•Digital transformation inhibits transition economy firms’ short-term performance but increases their long-term value.•CSR enhances the effectiveness of digital transformation, whereas CSI weakens ...it.•The enhancement effect of CSR on the effectiveness of digital transformation is weaker than the weakening effect of CSI on the effectiveness of digital transformation.
This study examines how digital transformation affects the short-term performance and long-term value of transition economy firms as well as the moderating role of corporate social responsibility (CSR) and corporate social irresponsibility (CSI) in these relationships. We believe that digital transformation inhibits the short-term performance but increases the long-term value of transition economy firms. Furthermore, CSR and CSI have important contingency roles in the effectiveness of digital transformation. While CSR enhances the effectiveness of digital transformation, CSI weakens it. Finally, we believe that the enhancement role of CSR is weaker than the weakening role of CSI in the effectiveness of digital transformation. Using empirical data of Chinese listed companies from 2008 to 2020, we obtain empirical evidence confirming most of these theoretical views. This study provides new insights into the literature on digital transformation and firm ethical practices and presents important practical implications.
Drawing upon the resource-based view and transaction cost economics, this study aims to examine how various types of managerial resources (i.e., political networking and functional experience) can be ...beneficial to new ventures in a transition economy. Using survey data from a sample of new venture in China's high-technology industries, we demonstrate that managers' political networking and functional experience are positively related to new venture performance. We also find that the positive relationship between functional experience and new venture performance is moderated by the type of ownership of the ventures and the level of dysfunctional competition in their environments. Theoretical and managerial implications are discussed.
What type of investment strategies are effective for foreign venture capital (VC) firms investing in transition economies? This is the research question we address in this paper by analyzing recent ...institutional developments and investment activities of foreign VC firms investing in China. We find that foreign VC firms identify China as lacking fully-developed institutions necessary to effectively support VC investing. We further find that foreign VCs have evolved unique proactive, hands-on investment strategies via a bumpy road of investing in China: initially dominating the Chinese VC industry, but since the great financial recession playing a still-significant but reduced and disadvantaged-role subservient to the rapidly increasing role of domestic VC firms. We developed a novel triangulation research methodology that allows us to provide significantly more depth in our analysis of how foreign VCs compete in transition economies. This research contributes to both the institutional theory and VC investing literatures. We suggest that foreign VCs can increase their competitive advantage by developing hands-on value-added investing strategies, when investing in transitioning markets.
This study examines the impact of bribery within the home country on firm exports by developing two contrasting hypotheses. On the one hand, preferential treatment resulting from government officials ...in exchange for bribes may promote exports by enhancing efficiency and enabling bribing firms to better compete in foreign markets. On the other hand, preferential treatment resulting from bribes may decrease exports by providing firms with more established positions within the domestic market diminishing the incentive to explore foreign markets. Adopting the three-stage least squares method, we test these competing arguments using a sample of firms operating within transition economies. We find that bribery within the home country decreases rather than increases firm exports. The implications of our findings are discussed.
Familiness, perceived as family members' involvement in and influence on the functioning of the family business, constitutes the distinguishing feature of every family firm. In the paper, we ...empirically test the relationships between familiness, innovation input and output and organizational performance in a post‐transition economy using data from 200 Polish family firms. Our research results reveal that high levels of ownership, management and control of the firm by the family members, perceived as part of familiness, lead to increased firm performance. Second, results show that the increase in the degree of familiness lowers the innovation input. We also found out that increases in the transgenerational orientation of a family business and family–employee bonds lead to decreased innovation output and higher family business identity generate higher innovation output.
This study examines the relationship between tourism specialization economic growth, and human development in a transition economy. It proffers a conceptual link between tourism specialization and ...human development through a division of labor framework. Dynamic comparative advantage, Sen's capability approach, and the translog production function characterize the conceptual relationship. The Limited Information Maximum Likelihood (LIML) estimates this relationship's nature in the case of Poland. Tourism specialization has a short-term effect on economic growth and a negative and indirect link to human development. Economic growth seems the channel that supports human development expansion, indicating short- and long-term significant, positive effects. Human capital reveals a U- shape pattern in its relationship with economic growth and human development. The study's implications are two testable propositions and two policy options suggesting tourism specialization's potential impact on private and public incomes, which are relevant developmental channels in transition economies.
•Integrating Smith's and Sen's frameworks yields an original tourism specialization definition.•Tourism specialization has only a short-term effect on economic growth.•Economic growth has a positive impact on human development.•Tourism specialization and human capital complement each other.
In this paper we calculate the global phase diagrams with the closed-loop behavior for the phase transition of physical systems by means of the transverse field Ising model with nearest neighbor ...interaction. The 3D graph plotted by the various physical parameters gives a clear appreciation and qualitative understanding of the reentrant phase behavior of the system. Meanwhile the results show the close correlation between experimental phenomena and our theoretical calculation for the closed-loop behavior for the phase transition of the systems.
The behavioral theory of the firm (BTOF) suggests that firms are motivated to increase R&D search in response to profitability shortfalls—that is, R&D‐based problemistic search. Although prior ...studies have provided considerable evidence for this influential explanation of R&D search, recent research shows that it is not the case in transition economies. Our study sheds light on this critical question of Why not for transition economy firms (TEFs), by identifying institutionally derived mechanisms that distract TEF decision makers' attention from R&D‐based problemistic search. Specifically, we examine the implications of institutional environments for goal definition and problem attribution—two critical yet underexplored components of problemistic search. Integrating the BTOF and institutional implications, we theorize how TEFs' R&D‐based problemistic search is distracted by government‐imposed goal definition and politically oriented problem attribution. Using panel data on Chinese listed firms, we find that R&D search in response to profitability shortfalls is negatively moderated by employment shortfalls (government‐imposed goal definition) and lack of political connections relative to peers (politically oriented problem attribution). Our study provides novel insights into TEFs' R&D‐based problemistic search by revealing two institutionally derived distractive mechanisms (i.e., boundary conditions). Moreover, this study extends the BTOF literature by exploring how decision makers' intrinsic attention allocation (among different goals and among different latent problems) is subject to extrinsic institutional environments.
We examine the relationship between group culture – which emphasizes mentoring, teamwork and loyalty – and innovativeness in organizations. The relationship between group culture and innovativeness ...is assumed to be positive; group culture fosters trust and knowledge sharing which is conducive to joint creativity and collaboration necessary for the innovation process. Drawing on social categorization theory and key insights from gender studies, we develop a more nuanced argument that this positive relationship is bounded by gender diversity within the organization; organizations that are highly gender diverse will suffer from a ‘rejection of others’ barrier when high levels of group culture are imposed on employees. Analysis of survey data from 407 individuals working for organizations of different types and sizes in Serbia gives support to our main argument. We discuss implications of this for theory and management practice as well as policy implications for transition economies.
This paper examines the effects of a firm's interorganizational network characteristics and a CEO's interpersonal network ties on a firm's strategic adaptive capability in a transition economy. Using ...a unique survey dataset of 250 Chinese firms, the paper focuses on the compositional diversity of a firm's interorganizational network and the structural holes in a CEO's interpersonal network. The results show that an interorganizational network that is diverse in composition and an interpersonal network that is rich in structural holes have significantly positive effects on a firm's strategic adaptive capability in China's transition economy. However, a negative interaction effect occurs between interorganizational network diversity and interpersonal network structural holes. The results suggest that managers simultaneously consider both the individual and joint effects of interorganizational and interpersonal network characteristics when developing firm strategies.
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