IRIS - Institutional Research Information System

Super Partes? Assessing the Effect of Judicial Independence on Entry

Incumbents can enjoy a cost advantage vis-à-vis new entrants and so deter new firm entry by establishing and leveraging connections with the judicial system. Connected firms may in fact avoid fully complying with the costly norms implied by a law, a regula- tion, or a contract. At the same time, they can also credibly threaten to sue new entrants. Therefore, a change in the institutional environment that diminishes the ability of incum- bent firms to establish judicial connections—i.e., an in...

Commitment and Competitive Advantage in a Digital World

Institutional protection of minority employees and entrepreneurship: Evidence from the LGBT employment non-discrimination acts

A diverse workforce has long been associated with mul- tiple firm benefits, but this is sometimes difficult to achieve due to employer discrimination. Although mul- tiple institutional arrangements have been put in place to ban discriminatory behavior, the effects of such reg- ulations remain relatively unexplored, often neglecting start-ups. We propose that institutional changes aiming to outlaw employment discrimination will trigger two main effects: they will (a) depress start-up founding ...

Taking actively advantage of MNCs’ presence

In this paper, not only do we posit that the presence of a multinational corporation may entail significant benefits for the host economy and local firms’ performance, but also that these benefits can be actively sought and dynamically reinforced by local firms through the development of intense, embedded customer–supplier relationships. Building on the relational view, we argue that this may happen through the commitment of resources to relation-specific investments. Our hypotheses find supp...