Showing papers in "Entrepreneurial Business and Economics Review in 2018"

To Be or Not to Be a Social Entrepreneur: Motivational Drivers amongst American Business Students

Abstract: Objective: The objective of this article is to investigate the process of motivational needs influencing the intent of potential future social entrepreneurs. Research Design & Methods: California, Bay Area business students were administered a survey combining commercial entrepreneurship models and adding factors of motivation. Two stages of statistical analysis were performed based on the process and content theories of motivation. We used structural equation modelling to validate the model and paired samples t-test analysis to examine the differences between the motives underlying social entrepreneurship intentions. Findings: 202 out of 364 students reported social entrepreneurial intentions. For the process-based motives, perceived feasibility and perceived desirability to start a social enterprise as well as exposure to entrepreneurship are significant predictors of students’ intention to form a social enterprise. In addition, perceived feasibility is determined by entrepreneurship education and entrepreneurial self-efficacy, and perceived desirability is determined by students’ desire for self-realisation and autonomy. For the content-based motives, the principal-component analysis indicates that students are motivated by the need for achievement and independence. Implications & Recommendations: The findings provide insights into the formation of social entrepreneurial intentions as well practical implications for how to motivate future social entrepreneurs. Contribution & Value Added: The study empirically shows the motives influencing a student’s intent to form a social enterprise.

The Classroom of the Future: Disrupting the Concept of Contemporary Business Education

Abstract: Objective: The goal of the article is to discuss and elaborate on the skillset required in education of managers and entrepreneurs to face challenges of their future positions. Research Design & Methods: The article is of a descriptive character, based on literature review and its constructive criticism. It presents a case study of S P Jain School of Global Management in Dubai/Mumbai/Singapore/Sydney and experts’ insights. Findings: The classroom of the future, based on idea of design thinking lab, equipped with the most modern solutions of Virtual and Augmented Reality (VR, AR), interactive detachable workstations, shareable smartboards and interactive video display walls, seems to be the passport to success in the digital world. Immersive interaction with AI, ubiquitous computing and technology exposure prepare contemporary business students for future working space, encompassing a variety of problems to be solved, allowing to attain new skills and a smooth transit from education to a desired job or entrepreneurship practice. Implications & Recommendations: The creation of ‘future ready’ graduates requires an innovative mindset and agility to evolve and adapt continuously, with simultaneous focus on disruptive innovation through digital transformation. Incorporating latest digital technologies and innovations into the learning environment seems to be competitive advantage and the key to success on education market. Contribution & Value Added: The article in subsequent chapters lists the awaited skills of future entrepreneurs and managers, indicates available solutions and technologies to boost classroom experience and gives a practical example of technology use. Moreover, it indicates transformation pathway for business schools to embrace challenges of the future labour market and equip their graduates with hands-on experience and required skills.

Inspiring Work-Life Balance: Responsible Leadership among Female Pharmacists in the Egyptian Health Sector

Abstract: Objective: The aim of the research was to investigate the effect of responsible leadership on female pharmacists’ work-life balance/imbalance forms in public hospitals in Menoufia province, Egypt. Research Design & Methods: This is a quantitative study and a total of 350 female pharmacists were contacted. After four follow ups, a total of 230 responses were collected with a response rate of 65.71%. Findings: The findings highlighted only an aggregate of virtues and is not considered a strong statistical predictor for any of the three work-life balance/imbalance forms (time-based balance/imbalance, strain-based balance/imbalance and behaviour-based balance/imbalance) while the other three dimensions (stakeholder involvement, the model of leader’s role and the principles of ethical values) of responsible leadership had a significantly high effect on work- life forms. Implications & Recommendations: Dependent and independent variables were collected from the same source, and this may have led to an inflation of statistical relationships. Public organisations like hospitals have to treat female pharmacists responsively as one of the main stakeholders who requires flexible work hours, active participation in decision making, and clear empowerment in the workplace. Contribution & Value Added: This article contributes by filling a gap in management and organisation literature, in which empirical studies on the relationship between responsible leadership and work-life balance/imbalance have so far been quite limited in the literature. For future studies, the author suggests testing the same propositions with physicians, nurses, and other categories of employees in Egyptian public hospitals.

The Evaluation of CSR and Social Value Practices Among UK Commercial and Social Enterprises

Abstract: Objective: The purpose of this article is to evaluate the scope of Corporate Social Responsibility (CSR) and ‘Social Value Initiatives’ (SVIs) among corporations. Nowadays, CSR provides firms with an opportunity to provide community social need through discretionary corporate practices. This article contributes to knowledge on how firms approach social and environmental sustainability while maintaining economic responsibility. Research Design & Methods: This article adopts analysis based on secondary data from UK based companies. Fifty companies’ websites and policy documents (30 commercial enterprises and 20 social enterprises) were researched to identify the patterns of practices of SVIs and factors that influence the practices among companies. Findings: The findings suggest that both social and commercial enterprises focus on the adoption of the ‘CSR’ practices based on the ‘Triple Bottom Line’ (TBL) as defined in the ‘Elkington, 1997 framework’ of economic, environmental and social sustainability. The difference is that while the ‘SVIs’ of commercial enterprises develop as an operational strategy at the later stages of the business, the ‘SVIs’ of social enterprises are embedded during the enterprise creation stage. Implications & Recommendations: Based on the findings, this article develops a conceptual ‘Social Value Initiatives’ framework which forms the domain of social value practices. We suggest that future studies should focus on adopting qualitative-ori-ented primary research to explore CSR approaches, which will capture the views of management, customers, employees and shareholders. Contribution & Value Added: Despite its limitations, this article contributes to the knowledge on CSR and social value practices among social and commercial enterprises. © 2018, Cracow University of Economics. All rights reserved.

Determining the Underlying Dimensions of Quality of Work Life (QWL) in the Nigerian Hotel Industry

Abstract: Objective: The objective of this paper is to explore the underlying dimensions of quality of work life (QWL) in the Nigerian hotel industry. Research Design & Methods: With a defined population of 3.110, a sample size of 355 was determined using probability technique, which formed the participants of the study. Employing the Delphi technique, eight experts and four cycles of inputs led to a consensual number of sixty-three indicators of QWL which formed the final inventory or variables of the quality of work life dimensions used for exploratory factor analysis. Exploratory factor analysis with varimax rotation was employed. Kaiser criterion, examination of the scree plot and Horn parallel analysis (Horn, 1965) guided factor extraction. Findings: Preliminary assessment conducted confirmed the appropriateness of the dataset for factor analysis. Furthermore, based on the extraction criteria, five factors were extracted which explained 59.37% of the total variance in QWL in the Nigerian hotel industry, labelled as remuneration and benefits, job security and career satisfaction, training and opportunities for personal autonomy, home-work balance and safe and healthy environment. Implications & Recommendations: The Nigerian hotel industry should focus on the QWL factors which the study reports as most considered by employees. The study has also identified the dimensions of QWL in the Nigerian hotel industry. Contribution & Value Added: This study identifies the latent variables that show QWL in the Nigerian hotel industry, which are labelled as remuneration and benefits, job security and career satisfaction, training and personal autonomy, home-life balance and safe and healthy environment. The managerial implication is that owners and operators of hotels in Nigeria can benefit by understanding what quality of work life entails and which indicators show the concept.

Entrepreneurs' Features Affecting the Internationalisation of Service SMEs

Abstract: Objective : To analyse the internationalisation of SMEs from the perspective of the entrepreneur and the special characteristics and traits that influence internationalisation while dealing with parsimony of financial assets, country of origin liability and other institutional voids. Research Design & Methods: 11 Colombian SMEs were observed and studied on a case-by-case basis, using a methodology inspired by the phenomenological interpretative analysis (IPA). Findings: The coding and analysis of the collected empirical data highlighted five main features that positively influence the internationalisation of the observed SMEs: technical expertise of an entrepreneur, opportunistic behaviour towards internationalisation, international focus from inception, an ability to build networks and value creation based on personal traits of the entrepreneur. Implications & Recommendations : The findings of this study contribute to a more comprehensive understanding of the behaviour, rationality and distinctive entrepreneur’ traits that influence the internationalisation of service SMEs. Contribution & Value Added: This study observes the internationalisation of SMEs from a region that is underrepresented in the literature, furthermore, it uses an entrepreneur-level approach and IPA methodology that is novel in international entrepreneurship studies.

Managers and Leaders in Need of Entrepreneurial Competences

Abstract: Objective: The purpose of this article is to provide insight into how managers fit their roles and what tasks they perform. It addresses leaders and action they undertake. In particular, the study aims to focus on competences which comprise specific skills and experience, knowledge, and cognitive abilities to understand, analyse, or reason. Research Design & Methods: Qualitative research was done. Individual method within an ethnographic study includes an anthropological interview. In total, 16 participant in large companies were interviewed. Interviewees were managers and leaders on different organisational levels. The study used the principles of the grounded theory approach for analysing data and is based on the results of longitudinal research. Findings: The results revealed that managers usually follow imposed goals while leaders are expected to create their own directions of organisational development. Although respect and authority might be an integral part of managers’ job, as opposed to leaders, they are not indispensable. It is concluded that leaders need to deal with issues which are strategic for a company and much more important than it is in the case of managers who usually concentrate on finding solutions for everyday problems. Implications & Recommendations: The findings point to how competencies influence an organisational role. Even if they are interrelated, there is no need to demonstrate all of them to become a leader. Contribution & Value Added: This article offers a conceptualisation of how the theory corresponds with practice and points out that immaterial, immeasurable factors matter.

Factors driving foreign women entrepreneurship in China

Abstract: Objective: The objective of this article is to identify factors that drive and conditions that affect foreign women entrepreneurs in China. The emphasis is on the commonalities and differences between these women and women entrepreneurs in Western developed countries as reflected in the literature. Research Design & Methods: The study was designed to include both qualitative and quantitative data to allow better understanding of the topic. Interviews with foreign women entrepreneurs were first done to gain practical field insights which were then used with the information from the literature to develop the questionnaire for the survey for quantitative data. Findings: The findings from the interviews and the survey from a very small sample show the key differences lie in internal factors like motivation and family-business orientation, but there are also similarities in terms of external characteristics, such as business nature, business size, financing source, etc. between foreign female entrepreneurs in China and those represented in studies. And the key challenges and learning reported by foreign female entrepreneurs in China are both related to culture. Implications & Recommendations: The article intends to fill the gap by offering some insights into foreign women entrepreneurs in China. Broader and in-depth empirical studies on this subject are needed to verify these initial findings, and stimulate interests in this important but neglected field. Contribution & Value Added: The originality of this work lies in contributing to some understanding that the gender plays role in entrepreneurship across cultures, particularly in China.

Externalities and House Prices: A Stated Preferences Approach

Abstract: Objective: In the article, we address the nexus between neighbourhood externalities and house prices using stated preference data. The impact of neighbourhood amenities generating positive externalities and disamenities generating negative externalities on property prices has been studied since the 1970s. Most of the studies to date applied the hedonic methodology and assumed that the effect is homogeneous. The article aims to address the potential heterogeneity of housebuyers’ preferences. Research Design & Methods: The article uses logistic regression models on stated preference data regarding the sensitivity to three spatial amenities (public transit, urban green area, and retail and services) and three spatial disamenities (railway line, noisy road, petrol station). The dataset comes from six editions of the survey on housing demand and preferences in Krakow conducted annually from 2012 to 2017. Findings: Empirical results show the relation between household lifecycle and household wealth and willingness-to-pay for spatial amenities and willingness-to-accept spatial disamenities. We did not observe the difference in preferences dependent on the purchase motive. Implications & Recommendations: The results can be interesting for planners and policymakers, but also in the business environment in case of residential development. Contribution & Value Added: The article fills the gap in the economic literature on factors affecting housebuyers’ sensitivity to certain positive and negative externalities that manifest in stated willingness-to-pay and willingness-to-accept.

Entrepreneurship in China: a review of the role of normative documents in China’s legal framework for encouraging entrepreneurship

Abstract: Objective: The objective of the article is to provide an overview of the Chinese legal framework while examining the laws and legal provisions influencing entrepreneurship in China for both Chinese and foreigners, arguing that the current legal environment encourages domestic entrepreneurship and foreign investment. Research Design & Methods: This article explores the legal environment for entrepreneurship in China by taking a comparative and normative approach to introducing several recent initiatives established through normative documents. Findings: As China seeks to transform from an export economy towards a domestic consumption model, the government is increasing implementing initiatives to encourage domestic entrepreneurship. The majority of these initiatives are established through normative documents that, while not technically defined as law, nevertheless have legal effect. Implications & Recommendations: It argues that the legal framework is principally targeted at domestic entrepreneurship but has also benefited foreign entrepreneurship. Contribution & Value Added: This article is unique in that it explores the role of normative documents in Chinese initiatives to encourage entrepreneurship. In conclusion, China has invested heavily both economically and legally in the encouragement of entrepreneurship and in the cooperation between domestic and foreign entrepreneurs.

Negative Interest Rate Policy in Switzerland

Abstract: Objective: The purpose of this study is to present a review of the negative interest rate policy of the Swiss National Bank (SNB) after the outbreak of the financial crisis, in the context of falling real interest rates. Furthermore, the article demonstrates the implications of this unconventional monetary policy for the Swiss economy as well as the financial market stability. Research Design & Methods: The study is completely based on literature research. The analysis should be interpreted as being mainly suggestive since empirical research based on a quantitative analysis was not conducted. This article examines and reviews extensive arguments and evidence of 97 scientific articles. The descriptive evidence presented has a strong focus on the situation in Switzerland. Findings: In economic literature, the discussion about transmission mechanisms of the monetary policy is conducted through several channels: the interest rate channel, the ex-change rate channel and other asset price channels. In Switzerland, the impacts of the negative interest rate policy (NIRP) implemented in 2015 can so far be felt in increasing credits, especially in mortgage claims. The net income of Swiss banks from the commission and service business fell. Moreover, the exchange rate of the Swiss Franc against the Euro could be stabilised to a certain degree. Implications & Recommendations: A negative interest rate policy has an immediate impact on short-run and long-run interest rates and on banks’ interest rate margins. Currently, monetary policy is taking a turn, especially in the US. However, the leeway for higher rates in Switzerland is limited due to the interest rate differential between short-term Eurozone and Swiss money market rates. Contribution & Value Added: This article provides insights into the determinants of real interest rates and into the short-run effects of NIRP on the Swiss economy.

Towards a Collective-Values Framework of Ubuntu: Implications for Workplace Commitment

Abstract: Objective: This research offers an extension of current research on commitment across cultures. It incorporates the concept of Ubuntu as an integrating model that can be paired up with other perspectives for directing employee workplace commitment. Research Design & Methods: A literature review entailing concepts related to cross-cultures and their relationship to Ubuntu and commitment was considered. The review spanning 50 years covered online-databases of global and African research. Findings: We argue here that the conceptualisation of Ubuntu is important in adapting currently accepted cultural frameworks as operationalised by individualism, collectivism and power distance dimensions for regional management application. Ubuntu collective values (compassion, survival, group solidarity, respect and dignity), which relate affirmatively with a sense of workplace collectivism, was identified as a unique element of cultural management philosophy for directing personal interactions, workplace commitment and performance management improvements. Implications & Recommendations: Ubuntu should be facilitated by managers as a motivational force that facilitates workplace commitment ensuring organisational team performance. The implications of Ubuntu in the context of extending existing theories of individualism-collectivism and power distance cannot be overstated. Contribution & Value Added: A model based on relationships between Ubuntu collective values and EWC, applicable with contextual managerial frameworks.

Export Intensity, Geographic Diversification and the Role of Public Support: The Evidence from Old and New Europe SMEs

Abstract: Objective : The objective of the article is to investigate how public support (both financial and non-financial) affects the geographic scope and export intensity of SMEs originating from Old (EU15) and New Europe (the CEE12 region). In particular, the work considers the direct and indirect effects (via geographic scope) of public support on the export intensity of SMEs. Research Design & Methods : The empirical analyses use a large, cross-country, cross-industry dataset of 2 375 European SMEs from 27 countries. Findings: The study findings indicate that only financial public support is positively, directly and indirectly associated with the export intensity of European SMEs, regardless of the origin. The results related to non-financial public support are less conclusive. Additionally, the study reveals that despite significant, firm-level differences characterising internationally oriented SMEs from Old and New Europe, the examined relationships and effects of control variables are largely the same . Implications & Recommendations: The article offers clear insights into the significance of financial vs. non-financial public support programmes for internationalisation activities of SMEs, encouraging further research to focus on the question which firms should receive public support and how to increase the awareness and propensity of the owners/managers of SMEs to consult public support providers. Contribution & Value Added: The originality of this work lies in investigating the impact of public support for internationalisation efforts (export intensity and geographic diversification) of SMEs originating from different contexts of the EU15 and CEE12 countries.

The Impact of Political Relations on China’s Outward Direct Investment

Abstract: Objective: This article relates to the growing amount of literature on the determinants of the location choice of Chinese ODI. The objective of the article is to investigate whether the improvement in political relations will encourage more investment to a host country or not. Also, the article aims to identify the asymmetric impact of political relations in different host countries. Research Design & Methods: Using information on bilateral events from People’s Daily Database and the website of Chinese Ministry of Foreign Affairs, we establish an indicator for bilateral political relations. Then, this article empirically examines the impact of political relations on the location choice for Chinese ODI based on the quarterly data of foreign direct investment of Chinese enterprises from 2003 to 2014 using a fixed effect model. Findings: Regression results suggest that political relations have a positive and statistically significant effect on Chinese ODI. The relation rises by one unit, it is associated with an increase in Chinese ODI by USD 25.9 million. The results also suggest that Chinese firms would prefer developing host countries which have a good relation with China, especially those with a better legal system. Implications & Recommendations: It implies that not all host countries are affected by political relations in the same way. The improvement in the bilateral political relations will increase Chinese ODI to developing countries. In terms of developed host countries, instead of bilateral political relations economic development and the market size are main determinants for Chinese ODI. Contribution & Value Added: Instead of describing political relations with a single indicator, we build an indicator based on the political events methodology to analyse the location choice of Chinese ODI by using monthly data to capture the accumulated effect of events on political relations.

Changes in the Market of Two and Three-wheeled Motor Vehicles in Europe at the Beginning of the 21st Century

Abstract: Objective: In recent years, the number of motorcycles in many countries has changed significantly. A particularly diverse situation has taken place in Europe. This diversification has been influenced by both economic and institutional conditions. The study aims to identify the main trends on the Powered Two or Three-Wheelers (PTW) market in the world. The study analyses the distribution of PTW in the world and tracks the changes in the PTW market in particular European countries between 2001 and 2014. Research Design & Methods: The article is based on the statistical data from the Eurostat and The ACEM. The analysis of the PTW market changes in Europe is based on graphical presentations and simple statistical methods. Due to the availability of data, the analysis refers to chosen European countries (UE+EFTA in 2014). As a result of the lack of availability of comparable data in the article, the data were presented according to the latest available summaries. Findings: In most countries, the PTW market has been affected by the financial crisis which has influenced the rise of motorcycles in the countries such as Greece and Spain, while the UK has suffered a decline. Economic factors have also been influenced by the factors such as legislative changes, the ageing of population, and the processes of urbanisation and increasing professional activity in developing countries. Implications & Recommendations: It is necessary to analyse changes in the market of PTW by size of a city, traffic intensity and the level of development of public transport. Contribution & Value Added: The study complements the topic of PTWs’ role in the transportation across Europe (with East Europe) and the changes which have taken place in this vehicle market since the beginning of the 21st century. Additionally, this is a holistic approach combining technical, economic and sociological issues.

Organisational Learning in Startup Development and International Growth

Abstract: Objective: This article explores the conceptual link between the development stages of a startup and organisational learning with the aim to conceptualise the practices of organisational learning levels emerging in specific life cycle stages of a global startup. Research Design & Methods: This article presents a review as well as a synthesis of the extant literature. The research integrates the theories of organisational learning and international entrepreneurship, and offers a conceptual framework that reveals interactions between the constructs in question. Findings: The results suggest that the ontological level and the processes of organisation learning can vary in global startups at different life cycle stages. In addition, the research findings also indicate that, for a global startup, for a successful transition from one cycle to another, learning processes of cyclical entrepreneurship learning have to take place. Implications & Recommendations: The findings of the study have implications in particular for global startup founders and their team members who would like to establish entrepreneurial businesses. Organisation learning practices should be applied in enterprises from the very beginning of the bootstrapping phase with the goal to develop a culture of learning and sharing knowledge when developing the startup idea. Contribution & Value Added: The originality of this work lies in proposing a conceptual framework that examines the organisational learning in startup development and international growth and a set of important considerations for further research, as well as contributing to the literature on international entrepreneurship.

Family Entrepreneurship Orientation in Family Owned SMEs: A Key Resource for Internationalization?

Abstract: A B S T R A C T Objective : The main goal of this article is to find the answer to the questions: what is the nature of the internationalization of family businesses from Poland? Do they internationalize ad hoc or do they plan an internationalization strategy? Which resources are needed for the internationalization process? Research Design & Methods : The author used qualitative approach with CATI ( Computer Assisted Telephone Interview ), PAPI ( Paper & Pen Personal Interview ) and CAII ( Computer Assisted Internet Interview ) methods. 420 questionnaires were used in the statistical analysis. Findings: This study focuses on the evaluation of entrepreneurship orientation as the main resource of the internationalization nature (ad hoc or a strategic plan) of family businesses from Poland and measured it through the four elements proposed by Covin and Slevin (1989): Innovation, Proactivity, Autonomy and Risk. Implications & Recommendations: To internationalise, family business families need to apply entrepreneurship orientation, especially proactiveness towards new challenges, and strategic planning and tools. Contribution & Value Added: The research provides evidence of a higher degree of EO in the behaviour of a family. More successful family businesses are in international markets. They also have a challenge oriented culture, which means that such companies are oriented towards new ventures, new relations, new solutions and new markets. But they plan new challenges using the strategic approach.

The EU Enlargement and Income Convergence: Central and Eastern European Countries vs. Western Balkan Countries

Abstract: Objective: This article analyses the stochastic convergence of income per capita between the Western Balkan (WB) and the Central and Eastern European (CEE) countries compared to developed EU countries (EU15). Research Design & Methods: Stochastic convergence implies that all shocks in country’s income relative to the average income of the group are only temporary. In order to test stochastic convergence, the tests of the unit root were used. The Augmented Dickey-Fuller (ADF) test is supplemented with the Zivot-Andrews (ZA) unit root test, which allows for the structural breaks in time series of income per capita. Findings: Results confirm the existence of stochastic convergence of income per capita toward the EU15 average in the cases of the Czech Republic, Slovakia, Poland, Slovenia, Estonia, Latvia and Romania. Income convergence is not found in the case of the Western Balkan countries. Implications & Recommendations: While income convergence toward the EU15 average level was found in the case of 7 CEE countries, it was not found in the case of any WB country. This could be a proof of the importance of further support to reforms in the Western Balkan countries. Contribution & Value Added: The scientific contribution of the article is reflected in the fact that the existing literature dealing with income convergence of the Western Balkan countries toward the income of the EU15 countries is still very limited in number, as is the number of studies that compare convergence of income per capita toward the EU15 between the Western Balkan and CEE countries.

Big Data Analysis as a Source of Companies’ Competitive Advantage: A Review

Abstract: Objective: The main aim of the article is two-fold: firstly, to indicate the benefits to companies. which stem from the usage of Big Data Analysis (BDA), and secondly to conceptualise main general sources of competitive advantage that BDA affords. Research Design & Methods: The method used in the article is a comprehensive literature review including theories of competitive advantage and relations existing on the Consumer-to-Business market including BDA. Findings: The conducted research indicates the particular benefits as a result of using BDA, but also conceptualises and proposes three main general sources of competitive advantage that BDA affords. These include product quality, risk reduction, and a customer relationships advantage. Implications & Recommendations: The results have practical implications as they identify the importance and a possible application of BDA for companies from different industries. If one wants to achieve a competitive advantage, then BDA constitutes an important potential solution. However, a certain level of managerial awareness is required first in order to implement such a solution. The awareness of particular benefits which have already been achieved by competitors in the same industry by applying BDA may be an important trigger for a company to consider implementing their own BDA. Contribution & Value Added: The originality of the article stems from the comprehensive analysis of benefits of BDA resulting in the conceptualisation of Big Data-driven competitive advantage.

A Dynamic Correlation Analysis of Financial Contagion: Evidence from the Eurozone Stock Markets

Abstract: Objective: In this article, we try to determine whether there are contagion effects across the Greek stock market and the Belgian, French, Portuguese, Irish, Italian and Spanish stock markets during both crises periods. Research Design & Methods: To reach our aim, we used a bivariate Dynamic Conditional Correlation-Generalized Autoregressive Conditional Heteroscedasticity (DCC-GARCH) model to measure the extent of dynamic correlations between stock returns of our sample. Findings: Our results point to the presence of a contagion effect between all market pairs during the subprime crisis and between the Greek and Portuguese stock markets during the European sovereign debt crisis. Implications & Recommendations: The obtained results are useful for investors, in particular for their portfolio diversification strategies. They are also useful for the monetary and financial authorities in their efforts to absorb shocks resulting from crises. Contribution & Value Added: The originality of this work lies in studying contagion effect across the Eurozone stock markets through the bivariate DCC-GARCH model which is an original dynamic estimation of conditional correlations in Multivariate GARCH models. The measures of contagion effects following the valuation of countries induced by the massive negative sovereign rating signals during the crisis period would also be interesting to study. The methods might also be applicable to this kind of contagion type and for contagions effects across European stock market returns.

Trade-Finance Nexus: Was it Distorted in the Aftermath of the Global Financial Crisis?

Abstract: Objective: The objective of this article is to examine whether the trade-finance nexus was distorted in the aftermath of the global financial crisis. Research Design & Methods: We estimated OLS regressions between trade and finance for 36 countries. The Quandt-Andrews breakpoint test and Bai-Perron multiple breaking point test were used to test for structural breaks in the trade-finance nexus. Findings: The results show that a structural break in the trade-finance relationship occurred in 2008 in the majority of the examined countries. The structural changes were relatively more often identified in middle-income countries than in high-income ones. This finding confirms our suppositions inferred from the stylized facts that reactions of international trade and financial development in the crisis era differed across the countries depending on their level of development. Implications & Recommendations: Our study partly fills the gap between theory-based approaches to the trade-finance nexus and empirical evidence. It also emphasizes the need of a revision of traditional theoretical arguments, including those referring to the linkages between the financial and the real sides of economy. Contribution & Value Added: Our article contributes to the theoretical discussion in three ways. Firstly, we examine a still bothering question on the relationship between the financial and the real sides of economy. Secondly, while the main strand in the literature deals with finance-growth and trade-growth interactions, we focus directly on the trade-finance linkages. Thirdly, our finding that a break in the trade-finance nexus was more pronounced for the middle-income countries may provide some insight into better understanding of the global financial crisis of 2008 and its consequences.

The Investigation into Determinants of Regional Exports Base: Panel Analysis for Spanish and Polish Regions

Abstract: Objective: We use the small open economy concept to identify the determinants of region’s exports at a NUTS-2 level for Poland and Spain over the period 2005-2015. Research Design & Methods: We apply the Prais-Winsten method for Panel Corrected Standard Errors (PCSE) on a data panel allowing for heteroskedasticity and autocorrelation estimating a model of regional exports for a joint sample of Polish and Spanish NUTS-2 regions. Findings: We identify a number of factors which statistically significantly determine exports arising from Polish and Spanish regions. These factors are classified into the following main groups: factor conditions, FDI, infrastructure, market conditions, remoteness and geography, spatial agglomeration and technological knowledge base. Implications & Recommendations: By going beyond national trade statistics, we provide evidence which can be used at the regional level to increase participation of regions in the world economy. Political decisions which are taken at the regional level seem to matter. Contribution & Value Added: This paper combines scientific knowledge from several perspectives: international economics and international business, as well as regional science. We believe that an interdisciplinary approach is necessary to increase the knowledge which goes beyond nations, while not focusing on firms, as units of analysis.

In Quest of SME-Conducive Policy Formulation

Abstract: Objective: The article focuses on the role of SMEs in the national, regional and global environment. The main objective of the article is to present the economic and social importance of SMEs in the context of policy formulation for their support and development. Research Design & Methods: The article reviews the theoretical and empirical literature on SMEs and their role in business environment. Then the paper develops a set of questions and propositions to guide future research and policy. Findings: The article describes a significant role of SMEs for job creation and economic dynamics. Over the economic considerations, relevance of SMEs is to be viewed also from a more broadly based socio – economic perspective; that is, SMEs being seen as a driving force of structural change on the one hand, and as stabilising factor for safeguarding a given economic setting with its institutional framework in the dynamics of change on the other. Implications & Recommendations: The complexity and dynamics of market processes determine the diversification of SME policy. Identifying contemporary challenges faced by SMEs are ‘building stones’ for specific policy formulation in the future. Contribution & Value Added: The study highlights the need to deepen the understanding of the current role of SMEs for the labour market and welfare. What is more, the SMEs policy should be articulated more offensively as a key component of the economic policy in general.

Governmental Change and FDI Inflow to Poland and Hungary in 2010-2016

Abstract: Objective: The purpose of this article is to explain if and how FDI flows have changed due to the most recent parliamentary elections in Poland and Hungary. The shift in governmental policies are said to affect the institutional settings in the host country and hence the willingness of foreign firms to invest. In the study we tried to identify any interdependencies between the FDI inflow and unexpected electoral results. Research Design & Methods: Based on statistical data we applied a cross-country analysis to verify whether the perceived higher investment risk truly undermined the choices of firms. Qualitative analysis and critical discussion drawing on available reports and databases were applied. Findings: Hungary and Poland have recently suffered a drop in the inflow of FDI as revealed by the statistical databases. It is, however, hard to determine whether this decline will continue and to what extent it has been dependent on recent policy changes, particularly in the light of evidence stressing unabating investment attractiveness and new projects coming. Implications & Recommendations: The recent election results in numerous countries suggest an alteration in perceiving the necessity for further international openness and integration. The new nationalism, protectionism and economic patriotism have gained new supporters. Contribution & Value Added: We tried to show the idiosyncrasy of the relationship between institutional election-induced changes in the political landscape and the subsequent modification of attractiveness sentiment leading presumably to changes in actual FDI flows.

The Role of Work Experience in Studying and Career Development in Tourism: A Case Study of Tourism and Hospitality Students from Northern Poland

Abstract: Objective: The aim of this study is to develop and test a research model that investigates relationships between students’ perception of the nature of tourism work and industry-person congeniality and both their burnout and engagement in their studies, both of which may relate significantly with students’ career aspirations in tourism. Research Design & Methods: 158 tourism and hospitality students with work experience in the tourism industry filled in an anonymous paper-based self-administrated questionnaires. Findings: There are positive and significant correlations between perceived nature of tourism work, industry-person congeniality and students’ dedication. Simultaneously, the perceived nature of tourism work and industry-person congeniality correlate negatively with students’ cynicism towards their studies. Implications & Recommendations: There is a need for putting a greater concern on the person-job fit during both enrolment procedures for tourism and hospitality courses in higher education and while recruiting candidates for service job positions in the tourism industry. Greater attention should be put by practitioners on students’ work experience, as it may have an impact on the youth’s attitudes towards their future employment in tourism. Contribution & Value Added: The research value of this study may result from the fact that both students’ burnout and engagement has not been widely explored in the management literature.

Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland

Abstract: A B S T R A C T Objective: This article relates to recent literature on labour market consequences of production fragmentation within Global Value Chains, analysed in the presence of workers’ heterogeneity and differences in the task content of jobs. The main aim is to assess if there is a relationship between wages of Polish workers and the degree of Polish production dependence on imported inputs. Research Design & Methods: Using microdata from EU-SILC on workers from Poland observed in 2008-2014, we estimate a Mincerian model, augmented by a measure of task content of occupations and the industry level index of the import intensity of production computed with input-output data and accounting for good’s production sequence). IV estimation is employed to account for potential endogeneity between the import intensity of production and wages. Findings: Regression results suggest that negative relationship between wages of Polish workers and the dependence of their sector of employment on foreign inputs is magnified by the routinisation level of the occupation. Hence occupation-specific task requirements play a role. Implications & Recommendations: It implies that not all the Polish workers are affected in the same. The movements towards jobs with higher degree of non-routine content could protect against negative wage effects of fragmentation. Contribution & Value Added: The relationship between wages in Poland and the reliance on foreign inputs and GVCs links has not yet been studied from the micro-level task-based perspective. This article fills in this gap.

The Role of Specialisation in the Export Success of Polish Counties in 2004-2015

Abstract: Objective : The objective of this article is to evaluate the role of specialisation in the export success of counties (powiats) (LAU 1) in Poland between 2004 and 2015. Research Design & Methods : Using panel fixed-effects regressions with Driscoll and Kraay standard errors, the authors investigate the role of export specialisation and product concentration, as well as comparative advantages on the value of log exports per capita, controlling for other important export determinants. Findings: Estimations of the panel model bring the conclusion that specialisation in a positive way contributes to the value of exports per capita, assessed at county level. The robustness of the obtained results has been verified by the use of several concentration and specialisation measures, incl. HHI, Krugman specialisation index, weighted RCA and concentration ratio. Implications & Recommendations: Further research is recommended to capture the consequences of differentiation in the patterns of exports among counties in terms of agricultural vs. industrial goods as well as the low-tech vs. high-tech products. Similar research is recommended to be done at NUTS-2 level in order to inquire into the rationale of smart specialisation(s). Contribution & Value Added: The main contribution of the research is showing the lumpiness of Poland’s exports at county level in terms of product specialisation and concentration. The value added is depicting the positive role of specialisation for the exports success, understood as exports per capita.

The Internationalisation Process of an E-Commerce Entrepreneurial Firm: The Inward-Outward Internationalisation and the Development of Knowledge

Abstract: Objective: The article aims at the description of the internationalisation process of an entrepreneurial e-commerce trading firm, depicting the course and mechanism of the process. Research Design & Methods: The explorative research is a single case study of three internationalising e-stores managed by a firm. The qualitative analysis is based on in-depth interviews with the entrepreneur covering six years of the firm’s operation. Findings: The increasing international involvement of the e-commerce firm follows the development of knowledge derived from the interrelationships between inward and outward internationalisation. The evolution of internationalisation forms is limited to trade (importing/exporting) and contractual cooperation. The role of entrepreneur in the internationalisation process of e-commerce firm is crucial. Implications & Recommendations: The simultaneous involvement in the inward and outward forms of internationalisation enhances the development of knowledge necessary for further internationalisation of e-commerce firms. Contribution & Value Added: The study presents a holistic description of the internationalisation process of an entrepreneurial e-commerce firm, revealing the mechanism of the process.