Purpose – Innovation ecosystems rely on intermediaries, yet intermediation is often conceptualised as a static role tied to fixed entities. This paper develops an adaptive intermediation concept, explaining how a designated governance unit reconfigures its connecting, facilitating, and integrating functions as ecosystem maturity and urgency evolve. Research methodology – We adopt a dynamic capabilities perspective to develop a theoretical framework for this research based on literature analysis and conduct an empirical single-case study of Latvia’s smart-city ecosystem, to complement our theoretical findings by the analysis of empirical phenomena, and to design our theoretical propositions. Findings – The governance unit’s effectiveness in the innovation ecosystems relies on its capability to reconfigure intermediation functions. We identify three evolving configurations of governance: (1) connecting, (2) facilitation, and (3) directive integration under high urgency, and explain their reconfiguration in the innovation ecosystems. Research limitations – Empirical evidence for this research comes from a pilot exploratory study of a single civic-innovation ecosystem; therefore, the applicability and transferability of the research findings should be further tested through comparative multi-case and mixed-method longitudinal studies. Practical implications – The findings of this research provide a diagnostic lens for ecosystem managers and policymakers to anticipate when to prioritise coordination, facilitation, and brokerage, or an integration approach, and how to project the intermediary role within the ecosystem. Originality/Value – This study shifts intermediary theory from type-based categorisation towards a processual, capability-based approach of the intermediary role reconfiguration aligned with ecosystem evolution.
Purpose – This research examines the long-memory volatility within the S&P BSE Greenex, considering increasing investor focus on sustainability and the impact of green innovation on corporate environmental outcomes. Research methodology – The study analyses volatility using the Fractionally Integrated Exponential Generalized Autoregressive Conditional Heteroskedasticity (FIEGARCH) model. Findings – The empirical results reveal that higher volatility is negatively associated with expected returns, consistent with the presence of persistent volatility clustering and a leverage effect in green stock returns. Research limitations – This study does not address the influence of exogenous factors or sector-specific effects, highlighting potential scope for further research. Practical implications – The study findings highlight the substance of volatility modelling in sustainable investing. The presence of long-memory effects suggests that historical volatility data can aid in forecasting future trends in green stocks. Policymakers are suggested to consider measures to stabilize market conditions while promoting environmental sustainability, as reduced volatility can enhance investor confidence and encourage long-term sustainable investments. Originality/Value – To the best of the author’s knowledge, no prior research has examined the long-memory volatility of the sustainability index using the FIEGARCH model, highlighting the originality and contribution of this study.
Purpose – tax policies can be seen as one of the factors potentially affecting firms’ investment decisions and innovation. The paper examines the relationship between tax competitiveness and business Research and Development (R&D) expenditures across EU countries. Specifically, it analyses the tax rules governing corporate taxation in EU countries. Research methodology – based on a combination of data from several databases (International Tax Competitiveness Index, OECD, and Eurostat) – we comprehensively examined the relationship. Using cluster analysis and PCA on cross-sectional data, we identified countries with similar tax competitiveness in relation to business R&D expenditures. Subsequently, we identified the effects of tax policy instruments and tax competitiveness on business R&D by using panel regression models (fixed effects and general method of moments). Findings – our results suggest that countries that are very similar in terms of tax competitiveness and the structure of individual tax elements (especially the Baltic countries) also achieve relatively low levels of R&D spending. While we get mixed results on R&D tax credits as a standalone R&D factor, tax competitiveness in general is significantly associated with business R&D expenditures in EU countries. The results also indicate the importance of tax instruments, which are hitherto less examined within the context of business innovation, such as tax depreciation rules. Research limitations – the size and geographical focus of the sample used in the analysis may limit general applicability and comparability with some previous studies based on datasets from different countries. Practical implications – the results are discussed within the current context of policies sup- porting innovation, and several policy recommendations have been highlighted. They help to guide more effective tax policies to boost business R&D and innovation. Originality/Value – there are only a few up-to-date empirical studies examining the effects of tax competitiveness on business R&D. Unlike prior studies, this paper analyses the relationship using a combination of quantitative techniques and classifies countries into clusters based on their tax competitiveness. The findings highlight the impact of overlooked aspects, such as tax depreciation rules.
Purpose – this study explores the growing interest in Exchange-Traded Funds (ETFs) and public shares during and after the COVID-19 pandemic, aiming to understand the factors driving this investment trend. Research methodology – an actively managed portfolio of U.S. stocks is constructed and compared to a passively managed S&P 500 index portfolio. Active management is conducted using three approaches: intuition-based selection, the Black-Litterman model, and Modern Portfolio Theory. A quantitative analysis assesses risk, performance, and the impact of rein- vestment and transaction costs. Findings – results show that active investing can outperform passive strategies in the short term but involves higher risk, transaction costs, and ongoing oversight. Passive investing offers stability and lower costs but may yield lower returns during volatile periods. Research implications – the study deepens understanding of how costs and reinvestment in- fluence investment outcomes and how active and passive strategies perform under varying market conditions, especially post-pandemic. Practical implications – the findings provide practical guidance for portfolio construction and management, helping investors balance risk and return in a changing financial landscape. Originality/Value – this paper uniquely compares three active investment approaches against a passive benchmark within a post-COVID context, offering integrated insights on performance, cost, and strategy for both academics and practitioners.
Purpose – This study examines the macroeconomic determinants of private credit in European Union (EU) member states, focusing on interest rates, inflation, unemployment, household income and expenditure, and housing prices. It aims to identify key drivers of household borrowing and assess how macroeconomic conditions shape credit dynamics across the EU. Research methodology – The analysis covers 27 EU countries over the period 2001–2023 and applies panel-data econometric techniques, including ordinary least squares, fixed-effects, and random-effects models, to examine linear and nonlinear relationships. Findings – The results show that interest rates exert the strongest negative effect on private credit volumes. The gap between household expenditure and income is positively and significantly associated with household debt, indicating increased reliance on borrowing when consumption growth outpaces income growth. By contrast, housing prices, unemployment, and the nonlinear effects of the expenditure-income gap are not statistically significant. Research limitations – Data availability limits the scope of cross-country comparison. Practical implications – Policymakers should prioritise interest rate management, income growth, and labour market stability to support sustainable household indebtedness. Originality/Value – The study complements existing research by incorporating the expenditure-income gap as an additional perspective on household borrowing in the EU.
