Host country institutions and firm-level R&D influences: an analysis of European Union FDI in China

The paper investigates the effects of institutions and their interaction with firms’ research & development (R&D) levels on foreign direct investment (FDI) inflows in China based on a sample of 680 European Union (EU) firms over the period of 1998–2008. Employing panel data estimation approaches and further augmented with the cross-validation technique, our results indicate that EU FDI in China is influenced by the host country’s institutions, rendering support to the institutional theory. Our analysis indicates that the rule of law, institutional reforms and the interaction between institutional reforms and R&D have significant effects on FDI inflows in China. Further analysis suggests that the coefficient for the interaction between the rule of law and R&D is positive and significant after World Trade Organisation (WTO) entry implying that the effects of reforms following the WTO entry much outweigh the impact of rule of law in EU firms’ decisions to invest in China. We also find evidence that EU firms tend to adjust their FDI levels in China in an attempt to reach the desired investment level

Understanding social enterprises in the United Kingdom: the case of South Yorkshire

Purpose-- This study analyses the development of social enterprises in the UK, in the context of the increased need for creative solutions to ameliorate deprivation and deliver effective public services. Design/methodology/approach-- The investigation draws on a mixed method approach, using a postal survey of 102 social enterprises complemented by detailed analysis of two selected cases and key informant interviews. Findings-- The results of the study show that there is a paradigm shift in the practice and conceptualisation of social enterprises in South Yorkshire as they are increasingly taking a more corporate approach to achieve their outcomes. Research limitations/implications-- The study is limited to social enterprises in South Yorkshire, UK. Further comparative analysis in other regions and social contexts is required in order to explore if these results are widely applicable. Practical implications-- This study is of potential benefit to researchers and those involved in formulating policies for the development and support of social enterprise. Originality/value-- The study contributes to the extant literature by investigation of the development of social enterprise in competitive markets, which is an area that requires further academic scrutiny. The South Yorkshire region presents an interesting case that extends our understanding of the operations of social enterprises in the UK given the high levels of deprivation due to the steady decline of its industrial base ( Bache and Chapman, 2008)