Pub Date : 2022-10-12DOI: 10.1108/jepp-03-2022-0041
Per L. Bylund, Mark D. Packard, David J. Rapp
PurposeThe purpose of this paper is to illustrate how research on the intersection of public policy and entrepreneurship has been bounded by its static approach and how a processual analysis based on Austrian economics can advance the understanding of the subject matter.Design/methodology/approachRooted in the Austrian school of economics, this conceptual paper adopts a processual approach in order to unveil the effects that public policy exerts upon entrepreneurship and the market process.FindingsThe authors argue that by interfering with the market process, public policy detrimentally alters what otherwise would have been the market's natural evolution reflecting acting individuals' subjective valuations. It causes progressively self-reinforcing market distortions which result in comparatively lower levels of both capital accumulation and societal wealth.Research limitations/implicationsThe paper urges future research to rethink public policy's effects on entrepreneurship and to explore them more comprehensively, utilizing market process analysis.Practical implicationsThis research suggests that public policy can never be neutral but necessarily comes with distortive and often detrimental effects. That is, public policy comes at the innate expense of hampering the entrepreneurial process. Thus, new public policies and those already in place should be carefully reconsidered in light of these effects.Originality/valueThis paper offers a novel take on how to best understand the effects public policy has on entrepreneurship and the market process.
{"title":"From static to processual analysis: how insights from Austrian economics can advance research on public policy and entrepreneurship","authors":"Per L. Bylund, Mark D. Packard, David J. Rapp","doi":"10.1108/jepp-03-2022-0041","DOIUrl":"https://doi.org/10.1108/jepp-03-2022-0041","url":null,"abstract":"PurposeThe purpose of this paper is to illustrate how research on the intersection of public policy and entrepreneurship has been bounded by its static approach and how a processual analysis based on Austrian economics can advance the understanding of the subject matter.Design/methodology/approachRooted in the Austrian school of economics, this conceptual paper adopts a processual approach in order to unveil the effects that public policy exerts upon entrepreneurship and the market process.FindingsThe authors argue that by interfering with the market process, public policy detrimentally alters what otherwise would have been the market's natural evolution reflecting acting individuals' subjective valuations. It causes progressively self-reinforcing market distortions which result in comparatively lower levels of both capital accumulation and societal wealth.Research limitations/implicationsThe paper urges future research to rethink public policy's effects on entrepreneurship and to explore them more comprehensively, utilizing market process analysis.Practical implicationsThis research suggests that public policy can never be neutral but necessarily comes with distortive and often detrimental effects. That is, public policy comes at the innate expense of hampering the entrepreneurial process. Thus, new public policies and those already in place should be carefully reconsidered in light of these effects.Originality/valueThis paper offers a novel take on how to best understand the effects public policy has on entrepreneurship and the market process.","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46462108","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-11DOI: 10.1108/jepp-01-2022-0015
Da Huo, Yifan Wei
PurposeThis paper seeks to answer two questions: (1) where do a country's entrepreneurship policies come from? (2) How do they evolve and shape entrepreneurial activities?Design/methodology/approachDrawing upon the comparative political economy literature and the institutional perspective, this paper proposes a theoretical model of the origin and evolution of entrepreneurship policies. We use China as a case study to apply the theoretical model and demonstrate the evolution of entrepreneurship policies in three stages during the period 1978 to 2012.FindingsThe case analysis of China provides evidence and support for our theoretical model and unpacks the process by which entrepreneurship policies originate and evolve as the result of the interplay among constantly changing policymaking, production, and knowledge regimes.Research limitations/implicationsBecause of the research context, findings may lack generalisability. Additional studies on policymaking and production regimes of different kinds and their respective roles in shaping entrepreneurship policies are encouraged to further advance this line of research.Practical implicationsThis paper offers important implications concerning entrepreneurship policy and activities for policymakers, practitioners and other stakeholders in emerging economies.Originality/valueOur study fills a gap in the entrepreneurship literature by expanding scholarly understanding of the origin and evolution of entrepreneurship policies.
{"title":"The origin and evolution of entrepreneurship policies: the case of China","authors":"Da Huo, Yifan Wei","doi":"10.1108/jepp-01-2022-0015","DOIUrl":"https://doi.org/10.1108/jepp-01-2022-0015","url":null,"abstract":"PurposeThis paper seeks to answer two questions: (1) where do a country's entrepreneurship policies come from? (2) How do they evolve and shape entrepreneurial activities?Design/methodology/approachDrawing upon the comparative political economy literature and the institutional perspective, this paper proposes a theoretical model of the origin and evolution of entrepreneurship policies. We use China as a case study to apply the theoretical model and demonstrate the evolution of entrepreneurship policies in three stages during the period 1978 to 2012.FindingsThe case analysis of China provides evidence and support for our theoretical model and unpacks the process by which entrepreneurship policies originate and evolve as the result of the interplay among constantly changing policymaking, production, and knowledge regimes.Research limitations/implicationsBecause of the research context, findings may lack generalisability. Additional studies on policymaking and production regimes of different kinds and their respective roles in shaping entrepreneurship policies are encouraged to further advance this line of research.Practical implicationsThis paper offers important implications concerning entrepreneurship policy and activities for policymakers, practitioners and other stakeholders in emerging economies.Originality/valueOur study fills a gap in the entrepreneurship literature by expanding scholarly understanding of the origin and evolution of entrepreneurship policies.","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45222981","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-27DOI: 10.1108/jepp-04-2022-0053
N. Smith
PurposeThe paper extends the robust political economy framework to analyze the impact of tariffs on the entrepreneurial market process. It proposes that the unintended consequences of using trade policy to bolster a nation's economy will inevitably prevent an economy from allocating its resources to their highest-valued use. The study aims to expand the robust political economy literature to international trade.Design/methodology/approachThe paper develops a robust analysis of trade policy and illustrates it with two case studies of trade wars: The Chicken War (1963) and the US–Canada softwood lumber disputes (1982-present).FindingsThe paper provides theoretical insights into how the entrepreneurial market process is distorted by trade barriers. The case studies show that the theoretical insights have real-world implications that should not be ignored when planning trade policy.Originality/valueThis paper applies a robust political economy framework to international trade.
{"title":"A robust analysis of trade policy: the chicken and softwood lumber wars","authors":"N. Smith","doi":"10.1108/jepp-04-2022-0053","DOIUrl":"https://doi.org/10.1108/jepp-04-2022-0053","url":null,"abstract":"PurposeThe paper extends the robust political economy framework to analyze the impact of tariffs on the entrepreneurial market process. It proposes that the unintended consequences of using trade policy to bolster a nation's economy will inevitably prevent an economy from allocating its resources to their highest-valued use. The study aims to expand the robust political economy literature to international trade.Design/methodology/approachThe paper develops a robust analysis of trade policy and illustrates it with two case studies of trade wars: The Chicken War (1963) and the US–Canada softwood lumber disputes (1982-present).FindingsThe paper provides theoretical insights into how the entrepreneurial market process is distorted by trade barriers. The case studies show that the theoretical insights have real-world implications that should not be ignored when planning trade policy.Originality/valueThis paper applies a robust political economy framework to international trade.","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48176490","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-27DOI: 10.1108/jepp-01-2022-0007
Md. Abdur Rouf, M. N. Siddique
PurposeThis paper attempts to review the corporate voluntary disclosure (CVD) from the theoretical perspective as well as propose a conceptual framework.Design/methodology/approachThe researchers use structural literature review technique. The sample literature consisting of 55 articles was extracted from the Scopus database over the period of 2017–2021.FindingsThe literature observes that the legitimacy, agency and stakeholder theories are most applied in CVD related studies than the other theories. It is also revealed that researchers need to concentrate more studies on those theories of CVD that have been applied in a limited study such as neo-institutional, signaling, resource dependence, political economy and impression management theories.Practical implicationsThe findings can help the understanding of parties such as practitioners', regulators and potential investors of the theories in CVD from a combined and comprehensive view.Social implicationsThe results of the study offer new insights into the potential impact of organizational level and country level theories in CVD from different perspectives of developed and developing countries.Originality/valueThis study delivers an inclusive literature review of the current study approach on the theories of CVD and highlights some stimulating guidelines for future study.
{"title":"Theories applied in corporate voluntary disclosure: a literature review","authors":"Md. Abdur Rouf, M. N. Siddique","doi":"10.1108/jepp-01-2022-0007","DOIUrl":"https://doi.org/10.1108/jepp-01-2022-0007","url":null,"abstract":"PurposeThis paper attempts to review the corporate voluntary disclosure (CVD) from the theoretical perspective as well as propose a conceptual framework.Design/methodology/approachThe researchers use structural literature review technique. The sample literature consisting of 55 articles was extracted from the Scopus database over the period of 2017–2021.FindingsThe literature observes that the legitimacy, agency and stakeholder theories are most applied in CVD related studies than the other theories. It is also revealed that researchers need to concentrate more studies on those theories of CVD that have been applied in a limited study such as neo-institutional, signaling, resource dependence, political economy and impression management theories.Practical implicationsThe findings can help the understanding of parties such as practitioners', regulators and potential investors of the theories in CVD from a combined and comprehensive view.Social implicationsThe results of the study offer new insights into the potential impact of organizational level and country level theories in CVD from different perspectives of developed and developing countries.Originality/valueThis study delivers an inclusive literature review of the current study approach on the theories of CVD and highlights some stimulating guidelines for future study.","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44659498","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-27DOI: 10.1108/jepp-08-2022-0088
A. Beebeejaun
PurposeThe official authorities have established several action plans including fiscal support measures to help micro, small and medium enterprises (MSMEs) counter the negative repercussions of COVID-19. In this regard, the purpose of this research is to critically assess the recent fiscal policies endeavoured by the Mauritian authorities in response to COVID-19, to assess the awareness and perception of some local MSMEs of these initiatives, to investigate the extent to which these MSMEs have benefited from them and also, to suggest recommendations to the Mauritian authorities on how to enhance the existing framework to ensure sustainable and equitable development.Design/methodology/approachThis study has adopted both the quantitative and qualitative research methods. Primary data were obtained by conducting a survey of some Mauritian MSMEs, and secondary data were obtained by referring to laws and policy papers on the research topic. Some statistical tests were performed using SPSS software on the primary data to illustrate the research findings.FindingsDespite the laudable initiatives, the survey conducted for this research demonstrates that MSMEs in Mauritius have a moderate awareness of these fiscal support measures. Furthermore, upon being asked whether they have availed of these tax incentives, again a moderate mean average was derived which implies that not all MSMEs have fully benefited from fiscal support to help them in countering the negative effects of COVID-19.Originality/valueAt present, this study will be amongst the first academic writings on the effectiveness of the fiscal measures undertaken by the Mauritian authorities to deal with issues entailed by the COVID-19. The study is carried out with the aim of combining a large amount of empirical, theoretical, and factual information that can be of use to various stakeholders and not only to academics.
{"title":"Ensuring resilience through fiscal responses to COVID-19; an empirical study of Mauritian micro small medium enterprises (MSMEs)","authors":"A. Beebeejaun","doi":"10.1108/jepp-08-2022-0088","DOIUrl":"https://doi.org/10.1108/jepp-08-2022-0088","url":null,"abstract":"PurposeThe official authorities have established several action plans including fiscal support measures to help micro, small and medium enterprises (MSMEs) counter the negative repercussions of COVID-19. In this regard, the purpose of this research is to critically assess the recent fiscal policies endeavoured by the Mauritian authorities in response to COVID-19, to assess the awareness and perception of some local MSMEs of these initiatives, to investigate the extent to which these MSMEs have benefited from them and also, to suggest recommendations to the Mauritian authorities on how to enhance the existing framework to ensure sustainable and equitable development.Design/methodology/approachThis study has adopted both the quantitative and qualitative research methods. Primary data were obtained by conducting a survey of some Mauritian MSMEs, and secondary data were obtained by referring to laws and policy papers on the research topic. Some statistical tests were performed using SPSS software on the primary data to illustrate the research findings.FindingsDespite the laudable initiatives, the survey conducted for this research demonstrates that MSMEs in Mauritius have a moderate awareness of these fiscal support measures. Furthermore, upon being asked whether they have availed of these tax incentives, again a moderate mean average was derived which implies that not all MSMEs have fully benefited from fiscal support to help them in countering the negative effects of COVID-19.Originality/valueAt present, this study will be amongst the first academic writings on the effectiveness of the fiscal measures undertaken by the Mauritian authorities to deal with issues entailed by the COVID-19. The study is carried out with the aim of combining a large amount of empirical, theoretical, and factual information that can be of use to various stakeholders and not only to academics.","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42869321","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-06DOI: 10.1108/jepp-02-2022-0023
Vernesa Lavic
PurposeTo answer the following research questions: (1) What is the tax burden, on average, as a percentage of the generated revenues of companies in BiH? (2) Are there differences in the load level in relation to: (a) company size, (b) company location, (c) company age, (d) hiring of tax advisors and other external consultants on CIT issues and (e) company business activity.Design/methodology/approachIn order to answer the research questions asked, quantitative analysis of primary data purposefully collected for this research will be used. The empirical part of the paper relies on the collection of primary data through survey using the method of stratified random sampling from the population of SMEs enterprises registered in BiH focusing only on FBIH and the RS. Regression analysis (OLS model) was used to estimate results.FindingsAverage share of tax compliance costs in SME revenues is 8.3%. Tax compliance costs are regressive, dependent on company age, location and business activity as well as on whether companies hire external consultants.Research limitations/implicationsThe chosen research method is a telephone survey, with the aim of encouraging respondents to give answers to the questions asked, using experienced interviewers from the market research agency. However, the use of this method is not without limitations, and they refer to the time-limited duration of telephone interviews that require shorter questions, and pre-prepared answer options to make it easier for respondents to give answers. One of the challenges is the fact that most respondents do not want to talk to strangers over the phone and answer unknown numbers. This risk was especially pronounced because the topic of the research is related to CIT, so many respondents expressed doubts about the purpose of the question, refusing to provide accurate data. This risk was mitigated by asking questions to include certain scales in terms of income, number of employees and gross wages, to make respondents feel free to share this type of sensitive data with interviewers.Practical implicationsFirst, the analysis of this paper showed that specific, identified factors contribute to, or directly affect, the level of the tax compliance costs of corporate income tax in BiH. Second, there is currently no comprehensive analysis of the tax burden in BiH in the literature that would quantify the tax compliance costs, both at the BiH level and at the entity level. Based on the aforementioned, it is necessary to design a fiscal policy in such a way as to eliminate or, in cases where this is not possible, reduce the tax burden on the private sector in general. Based on the data collected in this research, fiscal policy should pay special attention to the tax treatment of start-ups, small and medium-sized enterprises and enterprises operating in services and other sectors by introducing tax incentives that will be of a general nature and that will be applicable to multiple activities and categories
{"title":"Factors affecting corporate income tax compliance costs of SMEs in Bosnia and Herzegovina","authors":"Vernesa Lavic","doi":"10.1108/jepp-02-2022-0023","DOIUrl":"https://doi.org/10.1108/jepp-02-2022-0023","url":null,"abstract":"PurposeTo answer the following research questions: (1) What is the tax burden, on average, as a percentage of the generated revenues of companies in BiH? (2) Are there differences in the load level in relation to: (a) company size, (b) company location, (c) company age, (d) hiring of tax advisors and other external consultants on CIT issues and (e) company business activity.Design/methodology/approachIn order to answer the research questions asked, quantitative analysis of primary data purposefully collected for this research will be used. The empirical part of the paper relies on the collection of primary data through survey using the method of stratified random sampling from the population of SMEs enterprises registered in BiH focusing only on FBIH and the RS. Regression analysis (OLS model) was used to estimate results.FindingsAverage share of tax compliance costs in SME revenues is 8.3%. Tax compliance costs are regressive, dependent on company age, location and business activity as well as on whether companies hire external consultants.Research limitations/implicationsThe chosen research method is a telephone survey, with the aim of encouraging respondents to give answers to the questions asked, using experienced interviewers from the market research agency. However, the use of this method is not without limitations, and they refer to the time-limited duration of telephone interviews that require shorter questions, and pre-prepared answer options to make it easier for respondents to give answers. One of the challenges is the fact that most respondents do not want to talk to strangers over the phone and answer unknown numbers. This risk was especially pronounced because the topic of the research is related to CIT, so many respondents expressed doubts about the purpose of the question, refusing to provide accurate data. This risk was mitigated by asking questions to include certain scales in terms of income, number of employees and gross wages, to make respondents feel free to share this type of sensitive data with interviewers.Practical implicationsFirst, the analysis of this paper showed that specific, identified factors contribute to, or directly affect, the level of the tax compliance costs of corporate income tax in BiH. Second, there is currently no comprehensive analysis of the tax burden in BiH in the literature that would quantify the tax compliance costs, both at the BiH level and at the entity level. Based on the aforementioned, it is necessary to design a fiscal policy in such a way as to eliminate or, in cases where this is not possible, reduce the tax burden on the private sector in general. Based on the data collected in this research, fiscal policy should pay special attention to the tax treatment of start-ups, small and medium-sized enterprises and enterprises operating in services and other sectors by introducing tax incentives that will be of a general nature and that will be applicable to multiple activities and categories ","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45331071","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-30DOI: 10.1108/jepp-01-2022-0010
Recai Coşkun, Li̇ri̇don Kryeziu, B. Krasniqi
PurposeKosovo has experienced a radical shift from a centrally planned economy to a market economy and built institutions from scratch. During the institutional building process, due to inconsistencies in institutional reforms, firms faced several challenges in competing in the domestic market and engaging in exporting activities. The purpose of the study is threefold. First, to examine how institutional settings influence family firms’ success; second, how and which types of strategic behaviours family firms pursue in response to institutional deficiencies and third, whether and how internationalisation helps the firms overcome the difficulties resulting from deficiencies of the institutions.Design/methodology/approachThis study employs a qualitative document analysis technique using secondary and primary data to examine the impact of institutional settings on firm internationalisation and related firm reactions.FindingsFindings suggest that fiscal policy, weak protection of property rights and contractual enforcement negatively influenced family firms because of unfair competition, unpredictable business environment and additional costs due to deficient institutions. The authors found that internationalisation provided benefits for the firms in handling the problems posed by the institutions. The firms focused on three main strategies to respond to weak institutions: improving product quality, diversifying and differentiating products and setting competitive prices.Originality/valueThis study contributes to the literature and explains how and which economic institutions influence firm internationalisation and how engagement in international business activities provides an advantage in responding to deficient institutions in the home country.
{"title":"Institutions and competition: does internationalisation provide advantages for the family firms in a transition economy?","authors":"Recai Coşkun, Li̇ri̇don Kryeziu, B. Krasniqi","doi":"10.1108/jepp-01-2022-0010","DOIUrl":"https://doi.org/10.1108/jepp-01-2022-0010","url":null,"abstract":"PurposeKosovo has experienced a radical shift from a centrally planned economy to a market economy and built institutions from scratch. During the institutional building process, due to inconsistencies in institutional reforms, firms faced several challenges in competing in the domestic market and engaging in exporting activities. The purpose of the study is threefold. First, to examine how institutional settings influence family firms’ success; second, how and which types of strategic behaviours family firms pursue in response to institutional deficiencies and third, whether and how internationalisation helps the firms overcome the difficulties resulting from deficiencies of the institutions.Design/methodology/approachThis study employs a qualitative document analysis technique using secondary and primary data to examine the impact of institutional settings on firm internationalisation and related firm reactions.FindingsFindings suggest that fiscal policy, weak protection of property rights and contractual enforcement negatively influenced family firms because of unfair competition, unpredictable business environment and additional costs due to deficient institutions. The authors found that internationalisation provided benefits for the firms in handling the problems posed by the institutions. The firms focused on three main strategies to respond to weak institutions: improving product quality, diversifying and differentiating products and setting competitive prices.Originality/valueThis study contributes to the literature and explains how and which economic institutions influence firm internationalisation and how engagement in international business activities provides an advantage in responding to deficient institutions in the home country.","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47632410","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-16DOI: 10.1108/jepp-01-2022-0012
Chandler S. Reilly
PurposeThe Department of Defense (DOD) has long partnered with universities and other nonprofit organizations to perform early-stage, military-related research using research centers established under long-term contracts known as Federally Funded Research and Development Centers (FFRDCs). Over the last 25 years, there has been a shift in the type of arrangement used to University Affiliated Research Centers (UARCs) that this paper argues is the result of bureaucrats acting as evasive entrepreneurs in response to changing regulations.Design/methodology/approachExtending the theory of evasive entrepreneurship to bureaucrats, the author shows how regulations increase the cost of bureaucratic action and incentivize the creation of substitute actions to avoid those regulatory costs and capture benefits. Qualitative evidence from DOD documents is used to support the contention that UARCs serve the same function as FFRDCs. Quantitative evidence on the number of FFRDCs and UARCs and their funding illustrates how bureaucrats respond to political restrictions.FindingsBureaucrats have little to no recourse to respond to budgetary cuts or spending ceilings. In the case of FFRDCs, spending ceilings were introduced starting in the 1960s and led to a decline in the number of DOD FFRDCs. Bureaucrats can however strategically evade new regulations by reorganizing transactions justified by existing federal law that contradicts new regulations. Once FFRDCs were federally regulated in 1990 there were strong incentives to create substitute arrangements leading to the creation of UARCs in 1996 that have ultimately replaced FFRDCs as the research center of choice for the DOD.Originality/valueThe article makes three contributions. First, it applies the concept of evasive entrepreneurship to a political context and then use that framework to understand the creation and establishment of the DOD's UARCS. Second, the organizational features and purpose of UARCs are analyzed. Third, the evidence provided shows how regulations resulted in a shift in the DOD's R&D strategy toward working with universities.
{"title":"University-Affiliated Research Centers: evasive entrepreneurship within the DOD","authors":"Chandler S. Reilly","doi":"10.1108/jepp-01-2022-0012","DOIUrl":"https://doi.org/10.1108/jepp-01-2022-0012","url":null,"abstract":"PurposeThe Department of Defense (DOD) has long partnered with universities and other nonprofit organizations to perform early-stage, military-related research using research centers established under long-term contracts known as Federally Funded Research and Development Centers (FFRDCs). Over the last 25 years, there has been a shift in the type of arrangement used to University Affiliated Research Centers (UARCs) that this paper argues is the result of bureaucrats acting as evasive entrepreneurs in response to changing regulations.Design/methodology/approachExtending the theory of evasive entrepreneurship to bureaucrats, the author shows how regulations increase the cost of bureaucratic action and incentivize the creation of substitute actions to avoid those regulatory costs and capture benefits. Qualitative evidence from DOD documents is used to support the contention that UARCs serve the same function as FFRDCs. Quantitative evidence on the number of FFRDCs and UARCs and their funding illustrates how bureaucrats respond to political restrictions.FindingsBureaucrats have little to no recourse to respond to budgetary cuts or spending ceilings. In the case of FFRDCs, spending ceilings were introduced starting in the 1960s and led to a decline in the number of DOD FFRDCs. Bureaucrats can however strategically evade new regulations by reorganizing transactions justified by existing federal law that contradicts new regulations. Once FFRDCs were federally regulated in 1990 there were strong incentives to create substitute arrangements leading to the creation of UARCs in 1996 that have ultimately replaced FFRDCs as the research center of choice for the DOD.Originality/valueThe article makes three contributions. First, it applies the concept of evasive entrepreneurship to a political context and then use that framework to understand the creation and establishment of the DOD's UARCS. Second, the organizational features and purpose of UARCs are analyzed. Third, the evidence provided shows how regulations resulted in a shift in the DOD's R&D strategy toward working with universities.","PeriodicalId":44503,"journal":{"name":"Journal of Entrepreneurship and Public Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2022-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46253210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-16DOI: 10.1108/jepp-04-2022-0055
Ege Can, Frank M. Fossen
PurposeThe purpose of this paper is to expand the empirical literature on the association between non-compete agreement (NCA) enforceability and entrepreneurship by investigating how NCA policies affect different types of entrepreneurship with incorporated and unincorporated businesses.Design/methodology/approachThe authors estimate difference-in-differences regressions based on individual-level data. This allows to control for heterogeneity at the individual level. Additionally, the authors provide graphical evidence using the synthetic control method (SCM).FindingsThe authors' findings show that the decrease in the enforceability of NCAs in Massachusetts resulted in a higher rate of unincorporated entrepreneurship among low-wage workers. At the same time, there was no sizable effect on the rate of incorporated entrepreneurship. For Utah, the authors' results indicate that the reform increased both types of entrepreneurship. The findings imply that states can promote entrepreneurial activity by reducing the enforceability of NCAs. The way of changing the enforceability of NCAs matters, as different provisions encourage different types of entrepreneurship in a given state.Originality/valueThe authors contribute to the literature on NCA enforceability effects on entrepreneurship in three ways. First, the authors utilize two quasi-experiments, the NCA policy changes in Utah in 2016 and Massachusetts in 2018, limiting NCAs to one year for all workers. Second, to the authors' knowledge, this is the first individual-level analysis that separates self-employment with incorporated and unincorporated businesses as two different types of entrepreneurship to analyze potentially heterogeneous effects of NCAs. Third, this is the first study to utilize American Community Survey (ACS) data in this literature.
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Pub Date : 2022-08-09DOI: 10.1108/jepp-01-2022-0018
F. D'Andrea
PurposeThe study aims to demonstrate how different arrangements and characteristics of institutions can generate or mitigate uncertainty thereby facilitating or hampering the possibilities of entrepreneurial action.Design/methodology/approachThis is a conceptual paper that advances the theoretical understanding of the relationship between entrepreneurial uncertainty and the different institutional levels, their characteristics and their interplay.FindingsEntrepreneurial uncertainty also comes from the institutional environment and this has direct impact on the propensity to take action. The characteristics of the different institutional levels, in specific, their quality, stability, alignment and the burden imposed by L2 impact in the emergence of entrepreneurial uncertainty.Research limitations/implicationsThis is a conceptual paper that makes a number of theoretical suggestions which need to be further analyzed by empirical work.Practical implicationsThe findings suggest that different institutional levels need to be dealt with differently by research studies and institutional agents, including policy makers. Among others, the findings also suggest that stability is key to entrepreneurship and that the benefits of high quality regulation can be undermined by its excessive burden, reducing entrepreneurial action and harming development.Social implicationsInstitutional actors should provide stability and allow for the improvement of the environment overall. Specifically, policy makers should aim at good quality regulation that is valid across the board, that provides stability and gives room for improvement of the institutions. Policy makers should refrain from trying to foster specific industries; they should instead provide a leveled playing field without trying to direct the entrepreneurial efforts towards an industry or geographic region and without being overly demeaning.Originality/valueThis research breaks new ground. It unites ideas from entrepreneurship and institutions suggesting a novel, much more nuanced approach to their interplay. The results can be used by scholars in the fields of entrepreneurship, institutions and economic development. They also have the potential to help to educate policy makers in their quest to improve the context for entrepreneurs.
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