In a study of 1,591 high-technology firms operating in Russia over the course of 2013-2017, we investigate the relationship between two alternative performance indicators, sales growth and profitability, that have demonstrated an inconsistent relationship in prior research. We demonstrate that the relationship between these indicators follows an inverted U-shaped curve and is moderated by firm size, age, financial leverage, and asset turnover. Specifically, small firms, mature firms, firms that borrow less, and firms with higher asset turnover are advantageously positioned to turn sales growth into profitability.

In a sample of 163 corporations observed over a course of four years, we study the joint impact of reputation and dynamic capabilities on the international expansion of corporate venture capital (CVC) programs. Our findings suggest that CVC reputation positively affects the global footprint of CVC programs, and that dynamic capabilities positively moderate this relationship. The results are robust to alternative operationalizations of reputation and dynamic capabilities. A post-hoc analysis suggests that different facets of the CVC reputation contribute to the observed effects. Specifically, a reputation for experience and a reputation for involvement with portfolio ventures positively affect the global footprint of a CVC program. At the same time, a reputation for misconduct with respect to intellectual property suppresses internationalization of CVC programs. The effects of reputations for involvement and misconduct are positively moderated by dynamic capabilities of corporate investors, whereas the effect of reputation for experience is not affected by dynamic capabilities.

This study explores the under-theorized relationship between international entrepreneurship and the likelihood of corrupt entry in the MENA region. It argues that entrepreneurs' locus of control regarding corruption may increase the likelihood of engaging in corrupt activities in a new business environment. Institutional factors such as the perceived level of corruption in the host economy also affect this relationship. The paper aims to enrich the understanding of international business by examining corruption at an individual level and to provide a nuanced view of international entrepreneurship, often viewed positively, but potentially having a darker side.

In industries characterised by low intra-industry arbitrage opportunities, firms may extract entrepreneurial rents and ensure profitability by sourcing technological arbitrage opportunities across national borders. Foreign owners provide access to such opportunities. In the setting of 1073 Russian companies operating in the industrial machinery manufacturing industry over the course of 2013-2016, we present initial evidence suggesting that partial foreign ownership may avail international arbitrage opportunities to the firms, resulting in superior performance. The effect of arbitrage opportunities on firm performance is strongest when firms have high financial liquidity. The optimal share of foreign investor control that maximises firm performance is estimated between 39% and 51%.

In the rapidly evolving landscape of open innovation, understanding the dynamics of learning is pivotal for corporate success. Yet, the constraints and thresholds inherent in the novel technology sourcing processes remain under-explored. We study 163 firms during the third wave of corporate venture capital activity characterized by the primary focus on innovation to investigate the effects of technology sourcing ambidexterity (the simultaneous pursuit of internal and external sources of innovative ideas) on corporate patenting and realized innovation. Acknowledging limitations of organizational learning, our results indicate the presence of the inverted U-shaped relationship between technology sourcing ambidexterity and innovation and suggest that beyond a certain threshold, increases in ambidexterity are detrimental to organizational learning and corporate innovation because boundary conditions to experimentation as a key element to learning arise. Such restrictions are alleviated by organizational slack, which enhances organizational abilities to orchestrate resources and take calculated risks to go beyond existing internal competencies.

Research summary: We investigate the effects of local market and government failure on the creation of social ventures in the context of post-crisis recovery during the period following the dot-com crisis and ending before the housing bubble burst across all Ohio counties. Drawing on social embeddedness theory, we posit that social venture creation rates vary across local contexts and are higher in communities characterized by market and government failures. Longitudinal contextual data from 88 Ohio counties indicates that situations characterized by failures of both types are especially conducive to the creation of local social enterprises. We address the shortage of longitudinal quantitative studies focused on the emergence of social entrepreneurship and identify conditions where the relationship between local context and social venture creation is important. Managerial summary: The purpose of this article is to examine how local context affects the rate of social venture creation in the United States. We study these rates in every county in Ohio in the aftermath of a crisis and find that local government responses and local market conditions singly and in combination lead to increased rates of local social venture creation. Fewer social ventures emerge when transfer (welfare) payments are high. However, rates rise in response to high unemployment, even when welfare payments are high, and are greater when welfare payments are low. This means the extent and type of local market and government failures influence the rate of local social venture creation. Findings advance the study of domestic social entrepreneurship in the aftermath of crises.

96 МАРТ, 2023, "УГОЛЬ" маШИНОСтРОЕНИЕ Золото остается одним из самых безопасных, антициклических, ликвидных и резервных активов.Реализация приоритетных стратегий в золотодобывающей промышленности позволяет противостоять экономическим шокам, неблагоприятным эпидемиологическим факторам, кризисам и спадам в экономике благодаря росту спроса на этот драгоценный металл и инвестициям в горнодобывающее оборудование и машины.Авторы доказывают, что добыча золота способствует не только экономическому росту национальной экономики и ее регионов, но и формирует предпосылки для перевода международной торговли и платежей на золото в форме «наднациональной» валюты.В то же время механизм накопления золотовалютных резервов позволит стабилизировать национальную экономическую систему в ответ на рост беспрецедентных санкций.Анализ показывает, что в периоды отдельных кризисов цена на золото увеличивалась в диапазоне 33%-70%, а мощность по добыче и переработке золотосодержащей руды в РФ в прогнозном периоде увеличится до 6250 тыс.т.Это формирует перспективу роста добычи золота и финансирования проектов, использования современных горнодобывающих машин, введения новых проектов и др.Авторами предлагается использовать матрицу выбора стратегий и инновационных моделей золотодобывающих компаний, благодаря которой будет возможно эффективно реализовывать потенциал горнопромышленного и машиностроительного комплекса и консолидировать усилия по обеспечению устойчивости национальной экономической системы.

In a generalizable multi-year sample of U.S. counties, we demonstrate that horizontal scaling of social ventures is explained by technological factors including technological endowment (patent stock) and the availability of technological arbitrage opportunity, as well as the growth in these two factors over time. Both the technological endowment and the availability of technological arbitrage opportunity are positively related to social venture scaling. However, growth in the technological endowment eases the pressure on social entrepreneurs to act thus exerting negative impact on social venture scaling. At the same time, growth in the availability of technological arbitrage opportunity indicates that the relative efficiency within the county lags behind the frontier established by the leading counties, which may exacerbate social ills to which social entrepreneurs respond. Accordingly, it exerts a positive impact on social venture scaling observed.

In a study of corporate venture capital investments by 81 corporations during a two-year period, we explore the factors leading to goal ambidexterity, or a balanced pursuit of strategically- and financially-oriented deals, by incumbents. Our results indicate that CEO characteristics play an important role in the adoption of goal ambidexterity by corporate investors. Specifically, CEO duality positively affects the adoption of goal ambidexterity, whereas CEO tenure exerts a negative influence on the likelihood of such adoption.

Entrepreneurially oriented SMEs are known to network to overcome resource limitations regarding newness and smallness, thus market intelligence acquisition and utilization have been shown to be of importance for EO firms. This study examines the mediating role of customer participation in new product development (NPD) on the relationship between entrepreneurial orientation (EO) and NPD performance. In a study of 232 SMEs, the results show that EO is positively related to customer participation and customer participation mediates the relationship between EO and NPD performance. Two contingency factors are examined that impact EO’s relationship with customer participation – firm age and firm size. The results show that when firms become older or larger, customers become less utilized in EO firms’ NPD process, thus indirectly affecting the impact of EO on NPD performance negatively.

This paper examines the effect of reputation on a corporate venture capital firm's ability to attract potential investments. We find that a reputation for experience, active involvement in the startup, and misconduct are all positively associated with the CVC ability to attract investments. An additional year of experience, a policy of taking seats on the boards of new ventures, and each additional lawsuit against the investors all bring at least one new venture to their portfolios. A reputation for misconduct does not deter startups when the CVC has a reputation for experience. However, when the CVC firm has a reputation for active engagement with its portfolio companies, every two additional lawsuits result in a loss of at least one investee. The results hold despite controlling for generalized favorability of the parent corporation. Our study suggests that finer grained measures are needed when studying the complex relationship between reputation and performance.

Employing a panel setting of 88 counties in the State of Ohio over the five-year period ending in 2006, this study aims to investigate the applicability of the knowledge spillover theory of entrepreneurship in explaining the relationships between flagship enterprises, entrepreneurial clusters, and business entry rates. The study confirms the overall positive relationship between flagship enterprises and startup rates, and the negative relationship between entrepreneurial clusters and startup rates. It further demonstrates that the effect of clusters is moderated by local unemployment rates so that higher rates of unemployment weaken the negative impact of entrepreneurial clusters on startup rates. Based on the evidence collected, policy makers should increase support for flagship enterprises in their regions, and would-be business owners should consider locating their ventures in proximity to flagship companies.

In a sample of 2980 firm-year observations collected from three industries over the five-year period during the Russian economic crisis of 2013–2017, we demonstrate the relative effectiveness of conservative and aggressive strategies for technological leadership in affecting firm performance. Both the conservative strategy aimed at minimizing firm inputs per the set volume of outputs and the aggressive strategy aimed at maximizing the outputs per the set volume of inputs affect performance positively. Of the two alternatives, the aggressive strategy clearly outperforms the conservative one during times of crisis. Additionally, without a clear commitment to either of the strategies, firms stand to lose. We offer a novel way of assessing a firm’s strategy based on the secondary data utilized in this manuscript that can be implemented by the future research.

Purpose The paper analyzes the effects of the capital structure on company performance (return on assets). The analysis is conducted in a large sample of high-tech manufacturing and service companies in the transition economy (Russian Federation). In addition to the aggregated analysis, separate investigations are conducted to scrutinize the impact of company age, size and location factors (the effects of agglomerations). This research postulates the existence and variability of the optimal capital structure and its dependence on economic crisis. Design/methodology/approach We utilized a large sample that includes 1,826 enterprises over the period from 2013 to 2017. The estimation was performed using the panel-corrected standard error estimation technique (Prais–Winsten regression) to account for the panel nature and distributional properties of our data. The existence of the optimal capital structure was assessed based on a curvilinear (quadratic) function. Findings The results are consistent with the Static Trade-off Theory and show that this theory is applicable to countries with transition economy. They demonstrate that effective management of the capital structure can increase return on assets by 16–22%. The optimal share of borrowed capital is higher for small businesses compared to larger ones and for enterprises located in agglomerations compared to those located in other regions. A greater increase in profitability can be achieved by larger firm companies compared to smaller ones. High share of borrowed capital leads to negative profitability, i.e. to losses by enterprises. No significant differences in profitability growth were identified between young and mature enterprises. The optimal share of borrowed capital that maximizes return on assets is in the range of 0–21%. Research limitations/implications Due to the SPARK policies, our access to the data has been limited to a five-year window, which imposed certain limitations on the choice of econometric methods we could have employed and somewhat limited our ability to contrast the effect of the crisis period with the period of stability. In this sense, although our results pertaining to the effect of the crisis could be treated as conservative, future research should consider extending the panel to include more years into consideration. Practical implications We identified significant differences between optimal capital structures and actual capital structures for high-tech enterprises. The contribution of this study is that the calculations were made for a country with a transition economy under crisis conditions. Countries with transition economies and developing countries tend to be characterized by a high level of interest rates on loans and a high proportion of borrowed capital in total assets. This poses difficulties for companies relying on borrowed capital to finance their operations. At the same time, our results demonstrate that in transition economies, enterprises in high-tech industries do have an optimal capital structure that allows maximizing firm performance. That is, Static Trade-off Theory is applicable to transition economies characterized by high interest rates on loans. Originality/value The novelty of this study lies in the detailed analysis of high-tech industries in Russian Federation. This analysis makes use of sophisticated econometric techniques for the first time in this context.