A Corporate Model of Similitude for SMEs Reunion into a Corporation, Viewed from the Angle of Physical Thought, and Its Complex Economic and Social Impact

In order to exceed the circularity of formal economic thinking, the authors of the present paper favour the models of thinking specific to physics, which are also constructed statistically and mathematically, in an attempt to find an answer to the reunion of similar small and medium enterprises (SMEs), into multinational corporations. A model based on the theory of similitude is thus made use of, born from the very essence of physics, and having an economic and social destination and a complex impact. The physical models intended for economic systems are expressed as systems of partial differential equations, and the result becomes a new vision of reality. This paper details an original model based on physical similitude for SME amalgamation under the name of multinational corporations. After an introduction to the physical theory of similitude, the first section describes the physics model because of the reunion of similar SMEs. The real birth of some corporations in Serbia forms the content of the second section; the economic and social phenomena relating to the generation of such corporations, and the corporate social responsibility are emphasized. The idea of social complexity and its impact as the fifth dimension of a modern multinational corporation conclude the paper.physical model, small and medium enterprise (SME), multinational corporation (MNE), corporate social responsibility (CSR), economic and social complexity

Corporations’ Choice of Tax Regime when Transition Costs are Small and Income Shifting Potential is Large

The literature provides ambiguous results on the effect of taxes on businesses’ choice of organizational form, partly due to a lack of good firm-level data. Our micro data covers the full population of non-financial Norwegian corporations over ten years. During this period, the dual income tax system allowed corporations to shift tax regime without changing organizational form. We show that the income shifting potential is large for the active owners of a corporation that participate in a tax reducing coalition. Our results show that corporations respond to tax incentives and change tax regime in order to reduce tax payments. But persistent cohort effects in the choice of tax regime and substantial unobserved corporation-specific effects indicate that non-tax factors matter as well. Corporations founded prior to the introduction of the dual income tax differ substantially from those founded after in their adaptation to the incentives for shifting tax regime.corporate taxation, choice of tax regime, tax minimization

On the Evolution of Product Portfolio Coherence of Cooperatives versus Corporations: An Agent-Based Analysis of the Single Origin Constraint

Agent-based methodology is adopted to analyze the relationship between governance structure and the evolution of product portfolio. A corporation and a cooperative are distinguished by the single origin constraint. The single origin constraint entails that the product requiring the inputs of the members of a cooperative will never be divested. It is es-tablished that a concentric diversification strategy results in randomly distributed clusters of related products of the product portfolio of corporations, while the single origin constraint of a cooperative is responsible for pulling all prod-ucts together in one cluster. More general, the centripetal effect of one product with infinite lifetime on portfolio com-position dominates the centrifugal effect of products with finite lifetime, regardless the number of products with finite lifetime.cooperatives;Concentric diversification;agent-based analysis;product lifetime

The Welfare Loss from Differential Taxation of Sectors in Germany

In the spirit of Harberger, we apply a dynamic computable general equilibrium (CGE) model and estimate the excess burden stemming from the tax-induced distortion in the allocation of capital across the corporate and the non-corporate sectors in Germany. In doing so, we perform a counterfactual analysis and ask how the allocation of capital across sectors would change compared with a sector-neutral tax system which assures an identical effective tax burden on both sectors. Our estimates suggest that the excess burden per period ranges from 2.0 to 3.6 billion Euros or from about 0.1 to 0.16 per cent of GDP. In present value terms, the excess burden translates to about 104 billion Euros or 4.7 per cent of GDP. In order to identify the impact of the firm’s financial behaviour on the size of the emerging excess burden, we perform several sensitivity analyses with regard to debt financing, external equity financing and debt constraints via agency cost.capital income taxation, non-uniform taxation, computable general equilibrium modelling

Organizational support for intrapreneurship and its interaction with human capital to enhance innovative performance

This study explores the impacts of the internal supportive environment for intrapreneurial activities on firms’ innovative performance and the moderating role of human capital in this relationship by making use of a questionnaire study covering 184 manufacturing firms in Turkey. As for the individual direct effects of the dimensions of Organizational Support (OS), Management Support for Idea Generation and Tolerance for Risk Taking are found to exert positive effects on innovative performance. Availability of a Performance Based Reward System and Free Time have no impact on innovativeness, while Work Discretion has a negative one. As for the role of Human Capital (HC), it is found to be an important driver of innovative performance especially when the OS is limited. However, when the levels of both HC and OS are high, innovative performance does not further increase, probably reaching a temporary performance ceiling. Managerial and further research implications are provided

Human Factors Influencing Contractors' Risk Attitudes: A Case Study of the Malaysian Construction Industry

Malaysia is one of the most rapidly developing countries among developing nations. The construction industry has played a major role in Malaysia’s rapid economic growth. Among the major sectors in Malaysia, the importance of the construction industry is unique regardless of the level of the country’s development. However, the attitude of the construction industry in Malaysia towards managing contractors’ risk attitudes is very weak. The introduction of the Occupational Safety and Health Act in 1994 by the Malaysian government made all industries in Malaysia to identify risks, conduct risk assessment and control risk. In addition, the Malaysian construction industry simultaneously implemented an integrated system to ensure consistency and better performance of projects. To identify the factors influencing contractors' risk attitudes, relevant literature was reviewed, and a questionnaire survey was conducted. This study focused on the G7 contractors operating in the Malaysian construction industry. One hundred and nineteen copies of a structured questionnaire were analysed with a response rate of 85%. Structural equation modelling was utilized to test the hypotheses developed for the study. Results showed that government policies played a moderating role in enhancing the relationship between human-related factors affecting contractors’ risk attitudes in the construction industry

Creating the N-Form Corporation as a Managerial Competence

This paper discusses key properties of the N-form corporation or internal network forms of organizing from three mutually related perspectives: structure, knowledge flows and management processes. To operationalize knowledge flows, a key property of N-forms, the paper suggests a new measure, the H/V ratio, to empirically assess the configuration of knowledge flows. The argument is illustrated by a case study of a firm showing that top management's perception about having an internal network contradicts with reality as vertical knowledge flows appear to dominate the horizontal ones. The managerial competence required for creating internal networks aimed at knowledge creation and sharing will be discussed.internal networks;knowledge flows;N-form Corporation;Organizational forms;managerial competence

The Economics Of System Integration: Toward An Evolutionary Interpretation.

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