The most relevant intangible assets in generating value in creative economy companies

Objective: This work seeks to identify which variables best explain the generation of value in creative economy companies that have high investment in intangible assets. The study focused on the creative economy sector of Porto Digital in the city of Recife, Pernambuco, Brazil. Methodology: The methodology used was exploratory research. For the examination of the variables, the multivariate analysis was used with the application of exploratory factor analysis, and for confirmation, the Spearman correlation model. For data collection, a semi-structured questionnaire prepared in Google Forms was sent to the companies in the second half of July 2021. The responses were validated using Cronbach's Alpha, and the suitability for using factor analysis was measured using the KMO and Bartlett tests. All results were found and demonstrated using the IBM SPSS Statistics 26 software. Results: The variables highlighted by the results were grouped into three groups and presented in an accounting statement model using the Resource-Based Theory definitions. Finally, the CEO of two of the most prominent Creative Economy companies in Pernambuco gave his opinion on these variables. These comments were placed in the financial statement explanatory note format. The results showed that 13 variables were classified into structural, relational, and human capital. Study contributions: Creative economy companies essentially work using the ability to manage all their intangible resources. This article is the first to provide empirical evidence on the perceptions of managers of creative economy companies in Porto Digital do Recife about the importance and contributions of intangible assets to generate value in their businesses, as well as assess the organizational resilience of these companies in the context of the covid-19 pandemic.

Federated networks in England and Australia cricket: a model of economic dependency and financial insecurity

PurposeThe purpose of this study is to critically examine the financial health and performance of the English and Australian cricket networks. This includes the county cricket clubs (CCC) and state and territory cricket associations (STCA) affiliated to the England and Wales Cricket Board (ECB) and Cricket Australia (CA) respectively, as well as the ECB and CA themselves. The authors apply resource dependency theory to understand if there are any financial dependencies within the networks of cricket in England and Australia.Design/methodology/approachThe data for this research was obtained from the financial statements of the ECB, the 18 affiliated CCCs, CA and the six affiliated STCAs. This sample covers the last 5 years of financial information (2014–2019) for all the organisations at the time of writing. Ratio analysis was conducted on all organisations within the sample to assess financial health and performance.FindingsBoth CCCs and STCAs show signs of poor financial health. There is a clear dependence on the financial support they receive from the ECB and CA respectively and this dependence appears more prominent in Australia. The ECB and CA have better financial health which ultimately allows them to financially support the CCCs and STCAs.Originality/valueThe ECB and CA are facing difficult financial decisions to remain financially secure themselves due to the impact of COVID-19 but also to support their affiliated clubs. The affiliated clubs do not generate sufficient revenues and must diversity their revenue streams if they are to become financially self-sustaining. This financial structure and distribution mechanism will be vital in safeguarding the future of some of England's and Australia's most important cricket organisations.

IP Waivers in a Pandemic: Great in Theory, Wrong in Practice

[...]granting sweeping IP waivers can ultimately impede incentivization in a time where such innovation is needed most. "25 And, as a result, innovation would slow, and consumers would suffer. [...]it is no wonder why governments can-and often do- effectively promote innovation through IPRs.26 A. IP and International Law As advancements in transportation made it possible to export and import goods outside one's own country, the need for a multilateral IP treaty became necessary to protect IPRs across borders. [...]on March 20, 1883, the Paris Convention for the Protection of Industrial Property was formed.27 While it has been revised many times since its formation, the treaty's objective has remained unchanged: to harmonize how each nation treated other nations when seeking protection for their industrial property.28 Only five years after the Paris Convention, the Berne Convention for the Protection of Literary and Artistic Works was formed.29 Like the Paris Convention, the Berne Convention focuses on international harmonization, but goes a step further by providing minimum standards for copyright law.30 However, because the Paris and Berne Conventions are both non-self-executing treaties,31 they only have legal effects within a member state if, and when, countries implemented them through their own laws.32 As a result, adoption of the two treaties was slow, and their effects less profound. "38 Unlike the prior Berne and Paris treaties, TRIPS is unique because WTO membership is a "package deal," meaning that members cannot just selectively choose which agreements to implement and which to ignore.39 B. TRIPS and the Pharmaceutical Industry Tensions have long existed between IPRs in the biopharmaceutical industry and public health concerns in LMICs.40 Before TRIPS, some countries, such as India and Brazil, did not permit patents on medicine;rather, they only permitted drug companies to patent the processes used to create them.41 This meant generic alternatives could enter the market right away, keeping prices affordable for consumers.42 After TRIPS was formed, WTO member states were required to provide IPRs to innovators for product patents43 with a minimum term length of 20 years.44 This was necessary because it allowed biopharmaceutical companies to recover many of the R&D costs they would otherwise lose to generic companies.45 And, as technology has advanced, R&D costs have only skyrocketed.46 Between 2009 and 2018, the estimated median R&D cost per individual drug was $985 million.47 However, giving the pharmaceutical industry blanket monopolies for every patented drug would exacerbate the lack of access in LMICs, as name brand drugs-without generic alternatives-can be priced at monopolistic price points.48 Thus, in an attempt to find the right balance between promoting R&D into new drugs and furthering access to existing drugs, the TRIPS agreement includes two exceptions outlined in Articles 30 and 31.

The role of intangible assets in promoting the sustainability of agri-food enterprises: Evidence from China

Considerable research has explored the relationship between intangible assets and firm performance in manufacturing and tertiary industries, but such studies remain scarce for the agri-food industry. In fact, numerous stresses, including the COVID-19 pandemic, have disrupted many activities along agri-food production chains in developing countries, resulting in huge pressure on sustainable agri-food production. Based on a sample of 94 A-share listed agri-food firms in China from 2008 to 2017, this study examines the impact of intangible assets on agri-food enterprises' productivity using generalized method of moments estimation. The results reveal differences between private and state-owned enterprises, indicating that the promotional productivity effect of intangible assets held by private agri-food enterprises was insignificant in the current period, but will be manifested three periods later, in contrast to state-owned enterprises. Due to the soft budget constraints and incentive mechanism of state-owned agri-food enterprises, intangible assets will not promote productivity. In addition, by pursuing the financialization profit model, agri-food enterprises will sacrifice productivity improvement, which can further lead to selective abandonment in the use of intangible assets. Simultaneously, there is a crowding-out effect between intangible and fixed assets in promoting agri-food enterprises' total factor productivity. The findings highlight the importance of the quality and conversion rate of intangible assets, particularly for agri-food enterprises, which are closely related to food security and stability. © 2022 Economic Society of Australia, Queensland

World Experience of Investing and Human Capital Development

In modern business conditions, an important factor in financial and economic activities is employees, their competence, and professionalism. Globalization processes in the economic environment motivate the use of new information resources and technologies, the development of the economy's new areas. At the same time, there is a growing need for a high level of human capital development. Therefore, today it is necessary to develop and implement measures aimed at investing in human capital. In the context of the COVID-19 pandemic, investing in human capital is more vital than ever, as it can lay the foundation for sustainable, comprehensive recovery and growth in the future. It is investments in technology, education, science that guarantee the formation of highly qualified competitive human capital at all levels of the economy. Hence, one of the main tasks of the company is to support and constantly improve the skills of its employees, the formation of such skills and abilities that would allow them to quickly adapt to innovative technologies and complex realities of the modern economy. The purpose of the article is to review the foreign experience of developed countries in solving social problems that affect the human capital index. Studying the world experience of human capital formation and borrowing it for Ukraine can be an effective tool of state social policy. After all, investments in physical capital and infrastructure without sufficient investments in human capital may not give Ukraine the expected dividends. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

Intellectual Property and Tabletop Games

There is a rich body of literature regarding intellectual property's ("IP") "negative spaces"-fields where creation and innovation thrive without significant formal protection from IP law. Scholars have written about innovation in diverse fields despite weak or nonexistent IP rights, such as fashion design, fine cuisine, stand-up comedy, magic tricks, tattoos, and sports plays. Instead, these fields rely on social norms, first-mover advantage, and other (non-IP) legal regimes to promote innovation in the absence of IP protection. As a comparison to these studies, this Article comprehensively analyzes the role of IP law in facilitating innovation in tabletop gaming, including board games, card games, and pen-and-paper role-playing games. Over the past several decades, the tabletop gaming industry has seen a proliferation of innovation, but there is surprisingly little in the academic literature about IP and tabletop games. IP rights, including patents, copyrights, and trademarks, each protect certain aspects of games, while at the same time being constrained by doctrinal limitations that leave considerable flexibility for others to develop their own games and adapt or improve upon existing ones. There are also numerous examples of user-based innovation in tabletop gaming. This Article concludes by contending that IP rights, as well as their limitations, play a significant role in facilitating the robust innovation presently occurring in the tabletop gaming field.

The role of intangible assets in promoting the sustainability of agri-food enterprises: Evidence from China

Considerable research has explored the relationship between intangible assets and firm performance in manufacturing and tertiary industries, but such studies remain scarce for the agri-food industry. In fact, numerous stresses, including the COVID-19 pandemic, have disrupted many activities along agri-food production chains in developing countries, resulting in huge pressure on sustainable agri-food production. Based on a sample of 94 A-share listed agri-food firms in China from 2008 to 2017, this study examines the impact of intangible assets on agri-food enterprises' productivity using generalized method of moments estimation. The results reveal differences between private and state-owned enterprises, indicating that the promotional productivity effect of intangible assets held by private agri-food enterprises was insignificant in the current period, but will be manifested three periods later, in contrast to state-owned enterprises. Due to the soft budget constraints and incentive mechanism of state-owned agri-food enterprises, intangible assets will not promote productivity. In addition, by pursuing the financialization profit model, agri-food enterprises will sacrifice productivity improvement, which can further lead to selective abandonment in the use of intangible assets. Simultaneously, there is a crowding-out effect between intangible and fixed assets in promoting agri-food enterprises' total factor productivity. The findings highlight the importance of the quality and conversion rate of intangible assets, particularly for agri-food enterprises, which are closely related to food security and stability.

An Overview of Legal Issues and Regulations Affecting CBD-Based Franchise Systems

[...]in Oregon and Florida, consumers can purchase CBD in their coffee.2 Following declassification of hemp as a Schedule I drug, a recent Gallup poll found that one in seven Americans use hemp-derived CBD products (although CBD derived from marijuana is still illegal under federal law and will not be addressed here). "3 CBD products are available at a variety of mainstream retailers including CVS, Walgreens, GNC, Kroger, Ulta Beauty, Abercrombie & Fitch, and American Eagle Outfitters.4 Industry research firms estimate that by 2024, CBD sales will exceed twenty billion dollars in the United States.5 Another study projects a twenty-five percent compound annual growth rate in the CBD edible market between 2020 and 2027.6 Many consumers rely on CBD to treat anxiety, pain, and insomnia.7 Other common usages include over-the-counter treatment for depression, muscle contractions, skin conditions, and digestive concerns.8 A third of pet owners have purchased CBD-infused treats, food, or other items for their cats and dogs, and purchases of CBD pet products are rapidly increasing as pet owners begin to return to the office following the nationwide lifting of COVID-19 restrictions.9 Considering this clear market demand and the likelihood that states will continue to ease restrictions on sale of CBD and other hemp-derived related products, franchisors may find entering the CBD market an irresistible opportunity-either through creating a new franchised system that primarily sells CBD products or by adding them as a new or additional product line in an existing system. [...]Section IV addresses many of the unique challenges associated with franchises selling CBD and proposes best practices for both franchisors and franchisees. "25 Guy believed a cannabis product with low levels of THC but high levels of CBD would be appealing for these users.26 By the late 1990s, several Northern California cannabis growers were cultivating high CBD/low THC strains and distributing both the seeds and their research about its effects at marijuana shops and fairs on the West Coast.27 In 2010, a group of medical marijuana researchers and cannabis growers founded Project CBD, a nonprofit corporation with the goal of collecting and promoting medical research regarding the benefits of CBD.28 In August 2013, CNN aired Dr. Sanjay Gupta's documentary Weed, which contained a segment describing the successful use of a CBD oil developed by the Stanley Brothers, called "Charlotte's Web," to reduce seizures in fiveyear old Charlotte Figi.29 After the segment, the wait list for the oil grew to 15,000 people, families moved to Colorado with the hope of using the oil, and the Food and Drug Administration fast-tracked trials of GW Pharmaceutical's CBD-based medication, Epidiolex.30 Popular culture acceptance and demand for CBD has continued to increase in the last decade.

The Impact of Institutional Formation on Firms' Strategic Choices in Knowledge Development, Absorptive Capacity and Vertical Integration.

This study examines the impact of institutional shifts on the strategic choices of Russian firms. It proposes and tests hypotheses of how a shift from a weak to a strong institutional context is likely to affect firms' knowledge accumulation, absorptive capacities and internalisation of operations. Using discriminant analysis, the econometric investigation demonstrates that firms tend to allocate greater resources towards improving their knowledge and absorptive capacity and make more efforts to vertically integrate-in line with improvements in the institutional environment. These investments ensure the survivability and competitiveness of firms in the long term. Furthermore, the study demonstrates that the long-term strategic orientation of firms goes hand in hand with rising resource allocations by the nation-state towards economic development. The findings align with the institutionalist political economy views that institutions are the ultimate overseers that allow the market to operate efficiently, especially in emerging market environments. The paper is also instructive to other developing economies about the need to strengthen their institutional environments, which supports the long-term orientation of firms and has a positive impact on economic development. The analysis does not take into account the impact of sanctions on Russian business and economy, post the annexation of Crimea and the armed conflict with Ukraine. Nor does it consider the impact of COVID-19 on the economy. As such, the study attempts to constitute an untainted comparison of two paths of transition on Russian firms-shock therapy, vis-à-vis, an institutional political economy approach.

The Value of Employee Satisfaction in Disastrous Times: Evidence from COVID-19

Employee treatment is an important but challenging element of corporate environmental, social, and governance policies. Satisfying employee needs can increase corporate productivity, but is also costly to shareholders. Using unique data of Chinese publicly listed firms, we show that having satisfied employees is valuable to the firm. Specifically, firms with higher employee satisfaction scores withstand COVID-19 better, in terms of stock market performance. Such an effect is more pronounced for firms with more intangible assets and in knowledge-based industries. Moreover, higher employee satisfaction scores predict better operating performance. While not fully revealed in tranquil times, the effect of employee satisfaction is materialized when the firms experience negative shocks, such as COVID-19. Our findings suggest that firms can do well in crisis periods by doing good in normal times.

Unrecognized assets created by public-sector investments in health and social services

Purpose>This paper analyzes two types of potential intangible public-sector assets for consideration by public-sector accounting boards. Government investments in health and social programs can create two potential intangible assets: the intangible infrastructure used to deliver the health or social program and the enhanced human capital embodied in the recipients of program services. Because neither of these assets is currently recognized in a government's year-end financial statements or broader general-purpose financial reports (GPFR), these reports may underrepresent the government's true fiscal and service capacity.Design/methodology/approach>The paper uses an international accounting standards framework to analyze: whether investments in health and social programs create intangible assets that meet the definition of an asset as set out by International Public Sector Accounting Standards (IPSAS), whether they are assets of the government and whether they are recognizable for the purpose of financial reporting.Findings>The intangible infrastructure asset created to facilitate the delivery of health and social programs would often qualify as a recognizable asset of the government. However, the enhanced recipient human capital asset created through the delivery of health and social programs would, in most instances, not qualify as a recognizable asset of the government, though there likely would be benefits from reporting on it through GPFRs or other mechanisms.Originality/value>This paper makes two contributions. First, it identifies a previously overlooked intangible asset – the infrastructure created to facilitate the delivery of health and social programs. Second, it presents an argument regarding why, even when it fails to generate a recognizable intangible asset to government, it would be valuable for government to report such investments in supplementary statements.

World Experience of Investing and Human Capital Development

In modern business conditions, an important factor in financial and economic activities is employees, their competence, and professionalism. Globalization processes in the economic environment motivate the use of new information resources and technologies, the development of the economy’s new areas. At the same time, there is a growing need for a high level of human capital development. Therefore, today it is necessary to develop and implement measures aimed at investing in human capital. In the context of the COVID-19 pandemic, investing in human capital is more vital than ever, as it can lay the foundation for sustainable, comprehensive recovery and growth in the future. It is investments in technology, education, science that guarantee the formation of highly qualified competitive human capital at all levels of the economy. Hence, one of the main tasks of the company is to support and constantly improve the skills of its employees, the formation of such skills and abilities that would allow them to quickly adapt to innovative technologies and complex realities of the modern economy. The purpose of the article is to review the foreign experience of developed countries in solving social problems that affect the human capital index. Studying the world experience of human capital formation and borrowing it for Ukraine can be an effective tool of state social policy. After all, investments in physical capital and infrastructure without sufficient investments in human capital may not give Ukraine the expected dividends. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

Employee retention by career development, engagement and work life balance during the Covid-19 crisis

The objective of this particular research has been to look at the particular determinants associated with employees' preservation within the monetary field within Kuala Lumpur. This particular informative research used the deductive strategy plus speculation were created to check typically the impact associated with worker wedding, work-life stability, in addition to profession advancement upon preservation regarding workers. It was a new mix sectional study and even main information has been gathered by utilizing self-administered forms. Information has been gathered through ninety two participants together with several regression evaluation has been utilized to check the particular ideas. The particular results demonstrated that will staff wedding was typically the most powerful predictor involving worker preservation accompanied by function existence equilibrium. Nevertheless , profession development demonstrated a good minor partnership along with staff preservation. This particular research has been restricted to the particular economic industry plus long term research may reproduce this consist of industries and various nations. With regard to useful ramifications, this particular examine offered a much better knowing in order to human being source supervisors plus frontrunners inside businesses around the guidelines plus applications to keep workers. To enhance employee's preservation, assistance plans should concentrate on worker wedding in addition to work-life stability. This specific analyze furthermore plays a role in the present entire body expertise. This kind of research was the very first to look at typically the mixed effect profession growth, function existence harmony plus staff proposal upon maintenance associated with workers inside the economical field.

The effectiveness of UEFA Financial Fair Play: evidence from England and France, 2008–2018

Purpose>This paper analyses the effectiveness of UEFA's Financial Fair Play (FFP) under the break-even requirement.Design/methodology/approach>Data was collected from English and French football clubs competing in the English Premier League (EPL) and in Ligue 1 (L1) for the financial years 2008–2018. Our sample includes 395 club-year observations. Relevant statistical tests have been conducted with the aim of analysing the effects of pre (2008–2012) and post (2012–2018) FFP enforcement under both profitability and cost-efficiency assumptions.Findings>In the EPL, an increase is observed in clubs' profitability through both operating and break-even results. In L1, this improvement is only significant for break-even results of clubs not participating regularly in European competitions (non Euro-oriented clubs). Player expenditures, measured through two wage-to-revenue ratios excluding trading activity for one and including it for the other, have significantly decreased in the EPL except for the Euro-oriented clubs for this latter. Conversely, in L1, this decrease is only significant in both wage-to-revenue ratios for non Euro-oriented clubs and for the whole sample when trading is included.Practical implications>In addition to evidencing contrasting results in FFP effectiveness across countries, our results suggest it is not the sole cause of such an improvement in clubs' finances. We suggest that UEFA should pursue its efforts to scrutinise the level of clubs' player expenditures and that there is a need for a wider look at the FFP regulations.Originality/value>This article provides further contribution to empirical studies on FFP effectiveness that have often been focused on a single country.

The Potential Impact of COVID-19 on Franchise Lost Profits Claims

By mid-February 2021, the outlook for the franchise sector had improved greatly, with IFA predicting that the number of franchised businesses would grow by the end of the year to offset 2020 losses and the number of franchise jobs would grow more than 10%, almost recovering fully from the 11.2% decline in 2020 employment, provided that COVID19 was managed.2 In July 2021, a fourth wave of COVID-19 swept through the United States fueled by the more transmissible Delta variant.3 The new surge in cases led businesses to delay their plans to require employees to return to the office starting in September 2021, creating concern that the economic recovery could be negatively impacted.4 At the time of this article's publication, the Omicron variant has just been discovered, with conflicting reports about its transmissibility and severity.5 When the influence of the pandemic recedes from the economy, the abatement may not benefit all sectors. [...]franchisors may become more aggressive about pursuing claims against franchisees for potential violations to try to enforce quality controls and preserve goodwill if the franchisees have fallen behind in compliance with brand standards due to the economic stresses of the pandemic, in which case the franchisors will seek to recover their lost future royalty streams to compensate for the loss of revenue until they can install a new franchisee to service the terminated franchisee's service area. [...]it is likely that the pandemic's long-term impact will cause an overall increase in franchisor-franchisee disputes and litigation. [...]for some claims, the onset of the pandemic might serve as a functional barrier on lost profit damages available to a plaintiff in a franchise dispute. "11 Thus, for a plaintiff to establish that it is entitled to an award of lost profits, it must prove not only that the underlying breach was both the "but-for" cause of its lost profits, but also that the conduct was a "substantial factor in bringing about the harm" and that the lost profits were caused by the breach and not some other factor.12 Moreover, if a plaintiff cannot prove that its lost profits were attributable specifically to the underlying breach where there are other potential causes of their loss, that lost profits claim should be rejected.13 B. Proving the Amount of Lost Profits Given that an award of lost profits necessarily requires an evaluation of potential events that ultimately did not come to pass, courts must weed out claims for damages that are too remote or speculative.14 Claims for lost profits are subjected to a heightened burden and must be proven with "reasonable certainty," or they will be deemed "too speculative" and will be rejected.15 Unfortunately, this "reasonable certainty" standard is not well defined, and courts have observed the difficulty in determining the precise quantum of proof needed to meet this standard.16 When making this evaluation, courts seek to balance the possibility of awarding a windfall to a wrongdoer by applying too high a bar to the recovery of lost profits, but also prevent that wrongdoer from becoming an unwitting guarantor of profits for plaintiffs.17 To carry its burden, a plaintiff must present evidence that is sufficiently persuasive not only to prove that it should be granted relief on its underlying claim, but also to prove that it meets this heightened "reasonable certainty" standard required for an award of lost profits and do so without the benefit of bright-line rules about what that standard requires or how it will be applied.

From the Editor-in-Chief

First up is an article by Dean Fournaris and Bob Burstein addressing how the COVID-19 pandemic may have impacted lost-profits damage claims in "The Potential Impact of COVID-19 on Franchise Lost Profits Claims." [...]a doyen of the franchising bar, Ted Pearce, has written an article discussing the challenges of a maturing franchise system and how to address them in "Addressing Issues That Arise in a Mature Franchise System." [...]the new and improved Currents, now titled "LADR Case Notes (April-June 2021) and Franchising & Distribution Currents (Winter 2022)," is brought to you by Bill Bryner, Jared Miller, and Kevin Shelley. 1.

Management of Tangible and Intangible Assets in Rural Tourism - Conflict between Old and New

In a world where development and technology has took over the entire human life, the preservation of cultural heritage elements has become an important subject of interest and major actions has been taken in this direction. An example is the United Nations Educational, Scientific and Cultural Organisation, which selects an item based on its uniqueness in some respect as a geographically and historically identifiable place having special cultural or physical significance (such as an ancient ruin or historical structure, building, city, complex, desert, forest, island, lake, monument, mountain, or wilderness area). So, the management of the most important cultural heritage aspects in which concerns the preservation, the maintenance and the selection of the patrimony goods, represents an aspect of the cultural heritage. The most important axes refer to tangible heritage such as build patrimony and intangible heritage such as traditions, customs and all that embodies the ethnicity of a certain area. The global wealth of traditions is one of the principal motivations for travel, with tourists seeking to engage with new cultures and to experience the global variety of performing arts, handicrafts, rituals and cuisines. Managing heritage sites (in which concerns the tangible assets) acts as a link between the national heritage institutions, cultural heritage consumers (tourists) and local community. The last item is a factor, without which it would be impossible properly interpret the heritage and create an authentic experience for tourists. Management in which concerns the cultural heritage implies some characteristics triggered, also, by the peculiarities of the tourism market that is, overall, a service market. So, this paper will describe some peculiarities and will outline the specific models of management in which concerns the tourism market and cultural heritage.

Do intangible assets provide corporate resilience? New evidence from infectious disease pandemics

Intangibles provide competitive advantages and enhance productivity and efficiency. We investigate whether accumulated intangible assets mitigate the adverse impact of pandemic shocks on corporate performance. Using a sample of 8738 unique U.S. firms during the period 1985–2020, we find that a firm's pre-pandemic intangible assets mitigate the pandemic-induced negative stock price reaction and operating performance. We also show that the resilience to pandemic shocks is driven by both internally generated and externally acquired intangible assets. Finally, we explore related channels, and find that intangible assets-driven corporate resilience to pandemic shocks is explained by positive investor sentiment, customer loyalty, and managerial ability. Importantly, corporate resilience to pandemic shocks emanating from intangibles holds for non-Covid pandemic periods. Overall, our study documents the critical role of intangible assets in safeguarding firms and investors from epidemic- and pandemic-induced shocks.

Measurement of intangible assets using higher-order construct model

PurposeIntangible assets (IA) have been described as a multidimensional concept. However, there is a gap in research that considers IAs as a higher-order construct (HOC). Therefore, this paper aims to focus on demonstrating how IAs can be properly specified and measured as HOCs, given IA’s four major dimensions in small- and medium-sized enterprises (SMEs).Design/methodology/approachA HOC model is applied using a partial least squares–structural equation modeling (PLS-SEM) repeated-indicator approach. This approach helps validate the argument for considering IAs as HOCs by testing the basic requirements of the construct model.FindingsThe main finding from testing the model’s reliability, validity, multicollinearity and redundancy analysis indicates that the establishment of IAs as a HOC model is valid. Additionally, the simulation study results support the use of the proposed model.Research limitations/implicationsThe proposed model is believed to enhance the proper understanding of IAs and their relationship with organizational outcomes. Additionally, the model can inform organizational management of the integrative approach needed to effectively synchronize their strategic resources for improved performance of entrepreneurially growing SMEs.Originality/valueThis paper is the first to show the measurement of IAs as HOCs using PLS-SEM, based on IA’s updated dimensions. The authors believe that this paper paves the way for future discussion on IA measurement to conduct rigorous impactful studies with larger sample size.

LEGAL AND BUSINESS ASPECT OF FRANCHISE AND FRANCHISE BUSINESS AND MEASURES DURING THE COVID - 19 PANDEMIC

Franchise is a business privilege defined by franchise law through which the franchisee operates, performs the franchise activity of selling certain products or performing defined services by the franchisor. The franchisee uses the trademark, the service mark of the franchisor, all based on his work and methods in the defined activity, use of franchise privilege. Based on the franchise agreement, the franchisee pays the franchisor a franchise fee. A franchise agreement is based on the principles of contract law, concluded with the consent of the will of the contracting parties and belongs to unnamed contracts and by its nature is a mixed contract, since it also contains elements of some other contracts. National and international regulations affect the protection of intellectual property rights and determine the content and manner of performing franchise activities. Franchising as a segment of entrepreneurship is a complex legal and economic business model, created between two independent economic entities. Franchise business can be viewed from several business aspects, such as: the manner and method of growth of economic entities that are geographically conquering new markets;enable growth of production and distribution capabilities of franchisors and recipients;form of new entrepreneurial activity of economic entities towards winning and starting a business activity with the creation of new jobs;the emergence of a new organizational form and a new form of restructuring in organizational terms with the beginning of new distribution channels and finding new sources of funding. At the same time, franchise business from the aspect of the theoretical concept gained its practical verification of business success through the operationalization of franchising as a way and method, "Know-how " a concept that ensures the development and sustainable growth of the business entity in accepting franchising as a new opportunity in the economic development of the business entity. Also, today in these times of lockdown and closed stores and restaurants, franchisors and franchisees were and still are affected by the COVID-19 pandemic and requested to adapt their sales model, planning and implementation to the circumstances, because a whole franchise system has been challenged.