Firms are the unit cells of the economy. Understanding how they create value is key todesigning policies that promote sustainable growth. In this dissertation, I study how two major trends: globalization and rising inequality, affect the causes and consequences of firm growth. Chapters 1 and 2 focus on the interaction of multinational firms and domestic firms in developing countries, while chapter 3 looks at the unequal distribution of consumer gains from the expansion of a firm in the United States. Specifically, in Chapter 1, I study how the presence of multinational firms affects how domestic firms grow. I investigate the hypothesis that uncertainty about product quality, a distinctive feature in developing countries, leads consumers to prefer products made by multinational firms headquartered in high-income countries, as opposed to domestic firms. Combining barcode-level consumption data from Mexico with information about the origin of the producers of the goods, I measure a precise foreign price premium of at least 16%. While the availability of foreign goods increases consumers’ welfare, the dominance of foreign firms may also hinder the growth of domestic firms. I then document the following novel facts about the consumer packaged goods industry in Mexico: 1) domestic firm sales growth is driven by older goods rather than new goods; 2) domestic goods have slower and longer life-cycles than foreign goods; 3) the extensive customer margin is key to growth for both types of firms; 4) domestic firms depend relatively more on the intensive margin for customer growth; and 5) new customers of older domestic goods are poorer than those of new goods. I estimate a demand model, showing that the price premium elicited in the raw data can be attributed to consumers’ relative preference for foreign goods. Importantly, this preference fades over time. I show that this is consistent with consumers learning about product quality, and provide consumer-level empirical evidence for this mechanism. Demand-side policies may be useful complements to classic industrial policy tools. Chapter 2 looks inside multinational firms to understand how contextual factors may affect the probability of spillovers from multinationals to the domestic sector. A distinct feature of multinationals is a three-tier hierarchy: foreign managers (FMs) supervise domestic managers (DMs) who supervise production workers. Surveys suggest that language barriers impede interactions between FMs and DMs. An experimental protocol that offers DMs free English language courses confirms that lowering communication costs increases their interactions with FMs. A second experimental protocol that asks human-resource managers at domestic firms to rate hypothetical resumes reveals that multinational experience and, specifically, DM-FM interactions are valued in the domestic labor market. Taken together, the protocols suggest that reducing language barriers can improve transfers of management knowledge to domestic workers, and a longer-run survey indicates treatment DMs’ improvements in soft skills. We further examine why MNCs and DMs may under-invest in language training. Complementary policies such as language subsidies can increase the probability of positive spillovers from Foreign Direct Investment. In Chapter 3, I study the expansion of a large, high-quality firm in the United States and itsimpact on the competitive landscape. The arrival of high-end grocery stores in neighborhoods is a harbinger of gentrification. However, economic theory generally predicts that the entry of firms is good for consumer welfare. This paper combines barcode-level retail data with a newly collected dataset on the opening dates of Whole Foods, a high-end grocery chain in the United States, in new neighborhoods, to estimate the effect of entry. I show that Whole Foods’ entry causes prices to rise by three percent for households in the bottom half of the income distribution, while prices don’t change for households in the top half of the income distribution. This finding is robust to changing the sample of stores and the set of control variables and to a falsification test using announcement dates instead of entry dates. Building on differentiated competition models, I show that this unexpected effect of entry can happen because incumbent stores catering to high-income households are closer to Whole Foods’ assortment and therefore behave pro-competitively when Whole Foods arrives, while incumbent stores catering to low-income households are quite differentiated and are able to raise their prices. Policies seeking to address gentrification should take the business side of this phenomenon into account.

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The primary objective of this study was to utilize an exploratory research methodology to determine relationships among the antecedent factors and entry mode choices of multinational lodging firms. A basic framework was developed based on the review of the literature of multinational strategy, international business theories and concepts and hospitality management strategy. A qualitative research approach, specifically a multiple-case study method was used. The data was collected through interviews and secondary resources of five multinational lodging companies, analyzed through summary tables and matrices. The findings from the research included sixteen propositions that explain the relationships among the antecedent factors and entry mode choices in the multinational lodging operations. A framework was developed to illustrate the antecedent factors which may support the entry mode choices of the multinational lodging companies. Factors in the framework include those from the external environment: taxation and repatriation in the political dimension, infrastructure and tourism related factors in the economic dimension, adaptation to local needs and expectations in the socio-cultural dimension, investment and sharing technology in the technological dimension and awareness of the natural environment in the ecological dimension. Antecedent factors in the internal environment include: local and regional competitors, international and local customers, gateway and commercial centers of property locations, the strengths and weaknesses in tangible and intangible assets and partner selection criteria. These factors were found to have an important influence on the entry mode choices of the five participating multinational lodging companies. / Ph. D.

The primary focus of this thesis is on the causes and macroeconomic implications of inequality. The first two chapters of this thesis concern firm size (measured by sales) inequality. The rise in inequality in the upper tail of firm size distribution has important macroeconomic implications on the product market, the labor market and aggregate productivity growth. In Chapter 1, I seek to understand how acquisition and innovation drive the rise in the upper tail firm size inequality. This question is motivated by the fact that as top firms pull increasingly farther from the rest of the firms, they did not grow into superstar firms on their own. I construct a new dataset to track the dynamic ownership of firms and their patents to identify the mechanisms through which acquisitions drive the growth of the acquiring firms via innovation. I then examine the implications of these innovation mechanisms on upper tail firm size inequality — in terms of both stationary distribution and transition dynamics — using a range of firm random growth models. In chapter 2, I study what do changes in top sales shares signal about changes in large firm dynamics. I use an accounting decomposition to identify two sources of top sales shares growth: (i) incumbent top firms grow bigger; (ii) new top firms replace old top firms. I then build a continuous-time random growth model to infer the growth dynamics of firms at the upper tail of firm size distribution. In Chapter 3, in collaboration with Tam Mai, Istudy the implications of occupational and regional inequality on the labor market after the breakout of the COVID-19 pandemic.

As the economic reform deepened, private sector became the major force in the industrial expansion and collective sector diminished dramatically. Previous researches on the role of local government have been challenged. Instead of "local government as industrial firms" put forward by Andrew Walder, this dissertation proposes a new explanation "local government as agents". Local government has withdrawn from the direct intervention in firms' internal management. It turns to offer public services, as well as help firms to achieve institutional innovation and obtain scarce institutional resources. The firms will pay back to the local government in the forms of tax and other non-financial income. There are mutual selections between "agents" and "star" firms. Horizontal competitions between different governments always exist, and the "star" firms make use of these competitions to bargain with government to obtain more favorable policies. / Based on a case study of a privately-owned automobile enterprise (Geely Holding Group) in China, this study aims at exploring the interactions between institutional environment, local government and individual enterprises, as well as answering these two questions: Under an ambiguous institutional environment, (1) how can the private automobile enterprise deal with various institutional barriers and be able to survive and develop? (2) what role does local government play in this process? Informed by the work of Victor Nee, here in this thesis I put forward an integrated theoretical framework of institutions, local government, enterprises and social network in order to analyze the issues raised above. Qualitative research methods, such as participant observation, in-depth interview and archival research, were employed to collect data in the field. / Institutional ambiguity increases the cost of implementing rules and regulations on the local level, which makes local government more powerful in explaining and executing policies. Thus, local government has many chances to "filter" or "purify" institutional factors which are inconsistent with local interests, and share the profit with enterprises in its jurisdiction by helping them break through the institutional barriers. Based on the interaction between institution, local government and enterprises, cooperative alliance between enterprises and local government has been established, while the relationship between the central and local governments is covered non-cooperative. / It is found that institutional ambiguity is not only an obstacle but also an opportunity for organizational growth. Institutional ambiguity may create grey zones in the economic fields, where enterprises have chances to break through the administrative barriers with the help of local government. Economic and technical barriers can be partially lowered by administrative barriers. On the other hand, institutional ambiguity does increase the indeterminacy of economic actions; so the enterprises incline to rely on social network and establish legitimacy to reduce the risk. / 蔣怡. / Adviser: Tai-lok Lui. / Source: Dissertation Abstracts International, Volume: 71-01, Section: A, page: 0351. / Thesis (Ph.D.)--Chinese University of Hong Kong, 2009. / Includes bibliographical references (p. 204-210). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. Ann Arbor, MI : ProQuest Information and Learning Company, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. Ann Arbor, MI : ProQuest Information and Learning Company, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstracts in Chinese and English. / Jiang Yi.

Abstracts in English, Zulu and Afrikaans / The stakeholder instrument (SI) is a conceptual framework developed to complement integrated reports for value creation, transparency and accountability. It is a tool developed specifically for stakeholders to have an understanding of the integrated reports and assist them in making informed decisions. Currently, integrated reports fail to provide meaningful insights into organisations’ performance and its strategy focus, thus making it difficult for stakeholders to understand the contents of the integrated reports. The research illuminated pertinent variables synonymous with value creation. The study involved analysis of data from 42 companies trading on the Johannesburg Stock Exchange and administration of 80 questionnaires on randomly selected respondents. Significant and positive correlations between value creation and the attributes namely integrated reports; corporate governance and financial measures were established. Contributions: The results of the empirical study provide significant perceptions into the process of stakeholder value creation. The study established the significance of complementing the integrated reports in creating stakeholder value. The study, further, authenticated the stakeholder instrument as a distinct antecedent of value creation. The study further illuminated the attributes that matter to the stakeholders and assist with effective decision-making and value creation. / Ithuluzi lababambiqhaza wuhlaka olwenzelwe ukweseka nokuthasisela phezu kwemibiko edidiyelwe ukuze kuthuthukiswe ukuhlomula nokubhekelelwa kahle kwababambiqhaza (value creation), ukusebenza ngokusobala kanye nokuphendula. Leli yithuluzi elenzelwe ukuqinisekisa ukuthi ababambiqhaza bayayiqonda imibiko edidiyelwe (integrated reports) futhi libalekelele ukuthi bathathe izinqumo eziphusile emva kokuhlonyiswa ngalo lonke ulwazi olungaba wusizo kubona. Njengamanje, imibiko edidiyelwe iyahluleka ukuhlinzeka ngolwazi olubonisa ukuqonda okujulile ukusebenza kwezinhlangano kanye namaqhingasu ezigxile kuwona izinhlangano, futhi-ke lokho kwenza kube nzima kubabambiqhaza ukuqonda ulwazi oluqukethwe yimibiko edidiyelwe. Ucwaningo lwahlonza ama-variable afanelekile ahlobene kakhulu nokuhlomula nokubhekelelwa kahle kwababambiqhaza. Ucwaningo lwabandakanya ukuhlaziywa kwedatha eyaqoqwa ezinkampanini ezingama-42 ezihweba ku-Johannesburg Stock Exchange futhi kwakhishwa amaphepha-mibuzo angama-80 anikezwa ababambiqhaza abaqokwa ngaphandle kokulandela indlela ethile ehlelekile (randomly), ukuze bawaphendule. Ucwaningo lwaveza ukuba khona kobudlelwano obunohlonze phakathi kokuhlomula nokubhekelelwa kahle kwababambiqhaza kanye nezicibunjalo zenkampani, okusho, imibiko edidiyelwe, ukuphathwa nokulawulwa kahle kwenkampani kanye nezinyathelo eziphathelene nezimali. Ulwazi olusemqoka olwakhiqizwa wucwaningo: Imiphumela yocwaningo oluphathekayo futhi olusekelwe phezu kwezinto ezibonakalayo (empirical study) ihlinzeka ngolwazi olunohlonze oluzolekelela ekuqondeni inqubo yokuhlonyuliswa nokubhekelelwa kahle kwababambiqhaza. Ucwaningo lwabonisa ukubaluleka kokweseka kanye nokuthasisela phezu kwemibiko edidiyelwe enqubweni yokuhlonyuliswa nokubhekelelwa kahle kwababambiqhaza. Ithuluzi lababambiqhaza laqinisekiswa futhi njengethuluzi elicacile eliwusizo olukhulu ekuhlonzweni kobudlelwano obuphathelene nokuhlonyuliswa nokubhekelelwa kahle kwababambiqhaza. Futhi ngaphezu kwalokho ucwaningo lwahlonza izicibunjalo ezibonwa ngababambiqhaza njengezibalulekile futhi ezilekelelayo ekuthathweni kwezinqumo ngobunyoninco kanye nasekuhlonyulisweni nokubhekelelwa kwababambiqhaza ngendlela efanele. / Die belanghebberinstrument is 'n konseptuele raamwerk wat ontwikkel is om geïntegreerde verslae vir waardeskepping, deursigtigheid en aanspreeklikheid te komplementeer. Dit is 'n instrument wat spesifiek ontwikkel is sodat belanghebbers die geïntegreerde verslae kan verstaan en om hulle te help om ingeligte besluite te maak. Tans bied geïntegreerde verslae nie betekenisvolle insig in organisasies se prestasie en hulle strategiefokus nie wat dit dus moeilik maak vir belanghebbers om die inhoud van geïntegreerde verslae te verstaan. Die navorsing identifiseer toepaslike veranderlikes wat sinoniem is met waardeskepping. Die studie het ontleding behels van die data van 42 maatskappye wat op die Johannesburg Aandelebeurs sake doen en die administrasie van 80 vraelyste aan respondente wat ewekansig geselekteer is. Beduidende en positiewe korrelasies tussen waardeskepping en die attribute, naamlik geïntegreerde verslae, korporatiewe beheer en finansiële maatstawwe, is geskep. Bydraes: Die resultate van die empiriese studie verskaf beduidende persepsies van die proses van belanghebberwaardeskepping. Die studie het die belang van die geïntegreerde verslae om belanghebberwaarde te skep, daargestel. Die egtheid van die belanghebberinstrument is ook as 'n kennelike antesedent van waardeskepping bewys. Die studie het ook die attribute geïdentifiseer wat vir belanghebbers saak maak en wat help met effektiewe besluitneming en waardeskepping. / Graduate School of Business Leadership / D.B.L.