ABSTRACT This study examines how higher employer social security costs affect the allocate decisionâmaking authority using data from Chinese listed companies from 2007 to 2022, employing both fixedâeffects and differenceâinâdifferences (DID) models. Based on an extensive sample of firms, we find that higher social security costs are associated with a major delegation of authority from parent companies to their affiliates. Evidence suggests this adjustment occurs because the extra cost changes each firms' competitive environment and operating results. The impact is most pronounced in nonâstateâowned firms and in firms that face tight financing constraints, indicating that ownership and financing flexibility shape the response. Our findings contribute to the organizational design literature by demonstrating that social security costs can act as an external driver of firm decentralization.
The governance of corporate has to be exemplary. Corporate, as a separate legal entity with limited liability in most cases, derives its corpus from varied shareholders and in consequence, it is obligated that the affairs of such a person are to be commanded with upkept trust. But it is alarmingly strange that there are testimonial facts to prove that corporate as a person failed, when the custodian of the trust themselves betrayed it. Yes, it cannot be denied that the fraudulent acts are belligerent and shakes the conscience of one and make the scene susceptible for a thorough proof. It is also understandable that in a duty- fiduciary, if there is done any negative to the interest of anyone in the stake, it is criminal and not acceptable at all! To target such mentalities of the vested, an alarm has been raised in this paper.
Local food enterprises have mainly emerged from social and environmental movements. These enterprises try to maintain and develop values contrary to standard business practices. They promote certain principles of transformation, such as less hierarchical structures, the minimization of capital requirements and decreased profit orientation. They focus on small-scale units requiring multi-skilled labor and greater customer participation which is related to new forms of social interaction, changing cost structures, stability impacts, growth limitation and new diffusion strategies. If traditional hierarchical structures are replaced by more democratic decision-making processes, then a greater effort will be required to clarify responsibilities and competencies, control processes, resolve conflicts and maintain the motivation of all those involved. Our research shows that, depending on the type, transformative enterprises have specific upper size limits, which, if exceeded, make social stabilization difficult. The diffusion process compatible with this follows the principle of a decentralized and autonomous multiplication of the organizational model rather than the concept of traditional entrepreneurial growth. In our contribution, we discuss the opportunities and challenges facing transformative enterprises in terms of cost effects and social diffusion based on supply chain analyses.
The entrepreneurship literature in economics and management is biased towards start-up firms. And yet, profit opportunities are imagined, evaluated, and captured by existing firms. Employees often play a key role for developing and pursuing business opportunities (Baumol, 1994; Bhardwaj, Camillus, and Hounshell 2006). In fact, modern firms increasingly encourage âintrapreneurship,â âautonomous strategic initiatives,â and âcorporate venturingâ at all levels of the organization (e.g., Day and Wendler, 1998; Yonekura and Lynskey, 2002; Covin and Miles, 2007; De Clercq, Castaner, and Belausteguigoitia 2007). Clayton Christensenâs Innovatorâs Dilemma (1997), one of the most influential business books of the last two decades, deals with the difficulties facing established firms that try to innovate. To foster entrepreneurial attitudes and behavior, managers must give employees significant discretion. The need for such entrepreneurial attitudes is partly driven by deep-seated changes, sometimes placed under the rubric of the âknowledge economyâ (Foss, 2005). Thus, greater variability in the environments firms confront, more emphasis on innovation as a competitive tool, an increased need to source heterogeneous knowledge inputs, and so on call for an increased reliance on decision-making within firms that is not only fast, but also adaptive and intelligent. This amounts to an increase of delegation of discretion to employees at all levels in order to make them exercise responsible judgment. Cowen and Parker (1997: 28) cogently summarize this line of thinking: Market changes are moving manufacturing farther and farther away from steady-state, low variety, long-batch production runs, relevant to Taylorist methods, to high variety and small runs âĶ Organizations are adopting new forms of decentralization to cope with the instability, uncertainty, and pace of change of the market-place âĶ In clusters of network working, employees of undifferentiated rank may operate temporarily on a certain task or tasks in teams. The clusters are largely autonomous and engage in decentralized decision-making and planning âĶ They are conducive to individual initiative (âintrapreneurshipâ) and faster decision-taking. They facilitate organizational flexibility.