State multinationals were investigated in the 1980s. Since then, little work on the state multinational has been done because of the dramatic changes in the world in terms of both politics and economics, such as the waves of liberalization, deregulation and privatization. However, in the current global environment, we see the increase in the number of state multinationals, and thus initiate research of this study. This study investigates two sets of research questions. First, is the state multinational the overlap of two organizational forms (the state owned enterprise (SOE) and the multinational enterprise (MNE))? If so, what are the key characteristics and implications of the state multinational? Second, can the state multinational be considered a hybrid organizational form, which is different from that of its parents? Propositions are set forth to examine the first set of research questions. After clarifying the unit of analysis for this study, the second set of questions asks how state ownership influences the state multinational‘s international diversification and firm performance, and what is the impact of institutional ownership on the state ownership—international diversification relationship, and how home country institutional environments influence the proposed relationships. Hypotheses are proposed to investigate the second set of research questions and are tested with a three-year sample (2004-2007) and a seven year sample (2000-2007) of the state multinational. Results of hierarchical linear models indicate that the state multinational, first, does have characteristics that are different from its parents (i.e., the SOE and the MNE) and thus is considered a hybrid organizational form. Second, state ownership may improve the level of the state multinational‘s international diversification, but reaches a threshold, after which the positive influence diminishes due to the prominent agency costs. Third, institutional ownership has been verified as a useful mechanism to improve the effectiveness of corporate governance in the case of the state multinational. Fourth, home country institutional environments matter in the studied relationships. The state multinational in developed countries with an established institutional environment may not depend on state ownership as much as those in developing and emerging countries. Results also show the influence of state ownership on the state multinational‘s firm performance. The state ownership—performance relationship is also non-linear (inverted U-shaped). Moreover, in the case of the state multinational, the higher the level of international diversification, the higher the firm performance. In addition, international strategies of the state multinational function as a mediator for the relationship between state ownership and firm performance.

We examine the effect of tax burden differences between organizational forms on multinationals choosing an organizational form for a newly established foreign affiliate. Analyzing micro-level data on inbound foreign direct investment relations in Germany, we find that a higher tax burden on foreign income earned in a corporate subsidiary significantly increases the tendency of a multinational to choose a non-corporate flow-through. Income-shifting opportunities, industry-specific risk, country-level differences in regulatory quality, and host-country experience moderate this effect and thus shape the cost-benefit relation of organizational forms in cross-border settings. In addition, we document that multinationals establishing a new affiliate as a flow-through on the basis of a tax benefit invest less in that affiliate and exhibit a more complex group structure. Taken together, our results provide evidence on how tax rules shape group structures of multinationals and suggest that an asymmetric taxation of organizational forms has economic consequences. / Series: WU International Taxation Research Paper Series

Au cours de notre travail doctoral nous avons étudié les stratégies d’internationalisation des franchiseurs afin de comprendre les déterminants du choix de la modalité de franchise internationale. Ces développements internationaux font émerger de nouvelles problématiques auxquelles les travaux académiques existants ne donnent pas d’analyses satisfaisantes. Pour les approfondir nous revenons sur ces questions à travers une approche dynamique des réseaux de franchise internationaux. Nous focalisons notre travail sur les problématiques de développement de l’avantage concurrentiel par les localisations étrangères des franchiseurs en proposant un cadre d’analyse basé sur l’approche des capacités des entreprises. Une méthodologie qualitative nous a permis de dimensionner le métier de franchiseur et d’interroger la mise en œuvre de métier au niveau international. Suite à une analyse thématique du discours de franchiseurs, nous avons identifié trois capacités centrales sources d’avantage concurrentiel. Par la suite, nous avons analysé des développements internationaux et mis en évidence le transfert de ces capacités à la modalité de franchise internationale. Notre cadre d’analyse nous a alors permis de souligner l’importance de l’analyse des capacités sources de l’avantage concurrentiel dans le processus du choix de la modalité d’entrée pour comprendre le développement des réseaux dans le nouveau marché. D’un point de vue dynamique, nous avons identifiés deux niveaux de dynamisme distincts et nous montrons qu’il importe de comprendre les déterminants du développement du deuxième niveau pour affiner notre compréhension de la réussite internationale des entreprises. / During our thesis we studied franchisors’ internationalization strategies in order to determine the optimum choice of organizational mode. These international developments cause new problems which existing literature does not provide satisfactory answers. In order to propose a new analysis, we choose to use a dynamic approach to international franchise systems. We focus our work on issues of competitive advantage development by foreign franchisors locations and we provide a framework based on the organizational capabilities perspective. A qualitative methodology enables us to define the competitive advantage of franchisor and questioned the implementation of this advantage into international operations. We seize the competitive advantage of franchisor with athematic analysis of franchisors practice. We identified three core capabilities. Subsequently, we analyzed international developments and highlighted the transfer of the core capabilities to the sub-franchisor. Then, our analytical framework allowed us to underline the importance of taking account of the competitive advantage in the process of choosing the organizational mode in order to understand the competitive advantage exploitation in the new market. From a dynamic perspective, we identified two levels of dynamism and we show the importance of understanding the determinants of the development of the second level to refine the knowledge of the achievement of international operation.

Background:Business Angels (BA) and Angel Investment Organizations (AIO) have become an essential source of capital for entrepreneurs, whereas Business Angel Groups (BAG) are the most recent organizational form in which Business Angels organize themselves. However, BAG still face several issues that prevent them from success in the long term, such as identifying the right members and creating membership engagement. Consequently, why these forms still fail remains unknown. Although, research on how new organizational forms emerge has received considerable attention. There are missing explanations for why they fail. Moreover, the reasons why organizations build legitimacy has been thoroughly investigated. Nevertheless, legitimacy in the emergence of new organizational forms has been neglected. Purpose:This study explores the emergence of a new stable organizational form through the lens of legitimacy. The main goal is to understand how legitimacy judgments can influence the emergence of a new form and how an organization can affect this process. The purpose is to contribute to the literature about AIO, emerging new organizational forms, and legitimacy. Method:Based on a retroactive longitudinal qualitative single case study, the researchers used grounded theory to derive a new theory from data. The study follows the Gioia method, a systematic inductive approach to concept development. The primary data consisted of 18 semi-structured interviews with practitioners, case informants, and context informants, triangulated with secondary data from documents, articles, and websites. Conclusion:The findings indicate that unstable organizations face problems aligning legitimacy judgments. Consequently, if successfully aligned, a new stable organizational form emerges. First, our findings contribute to the literature on the emergence of new organizational forms by including legitimacy processes. Second, we contribute to the framework of legitimacy by highlighting the importance of micro-meso-macro interrelationships. Finally, the findings contribute to the BA literature by providing a new form of AIO, named Business Angel Fund (BAF), that enables legitimacy alignment and solves current issues.

Many studies have focused on the insurance industry in the US and other developed countries. Few studies have investigated the efficiency and organizational form in developing countries. This is particularly true for the Takaful insurance industry. Takaful insurance is mutual insurance based on Islamic principles. The rapid growth of Takaful insurers in many countries around the world and their long existence make it important to examine them. Chapter 1 discusses the history and the practice of insurance during the time of ancient Arabs tribes. I discuss the conduct of the Holy Prophet (SAW) relating to insurance practice. I also briefly outlines the development of Islamic insurance in the fourteenth to the seventh centuries, nineteenth century, and the development in the twentieth century. Chapter 2 investigates economies of scope and agency problems for Takaful insurance companies operating in 19 countries. I test the conglomeration hypothesis, which holds that firms can optimize by diversifying across businesses, versus the strategic focus hypothesis, which holds that firms improve by focusing on core businesses. More specifically, I analyze whether it is advantageous for insurers to offer both property-liability insurance and family insurance (life insurance), or to specialize in one major industry segment. I also test for agency problems, which imply that firms must motivate the agent to ensure compliance with the principal's wealth maximization objectives. That is, I analyze whether it is advantageous for insurers to operate under a Mudharaba (profit sharing) model or operate under a Wakala (fee based) model. I estimate cost efficiency utilizing data envelopment analysis (DEA). Then, I test for scope economies and agency problems by regressing efficiency scores on control variables and indicators for strategic focus and the operating model. The results show that the Wakala operating model is cost inefficient and focused Takaful insurers are associated with higher cost efficiency. Chapter 3 investigates the relationship between insolvency risk and efficiency for Takaful insurers. I measure the insolvency risk by computing the z-score which measure distance to default. I calculate the efficiency scores using Data Envelopment Analysis (DEA). I find that efficient firms have a higher distance to default. I also find that firms which operate in multiple lines are penalized for diversification by being more likely to become insolvent. In addition, I show that investing in sukkuk and real-estate increase the insolvency risk. Chapter 4 analyzes the coexistence of Takaful and conventional insurance. I analyze the efficiency of different organizational forms in 13 countries. Technical, allocative, cost, and revenue frontiers were estimated using data envelopment analysis. I test the expense preference hypothesis and efficient structure hypothesis. I find evidence for the efficient structure hypothesis which claims that the two organizational forms serve different market segments due to differences in managerial discretion and access to capital. I also find evidence for the expense preference hypothesis which states that mutual insurers are less cost efficient than stock insurers due to unresolved agency conflicts (e.g., higher bonus consumption by mutual managers). The results provide insight into the competitiveness of conventional and Takaful insurers from different countries. Finally, chapter 5 concludes the main results of the study. / Business Administration/Risk Management and Insurance

Nesta dissertação foram estudadas as alternativas de estrutura organizacional que podem ser adotadas para a realização de negócios eletrônicos (e-business) em empresas tradicionais, enfocando principalmente a análise sobre centralização ou descentralização desta estrutura. Na pouca literatura existente especificamente sobre estrutura organizacional para negócios eletrônicos, fica claro que existe um leque de opções em termos de alternativas de estrutura, desde criar uma empresa “ponto com" totalmente separada, até descentralizar os negócios eletrônicos pelas várias unidades de negócio. No caso estudado nesta dissertação, inicialmente foram identificadas as iniciativas de negócios eletrônicos praticadas pela empresa, sendo discutido o processo de adoção de tais ferramentas. Depois, foi analisada a evolução da estrutura criada para negócios eletrônicos desde o seu início até o momento em que a pesquisa foi realizada. Foi identificado que as atribuições delineadas inicialmente para os negócios eletrônicos não são rígida e uniformemente desempenhadas pelas várias unidades de negócio. Como a empresa estudada passava justamente por um período de discussão sobre descentralizar o Departamento de eCommerce, o momento foi altamente apropriado para a realização da análise sobre centralização e descentralização. A empresa identificou três alternativas de estrutura, bem como os critérios para uma análise aprofundada. A alternativa de estrutura de eCommerce centralizado foi a mais recomendada, dentro das limitações da metodologia, devidamente apresentadas e discutidas no texto. Mais do que a recomendação final da análise realizada, que serve apenas para a empresa pesquisada, a metodologia utilizada é uma das grandes contribuições desta dissertação. Com as devidas adaptações, ela pode ser útil em outras situações reais, auxiliando assim os gestores nesta complexa decisão sobre qual o grau de descentralização a ser adotado nos negócios eletrônicos. / Were studied in this dissertation the alternatives in organizational structure which could be adopted in electronic business (e-business) in traditional companies, mainly focusing this structure’s centralization or decentralization analysis. In the brief existing bibliography specifically about organizational structure for e-business, it is clear that exists a range of options in terms of structure choices, from creating an independent “dot com" company, to the decentralization of the e-business through the business units. In the case studied in this dissertation, firstly were identified the e-business initiatives practiced in the company and were discussed the adoption process of these tools. After that, the evolution of the structure created for e-business was analyzed, from the beginning to the application moment of this research. It was possible to identify that the initially delineated attributions for e-business are not rigid and are not uniformly realized by all of the business units. As the studied company was discussing the decentralization of the eCommerce Department, the timing for the centralization or decentralization analysis was very appropriate. The company identified three alternatives of structure, as well as the criterions for an in depth analysis. The centralized eCommerce structure alternative was the most recommended, considering the limitations of the methodology, properly presented and discussed in the text. More than the final recommendation of the analysis made, which interests only for the studied company, the applied methodology is one of the mainly contributions of this dissertation. With the needed modifications, this methodology can be useful in other real situations, helping the managers in this complex decision about which degree of decentralization to adopt in e-business.

[pt] Os reais efeitos da tributação sobre a economia só podem ser entendidos se levada em conta a resposta dos agentes econômicos a essa tributação. Esta dissertação trata de dois possíveis tipos de resposta das firmas ao serem taxadas: mudança da forma de organização e de localização. A primeira parte da dissertação mostra como a estrutura de taxação da renda no Brasil incentiva profissionais liberais a se organizarem como pessoa jurídica. A análise empírica, feita com microdados da ECINF, indica que a decisão desses profissionais de constituir pessoa jurídica está fortemente relacionada a parâmetros tributários. A segunda parte da dissertação estuda o caso de dois municípios na região metropolitana de São Paulo que reduziram drasticamente as alíquotas de ISS durante a década de 90, participando de uma espécie de guerra fiscal a nível municipal. Analisando dados da RAIS de 1994 a 2000 encontramos evidências de que esse corte na alíquota atraiu um número significativo de firmas para os dois municípios. Entretanto, o número de empregos criados nos setores de serviços não acompanhou o expressivo aumento no número de firmas. Nos dois casos estudados, há evidências de que grande parte das firmas muda de comportamento com o objetivo principal de diminuir o montante de imposto devido; estas mudanças sendo, na realidade, mecanismos de planejamento tributário. / [en] The real impact of taxes on the economy can only be assessed when we consider the behavioral responses of economic agents due to these taxes. Two kinds of responses are studied in this thesis: changes in organizational form and location choices. The first part of this study shows how income taxation in Brazil gives incentives to some classes of taxpayers to incorporate in order to reduce their tax burden. Microdata on these taxpayers indicate that the probability of incorporation is strongly related to tax rules. The second part of the study uses the case of two cities engaged in fiscal competition in order to measure the sensitivity of firm s location choices to municipal tax rates. Firm data show that these two cities, located in the greater São Paulo area, were able to attract a large number of firms to their territory. However, data from firms surveys indicate that the number of jobs did not grow accordingly. In both cases studied, there are evidences that firms change their behaviour with the main objective of avoiding taxes.

The dissertation focuses on the incentives and economic effects of gross receipts taxes (GRTs) versus corporate income taxes (CITs). Conventional wisdom holds that GRTs are very poor tax instruments; however, several states have shown renewed interest in GRTs since 2002. An interesting question to ask is why states are reconsidering GRTs in spite of all criticisms. Are GRTs really as bad as what conventional wisdom says? There is little rigorous theoretical or empirical work on GRTs. My dissertation aims to help fill this gap by providing both theoretical and empirical analysis on the comparative advantages and disadvantages of GRTs versus CITs. Essay one provides the first systematic theoretical analysis to compare and contrast the incentives and economic effects of gross receipts taxes versus corporate income taxes. Specifically, it focuses on the incentives for vertical integration in the sense of make-or-buy decisions, the effects on profit shifting between out-of-state and in-state firms, the incentives to change organizational form for tax purposes, and the incentives for cost-saving innovation under each tax system. Several results contradict conventional wisdom and deepen our understanding of GRTs. Based on Essay one, Essay two empirically tests the theoretical prediction that GRTs eliminate the distortion on organizational form choice, increasing the chance for a firm to incorporate. The analysis uses state-industry panel data from Nonemployer Statistics during the period 2002- 2008. The results show that states with a GRT have a higher share of corporate firms. Further, by replacing the CIT with a GRT, states may promote the real activity of C corporations.

Cette thèse examine les déterminants de la présence des banques à l’étranger et de leur mode d’implantation (succursales ou filiales) ainsi que les effets de leurs stratégies d’internationalisation sur leurs performances et sur le risque systémique. Elle est composée de trois essais empiriques sur l’internationalisation des banques européennes. Le chapitre 1 étudie si le niveau de développement des pays d’accueil et la maturité de leur système financier conditionnent l’impact de la réglementation bancaire sur les choix de localisation et de mode d’implantation à l’étranger, sous une forme exclusive de succursales ou de filiales ou selon un modèle mixte associant les deux formes. Les résultats indiquent sur la période 2011–2013 que les banques européennes choisissent d’être présentes plutôt dans les pays à hauts revenus qui ont des conditions strictes d’entrée et d'activités mais une supervision plus souple où elles s’implantent davantage sous forme de filiales. En revanche, elles privilégient les pays à revenus intermédiaires dont les autorités de supervision sont strictes mais ne restreignent pas les activités bancaires. Elles préfèrent également une présence avec des succursales dans les pays à bas revenus dont la réglementation est rigoureuse. Enfin, bien qu’une réglementation du capital plus sévère dissuade l’internationalisation des banques, toute implantation à l’étranger se fait néanmoins sous forme de succursales. Le chapitre 2 analyse comment la complexité organisationnelle et géographique des banques à l’étranger affecte le risque bancaire et la rentabilité de la banque-mère. Les résultats montrent que les banques présentes dans plus de pays prennent moins de risque, ont une plus faible probabilité de défaut, un plus faible risque de levier ainsi qu’une rentabilité plus faible. Il apparait également que les banques les plus complexes qui opèrent à la fois sous forme de filiales et de succursales dans plusieurs régions du monde sont, à l’exception du risque de l’actif, en moyenne moins risquées que celles qui s’installent uniquement sous forme de succursales. Le chapitre 3 considère la solidité de l’ensemble du système bancaire et teste si la présence des banques à l'étranger par le biais de filiales affecte le risque systémique différemment en temps normal (2005–2007), en temps de crise financière et de crise de la dette souveraine européenne (2008–2011) et au cours des années suivantes (2012–2013). L’analyse montre que la détention de filiales étrangères est associée en temps normal à un moindre risque systémique mais que lorsque le système bancaire fait face à des chocs sévères, l’effet est négatif, persistant et s’accroit durant les années d’après crises. Ces résultats suggèrent que l'internationalisation des banques contribue habituellement à une plus grande stabilité financière mais qu’elle amplifie l’impact systémique des crises. / This thesis examines the determinants of foreign banks’ presence and their organizational strategies abroad and tests how such internationalization affects bank performance and systemic risk. The dissertation is comprises of three empirical essays on European banks. The first chapter analyzes whether differences in economic development of the host countries and the maturity of their financial system are relevant to explain how banking regulation affects the choice of the foreign location and the organizational strategy of an exclusive organizational network with only branches or subsidiaries or a mix model with both affiliates’ types. The findings indicate that over the 2011–2013 period, European banks prefer high-income countries with numerous activity restrictions and weaker supervision but less developed countries with less restrictions and stronger supervision. Regarding the choice of foreign organizational form, banks rather operate subsidiaries in high and middle-income countries with stringent entry requirements but prefer branches in developing countries with stringent capital requirements and greater supervisory power. However, banks always tend to avoid locations with stronger capital regulation than at home. Yet when they are present in such countries, they operate branches. The second chapter investigates how foreign organizational and geographic complexity affect the parent bank’s individual risk and profitability. Our results show that being present abroad is beneficial for bank stability as it contributes to lower default risk. Banks present abroad through both subsidiaries and branches appear to be more stable than banks present under one form only. Being present with branches only is the most effective way to reduce risk-taking. Nevertheless, higher geographic dispersion of affiliates around different world regions is associated with higher volatility of earnings and higher profitability. Chapter 3 considers the state and soundness of the banking system and examines whether the presence of banks abroad with subsidiaries affects bank systemic risk differently during calm period (2005–2007), distress times of the global financial crisis and the European Sovereign debt crisis (2008–2011), and years after (2012–2013). We show for European listed banks that operating subsidiaries abroad is associated with lower systemic risk in normal times. However, when the banking system is facing severe shocks, such internationalization produces on systemic risk reversed and negative effects that are long-lived and aggravated in the years after the crises. Our findings suggest that bank internationalization and foreign complexity are important for greater stability in normal times but turn out to increase instability during years of financial turmoil and in the aftermath.

Nesta dissertação foram estudadas as alternativas de estrutura organizacional que podem ser adotadas para a realização de negócios eletrônicos (e-business) em empresas tradicionais, enfocando principalmente a análise sobre centralização ou descentralização desta estrutura. Na pouca literatura existente especificamente sobre estrutura organizacional para negócios eletrônicos, fica claro que existe um leque de opções em termos de alternativas de estrutura, desde criar uma empresa “ponto com” totalmente separada, até descentralizar os negócios eletrônicos pelas várias unidades de negócio. No caso estudado nesta dissertação, inicialmente foram identificadas as iniciativas de negócios eletrônicos praticadas pela empresa, sendo discutido o processo de adoção de tais ferramentas. Depois, foi analisada a evolução da estrutura criada para negócios eletrônicos desde o seu início até o momento em que a pesquisa foi realizada. Foi identificado que as atribuições delineadas inicialmente para os negócios eletrônicos não são rígida e uniformemente desempenhadas pelas várias unidades de negócio. Como a empresa estudada passava justamente por um período de discussão sobre descentralizar o Departamento de eCommerce, o momento foi altamente apropriado para a realização da análise sobre centralização e descentralização. A empresa identificou três alternativas de estrutura, bem como os critérios para uma análise aprofundada. A alternativa de estrutura de eCommerce centralizado foi a mais recomendada, dentro das limitações da metodologia, devidamente apresentadas e discutidas no texto. Mais do que a recomendação final da análise realizada, que serve apenas para a empresa pesquisada, a metodologia utilizada é uma das grandes contribuições desta dissertação. Com as devidas adaptações, ela pode ser útil em outras situações reais, auxiliando assim os gestores nesta complexa decisão sobre qual o grau de descentralização a ser adotado nos negócios eletrônicos. / Were studied in this dissertation the alternatives in organizational structure which could be adopted in electronic business (e-business) in traditional companies, mainly focusing this structure’s centralization or decentralization analysis. In the brief existing bibliography specifically about organizational structure for e-business, it is clear that exists a range of options in terms of structure choices, from creating an independent “dot com” company, to the decentralization of the e-business through the business units. In the case studied in this dissertation, firstly were identified the e-business initiatives practiced in the company and were discussed the adoption process of these tools. After that, the evolution of the structure created for e-business was analyzed, from the beginning to the application moment of this research. It was possible to identify that the initially delineated attributions for e-business are not rigid and are not uniformly realized by all of the business units. As the studied company was discussing the decentralization of the eCommerce Department, the timing for the centralization or decentralization analysis was very appropriate. The company identified three alternatives of structure, as well as the criterions for an in depth analysis. The centralized eCommerce structure alternative was the most recommended, considering the limitations of the methodology, properly presented and discussed in the text. More than the final recommendation of the analysis made, which interests only for the studied company, the applied methodology is one of the mainly contributions of this dissertation. With the needed modifications, this methodology can be useful in other real situations, helping the managers in this complex decision about which degree of decentralization to adopt in e-business.