Alfredo Jiménez

The impact of educational levels on formal and informal entrepreneurship

This paper studies the impact of formal education on entrepreneurship rates. We propose that different levels of education not only vary between each other in terms of their impact, but also according to whether we analysis either formal or informal entrepreneurship. Our results show that tertiary education increases formal entrepreneurship as a consequence of the higher self-confidence, lower perceived risk and enhanced human capital. At the same time, tertiary education also has a negative effect on informal entrepreneurship as it increases awareness of and sensitivity to the possible negative repercussions of this kind of activities. In addition, we show that the impact of secondary education on formal entrepreneurship is positive as well, although in this case the effect on informal entrepreneurship is not significant. Even though secondary education also increases awareness of the potential negative repercussions of informal entrepreneurship, this effect is counteracted by a lack of management skills.

Unsupervised neural models for country and political risk analysis

Abstract This interdisciplinary research project focuses on relevant applications of Knowledge Discovery and Artificial Neural Networks in order to identify and analyze levels of country, business and political risk. Its main goal is to help business decision-makers understand the dynamics within the emerging market countries in which they operate. Most of the neural models applied in this study are defined within the framework of unsupervised learning. They are based on Exploratory Projection Pursuit, Topology Preserving Maps and Curvilinear Component Analysis. Two interesting real data sets are analyzed to empirically probe the robustness of these models. The first case study describes information from a significant sample of Spanish multinational enterprises (MNEs). It analyses data pertaining to such aspects as decisions over the location of subsidiary enterprises in various regions across the world, the importance accorded to such decisions and the driving forces behind them. Through a projection-based analysis, this study reveals a range of different reasons underlying the internationalization strategies of Spanish MNEs and the different goals they pursue. It may be concluded that projection connectionist techniques are of immense assistance in the process of identifying the internationalization strategies of Spanish MNEs, their underlying motives and the goals they pursue. The second case study covers several risk categories that include task policy, security, and political stability among others, and it tracks the scores of different countries all over the world. Interesting conclusions are drawn from the application of several business intelligence solutions based on neural projection models, which support data analysis in the context of country and political risk analysis.

Political risk as a determinant of investment by Spanish multinational firms in Europe

This study seeks to analyse the impact of political risk variables in the location strategy of Spanish Multinational Enterprises (MNEs) in Europe. Evidence is obtained from the relevance of lower political constraints to attract investments, but the results also highlight the importance of cultural and geographical proximity, which may overtake inconveniences derived from higher corruption or lower economic-freedom levels. Population, low unemployment rates and previous international experience in countries all around the world are also found to play a key role as determinants of Foreign Direct Investment (FDI) location for Spanish firms.

New Approaches to University in Spain: Academic Change, Creative Dimensions and Ethical Commitment in the Establishment of the European Higher Education Area

This paper discusses the European Higher Education Area (EHEA), its creation, its guidelines, and its inherently innovative potential. It looks closely at the theoretical proposals, the innovative regulations and institutional practices in the process of academic change that relate to teaching, research and management. It also describes the emergence of creative processes in quality assurance and methodological renewal. These bring new professional challenges and educational opportunities to the fore; challenges which raise ethical issues for those involved in these approaches to universities in Spain and the European Union.

The circular relationship between geographical and product diversification in Spanish MNEs

Diversification as a strategic response to global opportunities has become increasingly important for firms. Drawing on the Resource Based View of the Firm, this paper investigates these strategies by analysing a circular relationship between product and geographical diversification. The results, obtained from a sample of leading Spanish multinational firms, suggest that adaptation to a wide range of different countries hinders the necessary coordination of activities that related product diversification requires and vice-versa. In contrast, unrelated diversification strategies can provide financial synergies, experience and flexibility, which help the process of internationalisation. Simultaneously, greater geographical diversification allows each subsidiary to behave as an independent unit and to develop more efficient internal control systems and resource allocation.

Political discretion and corruption: the impact of institutional quality on formal and informal entrepreneurship

This paper analyses the impact of political discretion and corruption on firm creation rates, distinguishing between formal and informal entrepreneurship. The results show that political discretion discourages the creation of formal enterprises as fewer restrictions on the governments opportunistic behaviour increases uncertainty and risks for entrepreneurial activities. Corruption also has a negative influence on formal entrepreneurship, as it increases the costs of the procedures required to create and manage the company with no assurance that the other party will fulfil the agreement. Regarding informal entrepreneurship, our results show that the negative impact of corruption also applies to non-formalised firms.

Institutional quality similarity, corruption distance and inward FDI in Turkey*

In this paper we investigate the impact of institutional differences as a determinant of Turkish FDI inflows from OECD economies. We focus on the corruption distance between the home and host countries as a crucial part of institutional quality. Our results confirm that FDI flows are higher when they come from countries with low differences in corruption with Turkey. Conversely, FDI flows are negatively affected when there exists a large difference in corruption between the investing country and Turkey. This is explained by the ability of firms to obtain a higher return from their resources and capabilities in those environments with a similar idiosyncrasy to the one of their home country.

Viable system model structuring of success factors in software projects

Purpose The purpose of this paper is to identify the principal success factors of a software project structured upon the basis of the viable system model (VSM). Design/methodology/approach To do so, an exploratory empirical analysis is conducted of a set of software projects, in which the degree of compliance with the requirements set down by the VSM and the success rating of their development are identified. Findings The results of the study indicate that the most influential factors in achieving global viability in a software project are the local environment, the organizational units and the intelligent system. Building on those factors, a mathematical prediction model is developed, reaching an accuracy of 63.16 percent in its predictions. Research limitations/implications The authors wish to point out that due to the number of projects employed in the statistical analysis, the results have to be interpreted with caution and are of an exploratory nature. Practical implications The authors seek to show that the VSM is an extremely useful tool for the management of software projects and, by extension, projects of a general nature. The authors therefore suggest that knowledge of VSM would be of incalculable value for managers wishing to manage projects successfully and to survive in such a complex and rapidly changing environment as the software project environment is. Its application allows us to diagnose and to detect the critical factors to achieve such success. Social implications In addition, the research seeks to increase the universality of VSM, contributing to a better understanding of it and a better and greater formalization of it in favor of its acceptance and its practical use, seeking in this way to palliate some critical principals related to its abstraction and limited applicability and to increase its rigor and validity as an instrument for the diagnosis and the design of viable organizations. Originality/value The novelty of this study is therefore principally found in the application of the VSM to the organizational structure of a software project in such a way that it allows us to detect key factors in its success. Besides, building on the validation of this proposal through the completion of a quantitative empirical analysis, this study also offers a prediction mathematical model that relates key factors with the success of the project.

Cultural distance and foreign direct investment: the moderating effect of vicarious experience

Building on the actions of other enterprises that share some common features, such as the same country of origin, multinational enterprises (MNEs) develop vicarious experience that allow them to identify opportunities, acquire knowledge, gain legitimacy and increase the opportunities of collaboration with other compatriot firms. The present study analyses the moderating effect of vicarious experience on the individual negative influence of six cultural distance dimensions on foreign direct investment (FDI). The results obtained show that the presence of a greater number of companies from the same home country in the host country reduces the negative impact of the cultural distance in the dimensions of power distance, individualism, masculinity, and pragmatism. Vicarious experience even nullifies the negative impact of dimensions of uncertainty avoidance and indulgence. Furthermore, and contrary to earlier studies, the results indicate that both same-sector and different-sector vicarious experiences are re...

Foreign direct investment flows from the south to the east of the EU: dissecting the different effects of psychic distance stimuli

This paper examines the influence of psychic distance stimuli on foreign direct investment flows from countries located in the south of Europe towards the new members of the European Union from central and Eastern Europe. By applying panel data techniques, evidence of a negative relation is obtained for distance in democracy, whereas a positive one is obtained for per capita GDP and distance in education and industrial development, which demonstrates that these investment flows are characterised by an efficiency-seeking approach and low educational and technical requirements. This FDI motivation prompts firms to maximise cost advantages such as reduced salaries or input prices. Also interestingly, political risk does not seem an obstacle, in accordance with recent literature on political capabilities. The results highlight the fact that distance does not always constitute a barrier but an opportunity for the firm.