Dr. Thaung HanGroup Chief Operating Officer

Ph.D., (Intl Business: Uni Texas EP)

MBBS, DBL, EMBA (Ygn), MBA (Purdue)

Policy, Procedures & Practices

Max Myanmar Group of Companies

ANTI -

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INSTITUTIONAL CONTEXTS AND ENTREPRENEURIAL DYNAMISM:Corruption, Distance to Frontier, Perceived Opportunity, and Entrepreneurial Dynamism

by

THAUNG HAN, M.B, B.S, D.B.L, M.B.A, M.B.A,

DISSERTATION FOR

DOCTOR OF PHILOSOPHY

International Business Ph.D. ProgramTHE UNIVERSITY OF TEXAS AT EL PASO

March 5, 2014

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Institutions

Corruption

Entrepreneurship

Economic Development

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The conceptual model

Economy

InstitutionsEntrepreneurship Process

Opportunity Intention Activity

Corruption

Entrepreneurship

Economic Development

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Opportunity EconomyIntention/Action

Corruption

DTFDistance to

Frontier

Institution Theory

Theory of Planned Behavior

Fig 2. Hypothesized Model

Social norm

Capability

Structuration Theory

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Fig 5. Know Startup Entrepreneurial Rate Fig 6. Nascent Entrepreneurial Activity

Fig 4. Entrepreneurial IntentionFig 3. Perceived Opportunity

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Fig 7. Relationship Between Corruption And Opportunity In 45 Countries, 2011

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Fig 10. Relationship between Corruption and Opportunity 88 Countries, 2008 - 2012

(Wennekers et al., 2005)

Table 7. Descriptive Statistic and Correlation Matrix of 88 Countries

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Fig 8. Interaction Effects of Distance To frontier (DTF) At Different Levels In 45 Countries

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DISTANCE TO FRONTIER (DTF)

Fig 11. Interaction Effects of Distance To frontier (DTF) At Different Levels in 88 Countries

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Fig 14. Relationship between corruption and opportunity at different levels of income

CORRUPTION

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Fig 12. Moderating Effect Of Corruption On The Relationship Between Opportunity And Intention in 88 Countries

Anti-Corruption Efforts at Max Myanmar Group

Published Anti-Corruption Policy in 5th May 2014.

Supported by Whistle Blowing Policy & Human Right Policy

Restructured to become a Group of Companies with “Good

Corporate Governance” : Transparency, Integrity, Responsibility

http://www.maxmyanmargroup.com/index.php/about-us/corporate-governance

http://www.maxmyanmargroup.com/index.php/about-us/corporate-governance/anti-corruption-policy

Wage Increase Transparency Accountability Complianc

eGood

GovernanceIntegrity Responsibility

To prevent the corruption To combat the corruption

To promote the good governance

Policy• Express statement of Zero-Tolerance• Gift, Sponsorship, Entertainment, Facilitation guidelines (UNCAC Article 17) • Donation: Political Donation (UNCAC Article 16) • Extended to Cover Third-Party

Procedures• Risk Assessment • Education / Awareness• Establish a merit system (UNCAC Article 7) • Training: :Orientation (UNCAC Article 60)

:Scheduled training with Other CR Topics (Human Rights / OHS)

Practices• Wages increase and added fringe benefits• Empowerment / Decentralization• Transparent Public Procurement: Tender Committee – (UNCAC Article 9) • Whistle Blowing (UNCAC Article 32) / Social Media (Facebook)/ Suggestion Box (UNCAC Article 13) • Grievance Handling • Sustainability Officer / Compliance Officer• Monthly / Quarterly Meeting Report• Refreshment Course for Management

Policy, Procedures, Practices, & Proof

Audit

• Internal Audit• External Audit• International Audit: Deloitte

Strong financial management (UNCAC Article 11) Clear conflict of interest Transparency (UNCAC Article 10)

Policy, procedures and practices are in-line with UNCAC principles.

Assumed MCRB as independent, third party monitoring institution

Corporate Responsibility (CR) Assessment by BSR in 2014 and 2015.

Policy, Procedures, Practices, & Proof

ProofUN Global CompactTransparent procurement & sub-contractingISO

UN Global CompactTender CommitteeSub-contractor & Supplier ContractPromotion & Transfer Policy -ProceduresISO

Spinning Off Key assets

Policy, Procedures, Practices, & Proof

Risk Assessment & Follow-up actionTender CommitteeThird Party / Subcontractor / Supplier EngagementPromotion & TransferPost Completion Survey

UNGC

Policy, Procedures, Practices, & Proof

Sustainability Matrix - Max Myanmar

Anti-Corruption Efforts at Max Myanmar Group

BSR: Corporate Responsibility (CR) Assessment by BSR in 2014 and 2015

MCRB: Ranked 3rd in 2014 and 2nd in 2015 TiME report by MCRB MCRB is considered as a independent, third party monitoring /

oversight Institution

Global Witness

c.f.i: Received Best ESG Transparency 2015 award by “c.f.i”

Reported Incidents

Case 1 : Personal use of company’s cash while he is on duty for Accountant and Cashier

Action Taken 1. Checked and reviewed from Management Team

2. Demotion

3. Assigned to repay the cash monthly

Case 2 : Personal use of company’s payment to supplier while he is working as Supervisor

Action Taken 1. Checked and reviewed from HOD and decided him to repay during one month

2. While he was assigned in rural area, he breached the social order again and so

company asked him to resign himself and put him on the black list.

Reported Incidents

Case 1 : Misuse of cash from toll collection / Bribery from co-worker

Action Taken : Dismissed

Case 2 : Misuse of cash from toll collection / Bribery from external company at

Thanlwin division

Action Taken : Dismissed

Case 3 : Misuse of cash and incorrect data entry ledgers

Action Taken : Dismissed

Other Incidents

Case 1 :

Action Taken :

Case 2 :

Action Taken :

Case 3 :

Action Taken :

Dr. Thaung HanGroup Chief Operating Officer

Ph.D., (Intl Business: Uni Texas EP)MBBS, DBL, EMBA (Ygn), MBA (Purdue)

Thank you.

Policy, Procedures & Practices

Fig. 8 Corruption Perception Index (CPI) 2012

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Table 2. Regression Analysis Coefficients Of Perceived Opportunity

Variables             ᵝ   t ρ

(Constant) 4.529 0Corruption Perception Index (CPI) -2.062 * -2.107 0.041Distance To Frontier (DTF) -0.078 -0.507 0.615

Gross National Income_Log Form (lnGNI) -0.561 * -2.39 0.022CPI_Quadratic Term (CPI_Q) 2.582 ** 2.772 0.008

Model F 3.847N 45Adjusted R2 0.206

a. Dependent Variable: Perceived Opportunity              

b. Predictors: (Constant), CPI_Q, DTF , lnGNI, CPI

The coefficients are standard regression coefficients

*ρ < 0.10; **ρ < 0.05

Table 3 . Regression Coefficients of Moderating effects of Distance to Frontier (DTF)

        Model 1 Model 2        β p β p(Constant) 0.002 0.133Corruption (CPI) -0.563** 0.04 1.379 0.254lnGNI (Gross National Income) -0.628** 0.017 -0.722** 0.007DTF (Distance to Frontier) -0.112 0.504 0.5610 0.204CPI_DTF -1.807 0.103

Model F 2.209 2.426Adjusted R2 0.076 0.115N       45   45  Dependent Variable: OpportunityPredictors: (Constant), Corruption, GNI, DTF, CPI_DTFThe coefficients are standard regression coefficients*ρ < 0.10; **ρ < 0.05

Table 4. Regression Analysis Coefficients of Entrepreneurial Intention

Variables             ᵝ   t ρ

(Constant) -0.255 0.8Opportunity 0.397 ** 2.805 0.008Capability 0.379 * 2.564 0.014Know Startup Entrepreneur Rate -0.176 -1.215 0.231

Adjusted R2 0.298Model F 7.214N 45

a. Dependent Variable: Enetrepreneurial Intention              b. Predictors: (Constant),Opportunity

The coefficients are standard regression coefficients

*ρ < 0.10; **ρ < 0.05

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Table 5. Régression Analysais Coefficients Of Moderating Effets Of Corruption in 45 Countries

  Variables Model 1   Model 2  

    β p   β p  

Perceived Opportunity (PO) 0.485 0.000** 0.184 0.478

Capability (CAP) 0.193 0.171 0.171 0.223Know Startup Entrepreneur Rate (KNOW) -0.217 0.940 -0.175 0.183Corruption Perception Index (CPI) 0.451 0.001** 0.048 0.883

PO_CPI 0.524 0.185

N 45 45

Adjusted R2 0.466 0.476

  Model F 10.586     9.007    

Dependent variable: Entrepreneurial IntentionPredictors: PO, CAP, KNOW, CPI, PO_CPI The coefficients are standardized regression coefficients*P < 0.10; ** P < 0.05;

Fig 9. Moderating Effect Of Corruption On The Relationship Between Opportunity And Intention in two levels

Table 9. Regression Analysis Coefficients of Entrepreneurial Intention

            ᵝ   t ρ

(Constant) -3.471 0.001Perceived Opportunity 0.416 ** 4.453 0Capability 0.433 ** 4.62 0Know Startup Entrepreneur Rate -0.021 -0.296 0.768

Model F 42.005Adjusted R2 0.591N 88

a. Dependent Variable: Entrepreneurial Intention          b. Predictors: (Constant),Perceived Opportunity, Capability, Know Startup Entrepreneur RateThe coefficients are standard regression coefficients*ρ < 0.10; **ρ < 0.05

Table 10. Regression Analysis Coefficients of Nascent Entrepreneurial Activity in 88 Countries

          β   t   pConstant 2.384 0.02

Corruption Perception Index -0.012 -0.087 0.93lnGNI -0.119 -0.836 0.41

Distance to Frontier(DTF) -0.157 -1.468 0.15

Entrepreneurial Intention 0.457 ** 4.135 0

Model F 14.77Adjusted R2 0.388N 88

a. Dependent Variable: NAS              b. Predictors: (Constant), Corruption Perception Index, lnGNI, Distance to Frontier (DTF), Entrepreneurial Intention

The coefficients are standard regression coefficients

*ρ < 0.10; **ρ < 0.05

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Table 11. Régression analysais coefficients of moderating effets in 88 Countries

  Variables Model 1   Model 2  

   β p   β p

 

Perceived Opportunity (PO) 0.445 0.000 ** 0.075 0.492

Capability (CAP) 0.297 0.000 ** 0.298 0.003**Know Startup Entrepreneur Rate (KNOW) -0.007 0.914 0.002 0.979

Corruption Perception Index (CPI) 0.244 0.002 ** -0.11 0.588

PO_CPI 0.587 0.062*

N 88 88

Adjusted R2 0.651 0.645

  Model F 37.74     31.865    

The coefficients are standardized regression coefficients*P < 0.10; ** P < 0.05;Dependent variable: Entrepreneurial IntentionPredictors: PO, CAP, KNOW, CPI, PO_CPI

Table 8. Regression Analysis Coefficients in 88 Countries

              ᵝ   t ρ

(Constant) 5.015 0

Distance To Frontier (DTF) -0.256 ** -2.177 0.032

Gross National Income_Log Form (lnGNI) -0.336 ** -2.232 0.028

Corruption Perception Index (CPI) Reverse Coded -1.117 ** -2.327 0.022

Corruption Perception Index Reverse Coded in Quadratic Term (CPIR-Q) 1.017 ** 2.136 0.036

Model F 6.545Adjusted R2 0.203N 88

a. Dependent Variable: Perceived Opportunity (PO)            b. Predictors: (Constant),DTF, lgGNI, CPIR, CPIR_Q

The coefficients are standard regression coefficients

*ρ < 0.10; **ρ < 0.05

Table 6. Regression Analysis Coefficients of Nascent Entrepreneurial Activity (NAS) in 45 Countries

          β   t   p  Constant 0.427 0.672

Corruption Perception Index -0.104 -0.57 0.574lnGNI 0.042 0.224 0.824

Distance to Frontier(DTF) -0.054 -0.46 0.645Entrepreneurial Intention 0.725 ** 5.843 0

Model F 15.105Adjusted R2 0.562N 45

 

a. Dependent Variable:NAS              

b. Predictors: (Constant), Corruption Perception Index, lnGNI, Distance to Frontier (DTF), Entrepreneurial Intention

The coefficients are standard regression coefficients*ρ < 0.10; **ρ < 0.05