Narrow Results

Trust was found to promote entrepreneurship in the US. We investigated whether this was true in a developing country, Indonesia. We failed to replicate this; this failure was true whether trust was estimated at the individual or community level or whether ordinary least squares (OLS) or two stage least squares (2SLS) was employed. We reconciled the difference between our results and those for the US by arguing that the weak enforcement of property rights in developing countries and the consequent hold-up problem make it more efficient for entrepreneurs to produce generic goods than relationship-specific goods—producing generic goods does not depend on trust.

Agent-based modeling is being increasingly used to simulate socio-techno-ecosystems that involve social dynamics. Humans face constraints that they sometimes wish to challenge, and when they do so, they often trigger changes at the scale of the social group too. Including such adaptation dynamics explicitly in our models would allow simulation of the endogenous emergence of rule changes. This paper discusses such an approach in an institutional framework and develops a sequence that allows modeling of endogenous rule changes. Parts of this sequence are implemented in a NetLogo KISS model to provide some illustrative results.

The Japanese telecom giant DoCoMo launched promoted its proprietary i-mode mobile services in 1999 and overseas in 2002. Diffusion overseas was much slower than expected, however. This paper investigates the diffusion of Japanese i-mode mobile internet in Europe from an institutional perspective, focusing on five earlier i-mode overseas operators located in Taiwan, The Netherlands, Germany, Belgium, and France. We found four strategic institutional levers that stimulated i-mode domestic diffusion but failed to appear in overseas areas: operator leadership, subscriber scale, mobile penetration rate, and the ability of the firm to coordinate capability among complements. We propose strategies to internationalize a new standard by co-branding with local vendors and by using penetration pricing as an incentive for switching. Additionally, we recommend an industrial policy that drives cannibalization to facilitate mobile migration to a more advanced standard.

This study examines the effects of corruption and political instability and violence on the financial sector development. We estimate the impact for a panel of countries classified by income groups and regulatory quality. The study considers the period from 1996 to 2015 for analysis. The empirical models of this study test the linear as well as nonlinear relationships between corruption and financial sector development. Our analysis utilizes a dynamic panel data model and takes care of the potential endogeneity problem in estimation. The results show that corruption has a negative effect on financial sector development for all as well as different income-group countries. Our results further show that the effects of corruption are nonlinear in nature and indicate that corruption is more financial development-reducing when its level is very high. We also test the joint effect of corruption and political instability and violence on financial development. It largely shows that their combined effect is positive, implying that widespread corruption can positively affect financial development if a country is suffering from an unstable political institution.

The United States and China have common but differentiated climate mitigation responses. Most studies so far have sought to explain this divergence with a focus on energy resources, technology, economic, or social factors. These studies ignore the role of strategy and institutions, and thus appear incomplete. In this paper, the author investigates the climate mitigation responses of the United States and China from a strategic and institutional perspective, explores how their climate responses are shaped, and identifies possible weaknesses hidden in their climate approaches. The paper finds that the United States and China have distinct national climate positions due to their diverse strategies and institutions. However, they have chosen similar policy tools and have achieved fairly comparable emission reductions thus far. In the long run, the effectiveness and efficiency of the low-carbon transformation will possibly be hindered by weaker policy innovation capability at sub-national levels in China and the operationally volatile energy strategy in the United States.

Throughout history, major powers have been playing significant roles in leading the development of globalization. There have been three waves of globalization since the age of the Great Voyage, and the latest American-style globalization featuring neo-liberalism has suffered from its own institutional constraints as a result of imbalanced global economy and social-economic dynamics, which contributed to the election of President Trump and the ensuing protectionism of the United States. With the rise of emerging economies, the new round of globalization will no longer be dominated by a single major power. Given the scale of outbound investment and agenda-setting capabilities, emerging powers represented by BRICS countries are increasingly proactive in promoting industrialization and post-industrialization worldwide. China, in particular, with its institutional advantages, is endowed with far-reaching capabilities in pushing forward the new round of globalization.

This paper explores whether and how corruption and competition-for-promotion motives affect urban land supply in the People's Republic of China. Conditional on demand-side factors, we find that corruption is highly correlated with an increase in land supply. The corruption effects are strongest for commercial land, followed by residential land, and then industrial land. To shed light on the competition motives among prefectural leaders, we examine how the number of years in office affects land supply and distinguish among different hypotheses. Our empirical results show robust rising trends in land sales. These results are consistent with the hypothesis that among prefectural leaders the impatience and anxiety in later years from not being promoted may contribute to an increase in land sales revenue in later years. We also find that prefectural leaders may aim for more land sales revenue over their first few years in office instead of seeking higher revenue in their first 1–2 years.

In this paper we study the natural resource curse by analyzing the cross-regional sample from Kazakhstan. Our focus is to understand if the institutional quality within the country explains the resource curse. Using the data for 14 regions in Kazakhstan between 2000 and 2010 and employing various panel data approaches, we find that the institutional quality is not a determinant of the resource curse as institution changes very slowly within the country over time. This statement surely contradicts with previous resource curse literatures that utilized cross-country sample counting the fact that institutions vary across countries. Instead here, we argue that the resource curse within the country arises as a result of commodity price volatility.

Since the Sustainable Development Goals were adopted by the United Nations in 2015, there has been a growing awareness that addressing environmental issues is not only the duty of political leaders but also the social responsibility of companies. Focusing on the automotive industries in Japan and South Korea, this chapter assesses their efforts to promote green transition through their business operations alongside the institutional settings of their countries. In particular, it examines the leading automakers in the respective countries, namely, Toyota and Hyundai. These two automotive groups can potentially play a key role in facilitating environmental sustainability in Asia and beyond if their competitiveness and their countries’ policies are properly aligned. In the eco-car segments, however, Toyota’s performance is lagging behind its competitors, while Hyundai is still struggling to gain a leading edge in the global market. This chapter pays particular attention to electric vehicles and hydrogen vehicles, and considers their potential, as well as technological and institutional obstacles that the companies may face, in the process of green transition in the automotive industry.

The purpose of this paper is to make available to the mathematicians and the computer scientists who have limited background in foundations of category theory, an improved essential explanation of ACG and a comprehensible proof of consistency of the systems QM and ZF# in the system ACG.

Understanding of business venturing cannot be complete without an understanding of the preconditions and drivers of the emergence of innovation in society. Considerable thought and theory have focused on the diffusion of innovation in society and the properties of innovation attributable to the entrepreneur or the firm. This chapter moves beyond these topics and focuses on theorizing about the emergence of innovations. The authors document how both theory and industry practices are moving away from viewing the emergence of innovation as a proprietary and mostly entrepreneur, individual or firm-centric process to a more open and largely social process. Importantly, institutions are viewed as both barriers to and opportunities for innovation and thus become the fundamental proposition for the emergence of innovation. The chapter develops five additional propositions on the emergence of innovation with both micro (firm-level) and macro (societal) implications. Implications for venture management, public policy, and research conclude the chapter.