International Journal of Business and Emerging Markets (22 papers in press)
Customer Perceptions of Product Assortment Leading to Store Patronage : A Study of Small Retailers
by Surabhi Koul, Piyush Kumar Sinha, Hari Govind Mishra
Abstract: The review of the literature reveals the role of product variety, product availability, price perceptions, assortment organization and product quality constructs in terms of customer perceptions but such results lead to questioning the nature of the conceptual structure that would include these constructs as well as their interrelationships in a structural model. Moreover, the earlier studies are typically focused on organized stores. From this perspective, the purpose of this study is to evaluate the role of these constructs in evolving customer perceptions towards the store using data collected from 230 customers who visited small retailers in rural areas. The results reflect the importance of these identified variables towards the customer perceptions. Also the relationship between customer store perceptions and store patronage has been derived.
Keywords: Customer Perceptions; Product Assortment; Small Retailers; Store Patronage.
Poverty, Sustainability and the Demographic Dividend
by Greg Clydesdale
Abstract: Mid-range population projections for Africa predict a doubling of population by 2050, with serious consequences for the environment, poverty and civil conflict. Despite this, aid agencies are expressing confidence in demographic trends, placing faith in a demographic dividend. This optimism is based on East Asian nations that enjoyed a demographic dividend during their development. The purpose of this paper is to re-examine the link between policy, population and the environment, with a particular focus on the demographic dividend. This is an analytical/conceptual paper in which existing literature is analysed. This includes a comparison with the current situation in Africa and that when the Asian nations experienced their rise. The paper finds the two are in very different situations. This paper argues that past policies have been enacted with the effect of increasing population and raising productivity with insufficient consideration of the consequences of population growth and the diversity within Africa.
Keywords: demographic dividend; Africa; population; environment.
A Case Study of Spontaneous Diversification: Evidence from a Small Thai Family Firm
by Brandon Walker-Price, Shih Yung Chou
Abstract: Among the wealth of research in family firm diversification, whether family firm diversification can be spontaneous continues to be an under-analysed topic. We fill this gap by conducting a single-case study illustrating how spontaneous diversification occurs and its consequences using Chug Yont Engineering Co., Ltd, a small-sized Thai family firm. Our findings suggest four important implications. First, Buddhism has a strong implication on the mindset of corporate social responsibility (CSR). Second, through CSR engagement, family firms can develop new and unsought internal capabilities allowing them to diversify products and/or services spontaneously. Third, spontaneous diversification triggered by CSR engagement may allow family firms to exercise greater discretion in projects that they undertake and, consequently, the firms become conscientious of available resources with little regard for competition. Finally, using CSR-driven spontaneous diversification, family firms may rely little on formal marketing campaigns because spontaneous diversification helps establish social connections crucial to new ventures.
Keywords: family firm; corporate social responsibility; diversification; Thailand; Buddhism.
International orientation and business group performance: Moderating role of product diversification (Evidence from India)
by Pradeep Kumar Hota, Sumit Mitra
Abstract: Research on internationalization and product diversification are primarily conducted at the firm level, leading to lack of understanding of these phenomena at the business group level. We address this gap by examining the effect of international orientation and product diversification on performance of business group and the moderating role of product diversification on international orientation and performance relationship. Using a sample of business groups from India, we tested our hypothesis by applying GLS Fixed-effect regression model. Our result suggests that international orientation has a negative effect whereas product diversification has a positive effect on performance of business group. Further, presence of product diversification enhances the negative effect of international orientation on performance of business groups. Research findings have important implications for researchers as well as for business group managers.
Keywords: International orientation; Product diversification; Emerging economy; Business group; Excess value measure.
Employee participation in Corporate Volunteering
by Sekar Srinivasan, Lata Dyaram
Abstract: Corporate Volunteering (CV) is on the rise with several firms actively supporting and sponsoring social/community development activities, investing their key asset: employees, beyond mere donations. Most often, volunteering activities do need high levels of commitment and involvement of their employees to realize the purpose of volunteering activities. Although, employees involvement is fundamental for CV, attraction, and sustenance of their participation is a long-standing challenge for the organizations. Hence, a systematic inquiry into the dynamic nature of drivers of employee participation in corporate volunteering is necessitated to understand the phenomenon of employee volunteering. We seek to explore and propose some of the key drivers of employee support for CV. Further, we inquire some of the volunteering experiences/challenges and organizational outcomes aiding insights into employee sustained involvement and support for volunteering initiatives. We discuss theoretical and managerial implications.
Keywords: motivation; participation; corporate volunteering; organizational commitment; volunteering experiences.
Special Issue on: Management and Internationalisation of Latin America´s Firms
CENTRAL AMERICAN FAMILY BUSINESS GROUPS: INTERNATIONALIZATION & DIVERSIFICATION STRATEGIES
by Dina Frutos-Bencze
Abstract: Central America has been characterized by the large presence of Family Business Groups (FBGs). The objective of this study is to gain insights about the internationalization and diversification strategies of selected FBGs. In addition, the study examines how networking influences these strategies. Internationalization and agency theories provide the theoretical framework for the study. The findings reveal three insights: first Central American FBGs have taken a long time to internationalize reflecting the challenges related to the economical and historical development of the region. Second, the diversification of the FBGs into various sectors of the domestic economies is a key determinant of the internationalization strategy. Third, the ownership structure and family networking linkages also determine internationalization strategies.
Keywords: Central America; Family Business Groups; Internationalization; Diversification; Ownership; Networking.
Performance and Consumer Satisfaction with Mobile Telecommunications
by Marcus Hemais, Victor Almeida
Abstract: Research findings show that the process of consumer satisfaction formation depends on the type of product or service being offered. Nevertheless, few studies have investigated if satisfaction varies among different consumer segments. The present paper aims to verify if the expectation disconfirmation model original from a developed economy - can be used to explain the satisfaction of consumers with mobile telecommunications services in Brazil, an emerging economy with market conditions different from those in developed economies; and also whether consumer income influences satisfaction perception. The expectation disconfirmation model was tested with a sample of 1028 college students, users of mobile telecommunications services. The data was analyzed using descriptive statistics, exploratory factor analysis, confirmatory factor analysis, and structural equation modeling. The results show that performance, differently from expectations, has a significant influence on consumer (dis)satisfaction with mobile telecommunications services. Also, expectations, performance perception and (dis)satisfaction levels do not vary among different income consumer groups.
Keywords: Satisfaction; Expectation; Performance; Mobile Telecommunications; Income.
International expansion and performance of emerging multinationals: the case of Marcopolo
by Fernanda Ribeiro Cahen, Eva Stal
Abstract: Why and how some emerging market multinationals (EMNEs) are able to handle the complexities of international expansion and achieve a higher performance? We answer this question by providing a nuanced analysis of the perceptions of top executives of a successful Brazilian EMNE. International Business (IB) literature has emphasized quantitative methodologies in performance research. Our paper extends the scope of the internationalizationperformance literature bringing insights of a qualitative approach based on an in-depth longitudinal case study, the Brazilian Marcopolo, one of the six major world bus producers. Our results may apply to other EMNEs and indicates that the profitable international expansion lies in the companys strong internal innovation efforts, the development of a long-term strategic plan toward selected markets, to treat global competition and risks as opportunities to build capacities, and to learn from local partners. These attributes have turned its latecomer status in the global market into a competitive multinational company. Conclusions bring new theoretical arguments and provide directions for future research.
Keywords: International expansion; performance; Emerging Markets.
Are there micromultinational enterprises (mMNEs) in Brazil? Three cases studied from the perspective of their Degrees of Internationalization and use of Networking
by Dinora Eliete Floriani, Inocencia Boita Dalbosco
Abstract: This paper describes the internationalization processes of three Brazilian SMEs that do business in traditional industries and have achieved a considerable degree of product innovation. These SMEs can be considered micromultinationals (mMNEs), according to the definition proposed by Dimitratos, Johnson, Slow and Young (2003). We describe qualitative studies of these firms based on data collected in semi-structured interviews, by documentary research and in the field. These mMNEs have achieved Degrees of Internationalization that are more complex than simple exportation and involve greater commitment of resources. These micromultinationals use of Networks (Johanson & Vahlne, 2003) or Constellations (Dimitratos et al., 2003) have contributed to their internationalization efforts, helping to reduce the effects of liability of foreignness and of liability of smallness (Dimitratos et al., 2003; Dimitratos, Liouka, & Young, 2014). This paper not only offers support for management decisions, but also contributes to IB theory, especially with relation to internationalization of SMEs in emerging countries, by applying the mMNE category.
Keywords: Micromultinational; Internationalization; Brazilian SMEs; Networks.
CO-EVOLUTIONARY PERSPECTIVE ON INTERNATIONALIZATION: A MULTILEVEL ANALYSIS OF BRAZILIAN FIRMS
by Fábio Dal-Soto, Jefferson Marlon Monticelli, Yeda Swirski De Souza, Luciana Marques Vieira
Abstract: The internationalization paths of firms are influenced by several internal and external factors. This study analyses the internationalization strategy of two software firms from an emergent context, by using a multilevel analysis model of the co-evolutionary perspective. The study broadens the understanding of the internationalization, once it analyses the firms internationalization paths, movement of resources, and characteristics of this industry and business environment, with a qualitative way through comparative cases. Data were collected from websites of the firms and existing publications about them, as well as interviews. The approach covers three stages of the trajectories: conditioning, experiment, and expansion. The results show that the interaction between internal and external factors of the firm permeates its three evolution phases, nevertheless prevailing the internal sources of resources and sometimes the dynamic of the industry to decision-making on international expansion. The co-evolutionary perspective contributes to the analysis of interdependet different factors along the internationalization path.
Keywords: co-evolutionary perspective; internationalization; software industry; Brazilian firms.
Nationalization and privatization in state-owned oil multilatinas
by Juan Velez-Ocampo, Karthik Govindan, Maria Alejandra Gonzalez-Perez, Carolina Herrera-Cano
Abstract: This multi-case study paper analyses the influence of both nationalization and privatization patterns on five major Latin American oil companies: Petrobras, Pemex, PDVSA, Ecopetrol and YPF. The paper uses case study methodology in which each case was studied individually to identify unique case features, and to eventually conduct a cross-case analysis in which patterns are studied. Data was collected from publicly available secondary sources. After a careful examination and analysis of the selected cases, it can be concluded that semi-privatized Latin American oil companies directly compete with private companies in terms of revenues, growth and international presence. Based on analysis and comparisons, this study concludes that private participation might have had a positive effect in Latin American oil companies internationally.
Keywords: Oil industry; State-Owned Enterprises; Nationalization; Privatization; Internationalization; Multilatinas.
Special Issue on: Developing Markets as a Source of Competitive Advantage
The Effect of Transformational Obstacles on New Product Development by Emerging Market Firms
by Mona Bahl, Anthony Kos
Abstract: In this study we examine the effect of obstacles to resource access and utilization, referred to as transformational obstacles, on New Product Development (NPD) by emerging market firms. We posit that it is challenging for emerging market firms to access resources and inputs required for strategic initiatives such as NPD. Using firm level data from more than 10,000 firms across 30 countries we show that there is an inverted U shaped relationship between transformational obstacles and NPD. We also examine moderating effect of regulatory support, bribery and urban location on this direct relationship.
Keywords: New Product Development; Emerging Markets; Institutional Theory; Transformational Obstacles; Regulatory Support; Bribe; Urban Location.
Emerging differently: An examination of entrepreneurial optimism in emerging economies
by Shouming Chen, Arpita Joardar, Sibin Wu
Abstract: This paper examines how entrepreneurial optimism and performance are related in two emerging economies, Laos and Kenya, by exploring the relationship between optimism and performance. The moderating effects of education and motive (opportunity vs. necessity) on the stated relationship are tested. By analyzing a sample of 380 entrepreneurs in the two countries, we found that, unlike in Western countries where optimism generally leads to negative outcomes, optimistic entrepreneurs in emerging economies tend to perform better. Our results also suggest that when optimism is held constant, entrepreneurs motivated by opportunity outperform those who are motivated by necessity. However, education appears to have negative effect on entrepreneurial performance. Additionally, the above effects were found to be stronger for entrepreneurs from Laos than those from Kenya, which could be attributed to different religious beliefs. Findings, implications and limitations are discussed.
Keywords: optimism; performance; entrepreneurs; emerging economies; Laos; Kenya.
Examining How Firm and Institutional Factors Affect Lean Capability Development of Emerging Market Firms
by Crystal Jiang, Omar Malik, Grace Chun Guo
Abstract: Drawing on the dynamic capabilities view and institutional theory, we examine how firm-level and country-level institutional factors matter to EMFs lean capability development. Based on a sample of 1,702 firms from Brazil, China, and India, we find that EMFs internationalization enhances the positive relationship of firms human capital development and lean capability development. At the institutional level, our results suggest that regulatory institutions reinforce the positive effect of process management on EMFs lean capability development; however, normative institutions (power distance) negatively influence the effect of firms human capital management on lean capability development. Our cross-country analysis suggests that comparing to Indian and Brazilian counterparts, Chinas regulatory and normative environments (a higher level of power distance) hamper the positive effect of firm-level resources on their firms dynamic capability development.
Keywords: Capability; Institution; Emerging Market; Regulatory; Normative; Internationalization.
Environmental strategies in emerging markets as a source of competitive advantage
by Maria Laura Maclennan, Simone R. Barakat
Abstract: Within the same industry and market, it is possible to see firms adopting different types of environmental position. This paper examines differences in the environmental position of firms that operate in an emerging market context. Based on a literature review, we propose a framework that combines the external and internal factors that have an influence on the environmental positions of firms. The external factors of the framework are industry structure and the country of origins image. Internal factors comprise the organizational characteristics company size, degree of internationalization, managerial attitude and position in the value chain. Using a case study strategy, we analyse the LED lighting market in Brazil, its interactions and competitive opportunities and the challenges associated with environmental strategy options. Our exploratory qualitative study reveals that companies can fully implement proactive environmental strategies if their orientation is directed towards satisfying local market demands. However, the literature review and data analysis show that the industry presents some challenges for scale LED lighting, such as the offer of low quality products. We also show that firm-specific advantages can be offset by market forces and that local players may develop more fitting business models in order to respond to local market demands.
Keywords: sustainable product; environmental strategy; emerging markets.
Effects of entrepreneurial opportunity on socio-economic development and economic competitiveness
by Chien-Chi Tseng
Abstract: This study examines the relationships among entrepreneurial opportunity, socio-economic development, and economic competitiveness in the 33 upper-middle-income economies. An empirical framework and three hypotheses are developed to test the relationships. Results indicate that entrepreneurial opportunity has substantial influence on socio-economic development and economic competitiveness. In addition, socio-economic development has a strong impact on economic growth and plays a mediating role to link entrepreneurial opportunity and economic growth. From the research results, the study finds that strengthening entrepreneurial opportunity is an effective way in boosting socio-economic development and economic competitiveness; and economic competitiveness and socio-economic development are integral for fostering significant entrepreneurial opportunities in the developing markets.
Keywords: entrepreneurial opportunity; socio-economic development; economic competitiveness.
Special Issue on: New Paradigms of Theory and Practice in Emerging Markets Knowledge and Innovation for Sustainable Growth
Economic Value Added and Ecology Value Added as a measure for disaster preparedness linked to Corporate Social Responsibility: Japan as a test-bed bridging Asia and North America
by Salil K. Sen, Junya Pookayaporn
Abstract: Japans disaster preparedness drill at the Hokkaido Electric Power Plant at Tomari to be resilient to possible 3.4 meters tsunami, test-beds the inter-linkage of disaster preparedness and Corporate Social Responsibility. Vibrant Asia and re-focused North America (new leadership in United States of America) prepares for shared value based global supply chains, amidst the threat of disaster disruptions and environmental sustainability challenges. This paper posits Economic Value Added (EconVA) and Ecology Value Added (EcoVA) to objectively structure disaster preparedness. Research gap exists in the disaster preparedness domain as a sustainability measure for corporate social responsibility. This paper draws on recent literature including the Hyogo Framework for Action 2005 2015 and Sendai Framework for Disaster Rick Reduction 2015 2030 to configure the following research propositions: (a) can the linkage of EVA and Eco-VA may be embedded into organizations CSR agenda to create competitiveness through savings through disaster preparedness with focus on Japan? (b) could the disaster preparedness linked CSR measure be unified for Asia and North America through a comprehensible visual metric (dash-board) evolved with Japan? Ordinal regression analysis were performed with EcoVA parameters (i) water (ii) waste (iii) energy and EconVA attributes (a) cost of capital (b) return on assets (c) operating assets, with dependent variables of CSR and Disaster preparedness. Significance of 0.012 justifies the research propositions.
Keywords: Economic Value Added; ecology value added; CSR-linked disaster preparedness; scope Japan-North America-Asia; ordinal regression.
THE STOCK MARKET RENAISSANCE: THE CASE OF THE CLEARING AND SETTLEMENT PROCESS
by Preeti Goyal, Madhu Vij
Abstract: There has been significant effort to integrate regional capital markets which has required the integration of the underlying infrastructure. Addressing these challenges will require structural changes to the infrastructure. Clearing and settlement process is at the heart of this infrastructure. It enables the transfer of funds and equity shares between the buyer and the seller. Using the structural changes to the clearing and settlement process in the Indian stock markets, this study aims to study the impact of these changes on the level of trades that fail to settle. Our findings suggest that in general the level of trades failing to settle has seen considerable decrease, and that the structural changes to the process have been generally successful. Our findings will find significance in choosing the solutions to address the challenges that are arising from integration of stock market infrastructure.
Keywords: stock market infrastructure; micro-structure; capital market integration; structural changes; clearing and settlement.
INSTITUTIONAL OWNERSHIP AND FIRM PERFORMANCE: EVIDENCE FROM INDIAN PANEL DATA
by Ruchi Kansil, Archana Singh
Abstract: The objective of this paper is to investigate the interdependent and interaction of institutional ownership and firm performance in an emerging market using Indian panel data. Two stage simultaneous equations - pooled and panel instrumental regression analysis is applied to the dataset that includes publicly listed Indian non-financial firms listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) as on March 31, 2014. A strong evidence of interrelation between institutional ownership and firm performance is evidenced in the Indian context. The results of fixed effect model confirm the relationship between firm performance and institutional ownership. Leverage and asset structure are joint determinants of firm performance and institutional ownership. However, firm performance impacts institutional ownership in the Indian context and not vice versa. The findings of the study could serve as guidelines for policy makers, institutional investors and the Indian corporates. For the policy makers, this study provides evidence that the market regulators (SEBI) may design the responsibility and accountability framework within the corporate governance structures of the listed firms in such a way that it brings in more and more institutional investor participation in the management of the investee companies affairs. The institutional investors need to be involved in investee company management by raising their voice in case of dissatisfaction, putting forward their suggestions and recommendations, besides exercising the voting rights. Indian corporates need to monitor firm performance carefully if they are interested in attracting more and more future institutional investments.
Keywords: institutional ownership; corporate governance; corporate ownership; firm performance; India.
Special Issue on: CSR in a Globalised World Emerging Issues and Challenges
Do stringent Corporate Governance practices ensure diligent Corporate Social Responsibility among organizations: Investigating the link therein
by Ahana Bose
Abstract: We establish the relationship between Corporate Governance and Corporate Social Responsibility in India. We design a Corporate Governance Scorecard to capture the financial and accounting aspects of firms which help us in classifying them into high risk (poor governance) and low risk (good governance) bins. We then categorize the firms according to their level of risk to examine the level of Corporate Social Responsibility activities carried out by them to assess their social conscientiousness. Probing whether the firms ranked in Corporate Governance Scorecard carry out Corporate Social Responsibility voluntarily or under compulsion in the light of Section 135 of the Company's Act 2013 brings out whether the firms in question are carrying out Corporate Social Responsibility willingly or are being forced to do so. The data reveals that high-risk firms are the ones carrying out high levels of Corporate Social Responsibility after it has been made a compulsory practice by the Companies Act 2013. It indicates the possibility that Corporate Social Responsibility may complement Corporate Governance to help create a socially cognizant corporate sector sometime soon.
Keywords: Keywords : Corporate Social responsibility; Corporate governance; Corporate Governance Index; Board of directors; Ownership Structure; Business Administration General; Business Economics; Government Policy and Regulation; Firm Employment Decisions; Compensation and Compensation Methods and Their Effects; Personnel ManagementrnJEL Classification : G34; M14; C43; G18; M10; M21; M48; M51; M52; M12.
Evolution of Stakeholder Management approach in Business: A Literature Review
by Shireesh , Sushil Kumar
Abstract: Stakeholder Management approach gained ground after R. Edward Freeman popularized the term and concept as a strategic management tool for business. With sustainability becoming a global agenda, stakeholder movement kept growing in prominence as more and more cases of unsustainable practices of Multi National Enterprises (MNEs) came to light. Later, business ethics literature described stakeholder approach from a normative theory perspective and CSR theorists used the concept as a basis to describe a firms social responsibility. Hence, we review the existing literature in the development of stakeholder management approach as a strategy for business and also as a normative concept in business ethics literature. The paper also reviews Corporate Social Responsibility (CSR) literature to explore the linkages between CSR and stakeholder management approach. CSR literature points to a direct link between stakeholder-oriented thinking and a firms commitment to its CSR programs. Contemporary scholarly work highlights the growing importance and omnipresence of stakeholder management approach especially in the times of rising conflict between business and social actors thereby re-establishing its role as a valuable tool for firms to compete and survive in the global marketplace. Stakeholder approach continues to inspire businesses to behave responsibly and contribute towards welfare of communities however, theoretical inadequacy and lack of consensus among business and ethics scholars limit a wider adoption of the concept.
Keywords: Stakeholder; Stakeholder Theory; Stakeholder Management; Stakeholder Approach; CSR; Corporate Social Responsibility; Literature Review; Review.
Employees' Participation in CSR Initiatives and Job Outcomes- affective commitment, job satisfaction, organizational attractiveness, organizational performance and turnover intention
by Ratna Sinha, Duraipandian Israel
Abstract: The quest for equitable, inclusive and sustainable growth is a visible need. Corporate Social Responsibility (CSR) is a strategic issue which permeates departmental boundaries and influences the way organization does its business and relates with its stakeholders. An important stakeholder group forms the 'employees', upon whom the interest now rests This study focuses on employees' participation in CSR initiatives leading to the job related outcomes such as organizational attractiveness, job satisfaction, affective commitment, turnover intentions and job performance. In this study 'prosocial values' is explored to understand the influence. Out of the 500questionnaire distributed only 293 response sheets could be utilized. The results revealed were insightful between the constructs of prosocial values, employees' participation in CSR initiatives and job outcomes.
Keywords: Corporate social responsibility; participation; CSR activities; CSR initiatives; job outcomes; affective commitment; job performance; organizational performance; job satisfaction; turnover intention.