scholarly journals THE ROLE OF INTERMEDIARIES’ POWER ON CONTRACTING DECISION BETWEEN FARMERS AND INTERMEDIARIES.

New Medit ◽  
2019 ◽  
Vol 18 (3) ◽  
pp. 3-16
Author(s):  
Orjon Xhoxhi ◽  
Remzi Keco ◽  
Engjell Skreli ◽  
Drini Imami ◽  
Bari Musabelliu
Keyword(s):  
Latent Variables ◽  
Bargaining Power ◽  
Contract Farming ◽  
Specific Investment ◽  
Logit Regression ◽  
Specific Investments ◽  
Power Effect ◽  
Logit Regression Model ◽  
The Relationship

The paper investigates the determinants of farmers’ participation in contract farming (CF) in the context of a transition country, namely Albania. The focus is on intermediaries’ bargaining power effect on farmers’ engagement in CF. Exploratory factor analysis is used to develop measures for the latent variables, while a logit regression model is employed to test the hypothesized relationship. The results show that intermediaries’ bargaining power moderates negatively the relationship between farmers’ specific investments and CF participation. Farmers’ with high specific investment are reluctant to contract with buyers who have power because contracting with such a buyer implies that they can extract higher values from farmers’ specific investments. Other strong predictors of contracting decision are farmers’ trust on the intermediary, intermediary’s advice to the farmer and intermediary’s specific investment.

How modularity influences product innovation

2020 ◽  
Vol 58 (12) ◽  
pp. 2743-2761
Author(s):  
Yaowu Sun ◽  
Qi Zhong
Keyword(s):  
Product Innovation ◽  
Structural Equation ◽  
High Tech ◽  
Content Type ◽  
Mediating Role ◽  
Specific Investment ◽  
Specific Investments ◽  
Product Modularity ◽  
The Relationship

PurposeThe purpose of this paper is to offer novel and complementary insights into the relationship between product modularity and product innovation by investigating the mediating role of module suppliers' relationship-specific investments which include both property-based relationship-specific investment (PRSI) and knowledge-based relationship-specific investment (KRSI).Design/methodology/approachThis paper is an empirical study based on structural equation modelling, with a sample of 121 core firms of high-tech modular cooperation in China.FindingsThe findings indicated that product modularity had a significant positive effect on product innovation; product modularity was positively related to module suppliers' PRSI; module suppliers’ KRSI had a direct effect on product innovation while PRSI had an indirect effect on product innovation through KRSI; the relationship between product modularity and product innovation was serially multi-mediated by module suppliers’ PRSI and KRSI.Practical implicationsModular product design and modular cooperation governance guidance for core firms and cooperative investment strategies guidance for module suppliers were provided.Originality/valueThis study is the first attempt to analyse how product modularity affects product innovation in the context of inter-firm modular cooperation by revealing the mediating role of module suppliers' relationship-specific investments.

Capital Structure Along the Supply Chain: How Does Customer Leverage Affect Supplier Leverage Decisions?

2017 ◽  
Vol 07 (04) ◽  
pp. 1750014
Author(s):  
Yongqiang Chu ◽  
Liying Wang
Keyword(s):  
Supply Chain ◽  
Capital Structure ◽  
Bargaining Power ◽  
Customer Relationship ◽  
Bargaining Theory ◽  
Specific Investment ◽  
Investment Theory ◽  
Specific Investments ◽  
Ex Ante ◽  
The Relationship

The bargaining theory of capital structure implies that when firms raise their leverage, their suppliers will raise their own leverage in response, so as to maintain strength in negotiations with important customers. In contrast, the theory of firm-specific investments implies that when a customer raises its leverage, a firm will respond by lowering its own leverage to minimize the risk of bankruptcy. We test these theories by examining the relationship between the leverage decisions of suppliers and customers. We find that a firm’s leverage is positively associated with its customer’s leverage. Moreover, consistent with the bargaining theory, we find that the positive leverage relationship is stronger if the customer has a higher ex-ante bargaining power. We also find some support for the relation-specific investment theory of capital structure in that the positive leverage relationship is weaker if the supplier–customer relationship requires more relation-specific investments.

scholarly journals Inequality between capital and labour and among wage-earners: the role of collective bargaining and trade unions

2021 ◽  
Vol 27 (1) ◽  
pp. 29-46
Author(s):  
Maarten Keune
Keyword(s):  
Collective Bargaining ◽  
Wage Inequality ◽  
Trade Unions ◽  
Bargaining Power ◽  
Union Density ◽  
General Terms ◽  
Union Bargaining Power ◽  
Wage Earners ◽  
The Relationship

In the context of rising inequality between capital and labour and among wage-earners in Europe, this state-of-the-art article reviews the literature concerning the relationship between collective bargaining and inequality. It focuses on two main questions: (i) what is the relationship between collective bargaining, union bargaining power and inequality between capital and labour? and (ii) what is the relationship between collective bargaining, union bargaining power and wage inequality among wage-earners? Both questions are discussed in general terms and for single- and multi-employer bargaining systems. It is argued that collective bargaining coverage and union density are negatively related to both types of inequality. These relationships are however qualified by four additional factors: who unions represent, the weight of union objectives other than wages, the statutory minimum wage, and extensions of collective agreements by governments.

Relationship-Specificity, Contract Enforceability, and Income Smoothing

2013 ◽  
Vol 88 (5) ◽  
pp. 1629-1656 ◽  
Author(s):  
Yiwei Dou ◽  
Ole-Kristian Hope ◽  
Wayne B. Thomas
Keyword(s):  
Incomplete Contracts ◽  
Optimal Investment ◽  
Income Smoothing ◽  
Additional Risk ◽  
Specific Investment ◽  
Specific Investments ◽  
Contractual Obligations ◽  
The Cost ◽  
The Relationship

ABSTRACT: Contracting parties, such as the firm and its supplier, have cost-reducing incentives to make investments that support the unique transactions between them. However, to the extent that one party may renege on its contractual obligations, the other party incurring the cost of the relationship-specific investment bears additional risk and is less willing to invest such that sub-optimal investment occurs. In countries where enforceability of explicit contracts is particularly weak, parties have incentives to signal their willingness to fulfill implicit claims and maintain long-term relationships. We predict that firms engage in income smoothing to send such a signal to their suppliers. Consistent with these expectations, we find that firms that both reside in countries with weak contract enforceability and operate in industries with a greater need for relationship-specific investments tend to smooth reported income more. We further decompose income smoothing into “informational” and “garbled” components and find that results are driven by the informational component of income smoothing. Our results support the important role that accruals play in providing information in the presence of incomplete contracts. JEL Classifications: F14, K12, L14, M41, M43

Contract complexity and trust in construction project subcontracting

2020 ◽  
Vol 27 (9) ◽  
pp. 2477-2500 ◽  
Author(s):  
Shui Bo Zhang ◽  
Junying Chen ◽  
Yafan Fu
Keyword(s):  
Regression Model ◽  
Construction Industry ◽  
Performance Outcomes ◽  
Black Box ◽  
Mediating Effect ◽  
Content Type ◽  
Specific Investment ◽  
Specific Investments ◽  
Bilateral Transaction ◽  
The Relationship

PurposeThe purpose of this paper is to unpack the “black box” of the relationship between contract and inter-organizational trust, both theoretically and empirically. Two mediators, namely perceived safeguard and restriction, are identified to build up two seemingly contrary possible paths between contract and trust from current literature. Both paths are tested in the context of Chinese construction industry due to our access to sample.Design/methodology/approachA survey of 295 contractor-subcontractor relationships from Chinese construction industry was conducted. A three-step multiple regression model was employed to test the mediating effect of perceived safeguard and restriction. Then, a hierarchical regression model was used to test the possible moderating effect of bilateral transaction-specific investment.FindingsThe empirical results support the mediating effect of perceived safeguard between contract and trust in the construction subcontracting industry. Bilateral transaction-specific investments enhance the positive effect of contract on safeguard perception.Originality/valueTheoretically, this study contributes to governance literature by opening up the “black box” of the relationship between contract and trust. It provides a better understanding of how and when contract complexity impacts trust, instead of simply focusing on whether contract and trust act as complements or substitutes. Practically, this study provides guidelines for construction firms to decide the degree of contract complexity under various degrees of bilateral transaction-specific investments to enhance the other party’s trust, so as to improve performance outcomes.

scholarly journals Peranan Pembantu dan Anggota Rumahtangga Lain (Extended Family) Terhadap Partisipasi Kerja dan Lapangan Usaha Ibu Rumah Tangga Di Kota Jambi

2021 ◽  
Vol 5 (2) ◽  
pp. 333
Author(s):  
Apriantoni Apriantoni ◽  
Wiyan Mailindra
Keyword(s):  
Extended Family ◽  
Descriptive Analysis ◽  
Work Participation ◽  
Education Expenditure ◽  
Capita Expenditure ◽  
Logit Regression ◽  
Household Members ◽  
Inferential Analysis ◽  
Logit Regression Model

The purpose of this study was to determine the role of other household members "extended family" on the work participation and business field of housewives as well as taking into account other factors that play a role in increasing work participation and business preferences of housewives, including: level of education of housewives, per capita expenditure, presence of children aged 0-6 years and 7-12 years, age group, husband's education, and husband's working status. The analytical method that will be used in this research is descriptive analysis and inferential analysis. The analysis used in this paper uses a multifactorial logit regression model to see the ratio of the tendencies of the independent variables in influencing the work participation of housewives. The results of this study indicate that the role of other household members is very helpful for housewives in work participation and business fields, both education, expenditure, and the presence of children aged 0-6 years and 7-12 years.

Comparative analysis of the relationship between internal control weakness and different types of auditor opinions in fraudulent and non-fraudulent firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Lari Dashtbayaz ◽  
Mahdi Salehi ◽  
Mahdi Hedayatzadeh
Keyword(s):  
Internal Control ◽  
Stock Exchange ◽  
Internal Controls ◽  
Statistical Population ◽  
Content Type ◽  
Listed Firms ◽  
Logit Regression ◽  
Different Types ◽  
Logit Regression Model ◽  
The Relationship

Purpose This study aims to assess the relationship between internal control weakness and different types of auditor opinions in fraudulent and non-fraudulent firms. The study's main objective is to investigate fraud in business firms and analyze internal controls and types of proposed opinions by the auditor about his desired firm. The outbreak of fraud in firms is of utmost importance to a broad spectrum of society. Internal controls and the auditor's role in preventing and detecting frauds should not be taken for granted. Design/methodology/approach The present study's statistical population includes 179 listed firms on the Stock Exchange selected as the study sample using the systematic elimination method during 2012–2019. As the study's dependent variable (the type of auditor’s opinion), research hypotheses were analyzed using the Logit regression model. Findings The results show that the relationship between internal control weakness and opinion type is significantly different in fraudulent and non-fraudulent firms. Moreover, the relationship between internal control weakness and type of auditor opinion in fraudulent firms and the relationship between internal control weakness and type of auditor opinion in non-fraudulent firms are significant. Originality/value By assessing the related literature, the authors have found no study to directly assess the comparative relationship between internal control weakness and the type of auditor opinion, which can be named as the main objective of the study.

Do labour unions mitigate labour conflicts in China’s manufacturing firms?

2018 ◽  
Vol 29 (4) ◽  
pp. 470-486
Author(s):  
Hanbing Fan ◽  
Yiming Dong ◽  
Dezhuang Hu ◽  
Lianfa Luo
Keyword(s):  
Regression Model ◽  
Design Methodology ◽  
Manufacturing Firms ◽  
Monopoly Power ◽  
Employee Survey ◽  
Content Type ◽  
Labour Unions ◽  
Logit Regression ◽  
Logit Regression Model ◽  
The Relationship

Purpose This paper aims to examine whether labour unions influence labour conflicts and this mechanism is different in China compared with other countries. Design/methodology/approach This paper uses the data from the China Employer–Employee Survey that interviewed 1,208 firms and 10,087 workers in 2016 as the measurement of variables, and it uses Logit regression model to do the empirical research. Findings Unions cannot significantly influence labour conflicts. More active unions and unions whose leaders are appointed by the firms’ management are associated with a higher incidence of labour conflicts. Originality/value This paper finds a new mechanism that explains the relationship between unions and labour conflicts. The existing literature states that unions may increase labour conflicts via “monopoly power” and may also mitigate labour conflicts via “voice mechanisms”. This paper’s findings show that the positive correlation between unions and labour conflicts may be explained by the lack of “voice mechanism” rather than “monopoly power”. The findings imply that labour unions should represent the interest of workers to mitigate the increasing labour conflicts.

Team performance in the Italian NHS: the role of reflexivity

2018 ◽  
Vol 32 (2) ◽  
pp. 190-205
Author(s):  
Flavio Urbini ◽  
Antonino Callea ◽  
Antonio Chirumbolo ◽  
Alessandra Talamo ◽  
Emanuela Ingusci ◽  
...  
Keyword(s):  
Team Performance ◽  
Latent Variables ◽  
Equation Modeling ◽  
Content Type ◽  
Process Factor ◽  
Mediating Role ◽  
Input And Output ◽  
Output Factors ◽  
The Relationship

Purpose The purpose of this paper is twofold: first, to investigate the goodness of the input-process-output (IPO) model in order to evaluate work team performance within the Italian National Health Care System (NHS); and second, to test the mediating role of reflexivity as an overarching process factor between input and output. Design/methodology/approach The Italian version of the Aston Team Performance Inventory was administered to 351 employees working in teams in the Italian NHS. Mediation analyses with latent variables were performed via structural equation modeling (SEM); the significance of total, direct, and indirect effect was tested via bootstrapping. Findings Underpinned by the IPO framework, the results of SEM supported mediational hypotheses. First, the application of the IPO model in the Italian NHS showed adequate fit indices, showing that the process mediates the relationship between input and output factors. Second, reflexivity mediated the relationship between input and output, influencing some aspects of team performance. Practical implications The results provide useful information for HRM policies improving process dimensions of the IPO model via the mediating role of reflexivity as a key role in team performance. Originality/value This study is one of a limited number of studies that applied the IPO model in the Italian NHS. Moreover, no study has yet examined the role of reflexivity as a mediator between input and output factors in the IPO model.

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