Georgios Batsakis

Intangible assets, international experience and the internationalisation speed of retailers

Purpose – The purpose of this paper is to study draws on the resource- and knowledge based views (RBV/KBV) of the firm to explain the internationalisation speed of retail firms. Design/methodology/approach – The authors use a panel data set of 144 international retailers over a ten-year period and employ feasible generalised least squares analysis in order to assess the effect of intangible assets and international experience on internationalisation speed. Findings – The results support direct effects of intangible assets and international experience, while the latter effect is also moderated by firms’ home-region concentration. Research limitations/implications – The study investigates the determinants of retailers’ internationalisation speed. While research stresses the positive performance effects of rapid internationalisation, future research should investigate the role of internationalisation speed for the performance of retailers empirically. The findings support the usefulness of adopting a RBV/KBV...

Impediments on the way to entrepreneurship. Some new evidence from the EU's post-socialist world

The purpose of this study is to shed light on demographic, environmental and perceptional characteristics and their impact on entrepreneurial engagement in the post-socialist region of the European Union (EU). Data from the Flash Eurobarometer Survey on Entrepreneurship 2007 are used, while a binomial probit regression model is employed. In total, 3,454 observations from eight transition economies of the EU are incorporated in the model. In the econometric analysis, a set of individual and country-level variables is used and provides evidence that males, as well as individuals whose mother was entrepreneur are more likely to engage in entrepreneurship. On the other hand, economic factors, such as unemployment and economic growth are both reported as negative determinants of self-employment. Interestingly the findings also suggest that lack of financial resources, a large number of start-up procedures and increased tax rates are all positively related to entrepreneurial engagement. Finally, risk-averse individuals are more likely to get involved with entrepreneurship compared to risk lovers. Implications are discussed analytically and it is suggested that the existing structural changes and transition process under which the examined countries operate have influenced the attitude of individuals toward entrepreneurial engagement throughout the last two decades. The study provides useful information in relation to the attitude of post-socialist society toward structural issues which possibly dishearten its engagement to entrepreneurship. First, the geographical area approves of great interest since it provides new evidence regarding the perceptions of people who live in this particular post-socialist region. Second, the time this research was conducted (i.e. 2007) means now is an ideal time for re-examination, considering that these countries have recently become members of the EU.

Corporate Governance and Tobin's Q as a Measure of Organizational Performance

This empirical study examines the relationship between corporate governance and organisational performance (OP), measured in Tobin’s Q in the context of an emerging economy for which, as yet, only a handful of studies have been conducted. We employ a System GMM approach controlling for endogeneity, and test it on a newly created dataset comprising 324 stock exchange-listed firms in Pakistan. We find that Board size, number of Board committees and Ownership concentration are positively linked with high TQ ratio, whilst Board independence and CEO duality display a negative relationship. In terms of moderating effects, we find that ownership concentration negatively moderates the relationship between Board independence and OP, as well as that of CEO duality and OP. The relationship between the number of Board committees and OP is positively moderated by ownership concentration. Our findings contribute towards better articulating and applying a more concrete measure of OP—that of TQ ratio—whilst, at the same time, testing the Board composition–performance relationship in the context of an upcoming and increasingly important emerging market. Wider applicability of results and policy implications are discussed. Keywords: Tobin’s Q, Corporate governance, Organisational performance, Board structure, Fixed and random effect generalised least square regressions.

Complementarity and Substitution in the Knowledge Networks of R&D Subsidiaries

Abstract We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external knowledge network of the home country, (ii) external knowledge network of the host country, and (iii) internal (MNE) knowledge network. Drawing on the relative costs and benefits associated with the process of synergistic knowledge, this study examines whether a substitutive or a complementary relationship exists when two of the aforementioned networks collaborate in order to generate new knowledge at the subsidiary level. Our study’s sample is based on a survey questionnaire addressed to foreign-based R&D subsidiaries of Fortune 500 companies. We assess the existence of complementarity/substitutability using the “production function approach.” Our results indicate that a complementary relationship exists between external knowledge network of the host and the home country, as well as between external knowledge network of the host country and internal knowledge network. On the other hand, external knowledge network of the home country and internal knowledge network form a substitutive relationship. Our study offers a more comprehensive view of the diverse sources/knowledge networks that R&D subsidiaries are sourcing knowledge from when compared to existing research. We also specify and account for the costs/benefits involved in knowledge sourcing and thereby detect possible substitution/complementarity between different sources of knowledge. So far, there has been limited to nonexistent research into the diversity of knowledge networks of R&D subsidiaries and the examination of potential substitutabilities and complementarities. Hence our empirical study contributes to the development of this particular research stream.