GLOBALIZATION'S IMPACT ONSTATE AND LOCAL POLICY: The Rise of Regional Cluster‐Based Economic Development Strategies1

We propose proactive policies which allow state and local governments to participate in the global economy, offering opportunities and venues for effective development. We first develop the argument that the changing economic conditions associated with globalization call for a new approach to state‐local economic development policy. We then outline three assumptions which are critical to drive successful state and local economic development policy in a global environment. The major part of the analysis describes this new strategy of “regional cluster‐based economic development,” drawing extensively upon a case study of Cleveland's economic revitalization.     

Patterns of internationalization of Chinese firms—empirical study based on strategic approach

• In this study, firstly we provide an analytical framework for international activities, which are of theoretically significant importance to research and understand the patterns of internationalization. Then, we take 500 top Chinese enterprises as study objects and analyse deeply the behaviour of their FDI (foreign direct investment) scenario from three aspects, namely motivations, entry modes and location choices. The results reveal that: (1) Chinese companies' internationalization is still at the early stage and has not reached the upstream value chain of internationalization; (2) the internationalization business of Chinese companies is diversified in destinations; (3). Chinese companies' modes of entering overseas markets are flexible and most companies have actively tried diverse entry modes with more adaptability; (4) the rapid increase of the FDI by the transnational strategic assets‐seeking companies shows that Chinese companies are inclined to protect and improve competitive advantages through obtaining new assets rather than making use of existing competitive advantages as before. Some implications of findings are also discussed finally.

Copyright © 2009 John Wiley & Sons, Ltd.     

How can “Katowice as European City of Science” change Silesia region: Recognising perspectives of private companies

The study analyses, the perception of the European City of Science (ECS) initiative planned event in Katowice in the context of the city and region's development in the eyes of private companies. It has been argued that this honour may change the city's prestige and become the source of the city and the region's development, not only through building the city's recognisable brand but also its social capital. Using focus research as a method enables not only to collect empirical data but can also be treated as a form of public participation. The study results contribute to the growing body of literature on public engagement and co-creation as well as place branding. The study's findings show the companies' expectations concerning the role of universities and their participation in the region's development. They were the foundation for preparing a set of suggestions for local governments to successfully implement the ECS initiative. This paper is the first to examine the process of preparing a city to become an ECS, as demonstrated through the case study of Katowice.     

Explaining Levels of Local Government Involvement in Service Delivery: The Dynamics of Cross‐Sector Partnerships in Malawi

This study explores how local governments and their development partners—that is, donors, non‐governmental organisations and private companies—structure their partnerships as they work together to provide services to communities. Cases of collaboration between four organisations working in the rural water supply sector and six local governments in Malawi are studied. Using a cross‐case qualitative methodology, we illustrate how power and control translate into practices, leading to different levels of local government involvement in service delivery. This study contributes to the literature on cross‐sector partnerships in particular by developing empirically‐based propositions that help explain the dynamic trajectories that partnerships between local governments and their development partners can take. Copyright © 2015 John Wiley & Sons, Ltd.     

The Politics of “Entrepreneurial” Economic Development Policy of States in the U.S.

“Entrepreneurial” economic development strategies at the state level in the United States, which focus on nurturing home‐grown, high‐growth businesses, lack immediate payoffs for politically powerful constituencies, a condition that would seem likely to limit their appeal compared to the alternative “locational” strategy of attracting large investments from elsewhere. Nonetheless, many U.S. states have added programs with entrepreneurial attributes to their economic development portfolios in recent years. This paper explores how the political obstacles to such programs have been overcome. In a few cases, an institutional innovation in the policy‐making process drew in new participants who provided ideas for and support to programs with entrepreneurial attributes. More commonly, the preferences of executive branch officials, especially governors, appear to have been critical to the enactment and implementation of such programs. This finding suggests that economic development policy making may be more technocratic than is commonly believed.     

Impact of positivity and empathy on social entrepreneurial intention: The moderating role of perceived social support

Social entrepreneurship is a growing area of interest among practitioners. Social entrepreneurship meets and satisfies social needs and brings social change through innovative ideas. This study aims to investigate the impact of positivity and empathy of individuals on social entrepreneurial intention. This study considers the mediating role of social entrepreneurial self‐efficacy between the relationship of positivity, empathy, and social entrepreneurial intention. In addition, this study investigates perceived social support as a boundary condition between the relationship of social entrepreneurial self‐efficacy and social entrepreneurial intention. Findings show that positivity and empathy positively influence social entrepreneurial self‐efficacy, which subsequently positively influences social entrepreneurial intention. Furthermore, results show that high perceived social support strengthens the relationship between social entrepreneurial self‐efficacy and social entrepreneurial intention. Discussions and implications based on the study findings are reported.     

Regional Policy: Implementation through Bargaining

This article analyzes the implementation of two regional development programs. The purpose is to show how the programs approved by the Riksdag were translated into practice and to explain why the funds were distributed as they were. We seem to have found substantation for the hypothesis that the borderlines between politics and markets are blurred in this implementation process. Bargaining was an important element in the process. Decisions were shaped in interaction between authorities and companies and, at the central level, in the actual process of bargaining. The most important finding is that the main conflict in this bargaining economy was not between the decision-makers and the company. Rather, it was between the central and regional levels.¹     

Local Economic Development in China and the United States: Strategies and Issues

Globalization stimulates local governments in China and the United States to step up their economic development efforts. What strategies are successful and why? Does industry cluster development lead to higher per capita income? What government infrastructure and incentives stimulate and nurture businesses? This article examines local economic development in China and the United States, comparing strategies and outlining challenging issues. Kuotsai Tom Liou of the University of Central Florida finds that local governments must play the leading role in sustainable development, as a partnership approach promotes collaboration among communities, industries, and other government entities. Policy implications and theoretical issues aimed to promote further comparative studies are presented .     

Beyond (and Within) City Limits: Climate Policy in an Intergovernmental System

This analysis explores the role of city‐level and state‐level variables to explain why some cities make more progress on climate‐related policy implementation than others. Using multilevel modeling, we find little support for the influence of state factors on local government leadership among the 812 cities in the dataset, but local government institutional and community variables are strongly associated with climate policy initiatives. We argue for a rethinking of the notion of the limited and constrained city and suggest that, in the realm of climate protection and environmental policy, cities are leading a bottom‐up federalism. Moreover, where some political analysts and scholars have argued that climate protection and environmental policies may not be economically rational for cities to pursue, we theorize that cities are acting locally to further their self‐interest in an increasingly global economy.     

Grassroots International NGOs: Using Comparative Interpretive Policy Analysis to Understand Meanings in Private Development Aid

Abstract

This research comparatively examines grassroots international NGOs (GINGOs), a growing subset of international nongovernmental organizations (INGOs) working in private development aid. GINGOs are small-scale, on-going development initiatives through voluntary third sector organizations. How do GINGOs’ founders and volunteers understand their role in private development aid? The article uses an interpretive framework to examine three in-depth comparative case studies of GINGOs based in the US and working in South Sudan, Nepal and Haiti. Its contribution is that it provides rich data to build further theory about the experiences, or multiple realities, in private development aid. It is found that GINGOs’ founders and volunteers attach new meanings to private development aid to distinguish themselves from larger professionalized INGOs and emphasize personal connections.     

The innovative personality? Policy making and experimentation in an authoritarian bureaucracy

Why do local officials in an authoritarian bureaucracy experiment with policy, even when directed not to do so by central‐level officials? This study suggests that policy experimentation in this institutional environment can best be understood as an interaction between the structure in which local officials are embedded and individual‐level personality attributes. Leveraging a new data set from a series of original surveys with local policy makers in mainland China, conducted between 2016 and 2018, we discern three baseline personality types: authoritarian, consultative, and entrepreneurial. We thereafter examine the individual‐level characteristics of local officials who will innovate irrespective of a centralization of bureaucratic power and interests, as currently experienced under Chinese President Xi Jinping. We find that local policy makers engage in policy innovation when they are more focused on resolving governance problems and that increased risk reduces but does not eliminate their willingness to innovate. Based on these findings, we contend that future studies of policy innovation should use an evolutionary framework to examine the interaction between preferences and selection pressures.     

Entrepreneurial orientation and generic competitive strategies for emerging SMEs: Financial and nonfinancial performance perspective

In the competitive markets, business ventures have not only emphasized financial performance but nonfinancial performance has also become the need of the day due to its significant role in increasing customers. However, minor attention is given to the relationship between entrepreneurial orientation, business strategy and nonfinancial performance of emerging small and medium enterprises (SMEs). This study scrutinizes the effect of each dimension of entrepreneurial orientation (i.e., innovativeness, risk‐taking, and proactiveness) and each of generic competitive strategies (i.e., differentiation and cost leadership) on the performance (financial and nonfinancial) of emerging SMEs. We surveyed 373 SMEs operating in Pakistan through a structured questionnaire. For the data analysis and hypotheses testing, we used AMOS.21. The findings display that innovativeness, proactiveness, and risk‐taking significantly improve financial performance while insignificantly impact nonfinancial performance. Differentiation and cost leadership strategies significantly spur financial as well as nonfinancial performance of SMEs. This study advises that top managers of SMEs in the emerging economies need to maintain a focus on entrepreneurial activities and formulate unique competitive strategies to attain higher performance. This research further recommends policymakers to initiate entrepreneurship programs for SMEs to configure entrepreneurial posture of the businessmen. Further recommendations have stated.     

The Weary Customer: Choosing Not to Choose Among Unfair ‘Choices’

Critics concerned with the effect of public utility companies' market practices have primarily focused on issues of disconnection and inequality. This article goes further, challenging the very premise on which the model is based: the principle of individual choice. The article focuses on the French gas, electricity and telephone sectors, developing two points. The first is the declining trust in public utility companies and a certain choice‐averseness. The second point addresses the experience of the ‘customer’, pressured to make the ‘right’ choice through manipulation and misinformation on the part of competing suppliers. Thus, instead of ‘active customers’ directing markets through their ‘choices’, what is seen is the disaffection or weariness of customers in the face of what they perceive as an unfair situation.     

The nonprofit advantage: Producing quality in thick and thin child care markets

Nonprofit child care centers are frequently observed to produce child care which is, on average, of higher quality than care provided in commercial child care centers. In part, this nonprofit advantage is due to different input choices made by nonprofit centers—lower child‐staff ratios, better‐educated staff and directors, higher rates of professional development for staff. Nonprofit centers may have an additional productivity advantage, due to unmeasured staff motivation and abilities or to better management of the production of good‐quality child care. However, where nonprofit and for‐profit child care firms compete in the same local markets, we speculate that this extra advantage should only appear where demand is sufficiently “thick” to permit a quality differentiation strategy to be financially viable for nonprofits. We estimate the effect of nonprofit status on quality, controlling for differences in financial resources available to the center, differences in the clientele served, and differences in staff and center inputs. In this conventional examination, nonprofit status has a moderately positive impact on quality. However, when we account for the unobserved heterogeneity and separate markets into “thick” and “thin,” a particularly strong nonprofit advantage is found in thick markets, but no productivity advantage for nonprofits is found in thin markets. This finding suggests a clear role for nonprofit organizations in improving the cost‐quality trade‐off faced by parents, but also identifies the market conditions that affect the ability of nonprofit managers to employ this advantage. © 2009 by the Association for Public Policy Analysis and Management.     

Innovation and Implementation in the Public Sector: An Examination of Public Entrepreneurship

This article develops an empirical measure of public entrepreneurship and uses it to discover the correlates that distinguish between those participants in a policy domain who are seen as more or less important in the entrepreneurial process. Looking at two rural regions dealing with telemedicine technologies, the authors examine the role of personal attributes and situational attributes in predicting who will emerge as the most mentioned public entrepreneurs on these issues in their community. Status in the local community, membership in the health professions, and strong local focus and ties are the most instrumental variables in distinguishing between those in a policy domain who are more likely to be identified as entrepreneurial. The authors provide an empirical test that can, for the first time, identify in a comparative context the traits that distinguish more entrepreneurial individuals from less entrepreneurial ones (or nonentrepreneurial ones) participating in the same policy domain.     

Pictures at an exhibition revisited: reflections on a typology of images used in the construction of corporate social responsibility and sustainability in non‐financial corporate reporting

• Strategic corporate and public affairs communication about Corporate Social Responsibility (CSR) has emerged as a major component of corporate efforts to interact with their stakeholders and society at large. Non‐financial reporting, and CSR reporting in particular, is now seen as an essential corporate communication process by most members of a company's stakeholder community. This growth in CSR reporting has been driven by the need to increase corporate transparency and accountability concerning social and environmental issues. Arguably, the European Union is the most progressive region in adopting CSR reporting. Almost all of Europe's top 100 companies report on social and environmental performance, whilst figures for the USA and the rest of the world are much lower. The latest Accountability Rating concludes that ‘Europe leads, America lags’ after measuring companies' social and environmental impacts.
• The authors argue that visual communication is as important as words and numbers in creating meaning and assess UK and German Companies' non‐financial performance. Utilizing a range of research methods including content analysis and semiotic interpretation the authors propose a typology of images used in non‐financial reporting. This typology and associated conceptual development can used to more accurately define and interpret CSR and sustainability.

Copyright © 2009 John Wiley & Sons, Ltd.     

Turkish delight a public affairs study on family business: The influence of owners in the entrepreneurship orientation of family‐owned businesses

Family‐owned businesses (FOBs) are as unique as the families that own and control them. As reported by Miller, Steier, and Le Breton‐Miller (2003, p.513), the founders of many of these businesses try to continue their legacy and ensure continued family control via intergenerational succession, as when they hand over leadership to their children. The initial statistics suggest only approximately one third of FOBs survive into the second generation, with just 12% remaining “viable” by the third, and only about 3% operating into the fourth generation or beyond. Thus, one of the central problems for FOBs is this inability to ensure competent cross‐generational family leadership through successful transfer of ownership and management to the next family generation. This is a core issue for the modern public affairs practitioner and policy maker, nationally and internationally, and the Turkish case is a good example of the multicomplex issues evident in succession planning and leadership for business founders and leaders in these organisations. A firm's strategic orientation is an indicator of the processes developed to integrate new information, to coordinate decisions, to examine the evolution of environmental factors, and to assess new projects (Escriba‐Esteve, Sanchez‐Peinado & Sanchez‐Peinado, 2009). However, few studies have provided a framework that jointly analyses the FOB owner characteristics, the mediating processes and attitudes by which owners shape the direction of their family firms, and the effect of these postures on firm performance. This paper addresses the influence of family business owner, over the behaviour of FOBs. By treating FOB owners' characteristics as predictors of a firm's strategic orientation, we seek to provide a deeper understanding of how the characteristics of FOB owners shape decision making process and FOBs' behaviours in order to successfully survive in generations. This study introduced the concept of FOB's entrepreneurship orientation (EO) as a variable that mediates between FOB owners' characteristics and business performance. The objective of this paper is twofold: (a) to identify the demographic predictors FOBs' EO and (b) to analyse the role of EO as a mediator of the relationship between FOB owners' characteristics and FOBs' performance.     

Building Civic Capacity Through an Elastic Local State: The Case of St. Louis

Since World War II the civic leadership of St. Louis has overcome the extreme fragmentation of public authority by building civic capacity through a variety of strategies and means. Three successive strategies for building civic capacity have unfolded in St. Louis to facilitate the revitalization of the downtown and other large‐scale initiatives. Between 1950 and 1965 a regime strategy was employed in which city hall and the city's corporate elites shared a common vision for urban renewal and the significant national resources that were provided to meet that end. By the mid‐1960s, however, a second strategy for downtown revitalization emerged that featured a corporate‐centered politics during which time the successful assembly of civic capacity hinged largely on the ability of the mayor to present and provide projects in which corporate elites and their companies would be willing investors. Since the early 1990s, building the civic capacity to undertake large initiatives has been made possible through the creation of a constellation of quasi‐public corporations and special districts. This third strategy of “shadow governments” are the most recent means of achieving civic capacity in St. Louis and we argue in this article that these new institutions are transforming the local state because they are capable of forging political coalitions, mobilizing resources, and making decisions that transcend general‐purpose governmental jurisdictions. For cities and for urban regions, the importance of this development is far‐reaching.     

Decentralisation of regional development policies in the Netherlands ‐ A new type of state intervention?

During the past decade, regional development policies in the Netherlands have been dismantled. At the same time, economic development policies have been decentralised to regional and local government level. This has given rise to ‘local initiatives’ for implementing market‐oriented and market‐related development strategies. In the long run, decentralisation of economic policies results in a new type of regulation. It is not through administrative measures and public control that the state intervenes in economic development, but through indirect mechanisms to improve economic growth and innovation. The Keynesian model of regulation, based on far‐reaching intervention, is gradually being transformed into a more ‘modem’ model, characterised by flexible, fragmented, indirect and ‘invisible’ measures. The result is a fundamental change in the relationship between state and economy.     

How Leadership and Public Service Motivation Enhance Innovative Behavior

Prior research has linked the innovative behavior of public sector employees to desirable outcomes such as improved efficiency and higher public service quality. However, questions regarding the drivers of innovative behavior among employees have received limited attention. This article employs psychological empowerment theory to examine the underlying processes by which entrepreneurial leadership and public service motivation (PSM) shape innovative behavior among civil servants. Based on three‐wave data from 281 Chinese civil servants and their 59 department heads, entrepreneurial leadership is found to positively influence subordinates' innovative behavior by enhancing two dimensions of psychological empowerment: meaning and impact. Additionally, PSM was found to influence subordinates' innovative behavior by enhancing the dimensions of meaning and competence. These findings suggest that to facilitate innovative behavior among employees, public organizations should consider introducing training that encourages leaders to serve as entrepreneurial role models and recruit employees with high levels of PSM.