article
This article has proposed a new five‐dimensional financial inclusion index (FII) incorporating important indicators of digital financial services and insurance services to evaluate the scenario of financial inclusion across 136 countries for the year 2017. Here, dimensions have been created depending upon the characteristics of variables. To carry out the analysis, we have used the two‐stage principal component method. First, all five dimension indices (geographic outreach, demographic outreach, access, usage population, and usage volume) have been constructed, and then finally, the composite FII has been computed. One important addition in building this index is the inclusion of insurance‐related and digital finance‐related variables, which have not been included in previous cross‐country studies. Another contribution of this study is the identification of the dimension(s) that ultimately have the greatest influence on the financial inclusion score. We discovered that dimensions (access and usage population) constructed based on demand‐side factors dominate the level of financial inclusion. Therefore, top‐ranking countries in the access and usage population index are more likely to score higher than others in the FII. This underlines the relevance of demand‐side factors as indicators of financial inclusion over supply‐side factors.
... To arrive at the current state of the literature, many theoretical iterations have occurred. Starting with Schumpeter's early work (Schumpeter J., 1934), sometimes simply referred to as "Schumpeter Mark I", where the key innovative players were the individual entrepreneurs with a series of new and small firms contributing to a process of "creative destruction". This hypothesis was however reviewed by Schumpeter himself with his work referred to as "Schumpeter Mark II" (Schumpeter J., 1942). ...
Article
This study examines the corporate governance and innovation relationship of China listed firms. It aims to contribute to the literature on corporate innovation antecedents, corporate governance of Chinese firms, and its impact on innovation outcomes.Relying on agency and resource-dependence theories to understand corporate governance elements, and patents granted as a measure of successful corporate innovation, this study utilizes a quantitative research methodology and a longitudinal design to leverage data collected from the State Intellectual Property Office of China, the Chinese Research Data Services Platform as well as the China Stock Market & Accounting Database. The study sample includes 3,337 firms with a total 13,182 firm-year observations from the year 2010 to 2019.A better understanding of Chinese corporate governance practices in light of the country’s Securities Regulatory Commission (CSRC) recent reforms is needed, especially considering the necessity to derive a corporate governance theory from China for Chinese firms that has emerged in the literature. We find that board independence is the corporate governance component with the highest predictive significance on innovation, followed by CEO duality, and that board size is not a significant innovation predictor. We also find high incidence of CEO duality among China listed firms.
... Claimed to be the main driver for economic development by Schumpeter (1934), innovation can be defined as 'the introduction of a new or significantly improved product, or process, a new marketing method, or a new sensational method in business practices, workplace organization or external relations' (OECD/Eurostat 2005). ...
Article
We examine the corporate governance and innovation relationship of China’s listed firms engaging in OFDI activity. Relying on mainstream corporate governance theories, Tobin’s Q as a measure of firm performance, and patents granted as a measure of successful corporate innovation, this study leverages data collected from the State Intellectual Property Office of China, the Chinese Research Data Services Platform as well as the China Stock Market & Accounting Database. Our sample includes 3,337 firms with a total 13,182 firm-year observations from the year 2010 to 2019, divided in two panel datasets including 6,581 firm-year observations for China listed firms engaging in OFDI, and 6,601 firm-year observations for China listed firms not engaging in OFDI. We find that board independence is the corporate governance component with the highest predictive significance on innovation, followed by board size, and that CEO duality is not a significant innovation predictor for China listed firms. We also find high incidence of CEO duality among China listed firms, although less frequent for firms engaging in OFDI, and that China listed firms that engage in OFDI activity are more innovative.
... The classical Schumpeterian interpretation of technical change is defined as "a historic and irreversible change in the method of production of things" and "creative destruction" Schumpeter (1934). According to this definition, technical change in practice can be implemented in forms related to: the implementation of goods (products) that are new to consumers or higher quality than their previous counterparts, the implementation of production methods that are new to specific industries and economic activities in which they are used, the opening of new markets, the use of new sources of raw materials and the implementation of new forms of competition that lead to structural changes in the industries of their implementation. ...
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Innovation is a concept that has kept the attention of researchers worldwide. Innovation leads to product and process improvement, assists the organization to survive, grow faster, efficiently, and be more profitable than non-innovative organisations. However, the innovation level among Ghanaian firms is not yet reaching its full potential. In addition, innovative behaviour among Ghanaian enterprises is still at the infancy stage. To boost the innovation rate, it is imperative to solve the challenges and issues faced by Ghanaian firms. Innovation has become the building block of development in both developed and developing countries it is commonly agreed that innovation is the critical path towards growth and prosperity for countries as well as for individual firms. It is the key to technology adoption, creation and explains the vast difference in productivity across and within countries. However, in Africa, the case seems to have faced a challenging time due to obstacles like finance accessibility, electricity, trade regulations, land access, tax, corruption, informal sector malpractices, tax administration, political instability, transportation, and others. It is against some of these obstacles that we decided to embark on this study to help us critically investigate the effect of the barriers to firms’ growth and its effect on the degree of innovation among Ghanaian firms. To help recommend possible solutions to these obstacles. Hence, this will help facilitate firms’ growth and their degree of innovation. Keywords: Innovation, Obstacles, Firms, Ghana.
... It is well established that innovation and technological progress are crucial for economic growth (Schumpeter, 1934;Kaldor, 1961;Solow, 1970;Romer, 1990;Ahgion & Howitt, 1992;Pasinetti, 1993). Next to other factors -such as human and physical capital formation and internationalization-, research and development (R&D) has been identified as a key driver of innovation and technological progress (Mansfield, 1968;Bound et al., 1982;Griliches, 1986;Hall, 1996;Klette & Griliches, 2000). ...
Conference Paper
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Previous literature has studied extensively the factors affecting R&D investment decisions and the effects of financialization on physical capital formation. This paper adds to this literature by arguing that dividend payouts have a negative effect on firm-level R&D. External financing constraints imply that firms tend to use internal funds to finance R&D investment but, due to shareholder-oriented corporate governance and the growing importance of financial performance indicators, managers often prioritize the payout of dividends over investment. To verify empirically the existence of a trade-off between dividend payouts and R&D investment, we use a dynamic two-step system GMM estimator and financial information from ORBIS for a sample of 6,787 publicly listed firms from 72 countries during the period 2010-2018. The regression results show that dividend payouts have a negative impact on firm-level R&D investment. This finding indicates that short-term shareholder value orientation undermines firm-level R&D activities and gives support for the view that stakeholders that are interested in the long-term growth of the firm should be empowered. JEL Classification: G35; O3
... As the degree of fiscal decentralization increases, provincial governments are able to weaken financing conditions and fiscal subsidies due to different property rights. Schumpeter's theory of innovation argues that financial support plays an indispensable role in the promotion of corporate innovation [54,55]. The optimization of financing conditions and financial support is conducive to motivating non-SOEs to make faster and more effective investment decisions regarding green innovation, thereby promoting corporate green technology innovation. ...
Article
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Corporate green technology innovation is an effective way to achieve regional sustainable development goals (SDGs). Based on fiscal decentralization as a green function that empowers provincial governments with fiscal powers that are highly relevant to regional sustainable economic decision-making, this paper focused on the impacts of fiscal decentralization on corporate green technology innovation, as well as the moderating roles of taxation efforts. Taking China’s listed corporations from the period of 2005 to 2019 as the research sample, we constructed green technology innovation indicators at the corporate level. The empirical results were as follows: firstly, fiscal decentralization significantly promoted corporate green technology innovation on the whole; secondly, the synergy effects of fiscal decentralization and taxation efforts were strongly positive, implying a substantial promotion of corporate green technology innovation; thirdly, heterogeneity tests found that the synergistic effects of fiscal decentralization and taxation efforts were more significant in promoting corporate green technology innovation in eastern China, non-state-owned enterprises (non-SOEs) and manufacturing corporations. The above results were proven to be equally valid after a series of robustness tests. We suggest that provincial governments should be granted more fiscal autonomy, and that taxation efforts should be optimized to promote corporate green technology innovation.
... Entende-se por inovações radicais, as inovações decorrentes do processo de destruição criativa, que resultam em algo novo e podem ser representadas por um produto ou processo. Inovações incrementais, por sua vez, correspondem às inovações realizadas em objetos existentes (SCHUMPETER, 1934). ...
Article
O presente artigo objetivou verificar a distância entre os estados brasileiros com base no desempenho estadual em inovações. Neste sentido, a proposta consiste em apresentar a redistribuição espacial dos estados brasileiros a partir da soma das suas potencialidades (capacidade de inovação) e dos seus resultados (desempenho inovador). A fim de atender esse objetivo, o estudo realizou uma análise macroeconômica do país utilizando dados secundários disponíveis nas bases de dados governamentais e de outras organizações relacionadas. Aplicou-se escalonamento multidimensional e análise de conglomerados. O estudo foi classificado como descritivo, documental e quantitativo. Os resultados evidenciaram que os fatores determinantes da capacidade de inovação dos estados brasileiros e o desempenho inovador apresentam diferentes estágios de desenvolvimento, o que explica os diferentes desempenhos alcançados por estados de uma mesma região geográfica.
... We base on the views of Schumpeterian (Schumpeter 1934) and Arrowian (Arrow 1962) to develop the theoretical framework to investigate a link between financial development and EI. In accordance with the Schumpeterian theory, financialization's benefits may be internalized through market concentration (increased monopoly rents). ...
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This paper empirically examines the influences of financial development on environmental innovation implementation. Our research is based on four measures designed to assess the effectiveness of environmental innovations in 24 European countries, including the percentage of enterprises implementing environmental innovation investment (% of surveyed firms); the percentage of enterprises implementing environmental innovation activities (e.g., implementation of resource efficiency actions, sustainable products, or ISO 14001 certificates) measured, a number of enterprises having new ISO 14001 registration and a number of environmental innovation-related patents. Based on our analysis and estimates, we reveal that the better quality of the financial system improved the environmental innovation performance in the European region during the 2011–2019 period. To shed light on the link between financialization and environmental innovations, we dig deeper into financial markets and financial institutions’ depth, access, and efficiency. Our results highlight financial institutions and financial markets’ depth and efficiency in enhancing EI activities. However, EI-related patents do not show any significant improvements under the changes in the financial system.
... When seeking to comprehend sustainability innovations, transition and innovation studies offer a conceptual understanding of innovative aspects such as innovation types and development processes, whereas the sustainability assessment literature elaborates on what distinguishes sustainability innovations from what we may call conventional examples, i.e., innovations that have no intention and no concrete impact in terms of sustainability. Most innovation studies build on Schumpeter's (1934) seminal conceptualisation, which demonstrated that innovations, in opposition to inventions, refer to novelties applied and diffused, including product, process and organizational novelties, both radical and incremental. Business-driven understandings of innovation focus on product, process, organizational and marketingor, in a new categorisation on product and business process innovations (OECD/Eurostat 2018). ...
Article
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A bstract Sustainability innovations influence societal transformations through the development of new products, processes, organizations, behaviors or values. Although various research approaches have tackled technological innovations in the last few decades, the specificities and enabling conditions of individual sustainability innovations remain rather unknown. We therefore propose an analytical framework, built on learning from the social–ecological systems and transitions literature. The sustainability innovation framework features four dimensions: context, actors, process and outcomes, which are detailed in 31 variables. We use the sustainability innovation framework to analyze two case studies selected in the Schorfheide-Chorin Biosphere Reserve, Germany. The first refers to technological and organizational innovation in mobility, while the second relates to social and organizational innovation in agriculture. As a result, we highlight commonalities and differences in enabling conditions and variables between the two cases, which underpin the influence of trust, commitment, resource availability, experimenting, learning, advocating, and cooperating for innovation development. The cases further demonstrate that sustainability innovations develop as bundles of interdependent, entangled novelties, due to their disruptive character. Their specificity thereby resides in positive outcomes in terms of social–ecological integrity and equity. This study therefore contributes to transitions studies via a detailed characterization of sustainability innovations and of their outcomes, as well as through a generic synthesis of variables into an analytical framework that is applicable to a large and diverse range of individual sustainability innovations. Further empirical studies should test these findings in other contexts, to pinpoint generic innovation development patterns and to develop a typology of sustainability innovation archetypes.
... It searches opportunities outside local markets to increment positioning and profits. As such, internationalization is an entrepreneurial act, which implicates innovation, risk-taking, and strategic change (Schumpeter, 1934). International entrepreneurship is defined as "a combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create value in organizations" (McDougall & Oviatt, 2000, p. 903). ...
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This paper examines the impact of CEO characteristics on the International Entrepreneurship (IE) of listed island-based firms (IBFs) during the period 2009-2018. The research considers 164 companies from a sample of eight small islands with securities exchanges including more than one firm headquartered on the island. The selected islands are: Barbados, Cyprus, Fiji, Iceland, Jamaica, Malta, Mauritius, and Trinidad & Tobago. Framed on the upper echelons theory and social network theory, the influence on IE of CEO’s tenure, academic background and achievement, family allegiance, and international exposure is studied, taking into account the small island particularities. Through a binary probit model, it is concluded that CEOs’ family allegiance, tenure, and academic background (if the CEO majored in Business Administration, Finance, Accounting, or Economics) are negatively related with IE, while CEOs’ academic achievement and international exposure are positively associated with IE. Some of these results are atypical in the existing literature; nevertheless, islandness can explain these results. The conclusions attained suggest new theoretical and empirical lines of IE research for IBFs.
... According to Schumpeter, the concept of innovation in the economy includes the process of introducing new products or qualities, and new production methods to customers, penetrating new markets, controlling new sources of raw materials, and running new organizations. In this case, innovation is an important thing for the MSMEs, especially MSMEs Temanggung Arabica Coffee to maintain a sustainable business [8]. From the previous description, it needs to conduct research, entitled " Developing Economic and Environment on Innovation Practice of Sustainable Product in MSME Temanggung Arabica Coffee ". ...
... Entrepreneurship as a multidisciplinary phenomenon Entrepreneurship can be understood as the creation of new products, services, processes or business models that enhance the development and competitiveness of the market and the economic system as a whole (Schumpeter, 1934). Entrepreneurial activities generate numerous collective and individual benefits; they promote innovation, productivity, economic growth and employment, enhancing the integration of individuals and their social mobility (Acs et al., 2009;Castaño et al., 2015;Hisrich et al., 2007;Van Praag and Versloot, 2008). ...
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Purpose Entrepreneurship is presented as a vehicle for innovation and social development. Given the importance of entrepreneurship, the objective of this study was to analyze the psychological and sociological dimensions by determining the factors that explain individual perceptions and cultural support for entrepreneurship. Design/methodology/approach Using Global Entrepreneurship Monitor (GEM) data obtained from the Adult Population Survey (APS) ( N = 2,500) in the region of Andalusia (Spain), a quantitative analysis was carried out, specifically a multivariate analysis based on four-stage linear regressions. Findings The variables examined do not explain the psychological and sociological dimensions to the same extent. The results highlight the existence of cultural homogeneity between provinces, the importance of sociodemographic variables and the influence of the entrepreneurial expectations and experiences of the population, especially in shaping individual perceptions towards entrepreneurship. Research limitations/implications The replication of the study at the national and international levels is proposed in order to delve deeper into the cultural differences that condition entrepreneurship. Including new variables associated with entrepreneurial human capital could also be of interest. Practical implications The results can help to improve the design and implementation of policies and programs aimed at fostering entrepreneurship through the promotion of favorable individual perceptions and entrepreneurial culture. Originality/value The originality of this study is the consideration of individual perceptions and cultural support for entrepreneurship as dependent variables, since they are normally incorporated as explanatory factors. The results contribute to the advancement of knowledge of the entrepreneurial phenomenon through two approaches, psychological and sociological.
... Innovation is understood to occur at increased rates during periods of disruption (Thornton et al., 2013), such as during crises. Building on the early seminal research of Schumpeter (1934) on innovation in the firm, innovation means recombining existing materials. Innovation in festivals can be driven by the festival itself or by community change imperatives (Carlson et al., 2010). ...
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This paper examines innovation in times of festival crises from a governance perspective using legitimacy theory. We conduct a case study of Adelaide Festival around three crises based on data drawn from annual reports, festival programs and media articles from 1960 to 2021. Each crisis raises questions about the need to innovate, whether due to economic concerns or for new approaches to artistic programming, in order to safeguard legitimacy. However, the type of innovation varies based on internal and external environmental factors. Findings reveal tensions ranging from internal board and external stakeholder use of governance mechanisms, depending on the crisis and perceptions around art forms e.g., elitism and Aboriginality. The findings provide insights on how appropriate use of governance mechanisms can help to balance tensions between maintaining legitimacy and promoting innovation. Innovation, nonetheless, did not reposition the festival in the long-run: it remains elitist, compromising artistic vision.
... As early as 1934, Schumpeter argued that technological change would be the determining factor. Companies unable to adapt to these technological innovations would be driven out of the market and thus out of competition (Schumpeter, 1934). According to Porter, a company's competitive advantage comes from how it organises and carries out its various activities. ...
Conference Paper
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Since the 2000s, the European Commission has been paying particular attention to the digital development of the European economy and society. Since 2014, the Digital Economy and Society Index (DESI) has been one of the key tools for monitoring and measuring. In 2021, the DESI index's core indicators were aligned with the objectives of the 2030 Digital Agenda, which has four dimensions: human capital, connectivity, integration of digital technology, and digital public services. We sought to determine whether convergence between the Member States could be detected using the third dimension of DESI's annual database. The σ-convergence analysis was used to estimate the reduction over time of the differences in digital technology integration between the Member States, while the β-convergence analysis was used to estimate the rate of catching up with the initial level of development. The σ-and β-convergence were not confirmed. We examined the individual indicators (11) of the integration of digital technology to identify critical areas that need to be addressed in the future to ensure that digital inclusion is as widespread as possible. Our analysis focused on the Member States that joined the EU during the Eastern European enlargements. The performance of all individual indicators is typically below the EU average, and, as the β-convergence analysis shows, the average catching-up rate is not encouraging.
... Innovation can be defined as the selection of ways of providing products or services. Joseph Schumpeter (1934), the indisputable leader in innovation, had a clear idea of this concept when he believed that innovation includes new products, new production processes, new markets, new materials and new forms of organization and management. The role of innovation in economic development caught the attention of other authors in this area (Nelson and Winter, 1982). ...
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Many nations and political bodies are struggling to define attitudes and policies towards immigrants and immigration for the 21st Century. This national and global debate usually revolves around economic impacts and the legal status of individual or groups of immigrants. It is significant to deal with an issue of immigrants´needs and also how people consider them, because it is very actual topic in times of globalization. Understanding immigrants´needs means bigger chance for being accepted to the society. Public opinion will become more favourable toward immigrants and more accepting of immigration as younger, more liberal and tolerant generations replace older ones. Elderly people rely more heavily on stereotypes and lack “the ability to inhibit information,” causing people to be more prejudiced than they would like to be. The aim of the paper is to evaluate the perception of immigrants´needs by 3 generations of people – Generation Y, Generation X and Baby Boomers. Using the method – sentence completion, respondents from the Czech republic were asked, what they consider important for immigrants´ needs and which factors influencing their satisfaction. Obtained data were processed through a grounded theory method. Independent ttest was used to evaulate results. Immigrants’ needs for community services could pose new challenges for local governments. The results are broadly discussed.
... Nonetheless, a well-operating financial sector induces productive investment in the real sector, which could drive a positive change in other macroeconomic conditions across time and frequency (Asafo-Adjei et al. 2021;Ozenbas et al. 2022). It must also be noted that the improvement in the financial sector hinges on the performance of the economy (Schumpeter 1911;Robinson 1952). For instance, most developing economies witness depletion in their financial sector brought about by weaknesses in macroeconomic indicators contributing to their lead-lag comovements. ...
Article
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The performance of the Ghana Stock Exchange (GSE) over the years has been susceptible to both crises and country-specific factors reflected in its macroeconomic fundamentals. Accordingly, the GSE composite index (GSECI) has experienced rapid fluctuations across time, coupled with a declining market capitalisation from a reduction in the number of existing firms. The plunge in the number of firms is partly linked to the banking sector clean-up in 2017, which induced the collapse and consolidation of some financial institutions as well as weaknesses in other macroeconomic variables. This ignites an investigation into whether the synergistic impact of listed firms that represent the financial sector and the soundness of the banking sector measures are dominant factors that could drive or respond to shocks. Hence, the study investigates the lead-lag relationships and degree of integration among two indicators of the GSE—GSECI and GSE financial index (GSEFI), seven banking financial soundness indicators and eight interest rate measures. The wavelet approaches (biwavelet and wavelet multiple) are utilised to address the research problem. The DCC-GARCH connectedness approach is then employed as a robustness check. We found high interconnectedness between the indicators of the GSE and banking sector financial soundness, relative to the interest rates. Notwithstanding, the Treasury bill measures drive the GSE indicators in the short-, and medium-terms. In comparison with the two indicators of the GSE, significant comovements are dominant between the GSEFI and the two forms of selected macroeconomic variables. We advocate that the comovements among the indicators of the GSE, banking sector financial soundness and interest rate measures are heterogeneous and adaptive, especially during crises, but more significant comovements are germane to the GSEFI. The study provides further implications for policy, practice, and theory.
... The researchers first focused on prescriptive approaches towards the topics in both areas. For example, entrepreneurship research originally started with authors who focused on entrepreneur's role in economic growth and innovative activities (Schumpeter, 1934). Afterwards, the approach was mainly prescriptive, where researchers offered evaluations and suggestions on improving entrepreneurial processes (Hornaday, 1982). ...
Chapter
The current chapter discusses important characteristics of the family business in Kuwait by looking into the links between entrepreneurship, small and medium-sized enterprises, family businesses, and their growth over the years. The authors start by giving a general overview of Kuwait's business ecosystem, which served as a predominant external factor for the development of successful family businesses. One of the key factors in family business development in Kuwait was the country’s economic growth after the oil discovery. This growth drove many family businesses. Besides this, the tribal and family linkages were identified as an important driving force. Lastly, the chapter identifies the most successful family businesses in Kuwait and tries to assert the major common characteristics of these companies.
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Over the past 30 years, Poland has strived to catch up with the highly innovative Western economies. Unfortunately, despite numerous investments in the development of innovation and entrepreneurship since then, Poland is still one of the least innovative members of the European Union. In this chapter, we deal with the tax and non-tax financial instruments aimed at inspiring innovation and entrepreneurship. We analyze two distinctive periods: 2008-2015 and 2016-2020 which has been related to the EU development programs and slightly different attitudes towards innovativeness. We describe the effects of internal incentives as well as of those financed from external sources. Have they brought the expected results in the form of a wider interest in innovation and entrepreneurship in Poland? We have not found clear evidence in this regard.
Article
The purpose of this study was to find out the effect of pubertal maturation on self-esteem of adolescents. The sample comprised of total 180 adolescents (V to IX class). There were three groups indicating three phases of pubertal maturation i.e. early, mid and late. In each group there were 60 subjects. Further in each group there were 30 male and 30 female. The self-administered rating scale for pubertal development adapted from an instrument described in Peterson et al. (1988) was used for assessment of pubertal development. Indian adaptation of Battle’s Self-Esteem Inventory for Children by Kumar (1977) was used for the assessment of self-esteem. The data were analyzed through mean, ANOVA and Newman Keul’s multiple comparison test. The results indicate that pubertal maturation and gender both have significant effect on self-esteem. [Keywords : Pubertal maturation, Self-esteem and Gender]
Article
Governments worldwide are increasingly focused on promoting innovation activity to generate much needed economic growth. Innovation precincts are seen as providing the strategic opportunity to leapfrog economies and deliver a future competitive advantage. However, there are limited insights into how innovation activity in precincts takes place. In particular, the factors that enable successful innovation precincts, how they are measured and how their locations influence improved economic outcomes. This paper presents an analysis of the important enablers of innovation precincts, with a focus on measuring the relative importance of these enablers and their contribution to innovation and economic outcomes. A novel mixed-methods approach involving the use of a ‘double-blind doubled-scoring’ methodology and analytical hierarchy process (AHP) are applied to score and determine the relative importance of enablers of innovation precincts.
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O presente trabalho busca analisar como foi o comportamento da produtividade total dos fatores (PTF) de algumas empresas do setor agropecuário brasileiro que receberam crédito do BNDES, entre 2012 e 2015. Pretende-se, então, apurar se as empresas que receberam mais crédito são aquelas com o melhor desempenho produtivo para o setor agropecuário. Para isso utilizou-se a técnica Análise Envoltória de Dados (DEA), com o cálculo do Índice de Malmquist, a partir de uma amostra de 14 empresas do setor. Constatou-se que, na média, apenas quatro empresas apresentaram variações positivas de produtividade. O valor financiado pelo BNDES, pode ter tido impacto positivo sobre o desempenho das empresas do ponto de vista tecnológico, mas não foi suficiente para melhorar sua eficiência técnica. Além disso, foi possível verificar que as empresas que receberam mais crédito não foram, necessariamente, as que tiveram o melhor desempenho produtivo.
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Due to developments in information and communication technologies, main changes occur in the communication and distribution channel strategies of business. As a result of adapting technology to these strategies, omni channel applications gain great importance as information about products and services can be obtained and accessible on all channels. It is more efficient to manage them in an interdependent and harmonious manner rather than managing distribution channels one by one like different channels. In this context, businesses gain competitive advantage as a result of adopting omni channel strategies, which differ from other channel strategies in terms of flexibility and depth of integration. At this point, it is considered to be useful to examine what the omni channel experience offered by the businesses in the competitive environment means and why it is important for the businesses. Having a physical inventory close to the customer with omni channel applications (click and collect, buy online, return in store, in-store digital purchase, kiosks, self-payment points, etc.), offers businesses flexible purchasing behavior and return options to the consumer. This allows them to offer shorter delivery times compared to leading online purchasing behaviors. With the use of QR-Quick Response, information about products or services can be obtained online, or you can perform your payment transactions without losing time thanks to QR-codes. In addition, customers can have a unique experience thanks to the implementation of loyalty programs of businesses both online and integrated with traditional channels. This situation is important in order to develop and maintain relations (satisfaction, trust, commitment) between the customer and the business. In this research, it is aimed to analyze the role of customer experience on relationship quality and its effect on loyalty intention (word of mouth communication and repurchase intention) through a holistic model in terms of omni channel management. In addition, the sub-purpose of the research aims to compare the effect on customer experience and loyalty intentions depending on demographic variables, brand, shopping frequency and amount of spending. A face-to-face survey was used as a data collection tool. In the study, convenience sampling, one of the vi non-random sampling methods, was preferred as the sampling method and data of 513 participants were obtained. SPSS 21 program was used in data analysis and hypotheses regarding the research model were tested. As a result of the study, it was determined that the omni channel customer experience has an effect on loyalty intention, and the quality of the relationship has a mediating role in this relationship. The personal innovativeness dimension did not have a moderating effect on the relationship between customer experience and relationship quality. The main issue in developing the loyalty intention is that the marketing activities and customer experiences of omni channels should be evaluated within the framework of the business's plans. It should not be forgotten that it is important to provide positive customer experience to customers who use omni channels as the source of loyalty intention and to improve the quality of the relationship.
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In this article, dynamic factor model (DFM) and vector auto regression (VAR) approaches are used to construct financial condition indices (FCIs). Further, the impact of financial conditions on investment growth in India is gauged using generalised method of moments. Our analysis finds that financial conditions impact investment growth with a lag, and there is also evidence of an asymmetric impact of the financial conditions.
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While work from home (WFH) becomes the new norm in the COVID-19 pandemic and while small businesses could be more vulnerable in crisis, whether the WFH norm will fade after the stay-at-home mandate ended and whether WFH could be a Schumpeterian “creative” force that helps small businesses do well in the pandemic is unknown. The study first builds a theoretical framework based on marginal revenue product cost utility theory subject to a “contagion” agglomeration parameter and argues that WFH is a rational choice for businesses. Then, we compiled from multiple data sources an up-to-date real-time daily and weekly multifaceted data set tracking WFH propensity from March 20 through July 28. Our empirical analysis estimated a variety of fixed-effects panel data models, population-averaged generalized linear panel-data models with the generalized estimating equation (GEE) approach, and two-level mixed-effects panel-data models. After controlling for the local pandemic, economic, and demographic factors, we find (1) after the stay-at-home order ended, WFH rate got higher; (2) small businesses in states with higher WFH rate are more likely to have higher increases in operating revenue, better cash flow and lower chances of temporary closure. Our robust empirics confirm our theories and hypotheses and demonstrate WFH as a potential force that expedited the “creative destruction” into a new efficient work paradigm.
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The term disruption has been offered as both an ethos and set of practices framed as a broad response to all manner of social and political ills. This article offers a speculative reflection on disruption as a planetary mood, and the sensory qualities of a change in politics no longer defined by governance and what is governable, but by a series of continuous experiments hedged upon the creation of new geopolitical frontiers and life forms that position all matter and contingency towards a specific kind of value tied to chaos. In thinking about the kinds of authority and legitimacy being fashioned around visions of so-called disruptive futures, I draw on materially-grounded illustrations of disruptive dispositions to examine three different arrangements of affect, feeling, and intensity being animated to give disruption its power of transmissibility and adaptability, as well as its unintuitive emphasis on disorder and ‘breaking things’ as both a moral good and unconditional response to questions concerning global conflict, crises, and instability. Ultimately, disruption as a planetary mood draws on a libidinal economy that does not bend towards justice or equity, thus warning against misanthropic commitments to collapse and the consequences of investing in a world premised on an ethos of erasure.
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