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Purpose: The importance of financial dependence of small and medium enterprises (SMEs) on their performance is a relatively unaddressed area of research. Relatedly, whether and to what extent foreign bank penetration exerts an impact in the presence of financial dependence also remains an open question. The purpose of the paper in this regard is to exploit unit-level data on Indian SMEs and assess the independent and interactive effects of financial dependence on SME behaviour, in the presence of foreign banks. Design/methodology/approach: This study uses fixed effects specification to address the issue. In subsequent analysis, this study also uses an instrumental variable approach for robustness. Findings: The results indicate that financial dependence improves investment and employment, although there is a decline in productivity. These findings differ across size classes of SMEs. Similar is the evidence in the presence of foreign banks. In particular, foreign bank penetration leads to a decline in investment for micro and medium SMEs, although for small SMEs, the impact is found to be the opposite. Originality/value: To the best of the author's knowledge, this is one of the early within-country studies to examine the interface between SMEs and financial dependence and the role played by foreign banks in this regard. [ABSTRACT FROM AUTHOR]

This work analyses the mutual dependence linking digital platforms, i.e., ‘Big Tech’, and the US military apparatus. Three main elements at the roots of such dependence are detected: an ‘originary linkage’ binding the development of digital platforms with governments’ military R&D efforts; the critical nature of infrastructures and technologies controlled by platforms; and their role as their government’s ‘eyes and ears’ (both at home and abroad). Focusing on the US, we first document the growing relevance of these corporations as US Department of Defense contractors. Second, we explore a selection of multi-year contracts entrusting platforms to develop and manage critical technologies and infrastructures for military purposes. Finally, we document the direct involvement of major US-based platforms in war scenarios. [ABSTRACT FROM AUTHOR]

The profound implications that digital technologies have for business dynamism and the competitive environment have raised the attention of policy makers and scholars. This paper examines the link between digitalisation and firm growth, and investigates whether high-growth enterprises (HGEs) invest and adopt digital technologies differently than non-HGEs. Using the European Investment Bank Investment Survey and Generalised Least Squares as well as random-effects probit models, we find strong complementarities between different digitalisation indicators. Furthermore, firms investing in digitalisation are more likely to exhibit rapid employment, sales and labour productivity growth. Our results also highlight the heterogeneous nature of the digitalisation process and its relationship with firm performance. [ABSTRACT FROM AUTHOR]

The FTX scandal and crypto boom-and-bust cycles have called into question the sustainability of decentralised systems like DAOs. This article argues that inherent constraints will limit DAOs’ mainstream adoption. We contend that the primacy of code in DAOs—represented by the code is law maxim—is overstated given semantic gaps in contracts. Crisis management is another serious bottleneck due to challenges of coordinating decisions without central authorities. Informal hierarchies may also emerge—in line with organisational theoretic concept of power clawing back, which would undermine decentralization objectives. Our analysis considers anonymous reputation verification, flexibility, and transparency to have more staying power and identifies scalability as the primary obstacle—stemming from high transaction costs and throughput constraints.

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The prevalence of digital ecosystems and platforms underscores the need for a deeper understanding of the factors that influence performance variations within these platforms. This study introduced a multidimensional model to examine the platform ecosystem characteristics that affect performance outcomes. To this end, it adopted the Lotka-Volterra complex system theory. The model was simplified into a one-dimensional framework, enabling the examination and prediction of the relationship between performance bifurcation and configurations of platform characteristics. This study provides practical insights and implications that extend beyond academia. The results reveal that high network threshold values indicate robust platform performance, suggesting resilience against collapse. Additionally, increasing the network effect influences platform performance by shifting competition strength toward prominent tipping-point locations, which is considered a desirable regime. The results further confirm that competition dampens a platform's exponential growth; however, cross-network effects enhance it. These insights have significant implications for investors, offering a practical vision that can inform managers' strategic decision-making. These findings provide a solid foundation for developing informed strategies to enhance platform performance. In a world in which digital ecosystems play a pivotal role, the implications of this study empower stakeholders to make data-driven decisions, fostering success in a dynamic and competitive digital business environment.

Common institutional ownership has become a significant form of shareholding in the capital market. Using panel data on 2395 listed companies in China from 2007 to 2020, we examine the investment efficiency of this ownership practice on microcorporate investment behavior. The estimates indicate that common institutional ownership has a significant positive relationship with corporate investment efficiency by reducing overinvestment. Further institutional heterogeneity analysis reveals that enterprises have independent and long-term investment horizon of common institutional investors, and the positive effect of common institutional ownership on enterprises’ investment efficiency is stronger. The empirical results are validated by a series of robustness tests. This study provides empirical support for the performance of common institutional ownership participating in corporate governance and optimizing investment decisions.

This paper reports on an empirical analysis of 42,094 public/private companies in China and 21 Eastern European countries to grasp the actual state and determinants of board gender diversity in emerging market firms. We confirmed that firms in these countries are comparable to those in advanced nations in terms of the prevalence of firms recruiting female board members and the female share of board directorships. Furthermore, in emerging market countries, internal promotions are used as often as, or even more often than, external ones to recruit women to director positions. The results revealed that board composition and ownership structure are important determinants of the gender diversity of the corporate board in emerging market firms. We also found that the effects of these factors vary significantly depending on the country/region and the listing status of firms and that two qualitatively different decision-making stages related to the appointment of women to board positions (i.e., a decision as to whether to appoint any women to the board and a decision as to how many board positions should be reserved for women) have a substantial impact on the empirical results.

This study examines the impacts of partial passive ownership (PPO) by a public enterprise on firm’s research and development (R&D) decisions in the presence of research spillovers. We find that PPO always increases welfare in a mixed duopoly, while it only increases (decreases) welfare in a private duopoly when the spillover rate is high (low). We also show that privatisation policy can increase (decrease) welfare when both PPO and spillover rates are high (low) under R&D competition. In addition, we examine research joint ventures (RJVs) and find that welfares in both mixed and private duopolies under RJVs are always higher than those under R&D competition, while privatisation policy always increases welfare regardless of PPO and the organisational form of RJVs. Therefore, the effects of PPO by a public enterprise crucially depend not only on spillovers rate, but on the type of RJVs formation and the implementation of privatisation policy. [ABSTRACT FROM AUTHOR]