"Purpose – This study investigates the dynamic production structure of the Japanese manufacturing industry by using the adjustment cost approach. The study is to shed some light on the unique dynamic structure of the Japanese manufacturing industry. The study attempts to help design and predict industrial policies that are implemented to enhance domestic investments by the Japanese government. Design/methodology/approach – This study obtains a system of dynamic factor demand and output supply equations by applying the dual approach to the intertemporal value function as represented by the Hamilton–Jacobi equation. By using industrial panel data for 1973–2012 of the Japanese manufacturing industry, the study estimates the system of the behavioral equations and corresponding elasticities. The study uses hypothesis tests and dynamic elasticities to investigate the dynamic structure of the Japanese manufacturing industry. Findings – Estimation results show that labor and capital are quasi-fixed variables that adjust about 0.2 percent annually to the long-run optimum levels. Estimated adjustment rates are very slow as often presumed about the Japanese manufacturing industry, which uses lifetime employment practice and slow decisionmaking process in investment decisions. The results also show that output supply and factor demand elasticities vary greatly depending on time horizon. Factor demand increases when its own price increases in the short run, suggesting that factor adjustment is mostly determined factor prices in the past due to sluggish factor adjustment. However, factor demand becomes a normal downward-sloping curve in the long run as factor adjustment gets completed. Originality/value – Japanese manufacturing firms hire employees through lifetime contract to exploit the benefits of dynamic learning-by-doing and execute investments carefully considering all the possible impacts. Under the strategy, adjustment costs for changing workers and capital stock are minimized. Dynamic adjustment model is expected to shed some light on the unique dynamic structure of the Japanese manufacturing industry. However, researches regarding the dynamic factor adjustment of the Japanese manufacturing industry are hard to find. This study is expected to fill the research vacuum."

Purpose The impact of export promotion programs (EPPs) on the intensive margin of exports remains somewhat uncertain. This study tackles a crucial question: does export promotion enhance firm-level intensive margin of exports? Design/methodology/approach We draw upon comprehensive empirical research conducted up to 2023. We collected 951 estimates, constructed 22 variables, captured diverse contexts and employed a meta-analytical approach to scrutinize the considerable variation in findings. Findings The overall meta-effect, after filtering out publication bias, is positive and statistically significant. Firms receiving EPP support exhibit an export intensity that is 1–9% higher than firms not participating in such programs. Assessing the mechanisms through which EPPs bolster this, we observe that support in the form of various services plays a more substantial role compared to assistance in the form of financial resources. Research limitations/implications Evaluating EPPs and their activities in terms of social welfare falls beyond the scope of this paper, which specifically focuses on the benefits of EPPs to export intensity. Subsequent research should undertake a comprehensive evaluation, considering both economic impacts and costs for accurate assessments of welfare. We also suggest that future meta-analyses explore other dimensions of firm-level performance linked to EPPs. Practical implications Publication bias distorts the impacts of EPPs, leading to an overstatement of their actual effects. Adjusting for publication bias, the practical significance of EPPs for a country’s trade intensity appears to be limited. Additionally, the provision of diverse activities and services primarily contributes to the amplification of export margins as compared to subsidies and grants. While larger firms initially benefit more from EPPs, these effects are found to be transitory. Originality/value This is the first meta-analysis scrutinizing the impact of EPPs, specifically concentrating on the firm-level intensive margin of exports.

Purpose There is a need for research examining how governments and firms responded to the coronavirus disease (COVID-19) pandemic. This study investigates the interdependence between governments and innovative small and medium-sized enterprises (SMEs) during the pandemic in relation to the dynamic capabilities and resource dependence theories. Design/methodology/approach We use World Bank survey data collected immediately before and after the COVID-19 outbreak and a generalized structural equation model to examine the mediating role of government support in the relationship between firm innovation, resilience and survival. Findings Innovative SMEs exhibited higher resilience and a better chance of survival during the pandemic, partly due to attracting more government support. Originality/value This study offers a novel understanding of the government’s role in supporting innovative SMEs during the pandemic. The findings have implications for how government support policies can limit the deadweight effect and the substitution effect.

Purpose This study assesses the impact of environmental, social and governance (ESG) certification on capital structure decisions considering the COVID-19 pandemic. Design/methodology/approach The study utilizes the annual Asset-4 and Datastream data of Thomson Reuters Eikon for non-financial firms in member states of the Organization of Islamic Cooperation (OIC). Firm-fixed effects are used to avoid unobserved heterogeneity. Findings Firms with higher corporate sustainability have a higher leverage ratio. The positive impact of ESG scores on book leverage became more significant during the COVID-19 pandemic. These findings imply that ESG activities might serve as a signalling tool, especially considering the pandemic: ESG activities mitigate financial constraints when they are most pronounced and impactful. Practical implications Firms should invest in ESG activities to alleviate financial constraints. Researchers and practitioners are encouraged to explore how ESG and macro-specific factors jointly affect debt financing. Policymakers should incentivize ESG investment to reduce agency conflicts. Regulators in OIC countries should support firms that are encountering obstacles in obtaining ESG certification. Originality/value To date, the role of ESG investing in capital structure policy by considering the recent pandemic has not been assessed in OIC countries.

Purpose Green innovation by organisations has the potential to create social impact across five dimensions: social capital, collective identities, environmental literacy, community well-being and human capital. However, the link between green innovation and these dimensions of social impact is underexplored, particularly in developing countries such as Vietnam, where environmental policies are still being framed. Thus, this study provides an exploratory analysis of the social impact of green innovation undertaken by organisations in Vietnam. Design/methodology/approach The perspectives of a focal organisation in Vietnam and three related stakeholders are examined. Data were obtained from the research participants using a photo-elicitation interviewing strategy with concept cards. A hybrid deductive–inductive approach to thematic analysis identified five themes. Findings There is evidence that green innovation positively influences social impact across the five identified dimensions. Additionally, the analysis suggests that green innovation can generate spillover effects amongst stakeholder organisations. Research limitations/implications An obvious limitation of this study is that it is based solely on interviews of executives and managers linked to a focal organisation that is already undertaking green innovation. Due to time and resource limitations, it was not possible to examine other sources of information, such as documentary evidence, which would have increased the reliability of the data. Practical implications This paper makes two contributions. First, it presents stakeholders’perceptions of the social impact of an organisation’s implementation of a green innovation strategy. Second, the study demonstrates the use of a novel photo-elicitation technique – concept cards – in undertaking interviews with busy business executives. Such an approach has rarely been used in business settings. Social implications This study provides managers with a framework for measuring the social impact of their green initiatives. It is no longer sufficient to evaluate a firm’s financial performance alone. With a growing emphasis on the United Nations Sustainable Development Goals, managers must be able to report the impact of their work beyond business boundaries. Our research findings are also insightful for policymakers working in innovation-related government, providing a comprehensive framework for evaluating the social impact of innovation. Originality/value This study investigates the emerging concept of green innovation using a novel “concept cards” interviewing technique. The perceptions of individuals from a sample of organisations in Vietnam provide a practical foundation for organisations’ future development of effective green innovation strategies.