International Journal of Business and Globalisation (145 papers in press)
SME Financing: A Review of the literature
by Isaac Boadi, Gerard Mertens
Abstract: The present study provides a systematic literature review of small and medium-sized enterprises (SMEs) financing. The research strategy is to identify and reveal ambiguities, lacunas and inconsistencies in the literature, and provide a roadmaps for further research. The research framework follows the tenets of the PRISMA Group (2009) and Tranfield et al. (2003) in organizing the systematic literature review. The key word search yielded 72 papers and were analyzed following the assessment of fit for this review with regards to reference list information, research layout and results. Inspite of the contradictory findings, the reviewed articles suggest that SMEs financing deserves further research. Furthermore, the review found and analyses different types of determinants - banks profitability determinants and determinants of banks credit to SMEs. Further empirical research on banks profitability determinants, determinants of banks credit to SMEs and SMEs financing and banks profitability are needed. The detail and all-inclusive review of the body of literatures on SMEs financing on banks profitability is the key value of this paper.
Keywords: SME; Small and medium-sized enterprises; financing; banks and profitability.
Social Bonds: Migration and comparative analysis of remitting behaviour between Pakistani and Indian Diaspora
by Muhammad Zubair, Dieter Bögenhold
Abstract: Migration is a global phenomenon and the role of migration has gained worldwide recognition for its socioeconomic impacts on both, host and home country. According to the literature, one of the most important emanations of migration is the remittances. International migration in the form of remittance mainly plays a lively part in personal and family income residing in the home country. It facilitates the poverty reduction, education improvement, entrepreneurial investments and even the economic evolution of the home state. Globally, India and Pakistan are in the top 10 money receiving countries. This paper provides an overview about migration, and the worldwide remittance flow of immigrants from India and Pakistan to their home countries. We tried to make a nonlinear model by dividing remittance per person with the number of immigrants from India and Pakistan worldwide, also focusing on the ratio of male and female immigrants in the population. Remittance was used as a dependent variable, while year and gender ratio were independent variables. The results showed that remittance changes exponentially over the years, thus rapidly increasing in a last few years. This increase is stronger in the case of India than Pakistan. More interestingly, gender ratio influenced remittance per year showing that same amount of men and women in the immigrant population contributed with more remittance than predominantly male immigrant population.
Keywords: Migration; immigrant; immigration; remittance; gender; finance.
Management Skills of Russian Working Adults
by Natalia Ermasova, Lam D. Nguyen, Dina Clark, Sergey Ermasov
Abstract: The purpose of this paper is to investigate management skills of respondents from Russia, to see if age and gender can be significant factors in their technical, human and conceptual competencies. Using t-test and ANOVA analyses and adopting the skills inventory survey, this research analyzed 527 Russian working adults. Paired t-test and ANOVA methodology were used for hypotheses testing. The findings indicate that that there are significant differences in Russian adults management skills based on age and gender. First of all, Russian working adults appeared to value human skills more than technical and conceptual skills. Second, Russian working males seemed to value all three management skills more than Russian working females. Finally, respondents from the age group of 31-40 years old valued both technical and conceptual skills more than those who came from the age group of 17-25 years old.
Keywords: Age; Gender; Cultural context; Management skills; Russia.
Role of attitudes in Brazils country brand image
by Janaina De Moura Engracia Giraldi, Vishwas Maheshwari, Fabiana Mariutti, Anastasia Konstantopoulou
Abstract: For past three decades, the academic community has sought to advance the analysis relating to the image of several countries around the world. In relation, several studies have since been published on contemporary relevance of the image of a given country, and its subsequent effects on product evaluations and purchase intentions, among other behavioural outcomes. Nonetheless, despite the importance of the theory of attitude in evaluating the image of a country, the majority of papers in the field has focused on the cognitive component of attitude only, having the other components, affective and conative, not thoroughly being examined. As a result, with an aim to extend our current understanding into the role of attitudes on country brand image, this paper considers the conations more broadly such as, the predisposition for traveling, doing businesses, investing, working in the country, as well as, the willingness for either buying products made in the Brazil or shopping in the Brazil. Additionally, the purpose of this paper is to investigate Brazil's country brand image, based on the three-attitudinal categories "cognitive", "affective", and "conative". The methodological approach taken in this study is a quantitative method via an online survey. The study population consisted of the 427 undergraduate students at foreign institutions partaking agreements with a Brazilian public university. Attitudes were analysed using exploratory factor analysis to correlate potential impact on Brazils' country brand image. The country's image refers to a construct derived from the concept of attitudes, being comprised of cognitive, affective, and conative components. Results of this study indicate that the conative dimension received the highest scores of the respondents implying strong behavioural intentions in relation to Brazil's country brand image. It is also noteworthy that the technical dimension presented a more negative assessment in comparison to all other dimensions of Brazil's image, indicating that such a cognitive element to be adequately developed to highlight better brand assurance.
Keywords: country branding; Brazil; country brand image; country-of-origin; attitudes.
Adoption of "Learning Orientation" by SMEs In India: A Case Study
by Hima Gupta
Abstract: This case talks about the market study conducted by a researcher in Delhi/ National Capital Region (NCR), India to find out the nature and extent of learning orientation prevalent in small and medium sized restaurants. rnThe researcher has explored first generation entrepreneurial setups so that the real essence of business hurdles like gathering finance, getting clearances from government authority etc. can be captured, analysed and presented through this case. To conduct the study, sixty five respondents were chosen for focussed group interview.rnSmall and medium restaurants in India should focus on both customer retention and new customer segment acquisition. Since diversification is not much on their priority list, they die out after a short stint in the market. rnThe case attempts at understanding how strategically these enterprises plan their knowledge building and its dissemination. The case study contributes to understanding of the strategic formulation process of quick service restaurants. This case study discusses first entrepreneur and its definition as existing in the literature, the possible traits required to become a successful entrepreneur and the various school of thoughts associated with entrepreneurs. Further, in continuation of it researcher has attempted to describe the explanatory variables associated with the entrepreneurial activity not only in India but all around the World. With regards to the adoption of learning orientation, the researcher has also taken a view of SMEs existing in India and their practices adopted to run their small scale businesses (especially with respect to quick service restaurants). The researcher has also tried to unleash the strategies adopted by the restaurant owners and the role of learning orientation in terms of making their businesses successful.rn
Keywords: Learning Orientation; entrepreneurial strategies; Information Management system; small and medium restaurants; consumption pattern.
The Role of Internal Audit and Audit Committee in the Implementation of Enterprise Risk Management
by TAKIAH MOHD ISKANDAR, ADIBAH JAMIL, PUAN YATIM, ZURAIDAH MOHD SANUSI
Abstract: The study evaluates the role of internal audit in the implementation of Enterprise Risk Management (ERM). The study examines relationships between the competency, independence, and working priority of internal audit and ERM implementation and moderating effect of audit committee support on the relationships. A survey on listed companies in Malaysia with internal audit units indicates that internal audit independence is significantly related to the implementation of ERM for review and feedbacks. The study finds that internal audit work priority contributes significantly to the ERM implementation at all stages. The support by the audit committee is important in enhancing the effectiveness of internal audit in the ERM implementation particularly for the development of policy and procedures and strategy and follow-up actions. The inclusion of companies which outsource internal audit services to outside parties may enhance the validity and generalizability of results.
Keywords: enterprise risk management; internal audit; audit committee; internal procedure and policy; implementation stages.
ANALYSIS OF THE INFLUENCE OF HUMAN CAPITAL DEVELOPMENT ON FOREIGN INVESTMENT IN BRICS COUNTRIES USING A STATIC PANEL THRESHOLD REGRESSION MODEL
by Kunofiwa Tsaurai
Abstract: The study investigated the threshold level of human capital development that must be reached in order to enhance significant FDI in BRICS countries using Hansens (1999) static panel threshold regression model. Although theory and majority of empirical studies concur that human capital development is an integral part of FDI locational advantages in the host country, recent literature shows that human capital development not only does it needs to be available but it has to reach a certain minimum level before significant FDI can be received by host countries. It is against this backdrop that the author investigated the minimum threshold level of human capital development that enhances significant FDI in BRICS countries. As expected, human capital development was found to have had a positive influence on FDI in BRICS countries. Moreover, levels of human capital development index above or equal the threshold level of 0.57 were found to have had a more positive and significant impact on FDI, consistent with the recent literature. It is therefore prudent for BRICS countries to put in place mechanisms that promote the growth of human capital development in order to benefit from FDI inflows.
Keywords: FDI; Human capital development; Threshold; BRICS.
Can Responsible Innovation be a Moderator of Entrepreneurship? - Learnings from the Debate on Advanced Biotechnology
by Karsten Bolz, Harald König
Abstract: In this article we introduce the concept of Responsible Innovation into entrepreneurship research, present ideas on how to operationalise it, and share notions on operational issues from the debate on advanced biotechnology and the bioeconomy. Therefore, we first examine the role of entrepreneurship as an agent of innovation and connect it to Responsible Innovation. Second, introducing the Prism of Responsible Innovation as a moderator for the entrepreneurial process in converting opportunity into innovation, we propose a theoretical framework of how the concept of Responsible Innovation could be integrated into the entrepreneurial process. Finally, we present insight from the debate on advanced biotechnologies regarding potential operationalisation strategies for Responsible Innovation.
Keywords: responsible innovation; entrepreneurship; entrepreneurial process; sustainability; sustainable development; biotechnology; synthetic biology; collaboration; SME; innovation; stakeholder; ecosystem; opportunity; operationalisation; qualitative analysis.
Exporting Identity: Italians in London During the Long Nineteenth Century
by Robin Palmer
Abstract: We live in a time of increased international migration and asylum seeking. Those involved have become scapegoats for nativists who support parties with promises to restore what they have lost through neoliberalism and globalisation. Neoliberalism may be of recent derivation, but it is derived from the liberalism and laissez-faire capitalism of the Long Nineteenth Century (1750-1914). Then, as now, the masses were pushed to migrate by accelerated population growth and its political and socio-economic correlates. Focusing on London, the paper examines the experience of Italian migrants and asylum seekers in the UK of that period, who drew on the historic Italophilia of the British to advance their careers or causes. Collective reputation, so long as it is positive, can be an important resource for culture entrepreneurs in migrant or refugee settings; it can take a long time to build but once established tends to be resilient and capable of innovative reinterpretation.
Keywords: Italian migration; Italians in London; Long Nineteenth Century; street trades; catering; asylum seekers; culture entrepreneurs.
SME firm characteristics impact on the choice of sources of financing in South-west, Nigeria
by Anthony Abiodun Eniola
Abstract: The purpose of this paper is to study the impact of firm-specific characteristics in the south-west, Nigeria on the choice of the sources of financing of small and medium enterprises (SME). To assess the impact of SME firm characteristics on choice of financing in terms of debt and equity, SEM-PLS and logistic regression are used. Significantly, the findings recommend that age, location, size, measure in terms of employment, sales turnover, expansion, and assets influence the choice of financing of SME in Nigeria. SME basically incline towards internal funding sources over external funding and the older and bigger firm makes less use of debt financing. The study has provided an indication concerning the application of the life cycle proposition. For this reason, the life cycle theory is supported. In extending the existing literature, this paper presented the evidence discussed. The methodological method and the experiential results give a degree of analysis unmatched through the earlier study on Nigeria firms from an academic degree of opinion. In addition, the findings will enlarge the cognition and the perception of SME firm managers. They can influence through valuable information to help them in their choice process with respect to their organisations capital structure during a period when SME financing hassles are increasingly elicited in the Nigeria setting.
Keywords: SME; choice of financing; Nigeria; life cycle; SEM-PLS.
Relationship between religious and entrepreneurial values: Views from Ghanaian women entrepreneurs
by Fanny Adams Quagrainie
Abstract: Although literature suggests that religion can influence entrepreneurial values very few studies have actually investigated the effect of religious values which informs entrepreneurial value among women entrepreneurs in developing country like Ghana where religion is a critical part of its life. The aim of this study is to examine the relationship between religious and entrepreneurial values. Drawing on socialization and institutional theory and using a qualitative research approach, 30 women entrepreneurs were purposively selected from three main religious in Ghana. Findings showed that religious values are stronger determinants of entrepreneurial values. These determinants can either benefit or challenged women entrepreneurship. This paper contributes to understanding women entrepreneurial values as socially situated and influenced by religious values.
Keywords: religious values; entrepreneurial value; Ghana; women entrepreneurs; socialization; institutional theory.
Evolution of Network Ties in Social Enterprises: A Governance Perspective
by Swati Panda, Shridhar Dash
Abstract: The objective of this study is to explore, understand and describe the network evolution
process of social enterprises from a governance perspective. Studies have extensively investigated
the development of networks in the commercial entrepreneurship space. However, similar
research on social enterprises, specifically from a governance perspective is still growing. We try
to bridge this gap through an exploratory study of two social ventures in India, with different
organisational structures. Based on the empirical findings, we present a series of propositions
depicting the network characteristics of social enterprises, their governance structures and the
dynamics between them.
Keywords: Contracts; Networks; India; Social Enterprise; Trust.
FDI in Indias Retail Trade
by Leena Ajit Kaushal
Abstract: The paper examines the political stand of holding back 100 per cent FDI in multi brand retail in India on the ground of safeguarding unorganized sector, the Kiranas (mom and pop stores). The study argues that this fear is largely unfounded by highlighting the dual nature of retail sector where foreign retailers operating through super markets cater mainly to the upper income groups with a demand for differentiated products leaving the market for undifferentiated and relatively low price goods to the Kiranas who cater the lower income groups mostly in the rural areas. The study hence proposes that the foreign owned firms in the retail sector are most unlikely to pose a threat to the Kiranas rather they may facilitate the sales of the Kiranas.
Keywords: FDI; Retail; Organised Retail; India; Multibrand retail.
PROPERTY RIGHTS, FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: A COMPARISON OF TWO SOUTHERN AFRICAN COUNTRIES.
by Kunofiwa Tsaurai
Abstract: This study investigated the relationship between property rights, FDI and economic growth in Zambia and Zimbabwe using the ARDL Bounds testing framework with annual time series data from 1985 to 2015. The study observed that there was no long run relationship between either property rights and FDI or property rights and economic growth in both countries. However, a co-integrating relationship between FDI and economic growth was established both in Zambia and Zimbabwe. Granger causality tests revealed a uni-directional causality relationship running from economic growth to FDI in Zambia in the long run whereas economic growth was found to have been positively influenced by FDI in the short run in Zimbabwe. Zambian responsible authorities are encouraged to implement economic growth promotion policies if they intend to increase FDI into the country. The study also urges the Zimbabwe authorities to step up FDI improvement initiatives in order to increase economic growth.
Keywords: Property Rights;FDI;Growth;ARDL;Zambia; Zimbabwe.
Microenterprise Development through Organisational Interventions: A Comparative Study of Holistic and Building Human Capital Approach in India
by Nisha Bharti
Abstract: Microenterprise is recognised as an important tool to achieve the objective of inclusive development. Various approaches have been used to promote microenterprises by various government as well as non-government organisations. Holistic approach and building human capital approaches are two prominent approaches adopted to promote microenterprise. In addition to being the prominent approaches, these two approaches are contrasting in their features too. This study is an attempt to look at the effect of these approaches on promotion of microenterprise. This study adopted case study method. Quantitative as well as qualitative data was collected for the same. Two major organisations adopting this approach in the state of Maharashtra were selected. 90 respondents across two organisations were selected. The study has adopted a descriptive analysis method. Intra and inter case analysis has been carried out. The findings suggested that holistic approach worked with very poor segment of the society whereas, building human capital approach is suitable for people in higher income group, who can afford to invest on their own. As holistic approach was providing all kind of support to their participants, they failed to increase the scale of the business. Because of lack of access to finance, startup rate of microenterprise was less in building human capital approach.
Keywords: Case study; Microenterprise; Building Human capital approach; Holistic approach; Microenterprise Development.
FACTORS INFLUENCING THE CHOICE OF BOUNDARYLESS CAREERS- A PLS APPROACH
by Kavitha Haldorai, Souji Gopalakrishna Pillai, Arnold Tafadzwa Makawa
Abstract: A boundaryless career model can offer more advantages to the youth as they can interact, have teams or work with people from other organisations as compared to the traditional career. The boundaryless career model helps one to venture into international business despite, their gender. The youths being exposed to diverse culture, new experiences, skills etc., the boundaryless career model can be regarded as the career of choice by the youth. This paper focuses on how the attitude of youth, gender, lack of experience and organisational mobility influences the boundaryless career. Data was collected from 200 students through a self-administered questionnaire. The results signify that the youths are bound to be inclined towards the boundaryless career based on their attitude. Younger people show higher physical career mobility due to lack of experience. Organisation mobility is related to boundaryless career. The moderating effect of gender did not have a significant impact. The main contribution of the study are that it aids Human resources professionals to be aware of contemporary career theories, such as the boundaryless career theory so that they can encourage the future workforce to develop competencies needed to have successful careers.
Keywords: Boundaryless career; Attitude; Organisational mobility; Lack of experience; Gender; Youths.
Employing a Globalisation Model to Study Special Economic Zones in the United States
by Jorge Riveras, Jesus Arteaga-Ortiz, Maria Jose Miranda MArtel
Abstract: This paper examines Special Economic Zones (SEZs) in the United States (U.S.) and their relationships with Globalisation. A globalisation model is employed as a framework for the study with inner domains focusing on economic, political, social, business and physical and outer domains on neighboring country dynamics, trade blocs and global institutions. Since the term globalisation is complex, a system approach using multiple domains to study globalisation and SEZs allows a broad view and facilitates analysis. The study provides a new multidimensional approach to the analysis of SEZs and their relation to globalisation with an ample and multidisciplinary perspective. The findings indicate that significant interactions among the domains exist, supporting the notion that globalisation is multidimensional and showing convergence for expansion and operation of SEZs in the U.S. Current trends indicate possible divergence originating in the political and social domains as a probable deterrent for future SEZs expansion
Keywords: Special Economic Zones; Globalisation; Trade; NAFTA.
The Financing Decision Puzzle of Technology-Based Firms: Evidence from Malaysia
by Hamdan Al-Jaifi, Ahmed Al-Rassas
Abstract: The financing decision among technology-based firms has become a significant issue around the globe, with the core concern to be that such firms may encounter financing limitations that could bar their growth ability. Using 92 technology-based firms observations from 2009-2012 and employing Ordinary Least Square (OLS) regression, this study finds that there is a significant and positive relationship between board of directors effectiveness and capital structure, and there is an inverse significant relationship between information asymmetry and capital structure. This indicates that technology-based firms having a robust board of directors minimize agency conflicts by mandating that managers, use more debts to be consistent with the interest of the shareholders. This is consistent with the agency theory where the obligation of interest payments that stem from the debt use assists in resolving the free cash flow issue. Further, the inverse relationship with information asymmetry shows that technology-based firms go through financing limitations owing to the asymmetric information that prevent their growth and development ability.
Keywords: Technology-based firms; financing decision; information asymmetry; board of directors; Malaysia.
Innovation and Entrepreneurship Bootcamp: A Descriptive Study Assessing the Effectiveness of Entrepreneurship Education
by Sio Hong Tih, Wan Mohd Hirwani Wan Hussain, Nik Mohd Hazrul Nik Hashim
Abstract: This study investigates the impact of an interactive-intensive structured innovation and entrepreneurship bootcamp on MBA students entrepreneurial thinking, innovativeness, teamwork, and entrepreneurial leader confidence. A descriptive study was carried out immediately after the students participated in the bootcamp. It involved 118 postgraduate students newly enrolled in their studies. The results show that most of the participants were highly engaged in the program and gained new skills from the bootcamp although conducted within a relatively short period. Specifically, they felt that the bootcamp enhances their entrepreneurial thinking, inspire them to be more creative, promotes dynamic teamwork, and boosts their confidence as entrepreneurial leaders. In addition, with reference to T-Test results, there were significant improvements in the level of knowledge and skills among the participants before and after attending the bootcamp. This study contributes towards understanding entrepreneurship education in higher learning and provides useful information in designing an effective bootcamp that enhances graduates entrepreneurial thinking and skills, as well as team spirit and self-confidence.
Keywords: Innovation; Entrepreneurial thinking; Interactive learning; MBA students.
Importance and Awareness of Corporate Social Reporting Practices in Banks-An Empirical analysis in Punjab
by Sukhpreet Kaur
Abstract: The study gives an insight about the importance and awareness among the people of Punjab regarding corporate social responsibility practices being undertaken by banks in India. Questionnaire is used to check the awareness level and factor analysis has been applied to study the importance of CSR practices in Punjab. People of Punjab are of the view that if banks would implement CSR, ultimately they will give this burden to their customers only who are dealing with them. Further, CSR performance of banks is not taken into consideration by people while choosing a particular bank for their financial operations. There is not much awareness about the CSR practices of banks in Punjab. Eradicating extreme hunger and poverty is the activity which most of the people (62.2%) think that it is being performed by banks while there is least awareness regarding the activities like reducing child mortality (24%) and combating human immunodeficiency virus (3% only). Eradicating extreme hunger and poverty and promotion of education are the most preferred CSR activities and contribution to funds for socio economic development and SCs and STs and minorities is the least preferred CSR activity.
Keywords: Key words: Corporate Social Responsibility; CSR practices; Companies Act; 2013; CSR Importance; Customer awareness.
Importance of Intellectual Capital in Ranking of Business School of India
by Kanupriya Misra Bakhru
Abstract: Business School ranking are the mark of excellence of business schools, they are not only used by students but are also used by recruiters for placements. With mushrooming of many business schools in India halo attached to the management education has sharply faded. The surveys conducted by main agencies in India for business school ranking were reviewed from which key ingredients for business school ranking parameters were identified and categorized. The Intellectual Capital factor was found an important parameter. The paper describes the rationale and approach for assessing intellectual capital parameter of business school. The list of items considered for evaluation of intellectual capital parameter can be used by Academic Administrators while recruitment, training, performance appraisal and also as a mean for compensation of a business school teacher. This will not only improve the quality of teaching but will also make the business school achieve higher ranking and repute.
Keywords: Business School; Ranking; Intellectual Capital; India; Management Teachers.
Management innovation and organizational performance: The mediating role of high performance organization framework
by Ben Honyenuga, Ronald Tuninga, Paul Ghijsen
Abstract: This study investigates the relationship between management innovation and organisational performance with the high performance organisation (HPO) factors of continuous improvement and renewal, workforce quality and long-term orientation as mediators. From a survey among 186 managers of the insurance industry in Ghana and with the use of PLS-SEM, the results show that management innovation appears to have a direct influence on organisational performance but when management innovation is combined with the HPO factors, it generates a synergy to increase organisations to become HPOs in an emerging market context.
Keywords: high performance organisations; HPO framework; management innovation; organisational performance.
Entrepreneurial Intention of Students: A Case of NIT Hamirpur (HP, India)
by Santosh Kumar Sharma
Abstract: The study examines the entrepreneurial intention of students pursuing various professional courses (B. Tech., M.B.A., and B. Arch.) from National Institute of Technology Hamirpur (Himachal Pradesh, India) which is commonly abbreviated as NIT Hamirpur (HP). Drawing on Ajzens theory of planned behaviour (TPB) the study has examined the underlying factor affecting entrepreneurial intention in the selected sample. By employing structured research process and statistical techniques the study divulges the fact that attitude towards entrepreneurship is a critical factor in explaining entrepreneurial intention of students. However, demographical variables like gender and caste are irrelevant in explaining entrepreneurial intention of students. The study concludes that there is lack of awareness among students of NIT Hamirpur regarding various schemes aimed to boost entrepreneurial environment in the country. Implications and further directions have also been discussed.
Keywords: Entrepreneurial intention; Gender; Caste; NIT Hamirpur; Himachal Pradesh; India.
A Conceptual Model of Organisational Innovation in Malaysia
by Raj Kumar, Lee Yen Chaw, Choon Ling Kwek
Abstract: Since innovation is widely regarded as an imperative foundation for competitive advantage in today's vigorously changing environment, organisations need to put high consideration towards the adoption of innovation and consider organisational innovation as part and partial of their strategic plans and daily activities. Based on the literature review, a conceptual model with a set of proposed constructs such as human resource management, social capital and organisational learning mediated by entrepreneurial orientation is analysed. These constructs are adopted in this research to facilitate the adoption and achievement of organisational innovation among the small and medium enterprises (SMEs) in Malaysia. Therefore, the main objective behind this paper is to examine the relationships among the proposed constructs of human resource management, organisational learning, social capital and marketing effect of entrepreneurial orientation towards enhancing organisational innovation in the context of small and medium enterprises in Malaysia.
Keywords: innovation; organisational innovation;human resource management; organisational learning;social capital; entrepreneurial orientation.
Analysis of Corporate Pensions: Do Type and Size of Firm Make a Difference?
by Don Chamberlain, L. Murphy Smith, Wayne Tervo
Abstract: Adequate pensions are important to both individuals and the public interest. Pensions are important to all types of business, whether they are retailers, manufacturers, or service firms. Funding pensions has become a challenge for many companies of all types and sizes. Effectively managing employee compensation, including pensions, is a corporate social responsibility. Ethical guidelines for employee pay can be traced back to ancient times, such as precepts found in biblical passages. The current study seeks to expand understanding of pensions, specifically, to determine if differences are connected to firm type and firm size. Increased understanding may contribute to improved pension management by company managers and lead to more well-suited regulations by policy-makers. Results indicate that firm type is associated with differences in pension benefits paid relative to total assets and to total revenues. At the same time, there were no differences relative to firm size.
Keywords: pensions; corporate accounting; public interest; corporate social responsibility.
The impact of working capital management on the decision of Indian production firms about the amount of dividends
by Amarjit Gill, Harvinder Mand, John Obradovich, Neil Mathur
Abstract: This study examines the impact of working capital management on decisions concerning the extent of distribution of dividends. Results suggest that working capital management plays a role in decisions concerning dividend distribution in the Indian production firms. The findings of this study indicate that cash level has a strong impact on decisions concerning dividend distributions for Indian production firms holding higher cash balances compared with non-dividend paying Indian production firms. This study contributes to the literature on the factors that impact firms decisions concerning the distribution of dividends.
Keywords: Working capital management; the decision about the amount of dividends; cash holding; Indian production firms.
Understanding social entrepreneurship in developing countries A multiple case study from Mexico
by Claudia Nelly Berrones-Flemmig, Oliver Mauroner
Abstract: Given the general typology of social entrepreneurs by Zahra et al. (2009) as well as the complementary typology by Sundaramurthy et al. (2013), the aim of this paper is to contribute to the discussion and the emerging debate on innovation and entrepreneurship in the context of developing countries by analysing patterns of social entrepreneurship in the case of Mexico. Particularly in developing countries, social problems are more likely to be solved from initiatives that come from the citizens themselves. The main motivation of this paper is to explore and understand social entrepreneurship in a developing country to foster them in the more suitable ways and therefore, to make a step forward to solve the social problems. In order to explore the research questions, a multiple case study approach is used, which considers not only the entrepreneur, but also the environment (Dana and Dana, 2005).
Keywords: social entrepreneurship; social innovation; social value creation; emerging countries; developing countries; Mexico; patterns; bricolage; resource constraints; idealism; pragmatism.
Does Higher level of Education Reduce Poverty and Increase Inequality? Evidence from Urban India
by Sabysachi Tripathi
Abstract: By considering Indias 52 large urban agglomerations, this paper finds the relationship between higher level of education and poverty and inequality in urban India. Besides using city level education data from University Grants commission (UGC), the study uses two rounds of National Sample Survey (NSS) unit-level data on consumption expenditure, and employment and unemployment for the year 2011-12. An empirical analysis using OLS regression method has shown that city level education, proxied by city-wise total number of PhD students enrolled in the universities, has a negative impact on city level poverty rate as seen by poverty head-count ratio, poverty gap ratio, and squared poverty gap ratio. On the other hand, city level education has a positive impact on city level inequality. City-wise work force participation rate has a negative effect on city poverty rate. The article suggests that we need appropriate city level policy to promote higher level education for reduction in city level inequality and poverty rate for sustainable urban development in India.
Keywords: Level of higher education; large agglomerations; poverty; inequality and Urban India.
Probing the Menace of Brain Drain in Pakistan: Does Higher Education Matter?
by Haider Mahmood
Abstract: This paper investigates the determinants of brain drain in Pakistan. Brain drain is a burning issue of today in Pakistan, as it augments the major depletion of human capital stock in the country. To explore the determinants of brain drain, we use three types of brain drain: highly qualified migrants, highly skilled migrants and skilled migrants. The empirical results exhibit that GDP per employed labour is stopping brain drain, whereas higher education, globalisation, political rights, GDP per capita, and inflation volatility are increasing brain drain. The study suggests the policy makers in the government of the country to take concrete steps like the absorption of highly skilled people at appropriate places with competitive wages and restoration of peace and security to stop the brain drain from Pakistan.
Keywords: Brain Drain; Higher Education; Globalisation; F2; I2; F6.
Producing good wine just isnt enough: The role of management in building a competitive industry cluster
by Svan Lembke, Lee Cartier
Abstract: The wine industry is a central part of the agricultural products cluster in British Columbia. Findings from a range of applied research projects indicate that the cluster may have hit a glass ceiling in terms of its development. A better understanding of cluster dynamics and management processes is needed to assist the cluster grow beyond its initial wave of success, build more refined decision-making processes and competitive advantage. This takes the research findings and present literature beyond the descriptive style of economic analysis and introduces causality as well as concepts from business strategy to the institutional and the business layers within the cluster. The purpose is to deliver a new direction for rural clusters that are defined by a multitude of small and mid-size firms acting without the influence of large mature multinational corporations and having outgrown the first generation of entrepreneurial cluster leaders.
Keywords: Industry cluster dynamics; wine industry; management processes; comparative advantage; competitive advantage; decision making; rural cluster development; entrepreneurial leadership; demand conditions; rival firms; related industries; factor conditions.
The Impact of Innovation on Firm Performance in the Malaysian Batik Industry
by Normaz Wana Ismail, Noor Haslina Mohamad Akhir, Shivee Ranjanee Kaliappan, Rusmawati Said
Abstract: This paper aims to explore the extent of innovation in the Malaysian batik industry and to analyse the impact of innovation on the batik firms performance. The evolution in the batik industry has brought various innovations to the batik making process, batik products, as well as the marketing and organisational methods. However, some of the batik entrepreneurs maintain the traditional approaches and managed manually. Using face-to-face interview surveys in Kelantan and Terengganu, we found that batik entrepreneurs in the sample have taken some initiatives to undertake innovations, especially in the marketing and batik making process. Results from empirical analysis revealed that only product innovation has a significant impact on batik firms performance. This study offer a new finding for the idea of incorporate all four types of Schumpeterian innovations to analyse its impact on firm performance in batik industry.
Keywords: Batik Industry; Innovation; Malaysian Batik; Firm performance.
Bridging the gap between Internationalisation Theories and de-internationalisation: A review and research framework
by Bernardo Castelloes, Luis Antonio Dib
Abstract: Despite its importance on the overall strategy of firms, de-internationalisation has not received the attention it deserves. This article offers a research framework of how de-internationalisation is addressed within the most prominent internationalisation theories. We begin with an overview of the literature on de-internationalisation and its main definitions. Additionally, a typology of partial/full and defensive/offensive de-internationalisation is proposed. To bridge the gap between internationalisation and de-internationalisation, such typology is used to explain how the Eclectic Paradigm, the Uppsala Model, the Network Theory and the International Entrepreneurship Theory address de-internationalisation. Opportunities for future research and managerial and political implications are also discussed.
Keywords: globalisation; foreign direct investment; FDI; multinationals; market exit; de-internationalisation; foreign divestment; market withdrawal; SMEs internationalisation.
EXPLORING THE DEMOGRAPHIC FACTORS ON PERCEIVED PERFORMANCE RISK AMONG YOUTH TOWARDS ONLINE SHOPPING IN PUNJAB
by Pawan Kumar, Rakhi Bajaj
Abstract: The tremendous growth of internet has accounted for accelerated growth in e tailoring. Online shopping irrespective of its growth marked for small percentage of sale due to perceived risk. The study is designed to examine key components of perceived risk of online shopping among youth of high educational institutes of Punjab. The population consisted of online shoppers of universities of four cities Ludhiana, Jalandhar, Patiala and Amritsar of Punjab. Respondents were selected from different genders, age groups, monthly family income groups and qualifications from these major cities having online shopping experience. A pre structured questionnaire with five point likert rating scale was used to measure these dimensions of perceived risk among online buyers of four cities. Convenience sampling method was used to collect data from sampled respondents. Principal Component analysis revealed four key factors of perceived risk in online buying. Performance risk was found as prime component of perceived risk. Influence of demographic factors on perceived performance risk was studied with the help of F ratio showing their relative significance.
Keywords: Internet; online buyer; perceived risk; dimensions; financial risk; performance risk; time risk; privacy risk; social risk; psychological risk; components.
Persuadability of Celebrity Brand Endorsements: Socio-Economic and Cultural Perspective
by Kim Anne Menezes, Suku Bhaskaran, Itika Yadav
Abstract: The article reviews celebrity endorser traits that influence brand beliefs and attitudes of upwardly mobile young and educated customers in urban India. The study draws information from intercept and electronic surveys, in-depth unstructured interviews of a subset of individuals not captured in the surveys, and content analyses of information transcribed from television advertisements. Findings from these three sources were reviewed, analysed and triangulated. Results reveal that customers in India, unlike those in developed countries where extant studies have predominantly been conducted, have greater proclivity to source attractiveness and source likeability. In contrast to customers in developed countries, source credibility is not important to customers in India. Celibrity endorsements are not highly persuasive in fostering brand beliefs and attitudes but it fosters brand recognition and brand recall. Celebrity traits that are important to target customers and the persuadability of celebrity endorsements are significantly different across market segments and countries.
Keywords: celebrity endorsement; source attractiveness; source likeability; source credibility; persuadability; belief transferance; culture; India.
Corporate Citizenship and Leadership Styles for Sustainable Development: Study in India
by Neena R. Jain, Irfan A. Rizvi
Abstract: Corporations are recognising that building economic growth along with addressing a range of social and ethical needs is imperative to promote sustainable development and all-round prosperity of the business. With the statutory mandate on social spending in India, corporates need to move beyond the fragmented contributions to focusing on inculcating values of global citizenship. Corporate Citizenship is acquiring a central role, one which urges corporates to take a holistic approach to managing their economic, legal, ethical and discretionary responsibilities towards different stakeholders, in order to make a sustainable impact. However, such strategies are largely top driven and there is an inadequate focus on the role that leaders have and their styles that influence percolation and implementation of these decisions at various levels. This study is directed towards understanding the impact of leadership styles on corporate citizenship- an interaction which will lead to sustainable consequences. The paper presents future agenda for understanding the relationship between these critical phenomena based on certain propositions. This study in the Indian context could have relevance to the emerging market economies, especially the South Asian economies.
Keywords: corporate citizenship; stakeholder management; corporate social responsibility; transformational leadership; transactional leadership; India.
Relationship among Gold Price, Exchange Rate and Current Account Deficit-A study in Indian context
by Raman Preet Singh, Nawal Kishor
Abstract: This study attempts to investigate the causal relationship between Gold price, Exchange rate and Current Account Deficit (CAD) on the basis of time series data for fourteen years from 2002 to 2016. In recent days gold has attracted the attention of economists, researchers, policy-makers and common man. There is a general view that recent Current Account Deficit (CAD) is attributed to mainly gold import only as crude oil price has fallen considerably. It is with this backdrop, this article tries to unveil any dynamic, if exist, between gold price and Current Account Deficit (CAD) applying Augmented Dickey Fuller (ADF) Test and Phillips-Perron (PP) Test which are used to test the stationarity of time series data and Block Exogeneity Wald Test to establish the causality relationship among them. On the basis of quarterly observation for the aforesaid period, it has been found that these three variables are stationary of order one and the study further found the existence of bi-directional Granger Causality between Gold price and Current Account Deficit (CAD), which is running from Gold price to CAD and vice-versa. The findings of the study have significant implication for Indias economic policy and facilitate the Government to make strategies to reduce the Current Account Deficit (CAD).
Keywords: Price; Causality; Current Account Deficit; Unit Root Test.
Community risk management by mining MNEs: Managing local communities in Armenian mining
by Jacob Taarup-Esbensen, Suren Movsisyan
Abstract: Using data collected during extensive fieldwork and interviews with local communities, non-governmental organisations and mining multinational enterprises (MNE) managers, we explore how MNEs practice community risk management within the Armenian mining industry. We start by conceptualising local communities as communities of place (CofP), which are directly impacted by mining activities but have few resources available to them, and communities of interest (CofI), which are outsiders with an interest in mining projects and with the resources to create uncertainty about a given project. We argue that community risk can be seen as a precursor to financial, political and cultural risks described in the MNE risk management literature, and that both types of community can expose the mining MNE to risks, either individually or in unison. Our empirical findings also show that mining MNEs focus on mitigating community risks in the initial phases of their project but later, when the impact on the community is perceived to be highest, use fewer resources. Our interpretation is that the objective of the risk management practice is to reduce community risk by committing resources to CofP for as long as there is a possibility that they will form lasting partnerships with CofI, which has the potential to pose a greater threat.
Keywords: community risk; mining MNE; risk management; Armenia; liability of outsidership; communities of place; communities of interest.
Entrepreneurial Motivation: The Impact of Cultural Capital on the Who is motivated
by Warren Lloyd
Abstract: Almost all definitions propose entrepreneurs as especially motivated and talented individuals. Therefore, understanding and explaining the psychological forces within the individual that motivates them is highly desired. This paper is intended to investigate studies on entrepreneurial motivation to identify an effective theory that enables recognizing who could potentially become an entrepreneur, rather than how and why individuals choose to become entrepreneurs. Of the theories discussed, McClellands Achievement Need (n-ach) is accepted as the most apt in this review. It is further noted in this paper that in defining and explaining this need, and its influence on entrepreneurship, an understanding of the impact of an individuals culture, beliefs and attitudes, encompassed in their cultural capital, is required. Primarily by evaluation of literature in this report, strong evidence indicates and supports the distinctive impact of culture on entrepreneurial motivation. In conclusion, a framework is proposed for further study investigating the impact of cultural capital on n-ach in home and immigrant entrepreneur cultural groups.
Keywords: Entrepreneurial Motivation; McClelland Achievement Need Theory; Opportunity & Necessity Entrepreneurship; Entrepreneurial Intent; Cultural Capital; Cultural Groups; Immigrant Entrepreneurship.
The interplay between institutional factors and experience as determinants of employment growth in South African SMEs
by Boris Urban
Abstract: Past studies report that idiosyncrasies in the institutional arrangements of emerging economies contrast with those of developed market economies. The paper empirically examines the influence of the regulatory, normative and cognitive institutional environments on enterprise employment growth in South Africa (SA). Rather than merely testing the institutional and enterprise growth link, a more nuanced approach is adopted to show how the different institutional dimensions interact with experience to increase overall employment growth. 177 SMEs in SA are surveyed, with a focus on the manufacturing sector, as it holds promise of creating jobs. Results support the hypotheses where each of the institutional dimensions as well as experience, explain a significant amount of variance in employment growth. The study has contextual relevance, as SMEs in SA closely monitor changes in regulations as well as societal values towards entrepreneurship, when growing their enterprises.
Keywords: Institutional; regulatory; normative; cognitive; experience; employment growth; job creation; South Africa.
Income Inequality among Entrepreneurs in Ondo State, Nigeria
by Olubukola Ehinmowo, Christian Harrison, Adewale Isaac Olutumise
Abstract: The study examined the income inequality among entrepreneurs in Ondo State, Nigeria using a questionnaire based survey. Multistage sampling technique was used to select the 200 respondents and the data was subjected to descriptive statistics, Lorenz curve, Gini coefficient and Double - Log regression model.
Findings showed that 40% of the respondents spent at most 12 years in school, while hair dressing (43.5%) and fashion designing (31.5%) were the most common enterprises among the respondents. The findings also revealed that majority of the entrepreneurs earned below N200, 000 per annum. The result of the Gini coefficient (0.58) showed that there was income inequality as shown by the Lorenz curve while the regression indicated that gender, family size and number of workers significantly affected the income of the entrepreneurs.
This study is important as it recommends policies targeted at improving income as well as reducing the income inequality of the entrepreneurs.
Keywords: Entrepreneurs; Income inequality; Entrepreneurship; Globalisation; Poverty; Gini coefficient; Double – log regression; Lorenz curve; Developing economies; Africa.
UNRAVELLING THE BRAND "PATANJALI"- STUDY OF A FLOURISHING AYURVEDIC BRAND IN INDIA
by Yukti Ahuja, Shashi Shekhar, Jigyasa Sharma
Abstract: Patanjali Ayurveda Ltd. started in 2006 by the famous Yoga Guru Baba Ramdev, has become one of the fastest growing FMCG brands in India. Patanjalis proposition of low price, natural and pure and swadeshi (Indian-made) products have given the company a unique brand positioning. Packaging of natural ingredients to make medicines, ointments, biscuits, noodles, face creams and more have appealed to the Indian audience and is trending fast globally. The brand is making waves in the Indian market and has challenged many established players. The brand is has a meticulously designed marketing mix strategy which has contributed to the exceptional growth trajectory. The study focuses on demystifying how brand Patanjali scaled up in a short span of time, its business model and its strategic decisions in a fiercely competitive retail environment. A primary research was also conducted to understand the perception of Indian customers towards Ayurveda especially with respect to brand Patanjali. Apart from exhaustive study of latest reports, articles and documents an online survey was conducted across India with a sample of 223 respondents. An analysis has been done to study the impact of selected variables with respect to Ayurveda and consumer's perception towards Patanjali products across the nation. Furthermore, the study discusses the challenges faced and the future prospects of the brand.
Keywords: Branding; Ayurveda; Patanjali; Consumer Behaviour; Retail.
An Empirical Investigation of Inequality among the Self Employed Women Entrepreneurs in Informal Sector in India
by Annapurna Dixit, Alok Pandey
Abstract: The present study takes into account self-employed women entrepreneurs engaged in running vegetable/fruit/flower/fish, beauty parlour, boutique, stationary/gift/toy, general store, cosmetic/bangle, grocery store, tea/cold drink/egg/pan, cloths /garment and others. Based on 935 women entrepreneurs Gini coefficient and Theil index have been the highest for those women entrepreneurs who are engaged in Tea/Cold Drink/Egg/Pan business and the lowest for those engaged in Vegetable/Fruit/Flower/Fish. Subgroup indices of General Entropy and Atkinson for economic activities shows that GE(-1) is the highest for and district wise general stores, GE(0) is the highest for beauty parlour, GE (1) is the highest Tea/Cold Drink/Egg/Pan and GE(2) is the highest for cloth/garments. Subgroup indices of Atkinson A (0.5), A (1) and A (2) for economic activities are the highest for Tea/Cold Drink/Egg/Pan business, Vegetable/Fruit/Flower/Fish and for beauty parlour business. It is worth mentioning here that within-group inequality is more than the between-group inequality.
Keywords: Inequality; Gini Coefficient; Theil Index; Women Entrepreneurs; Self Employment.
Capital budgeting practices of SME in Baden-W
by Bernd Britzelmaier, Ulrike Pöpplow, Lars Andraschko
Keywords: Capital budgeting; Investment decision making process; SME; South-western Germany; Baden-W.
A General Equilibrium Analysis of Technological Change to Cope with Environmental Degradation Affecting Product Prices
by Amarjit Gill, Afshin Amiraslany
Abstract: Adaptation is a natural way of responding to climate changes harmful impacts. As technological change plays a significant role in adaptation, this paper discusses the effects of change in technology by employing a General Equilibrium (GE) model. A two-sector, two-factor, two-country general equilibrium model is developed to analyze the interaction among environmental policy, trade, and adaptation strategy of producers (technological change). The results suggest that any technological change for adapting to the climate change negatively affects the relative price of the final goods; therefore, a small open country will have comparative advantage to export its goods and services. However, an environmental policy of increasing emissions tax will decrease the countrys exports. This study adds to the relevant literature by introducing one separate mitigation sector to the GE model to investigate both mitigation and adaptation as a solution to environmental degradation.
Keywords: general equilibrium models; climate change; technological change; adaptation; environmental degradation; business as usual.
Does Satisfaction of P2P Online Transportation Affect Consumer Willingness to Purchase Their Own Vehicles?
by Adhi Setyo Santoso, Ihsan Hadiansah, Efraim Christoni
Abstract: The discussion about the platform ecosystem in the business model literature has been growing for the past few decades. The firms that operate in this context often disrupt the incumbent businesses through disruptive innovation with a multi-sided platform (MSP) business model, including a service-based sharing economy or peer-to-peer (P2P) services. However, there is still a limited number of studies that explore the disruptive potential of those business models from a consumer behavior perspective. Therefore, based on the phenomenon of the rapidly growing P2P online transportation in Indonesia, this study analyzes the further effects of consumer behavior changes towards the ownership intention of new private vehicles because of sharing economy usage. The results of the quantitative research approach by using PLS-SEM among 216 P2P online transportation users can conclude that there are significant differences regarding consumer willingness to purchase new vehicles among users who already own private vehicles and those who do not own vehicles. For those who already own vehicles, the perceived economic benefits of using P2P online transportation decrease consumer willingness to purchase new vehicles. On the other hand, satisfaction in using P2P online transportation affects the same aspects for the users without private vehicles. Interestingly, this satisfaction does not have a significant effect toward consumer willingness to purchase new vehicles for the users who own private vehicles.
Keywords: sharing economy; peer-to-peer online transportation; customer satisfaction; future intention; consumer behavior; consumer willingness to purchase; ownership intention; disruptive innovation; disruptive potential.
Key financial performance indicators in German family firms: Findings of an empirical study
by Odile Barbe, Bernd Britzelmaier, Fabian List
Abstract: Family firms contribute significantly to the German economy since approximately 92% of all companies in Germany are family owned. In contrast to their economic relevance there is only limited research about management control in family firms in Germany. This gap led to the research question: "Which leading financial performance indicators are used by German family firms operating in the industrial sector and which factors have an influence on this selection? Based on a literature review a questionnaire was developed and an online-based survey was conducted. The results show that the participating companies still prefer traditional performance indicators. The analysis of influencing factors shows that the family influence is an important aspect that affects the selection of the respective financial indicator. Moreover, the age of the family firm is also an important aspect. Two other important factors for the usage of traditional performance indicators instead of modern value-based ones are the easy way to calculate them and that they can easily be understood by employees. Future research could focus on the further development of key financial performance indicators in German family firms and try to compare the results with other countries.
Keywords: KPI; SME; family firms; Germany; financial performance.
The Effect of Nutrition Information, Status Quo Bias, and Loss Aversion on the Health of Thais and their Consumption Behaviour: A Behavioural Economic Approach
by Peera Tangtammaruk
Abstract: A recent study shows that Thai people are showing a tendency to become obese. In 2009, the country was reported as being the second-ranked nation in ASEAN when it came to obesity. This rising trend has led to widespread concern for all of Thailands population. Seeking a way to reduce the prevalence of obesity in Thailand, we began our investigations by focusing on eating behaviour. The objective of this research was to apply ideas of behavioural economics to consumers eating habits in order to find methods which could significantly encourage people to be aware of healthier foods. We designed an experimental game model aiming to test consumption behaviours of school-age children, adolescents, university students, and working-age people. More specifically, in our experiment, each sample was offered a coupon for a free drink, which was for either a soft drink, or a healthy mixed-vegetable juice. The coupons were designed in five different ways based on nutritional information, and principles of behavioural economics, namely status quo bias and loss aversion. These five types of coupon were randomly given to each sample. The experiment found that the majority of the samples preferred sweet-tasting food and drink to vegetables. However, applying approaches from behavioural economics could, to a certain extent, make individuals more concerned about their future health and choose healthier foods. The effective implementations were coupons designed with the ideas of (1) status quo bias and (2) loss aversion, which (1) present a healthier choice as the default option, and (2) provide information on the coupon about obesity and its negative effects, respectively. To conclude, this paper experimentally proves that firstly, status quo bias can convince people to stick with the default option, and secondly, regarding loss aversion, some people are more sensitive to losses when compared to gains, in the case of health concerns. An objective take on Thai consumption behaviour, based on the idea of status quo bias and loss aversion, could be further developed as another strategy preventing people from becoming overweight and obese.
Keywords: Healthy Consumption Behaviour; Obesity; Behavioural Economics; Loss Aversion; Experimental Game.
The Use of Moving Average Trading Rules in Indonesian Stock Market
by Dedhy Sulistiawan, Felizia Arni Rudiawarni
Abstract: The development of behavioural finance stimulates the usefulness of simple trading rule. Decision biases are reflected in price movement, which is utilized by technical analysis indicators to generate trading rules. The main objective of this research is to evaluate the performance of the moving average (MA) trading rules, as a popular indicator in stock markets. The sensitivity of MA length is also examined to generate optimal return. We employ daily data of Indonesia composite index from the beginning of 1998 to the end of 2016 to examine the profitability of MA trading rule. The findings show that investors can apply MA trading rules in Indonesia stock market. Our supplementary analysis indicates that shorter (longer) MA produce higher (lower) return. The return of MA trading rules is also affected by trend. This paper contributes to trading strategy studies, particularly for stock exchanges in emerging markets. Our results recommend that selection of MA length in trading rules is important to create optimal return.
Keywords: technical analysis; trading strategy; moving average; weak-form efficiency.
Self-employment Entrepreneurial Motivation: The Case of Internal Ethnic Migrants in the Sekondi-Takoradi Metropolis
by Jacqueline Zakpaa
Abstract: This exploratory qualitative study at the micro level, sought to enrich the understanding of migrant entrepreneurship, by empirically examining the explanatory variables of the self-employment entrepreneurial motivation, of Ghanaian-born internal regional migrants, in the single host city of Sekondi-Takoradi. The study also examined the socio-demographic profile of the migrants, their status in the host community, their business profile, location and working conditions. Literature was reviewed to better understand the research phenomenon, and its theoretical framework, including the identification of the causal variables of migrant entrepreneurial motivation in host societies, just for the sole purpose of guiding the study. Using multiple case study approach, and theoretical sampling technique, 18 cases were selected for the collection of primary field data from 18 self-employed Ghanaian-born internal regional migrant entrepreneurs in Sekondi-Takoradi metropolis, through in-depth semi-structured face-to-face qualitative interviews. Data was analysed by triangulating qualitative thematic template analysis with matrix analysis. The findings revealed that the participants were motivated by nine sets of different multiple factors, but the most prominent influences on their motivation were the desire to make money, and including a post-migration factor like human capital development through learning of a trade and skills acquisition from the well-organised urban informal apprenticeship model in Ghana, which is managed by neutral master craftsmen and women trainers. Thus, the causal variables of their motivation could be attributed to the self, culture, and factors within the host society. Consequently, this study made a modest contribution to the on-going discussion on entrepreneurial motivation. It also made a moderate contribution to theory by developing a conceptual model of migrants entrepreneurial motivation in host societies, to show its various causal variables and their dimensions. The study had managerial implications, as it provided additional insights to guide practitioners, policy makers, and trainers.
Keywords: self-employment; entrepreneurial motivation; internal migrants; ethnic entrepreneurs; Sekondi-Takoradi Metropolis.
Modelling the role of personal factors as mediators in the relationship between workplace stress, motivation and job performance among Irish retail employees
by Charles John McGuigan, Karen McGuigan, Maria McGuigan, Mark Shevlin, John Mallett, Anne Tracey
Abstract: This study explores the mediating role of personal factors in the relationship between workplace stress, motivation and performance to elucidate the mechanisms through which workplace factors affect job performance. Irish retail employees (N=420) completed measures of workplace stress, motivation, job satisfaction, innovation, coping, resilience and job performance. Three alternative models were specified with the relationship between workplace factors and job performance described as either a) Direct only; b) Indirect only; or c) Both direct and indirect. Model fit for each was assessed with the Indirect only model the best fit. Results show a significant indirect effect of Workplace Stress on Job Performance through Task Orientated Coping (β = .030, p<0.05), and significant indirect effects of Work Motivation on Job Performance through Innovation (β = .046, p>0.05) and Task Orientated Coping (β = .021, p<0.05). The findings offer insight into the mechanisms by which workplace factors impact longer-term job performance.
Keywords: Job Performance; Indigenous Retailers; SMEs in Ireland; Mediation; Statistical Modelling; Workplace Factors; Personal Factors.
UNDERSTANDING WORK VALUES OF GEN Y A STUDY ON DIFFERENCES BASED ON COUNTRY OF ORIGIN, GENDER AND INDUSTRY
by Nitya Rani, Anand A. Samuel
Abstract: The purpose of this paper is to provide an understanding of Gen Y in India. A work values perspective is employed to establish the difference in work values of Gen Y from India and Gen Y from other countries. Further, gender based differences in work values of Gen Y and differences in work values of Gen Y working in Public and Private sectors in India are explored. The results of these investigations provide a comprehensive understanding of the Indian Gen Y. Findings indicate that Indian Gen Y hold relatively unique value preferences compared to Gen Y across the globe. Also, Gen Y employees in Private sector have higher expectations of Intrinsic and Extrinsic rewards than Gen Y working in Public Sector. However, there are no significant differences in work values of male and female Gen Y. These are indicative of changing gender roles in Indian society.
Keywords: Gen Y; Work values; Gender; Public and Private sector.
The Asymmetric Information Risks; between the classical financing formulas and the Islamic Financial Industry
by LAIB YASSINE, Riad ABADLI
Abstract: Asymmetric Information reflects the lack of information status among the funding (financing) institutions; which negatively affects their decisions towards the institution that is supposed to have a clear picture about its financial situation and its future strategy. Concerning the funding through the capital contribution, the information asymmetry compensation led to an increase in the transactions and the monitoring coasts. As for the debt financing institutions, the risk lies in the moral hazard, the adverse selection problems, and the credit rationing.
The objective of this paper is to highlight and to examine the Islamic Financing formulas ability to address the various problems, related to the Asymmetric Information.
Keywords: Asymmetric Information; Islamic Financing; Moral Hazard; Adverse Selection.
Fostering Indigenous Entrepreneurship amongst San People: A Case of Tsumkwe
by WILFRED ISAK APRIL
Abstract: This paper seeks to explore new ways to foster indigenous entrepreneurship amongst the San people. Policies such as the Harambee Prosperity Plan and Vision 2030 were designed to support the developmental agenda of Namibia. This study will follow an ethnographic approach, by making use of in-depth interviews, storytelling and participant observation. Combining the Western and African approaches to development is critical when we wish in improving the livelihoods of marginalised communities. Indigenous entrepreneurship is one way through which the San people can be empowered, as it has both economic and non-economic objectives. Improving the entrepreneurial propensity of the San people is important as it can aid in the development of the local communities and the overall growth of the national economy. This paper is one of the important studies in the context of indigenous entrepreneurship in Namibia. Studies with reference to indigenous entrepreneurship in terms of the San people of Tsumkwe are very few or non-existent in Namibia.
Keywords: Indigenous Entrepreneurship; Entrepreneurial Culture; Namibia; Tsumkwe; Namibia and San People.
Factors affecting labour productivity of employee in an Asian emerging market: Evidence in Vietnamese retail sector
by Le Thanh Tung
Abstract: There are few studies of labour productivity of employee in the Asian emerging markets, however, there is no empirical evidence in Vietnam. The paper aims to investigate the impact of key factors on the labour productivity of employees in the retail sector in Ho Chi Minh City, Viet Nam. The quarterly panel data were collected from 69 convenience stores in the period 2014-2015. The empirical result shows that factors such as wage, the number of employees, age of the store and the acreage of the store selling area had the positive effect and significant statistics on labour productivity. However, our study investigates that the turnover and the age of employees had the negative impact on labour productivity of employee in this case. Our result also finds the negative effects of education and labour structure of store on labour productivity of employee but these effects are not significant. Finally, we have some conclusions and implications for managers to increase labour productivity in their business.
Keywords: labour productivity; convenience stores; retail sector; wage; number of employee; age of store; acreage of the store selling area; turnover; age of employee; education level of employee; labour structure; business; emerging market; Vietnam; Asia.
VALUE CREATION AS A PICKLOCK TO UNDERSTAND BUSINESS CONTEXTS
by Marco Tregua
Abstract: Actor-to-actor interactions in SMEs are relevant and entrepreneurs need to act by leveraging relationships to achieve positive performances for their firms. This process is based on entrepreneurial competencies, entrepreneurial orientations, and a cognitive activity leading to the perception of the entrepreneur about the context where businesses take place. Understanding business contexts is even more crucial when dealing with start-ups, due to the challenges to be faced by novice entrepreneurs.
This research is based on multiple face-to-face interviews with entrepreneurs leading start-ups; the interviews were conducted to understand whether a focus on value creation can compel a driver to improve entrepreneurs competencies in depicting the network they shape and in improving awareness when carrying on a firm. Results show more insightful network representations when focusing on the processes favouring value creation; these network representations are meant as instruments to improve entrepreneurs awareness of the context and to support the decision-making.
Keywords: value creation; entrepreneurial competencies; network picture; start-ups; network horizon.
Establishment Mode Choice of Finnish SMEs in Estonia: a case study approach
by Faisal Shahzad, Tiit Elenurm
Abstract: In this article, we reveal how and why firm level and institutional distance influence the entry mode choice of Finnish SMEs in Estonia. This paper investigates the impact of firm characteristics and institutional distance on establishment mode choice decision of Finnish SMEs in Estonia. We use case study approach based on in-depth interviews with decision makers of SMEs operating in Estonia and follow-up interviews in order to deepen results of the first research stage. The results shows that formal institutional factors combined with firm level factors affect the decision of establishment mode choice in Estonia, while informal institutions have not had significant effect on choice between greenfield vs. acquisition in case of Finnish SMEs. Overall, our study contributes to a more nuanced view of choice of foreign market entry mode of SMEs and highlights future research opportunities that exist for considering strategy imitation and its implications in international business research.
Keywords: Small and medium sized enterprises (SMEs); formal and informal institutional distance; establishment mode; foreign direct investment; firm level factors; greenfield vs. acquisition.
Unlearning: A systematic literature review
by Susanne Durst, Ilka Heinze, Thomas Henschel, Nishad Nawaz
Abstract: This paper aims to provide a systematic review on the topic of unlearning (and the related concept of unlearning) to establish the current body of knowledge. Despite the growing popularity of the topic, little research so far has aimed to contribute to extant literature by providing a detailed examination that includes all aspects of unlearning. Thus to reach our aim 72 refereed articles were analysed. The findings are synthesised not only in regard to the broad concepts of unlearning and forgetting but also regarding general issues such as operationalisation, research methodology and level of analysis. Based on this a number of research questions are proposed that aim at guiding and informing future research activities. The findings contribute to a more holistic understanding of the topic and complement extant literature on unlearning.
Keywords: Unlearning; Forgetting; Knowledge Management; Change Management; Strategic Management; Learning; Innovation; Systematic Literature Review.
Trade Performance between India and BIMSTEC Countries Pre- and Post- Formation of Bloc
by Jasdeep Kaur Dhami, Gurpreet Kaur, Sangram Singh
Abstract: The main aim of this paper is to analyse the trade performance of BIMSTEC nations during the pre- and post-era with the help of various trade indices. BIMSTEC was established in 1997 for taking care of economic interests, and emerged from India's Look East policy and Thailand's Look West policy. India had better export-import complementarity with Thailand and judicious with other BIMSTEC countries. After the formation of BIMSTEC, trade prospects have been open for other economies such as Sri Lanka, Nepal and Myanmar also. Indias export diversification to other BIMSTEC nations has been increased during the period of 1998 to 2015 i.e. after the formation of bloc. In case of imports moderate rate of diversification has been noticed during the period of 1998 to 2015. There is a scope of trade with BIMSTEC member nations. Results stated that the economic situation of BIMSTEC countries has been very promising. This may be beneficial for the South-East Asian region for establishment their trade relations with rest of the world.
Keywords: BIMSTEC and India; Trade; Imports; Exports; Trade indices.
Factors Impacting the Marketing Consulting Services in Emerging Markets-An Empirical Study in Vietnam
by Thomas Tanner, Phong Nguyen, Trang Bui, Lam Nguyen
Abstract: Purpose The purpose of this mixed methods paper is to focus on exploring and analyzing the influencing factors on the development of marketing consulting services in Vietnam and thus proposing some practical solutions to promoting this service.rnrnDesign/Methodology/Approach - The qualitative methodology is used to explore, adjust and provide observation variables for measuring factors. The quantitative methodology is used to test the research model to determine the relationship between factors that affect the development of the marketing consulting services. The study is based on a scale for measuring factors and the qualitative results are adjusted to business context in Vietnam.rnrnFindings Using correlations and multiple regressions statistical analysis, the study found that recognition of need, affordability and willingness to pay of service receiver, capability and ability of provider, perceive value of service, and source of information on service providers are correlated with development of marketing consulting services.
Keywords: Marketing Consulting Services; Perceived Quality; Perceived Value; Recognition of Need; Vietnam.
DEVELOPMENT STRATEGY OF BANDUNG CREATIVE CITY THROUGH
THE PERFORMANCE IMPROVEMENT OF CREATIVE INDUSTRIES
by Mohammad Benny Alexandri, Samun Jaja Raharja
Abstract: In 2015, UNESCO declared Bandung City a Creative City. The development of Bandung
as a Creative City has been studied and formulated in its Creative City Road Map which sets six indicators: creative policy; creative infrastructure; law, ethics and intellectual property rights; creative support system; creative capacity and economic contributions.The study objectives are to map the performance and competitive advantage of small or medium enterprises in the creative industry in Bandung City, Indonesia. Thus, this study employed SWOT analysis on creative industry businesses from 30 districts in Bandung City, Indonesia.
Keywords: Creative City; creative industry; indicator.
A comparative analysis of Mergers and Acquisition (M & A) in Indian & international pharmaceutical industry with unique case-lets
by Syed Naser, Som Sekhar Bhattacharyya
Abstract: Mergers and Acquisition (M & A) is a potent method for firms to secure inorganic growth but it is also beset with challenges. Pharmaceutical industry has a unique nature due to higher involvement of science in product development and requires firms to develop distinctive and complex capabilities. In this study the authors undertake a comparative study of different pharmaceutical cases to gather perspectives on M & A practices in Indian and international pharmaceutical industry. Frameworks developed by Bower (2001) & Dyer (2004) are applied to different M & As to understand their applicability and use in Indian & international pharmaceutical contexts. The authors found that Indian firms undertake M & A to reduce R & D investments, to secure strategic resources and to expand product & market reach. Pharmaceutical firms from developed countries mostly acquire firms from developing market for sake of manufacturing know how and for securing host market.
Keywords: Mergers and Acquisition (M & A); Indian pharmaceutical industry; International pharmaceutical industry; Business performance.
Identification of Factors for the Success of the Sri Lankan Independent Inventors
by SWSB Dasanayaka, HGGK Rangajeewa, Omar Al Serhan
Abstract: Sustainable economic growth is, in theory, positively related to Schumpeterian creative destruction, which occurs due to innovation, technological change, and entrepreneurship - factors that can transform inventions into marketable innovations. Sri Lanka has produced many independent inventors with high technical merit, and many of have won awards in international competitions and exhibitions. However, the country remains heavily dependent on the import of technologies. By improving the local innovation system, the country may be able to achieve a higher level of economic success. In this study, we investigate award winners of the Sri Lanka Inventors Commission (SLIC), who likely have the highest potential to commercialize their inventions. We conduct a detailed survey of award winners demography, inventive, and commercialisation aspects, and find that around 75% of the local independent inventors have not achieved commercial success due to insufficient support from external parties. Based on our findings, we make recommendations for inventors, national entities such as the SLIC, and supranational entities interested in promoting economic development regarding the proper use of the invention process and support for the facilitation of commercialisation of these inventions.
Keywords: Invention; Innovation; Commercialisation; Technology Management; Economic growth; Sri Lanka.
Managing Shareholders in Turbulent Times: Evidence from Indian Stock Market
by Timcy Sachdeva
Abstract: Efficient-market hypothesis (EMH) theory is a well recognised postulation in financial economics. Changes in the stock prices during the turbulent times provide an opportunity to test the validity of EMH. Unexpected events such as stock market crashes, political events, earthquakes, terrorist attacks etc. put more stress on the financial markets and efficiency fails to explain market anomalies, including speculative bubbles and excess volatility. In efficient market the stock prices are expected to behave differently in response to such events, as the new information will have different economic impact on individual firms as well as shareholders wealth. Contrary to rational expectations, market participants act irrationally in favor of potential arbitrage opportunities. This paper investigates the pricing behavior of Indian stock market with the sudden changes in high denomination currency notes on shareholders wealth. Using event study methodology, the paper analyses the major political event that had strong economic implication on market participants. The results indicate insignificant negative abnormal returns to shareholders of Indian companies.
Keywords: Event Study; Efficient-Market Hypothesis; Demonetisation; Unexpected Events; Stock Market.
Strategic Autonomy: A Step towards Scale Development
by Harpreet Singh Bedi
Abstract: Autonomy is a major construct in business management. It boosts innovation, increases firms competitiveness, enhances the belongingness of employees, promotes the launch of entrepreneurial ventures and consequently improves business performance. Though the importance of autonomy is widely recognised, but, research in the field of entrepreneurship and strategic management has often been impeded due to non-availability of the firm level inventory of strategic autonomy construct. This study aims to examine the nature of the strategic autonomy construct. A battery of six items has been identified and examined for face validity, content validity, factor structure, dimensionality, internal consistency and convergent validity. The proposed inventory has also been examined in different organisational contexts and found to be valid, reliable and parsimonious. Chi-square test of independence assesses the association of strategic autonomy construct with the diverse characteristics of an organisation. Findings reveal that the strategic autonomy construct is either weakly or not significantly associated with the age, size, type and nature of an organisation. The study has practical applications and theoretical implications for entrepreneurs and academicians.
Keywords: Autonomy; Structural Autonomy; Strategic Autonomy; Scale Development; Autonomy of individuals; Firm-Level Autonomy.
Poverty Viewed from the Perspective of Domestic Production in Yogyakarta: The Solow Growth Model Approach
by Suripto Suripto, Firmansyah Firmansyah, F.X. Sugiyanto
Abstract: This aim of this study was to determine the impact of human capital variables on the probability of poor families. The research was conducted based on the data collected in SUSENAS in Yogyakarta analyzed using logit model and estimated using Maximum Likelihood Estimator (MLE) method. The number of data was 3,606 families. The result showed that the cost variable of disease prevention (BPP), scholarships (BP), food security (JP), health insurance (AK), average length of schooling (RLS), and cost for non-formal education (BPN) affect and is statistically significant to poverty status in 2013 at 5 percent significance. Also, Calorie consumption per capita (KK) and protein consumption per capita (KP) affect on poverty status at 10 percent significance in 2013.
Keywords: Solow Growth Model; Poverty size; Rural Poverty; Logit Model.
Corporate governance, foreign operations and transfer pricing practice: the case of Indonesian manufacturing companies
by Arie Pratama
Abstract: This research investigated several factors that contribute to international tax avoidance using the transfer pricing mechanism for manufacturing companies listed on the Indonesian Stock Exchange. The factors were: (1) foreign sales; (2) corporate governance, measured by the size of the board of commissioners and percentage of independent commissioners; and (3) foreign investor ownership. The size of the company was employed in this research as a control variable. This exploratory research employed quantitative methods. Using purposive sampling, data were obtained from 27 manufacturing companies financial statements over a three-year period (20132015). The data were analysed using binary logistic regression. The results show that the size of the company positively affects transfer pricing, as does foreign ownership, but foreign sales do not. The size of the board and percentage of independent commissioners negatively affect transfer pricing.
Keywords: corporate governance; foreign sales; foreign ownership; transfer pricing.
INFLUENCE OF MOMENTUM EFFECT ON BRAND ADVOCACY AND BRAND LOYALTY IN SOCIAL NETWORKING SITES
by Rahul Sharma, Rajesh Verma
Abstract: Social networking sites offer a platform to create an online presence for a brand and marketers, creating a direct interface to reach customers and to create effective communication. Online social networks provide an easy opportunity for people to consult peers, share an opinion and pass on information related to brands among peers. This basic idea of sharing information by consumers with other consumers lead to the formation of momentum effect. Momentum effect occurs when people use brand-related content/data as a reference point in doing conversations in any form on online social networks. The purpose of this research was to study whether the momentum effect on social networking sites influences brand loyalty and brand advocacy. It was found that momentum effect influences both brand loyalty as well as brand advocacy, but the influence on brand loyalty was more. Sharing of brand-related communication by a network of friends in online social networking sites help in the creation of more brand loyalty than brand advocacy.
Keywords: Momentum effect; social networking sites; brand loyalty; brand advocacy.
An Examination of Longitudinal Study Typologies for Business Research
by Stefan Linnhoff, Katherine Smith, L. Murphy Smith
Abstract: Longitudinal studies have become a standard methodology for academic research that examines issues in the ever-changing, complex global world of business. In business research, longitudinal studies are particularly effective for measuring how business policies and strategies affect the performance of a business firm over time. The literatures call for more longitudinal studies runs up against a rather incoherent and potentially confusing use of terminology and typology undermining the accessibility for business academics and practitioners who are not familiar with this area. This study provides a thorough review of longitudinal study typologies, including an annotated, illustrated methodological framework integrating the key facets of observational longitudinal studies. Although the framework is generalizable beyond the behavioral or business context, it refrains from dealing with the specific nuances of areas such as medicine. This review and framework should be beneficial to academics and other researchers in properly describing, setting up, and understanding longitudinal studies.
Keywords: longitudinal studies; observational longitudinal designs; cohort studies.
A study on the individuals online shopping continuance intention on Amazon.in for consumer electronics
by Smita Dayal, Deelip Palsapure
Abstract: Purpose- The purpose of this paper is to study the factors that contribute to an individuals online shopping continuance intention on Amazon.in with respect to consumer electronics. It aims to examine the effects of marketing strategies, service quality, relative price, advantage, trust, through a path model derived conceptually from the Expectation Confirmation model and Technology Adoption model.
Design/methodology/approach- An online survey, based on convenience, was conducted on online shoppers who have purchased consumer electronics from Amazon.in. The data, collected from 146 respondents, was analysed on SmartPLS 3 to test the proposed model and the hypothesis.
Findings- Results suggests that marketing strategies drive perceived price advantage which in turn drives perceived service quality. Perceived service quality leads to satisfaction which in turn leads to expectation confirmation and buying intention. The research also establishes that perceived ease of use affects perceived usefulness whereas perceived usefulness affects the buying intention directly. The research also establishes a positive relationship between perceived price advantage and perceived ease of use on trust.
Research limitations-The research is based on a rather small sample size of 146 respondents though it does consider both genders almost equally and all relevant age groups to provide a clear understanding. The data was collected using non-probabilistic, convenience-based approach.
Practical implications- The study will help online marketers in devising effective marketing strategies and building customer loyalty which is rather low in this era of online shopping.
Originality/value- The research contributes to enhancing the understanding of the drivers of online shopping continuance intention with regards to consumer electronics on Amazon.in. The study also highlights the role of marketing strategies used by online retailers that indirectly drives satisfaction and buying intention.
Keywords: expectation confirmation theory; technology adoption model; continuance intention; SmartPls 3; service quality; trust; online shopping; social media marketing; consumer electronics; perceived ease of use; perceived usefulness; relative advantage; buying intention; customer loyalty.
Business Internet Use in Small, Family Owned and Managed Hotels in Scotland
by Claire Seaman
Abstract: Tourism and thus hospitality is a key strategic priority for the Scottish Government which in many communities is still highly dependent on small, family owned and managed hotels. This exploratory study is designed to initiate dialogue and to explore the complexity of the operating environment and perceived business support needs in the ever-more complex and dynamic e-environment. The development of the internet has altered the manner in which the hospitality industry operates; offering global marketing opportunities, open-source review sites and perhaps crucially the opportunity to interact with and sell directly to the consumer. Results indicate that the positive aspects of the internet were perceived to outweigh the disadvantages; however, the learning challenges identified were primarily around the effective management of on-line resources and global reputation. The vital role of small family owned and managed hotels in the development of a coherent tourism offering for Scotland is acknowledged here and can be additionally allied to geography. There are areas in Scotland, and indeed much of the world, that draw tourists yet are not sufficiently populous to host hotel chains or even specialist boutique hotels. In part, the reason tourists are drawn to those areas is precisely their relatively undeveloped nature, yet this creates a challenge for business learning within small independent hotels.
Keywords: Internet; hotels; family business; globalisation; rural business.
Locational Factors and the Reindustrialisation Process in USA; Reshoring from China
by Behrooz Gharleghi, Asghar Afshar Jahanshahi, Tobias Thoene
Abstract: The Unites States, a country that was once a manufacturing powerhouse, experienced a decline in its manufacturing sector after 1980. One main beneficiary of this decline was China, which was able to absorb roughly 2.4 million US manufacturing jobs between 2001 and 2013. Since 2010, however, it has often been discussed that reindustrialisation in United States is potentially occurring, largely caused by the reshoring of US industry from overseas. Hence, the main goal of this paper is to analyse the influence of locational factors on the reindustrialisation process in the United States through reshoring from China. The research design is an embedded single-case study. The applicability of traditional location theories and their locational factors are also examined here. This paper evaluates the development of labour cost, agglomeration effect, land cost, and raw material cost over recent years as factors encouraging the reindustrialisation process. Transportation cost and the impact of political institutions offer contrasting pictures. While high intermodal freight costs in the US and an appreciating Yuan promote the reindustrialisation process, low ocean shipping costs and enormous business incentives in China weaken the positive effects. All in all, it is concluded that most locational factors have changed in favourable ways for the United States and thus made manufacturing in the United States comparatively more attractive. This paper adds to the literature by examining the locational factors in the reindustrialisation process through reshoring from China to the US. This is done via an extensive literature review and analysis of historical data.
Keywords: China; Reindustrialisation; Reshoring; USA.
Cross-border Acquisitions and Institutional Distance: Does Country Connectedness Matter?
by Kun (Michelle) Yang, Vigdis Boasson
Abstract: A cross-border acquisition involves not only overcoming the barriers of geographic distance but also institutional distance (ID). Although the existing literature has devoted considerable attention to various aspects of ID separately, there is little understanding of the potential interactions between the formal and informal aspects of ID. We examine the effects of these two aspects of ID simultaneously on cross-border acquisitions and test their interactions. Meanwhile, we study the traditionally neglected country-connectedness factor and examine its impact on the relationship between ID and cross-border M&As. Our results show that the formal and informal institutional distances do not have the same negative impact on the magnitude of cross-border M&As and that the country connectedness plays a vital role in influencing cross-border acquisitions and shortening ID between the dyadic countries. Our findings provide strategy implications for corporations engaged in cross-border acquisitions.
Keywords: cross-border acquisitions; institutional distance; country connectedness; formal and informal institutions.
CASE STUDY OF A SUCCESSFUL ENTREPRENEUR IN THE HOTEL INDUSTRY IN GHANA: LESSONS FOR AFRICAN BUSINESSES.
by Ben Honyenuga
Abstract: This paper presents a case study of a successful entrepreneur in the hotel industry in Ghana. The purpose is to document the opportunities and challenges as well as to celebrate the successes associated with indigenous African businesses and entrepreneurship. This is a case study research and due to the nature of the study a qualitative inductive approach was adopted and data was collected using key informant interviews coupled with participant and non-participant observations. The contribution of this paper lies in the lessons that could be drawn by current and future entrepreneurs and provides opportunity for future research on African businesses and entrepreneurship.
Keywords: African business; Entrepreneurship; Hotel industry; Hotel business; Indigenous business.
The Soft and Hard sides of the Sharing Economy: A discussion of Marketing, Financial and Sociocultural aspects
by Yioula Melanthiou, Loukia Evripidou, Epaminondas Epaminonda, Marcos Komodromos
Abstract: This paper discusses three aspects of the sharing economy: the marketing aspect, the financial aspect, and the sociocultural aspect. The discussion of the marketing aspect suggests that mindful consumption and advances in technology have made sharing economy possible and increasingly popular. This has modified consumption patterns, particularly in the tourism industry, and has changed traditional marketing channels. It is further suggested, that the increasing prevalence of sharing economy practices is directly linked to increases in revenue and improvements in customer welfare and job creation. Moreover, sociocultural characteristics of societies have also been linked to the provision and use of sharing economy. More specifically, attitudes towards innovation, sharing, trust and environmental sensitivity have been identified as sociocultural factors that are expected to influence the provision of sharing economy services, and individualism-collectivism, uncertainty avoidance, power distance and the Internet appear to be key behaviour determinant variables.
Keywords: sharing economy; collaborative consumption; marketing; societal; financial; digital revolution; platforms.
The Influence of Human Rights Indicators on Foreign Direct Investment (FDI)
by Irene Goll, Abhijit Roy
Abstract: ABSTRACTrn This study examines the relationship between a countrys respect for human rights and the foreign direct investment (FDI) it attracts. It addresses the questions of whether a nations respect for human development, progress and freedom are a determinant of investment in the global economy. The study uses cross-sectional data from public sources including the World Bank and UNCTAD for 117 countries. Hierarchical regressions were used to analyze the data. Countries with greater institutional advancement (i.e., those that encouraged voice/accountability and those that contributed to political stability and the lack of violence), as well as those with greater economic (lesser corruption and greater labor freedom) and non-economic human development outcomes (such as opportunities for human rights) were shown to attract greater FDI. Furthermore, countries with greater global competitiveness also attract more FDI for those that are innovation and efficiency driven, but not for those that are factor driven. The managerial and public policy implications are also provided.rn
Keywords: Human Rights; foreign direct investment; FDI.
Analysing Profitability and its Determinants in Maharatna Enterprises in India: A Panel Data Approach
by Krishna Singh, Debasish Sur
Abstract: The present paper attempts to analyse the profitability of the Maharatna CPSEs in India using panel data analysis approach during the period 2002 to 2014. Return on capital employed (ROCE) was used in this study as the profitability measure. The study revealed a wide variation in the level of profitability across the Maharatna companies. The stationarity of the ROCE was checked through four types of panel unit root tests. The results obtained in these tests showed that the data of ROCE in all the Maharatna companies were stationary in nature. A fixed effect regression model was applied in analysing the determinants of profitability of the Maharatna companies.
Keywords: Profitability; Maharatna Companies; ROCE; Stationarity.
Using multivariate analysis to understand the youth socioeconomic insertion in Morocco
by Chafik Bakour, Riad ABADLI, Mohamed Yassine Abahamid
Abstract: Because of its multidimensional nature, the youths integration process is highly complex. The success of any youths integration policy must be based on effective strategies for young people to explore and exploit the various opportunities and protect against various threats. In this paper we mobilize the statistical tools of multivariate analysis to highlight the issue of the insertion of young people using two approaches: First the inertia based on factorial analysis techniques, this approach develops a score to measure and summarize the socio-economic conditions of insertion of young people, then we will use the algorithm of hierarchical classification that will allow us to bring together young people in socio-economic class to seize their heterogeneity, and facilitate the targeting of the most disadvantaged. The analysis helped to highlight the plight of young Moroccans and seize the structural nature of the barriers that undermine their socio-economic integration. The rate of young people in difficulty of insertion is very large at height of 48% reflecting the need for immediate action and development of universal and structural solutions to address this alarming situation. However, the classification that we have undertaken highlighted a particular subclass of young people who suffer from an extremely strong exclusion what makes the point about the difference required in the treatment envisaged during the development of public policies; such a class requires attention privileged about other young people who find themselves in a situation of vulnerability. Schooling, access to the means of information and communication, the exercise of parallel activity especially sport and reading, good health practices and knowledge are factors that play the major role in the integration process. The analysis made the point also on the process of reproductions of the inequality that characterizes Moroccan society.
Keywords: Approach inertia; factorial analysis; ascending hierarchical classification; socioeconomic integration of youth.
AN ECONOMETRIC ANALYSIS OF THE UNDERGROUND ECONOMY AND TAX EVASION IN KUWAIT
by Awadh Gamal, Jauhari Jauhari, ,. K.Kuperan Viswanathan
Abstract: Up to now, no individual study on Kuwait with respect to the underground economy and tax evasion has been conducted using the recent adjusted form of Currency Demand Function Model (CDFM) before. This paper estimates the size of underground economy behind tax evasion from 1991: Q1 to 2010: Q4. It applies the Zivot-Andrews (ZA) procedure for the stationarity analysis, and Gregory-Hansen (GH) long run cointegrating technique for estimating the underground economy based on the adjusted currency demand function approach. While the General-to-Specific technique is used to estimate the short-run error correction model. Toda-Yamamoto test is also used to explore the causal relationship between the underground economy and the non-oil tax revenues variable. It finds that the averaged sizes of the underground economy and the tax evasion to the official Gross Domestic Product (GDP) in Kuwait constituted about 24.95%, and 2.83% respectively.
Keywords: Underground Economy; Tax Evasion; Stationarity with Structural Break; Gregory-Hansen Cointegration Test; Adjusted Currency Demand Function Approach; Toda-Yamamoto Test.
Human Resource Management and character building: Route to business sustainability
by DHIRAJ A., MANOJ JOSHI, ASHOK KUMAR
Abstract: Apparently, the western and eastern theories of Human Resource Management (HRM) uncover a gap in the hypothetical learning in regard of human asset improvement through Character building. Further research is required in building a down to earth structure on portraying character and clarifying its progression towards sustainable business development. This research study presents a logical model, which explains the connection amongst character and HRM. The goal of this research paper is to investigate what character implies, and how it could be assessed through a methodological study? The layout of this paper is reflective and expressive. Character is characterised as the sum total of the bend of a persons mind; greater part of the generally tenacious good qualities a man has that consolidates to frame his genuine character. For any organisation to grow and sustain, human resource department should maintain a systematic training methodology focused on character building with continuity.
Keywords: Business; Character; Character building; Character merits; HRD; Human resource development; HRM; Human resource management; Sustainable; Training; Volunteer.
Promoting Informal Businesses in Africa: Insights from an Entrepreneurial Journey in Mafalala: Mozambique
by WILFRED ISAK APRIL
Abstract: Background: Under the colonial rule the Portuguese with little education and relative small income colonised Mozambique. Even at independence the country was unable to witnessed significant growth due to the Marxist dictatorship. This is evident in a very popular neighbourhood called Mafalala in Maputo: Mozambique where changes appear to be minimal after independence.
Purpose: This chapter will give an exploratory account of entrepreneurial initiatives of the people in the neighbourhood of Mafalala. In addition the chapter will highlight some of the major milestones which the communities achieved in this twenty first century.
Methodology: The chapter utilises primary data mainly from participant observation, life stories and interviews with the communities of Mafalala.
Conclusion: It is clear from this study that the people of Mafalala have the strong desire for self-sustenance and desire to rebuild their community and improve their livelihoods. Without a doubt a lot needs to happen, but the people of Mafalala are willing to take that first step in the right direction.rnrn
Keywords: Entrepreneurial Journey; Informal Businesses; Africa; Mafalala and Mozambique.
Are small women entrepreneurs resilient? Highlighting the roles of entrepreneurial competencies and motivation.
by Fanny Adams Quagrainie
Abstract: Entrepreneurial resilience (ER) of small business is seen as a viable developmental strategy. However, our understanding of the dynamics of ER in relationship to entrepreneurial competencies (EC) and how this relationship relates to entrepreneurial motivation (EM) remains limited in small women entrepreneurship literature. The objective of this study is to examine the relationship between ECs and ER and how the relationship is mediated by EM. Using convenience sampling and questionnaires, data was collected from 373 women in Tema. Multiple regression was used to analysis the data. While the findings indicate that the women possess conceptual, business management, personal and human relations competencies, business management and human relationship competencies are not associated with ER whilst EM partial mediated the relationship. The study concludes that small women entrepreneurs are capable of creating resilient businesses if they are willing to equip themselves with the appropriate ECs irrespective of motivators that informed their entrepreneurship. The paper has implication for both policy makers and business practitioners.
Keywords: entrepreneurial competencies; resilience; motivation; Ghana; small women entrepreneurs; embeddedness.
Special Issue on: Emerging South Asia in a Globalised World
India an Emerging Higher Education Hub for South Asian Countries: Globalisation and Internationalisation essential keys for Growth of South Asia
by Kanupriya Misra Bakhru
Abstract: Higher education can form the key that can respond to the changes brought by globalisation for emerging South Asia in terms of sustainable growth, poverty reduction, competitiveness and job creation. Even though South Asia is witnessing an exponential growth, there is a dismal picture of employability and quality of education here. There is a need for change. India being the biggest contributor for growth of South Asia, should take the lead in higher education. India is the most preferred destination for foreign students from South Asian countries, there is a clear opportunity for India to establish an educational hub in India for South Asian Countries. The paper examines the current scenario of higher education in South Asia and particularly in India. Notable trends, internationalisation and the future possibilities that would transform higher education in India and emerge it as an Educational Hub for South Asia have been discussed.
Keywords: Globalisation; Internationalisation; Education Hub; Higher Education; India; South Asia.
Has Trade Improved from SAPTA to SAFTA? Evidence from the Gravity Model
by Kumar Gaurav, Nalin Bharti
Abstract: Studies show that South Asia is one of the least integrated regions in the world. The wave for regional economic integration in this region commenced with the creation of the South Asian Association for Regional Cooperation (SAARC) in 1985. In order to increase trade and economic integration among the South Asian economies, SAARC Preferential Trading Arrangement (SAPTA) was commenced in 1993 and South Asian Free Trade Area (SAFTA) in 2004. With this background, this study is an attempt to evaluate the effects of SAPTA and SAFTA on the member countries intra-regional trade based on the augmented gravity model. The results confirm that SAPTA as well as SAFTA have not increased the members intra-regional trade. There is thus, need to boost trade among South Asian nations by trade facilitation measures, reducing non-tariff measures (NTMs), pruning unnecessary sensitive-list, lessening strict rules of origin (RoO), making export-basket complementary and by resolving geo- political tensions.
Keywords: South Asia; regional economic integration; augmented gravity model; trade facilitation; NTMs; sensitive list.
A Study on Relationship between Leadership Style and Conflict Resolution Strategy in Sustainable India
by Kanika Garg, Mridula Mishra
Abstract: Conflict in organizations is often avoided and suppressed because of its negative consequences and to seek to preserve consistency, stability and harmony within the organization. The study examines the Conflict resolution Strategy among Public sector bank manager and also examines the relationship between leadership style and Conflict Resolution Strategy among Public sector bank manager. The data has been collected from the 25 Managers working in the Public sector bank. In order to attain the objective the descriptive statistics has been used. The Study found that Managers respond high on withdrawal conflict resolution strategy. The Study also found that Managers of Public sector bank who were working as a managerial position fallen in Team leadership style and they all have very high potential to complete their task and they are using Withdrawal conflict resolution strategy to resolve the conflict in the Bank.
Keywords: Leadership Style; Conflict Resolution Strategy; Withdrawal; Managersrn.
Why India Still Fighting For First FDI Receipt Country?
by REENU KUMARI, Anil Kumar Sharma
Abstract: Recently, China and India have outstanding economic progress but still China growing more than India so that everyone have curiosity to know that what is the reason behind the India behind the China. Thus, this paper have two main objectives: first, to explores the major reasons for the variation between china and Indias FDI inflows. In this section discussion five main reasons which affect to the variation of China and Indias FDI inflows. These five reason were round tripping, disparity in policy and non-policy determinants of FDI; value of definition of FDI is different, changes in policies and schemes and Freedom and obstacles also matter; second, the examines the determinants of FDI which affect to the China and India FDI inflows for the period of 1990-2014. Using the OLS method with unit roots test to find out determinants of FDI inflows in both countries and it was found that China has much higher FDI inflows as compare to India FDI inflows it may be due to larger domestic market and they are concentrating on the manufacturing sectors. Although, India had benefits cheaper labor cost and lower country risk. Large domestic market size of any country attracts to the FDI and the present study found that evidence about China is better performing in pulling FDI against the other developing countries (like India). Moreover, at last this paper shows that comparatively table which reveal that impact of determinants of FDI in China and India. This paper concluded that China is first highest FDI receiver country and India is second highest FDI receiver country. Indian government still racing and fighting for the first place as FDI receiver but it is not possible till government of India will not take/adopt some economic and industrial reform. (E.g. India should be trying manufactured most of the products in India). Although, for reduce of above gaps Indian companies are following the slogan of Modi government such as Make in India. It means India try to do make a better in manufacturing sectors though the most of products should be make in India only.
Keywords: FDI; China; India.
INTERNATIONALISATION OF SMEs: HOW DOES GLOBAL MINDSET AND NETWORK RELATIONSHIPS IMPACT IN INDIA
by Ishaq Ahmad Dar
Abstract: India is a developing country and an emerging economy of South Asia. Small and Medium Enterprise contribute to the sizeable proportion of exports and manufacturing output of the country and millions of people are provided employment. Due to the forces of Globalisation sooner or later these SMEs are thinking about Internationalisation. This study uses regression analysis to study the impact of Global Mindset and Network Relationships on the Internationalisation of SMEs from India. Primary data was collected from SMEs which are involved in international business from India. Global Mindset and Network Relationships were taken as independent variables while Internationalisation as a dependent variable. The results showed that both Global Mindset and Network Relationships have a significant and positive impact on Internationalisation. Therefore, both works as determinants of Internationalisation, Network Relationships is a stronger determinant than Global Mindset. The implications of these findings are also discussed.
Keywords: Internationalisation; Global Mindset; Network Relationships; SMEs; Determinants.
Integration of South Asian Stock Market A Select Study
by Jitendra Dixit, Sanjeev Gupta
Abstract: Financial markets are the real replication of growth of the economy throughout the globe and integration of stock markets facilitate the investors to control their portfolio risk through diversification. But degree and direction of co-integration among the stock markets are required to be ensured. As, risk seeker and risk averse, both type of investors have different opinion towards risk. In this study an effort has been made to explore this issue for better understanding and effective decision making for the investors targeting south asian stock market specially India, Pakistan and Sri-Lanka. For the analysis, daily data of closing value of Indian stock market (BSE 30), Pakistani stock market (Karachi 30) and Sri-Lankan stock market(all stock indices,CSE), ranging from April 2015 to March 2016 is used. Database of stock market indices is collected from the web portal of respective stock exchanges. For the analysis, unit root test followed by co-integration is used to examine the association among the three stock market. This paper uses Vector auto regressive model (VAR) to characterize the dynamics of stock market indices of selected market.
Keywords: VARrnCo-integration rnUnit rootrnMarket indices.
RECENT ADVANCES IN TOTAL FACTOR PRODUCTIVITY GROWTH MEASUREMENT IN AGRICULTURE: A REVIEW OF LITERATURE
by MANAS RANJAN BEHERA, Alka Sharma
Abstract: Total Factor Productivity Growth (TFPG) is a topic well documented in the economic development literature. The studies related to this topic can be broadly put into three contradicting hypotheses. First, total factor productivity is a measure of technological change; secondly, it is associated with the externalities and scale effects. The third grouprnof researchers is sceptical that total factor productivity measures anything useful. Therefore, the paper attempts to categorize the available literature based on their methodological and computational differences and systematically reviews the different factors that have been attributed for the total factor productivity growth. It was found thatrnthe studies used a variety of approaches including estimation of rates of shifts in production and cost functions, non-parametric methods and indexing approaches showing the relative importance of different approaches. However, most of these studies are based on highly aggregative data. Studies based on micro level data on various dimensions and determinants Total Factor Productivity growth in agriculture, especially in the countriesrnwhich have high disparities in soil quality, climate and topographical conditions as well as socio-economic and physical infrastructure across states and agro-climatic zones are obviously scant.
Keywords: Total Factor Productivity; Decomposition of TFP; Returns to R& Drninvestment.
Special Issue on: Business and Economic Challenges in the Post-Great Recession Global Economy and Business at a Crossroads
Contagion channels of the Financial Crisis towards Maghreb countries.
by Abdelhafid OTMANI, Riad ABADLI
Abstract: Financial crises tend to spread, like epidemics. In this paper, we try to identify the main transmission channels of the "Subprimes global financial crisis towards Maghreb countries in order to better apprehend the impact of this crisis and its propagation, as well as the vulnerability of each country and the affected areas. In this article we will approach and retain the main transmission channels, the interdependence commercial and financial channel Spillover effect (Masson Paul, 1998), then the similarity effects channel (Ahluwalia,Pavan, 2000). We will also pass through the monsoonal effect (Masson Paul, 1998). And finally the common joint creditor channel. As a result, the analysis of the three Maghreb countries (Algeria, Morocco, Tunisia) shows us that the financial and economic crisis, originating from the United States, has taken various transmission channels in one way or another in the spread of this crisis to reach those countries that were not spared.
Keywords: Key-words: Transmission channels; Financial Globalization; Contagion; Maghreb.
FINANCIAL DYNAMICS OF ENERGY COMPANIES DURING GLOBAL ECONOMIC CRISIS
by Felicetta Iovino, Guido Migliaccio
Abstract: This paper aims to analyse financial structure of energy companies, in the period during the crisis in relation to two discriminating factors. At this end, the research questions are: what is the actual situa-tion and what the trend has been in the last eight years in the various Italian geographic areas and business markets; if there are differences between business markets and geographic area and if these differences are statistically significant. The trend analysis and analysis of variance (ANOVA) have been used starting from secondary data on AIDA database (at the end 428 energy suppliers). The fi-nancial structure is assessed using two ratios: the financial leverage Ratio and Quick Ratio. The find-ings show that the financial structure of energy suppliers have not been substantially affected by the crisis in any geographic area and business market. Moreover, these two factors produce statistically significant differences in the financial structure of energy companies.
Keywords: Energy Companies; Global Crisis; Finance; Financial Leverage Ratio; Quick Ratio; competition; liberalization.
The Role of The Government in Enhancing Sustainable Entrepreneurships. Does A Bigger Government Always Mean Less Entrepreneurship?
by Magdalena Ziolo, Maroua Ben Ghoul
Abstract: This paper aims to provide the evidence about the role of the government in fostering the framework for enhancing the sustainable development and growth of entrepreneurships. The study, based on literature review, investigates the significance of government public policies for creating conditions for entrepreneurship development and growth, with special emphasis on sustainable entrepreneurship. The Authors discuss the instruments used by governments to stimulate entrepreneurship, while taking into consideration the main threats and obstacles that deteriorate the entrepreneurships development and growth. The key public policies and tools that minimize obstacles and barriers mentioned above are discussed, while taking into account the assessment of efficiency and sufficiency of those instruments that are commonly implemented in public policies. The crucial part of the analysis is the assumption that the size of government matters, and this determines the efficiency of public polices and government actions towards entrepreneurship, especially regards to ensure sustainability requirements. rnThe goal of this paper is to point out the role of government in fostering the framework for sustainable entrepreneurship, with special emphasis on the public policy instruments supporting this scope and provide evidence that the size of government matters in creating the space for entrepreneurships sustainable development and growth. The paper argues the main hypothesis that the size of a government is a stimulant for entrepreneurships sustainable development and growth. The governments size is proportionate to the development and growth of entrepreneurships. This paper is built on the analysis and synthesis of scientific literature to describe the phenomenon of government role in enhancing entrepreneurships sustainable development and growth.rnThe research sample is composed of OECD countries in the period of 2007-2015. The empirical part based on the estimation of VAR model to see if the bigger government ensure sustainability and stimulate entrepreneurship or not.rn
Keywords: government; entrepreneurship; state policy; sustainability.
COOPERATIVES AND CRISIS: ECONOMIC DYNAMICS IN ITALIAN CONTEXT
by Floriana Fusco, Guido Migliaccio
Abstract: This paper focuses on the situation in Italy with specific reference to cooperatives. It aims to analyse their economic situation - represented by two profitability ratios (ROI, ROE) - during the decade 2004-2013. It aims to tests the impact of crisis, geographical area and belonging business sector. Starting from secondary data on AIDA database (at the end 1,446 cooperatives), the trend analysis and analysis of variance (ANOVA) have been used. The findings show, first of all, that the profitability of cooperatives strongly affected by crisis. Secondly, only the business sector affects the level of profitability. The analysis is interesting because the income has a special meaning in cooperatives: it should, in fact, be added to benefiting members that are accounted for as peculiar management costs.
Keywords: Cooperatives; Crisis; Return on equity; Return on investment; Profitability.
A Synthesis of Empirical Research on the Validity of Wagners Law
by Dimitrios Paparas, Christian Richter
Abstract: In this paper we provide a synthesis of empirical research in the validity of Wagners law of the existing literature for the period 1969-2014. Wagners law attracted the interest of many authors and is still being discussed by policy makers and economists in relation to government spending expansion since it was applied by Adolph Wagner in the 1880s. There are two different hypotheses about the expansion of state activity. Firstly, the size of government activity is tested in endogenous growth models, while the second suggest that the economic activity is exogenous to the economic growth (Keynesian view). Additionally, we will present the previous empirical work in this topic. Since the translation of Wagners law in 1950s, a large number of authors tested various specifications of the law. These studies used both time series and panel data sets and empirically examined the law for a single country and for a group of countries (multi-country studies). Furthermore, there are studies using data on government expenditure at the provincial or state level. Existing studies in this topic vary in the country selection. They used data for developed, developing countries or group of both, while most of them examined developed or industrial countries. Finally, there are studies examined the Wagners against Keynesian hypothesis. All these studies found different empirical results: support, no support or mixed results.
Keywords: Wagners’ Law; Causality Tests; Greece; Long Run Time Series Analysis.
Special Issue on: Shaping Business Opportunities in Emerging Markets under Global and Local Uncertainties
Pricing Negotiation in Contract Farming
by Yuanita Handayati, Togar Simatupang, Tomy Perdana, Manahan Siallagan
Abstract: An agricultural pricing mechanism achieved through a process of negotiation is superior to cost-based or auction-based pricing in achieving goal congruence and evaluating sub-unit performance. This paper illustrates the negotiation process in defining agricultural prices by considering the emotions of negotiators. The emotions of both buyer and seller are captured to illustrate the impact on the duration, agreed price and result of negotiations. The simulation shows that when both buyer and seller experience heightened emotions, the shortest negotiations are achieved. On the other hand, the most protracted negotiations, which usually culminate in failure, result when both buyer and seller exhibit anger. Moreover, different combinations of emotions on the part of the buyer and seller suggest that stable emotions will produce a mutually acceptable price. Agent-based modelling was used as the methodology to simulate the price negotiation process.
Keywords: Price negotiation; contract farming; emotions; agent-based modelling.
The Entrepreneurial Ecosystem to Foster Competitiveness among Enterprises: A National Level Analysis
by Gandhi Pawitan, Maria Widyarini, Catharina B. Nawangpalupi
Abstract: The launching of the ASEAN Economic Community (AEC) in 2015 opened a regional market of 600 million people. The formation of AEC facilitates the opportunities for entrepreneurs to offer goods and services in the market. This naturally raises challenges for businesses and governments, also tighter competition. This paper aims, first to investigate the relationship between entrepreneurship ecosystems and national competitiveness, in the presence of entrepreneurship activities. Second, identifying the most important pillars of the entrepreneurial ecosystem in fostering competitiveness. The national level data is used from the Global Entrepreneurship Monitor consortium and the World Economic Forum for the year 2015. The partial correlation coefficient and the regression analysis were applied. The results show that the relationship between entrepreneurship ecosystem and national competitiveness is intervened by level of entrepreneurship activities. The R&D transferred as well as the physical and services infrastructures are primary pillars of the ecosystem fostering the national competitiveness.
Keywords: entrepreneurial ecosystem; global competitiveness; partial correlation analysis.
Acculturation to Global Consumer Culture (AGCC) and the Ethnic Identity (EID) of Indonesians in relation to South Korean Culture
by Mustika Sufiati Purwanegara, Nurrani Kusumawati
Abstract: A certain degree of contradiction exists around the belief that Acculturation to Global Consumer Culture (AGCC) has a negative correlation with an individuals Ethnic Identification (EID).Indeed, some observers state that it is possible to be acculturated to global consumer culture without a loss of ethnic identity.The study explores AGCC towards South Korean culture consumption and Ethnic Identification on the part of Indonesians.The research reported here focuses on South Korean culture since an enormous number of that countrys products are consumed by Indonesians.The objective is to gain insight into global companies developing of a strategy to enter the Indonesian market.Questionnaires were distributed to the 349 respondents who participated in the survey.AGCC and EID are negatively correlated to each other.Meanwhile, both AGCC and EID relate to Indonesians consumer behaviour with regard to South Korean culture and the most appropriate strategy for South Korean culture to enter the Indonesian market being standardisation strategy.
Keywords: Acculturation; Ethnic Identification; Acculturation to Global Consumer Culture; South Korea Culture; Consumption Behaviour; Quantitative; One-way ANOVA; Manova; Regression; Indonesian.
A survey of the Responsive and Proactive Market Orientation Research (2005-2015)
by Ngatno Ngatno
Abstract: Since 2004, responsive market orientation (RMO) and proactive market orientation (PMO) have received considerable attention in the marketing literature. Little research provides preliminary and useful information to facilitate good understanding of RMO and PMO. This study presents a comprehensive survey of extant marketing literature using keyword classification from 2005 to 2015. It serves as a tutorial and aims to help the beginner researcher or practitioner to have access to RMO and PMO, including its definitions, applications and problem domains. The contribution of our paper is to provide a means to conceptualize and operationalize the coverage of RMO and PMO. It provides a conceptual framework to organize this vast body of research. Based on the scope of 50 RMO and PMO articles, we find that the number of publications on MO has significantly increased since 2005 with steady growth in recent years. The survey showed an upward trend in studying RMO and PMO-performance relationship similar to the universally trends. The study also found some common variables related to performance, mediators, and moderators within manufacturing and service industries. Finally, it provided a framework to organize the results.
Keywords: responsive market orientation; proactive market orientation; antecedent; consequence; performance.
Managing Alliance Configuration and Dyadic Learning Performance in Coopetition
by Rangga Almahendra, Ria Aulia
Abstract: Firms decide to form global alliances to seek new knowledge and innovation from different sources, even from their competitors. However, the mechanism for managing both cooperation and competition in these knowledge-seeking alliances are much less understood. This research is intended to disentangle the learning race phenomenon in an alliance of two competing companies. We raise questions on how firms could reconcile the dilemma between cooperation and competition and what is the best configuration for an alliance portfolio that contributes to a dyadic learning performance in coopetition. We tested the hypothesis with 680 samples from 136 firms in the biotech industry from 1998-2002. The results supported all the hypotheses as follows: strong ties have an inverted U-shaped effect on SLCG and the technological diversity has a role in reversing the relationship between the strong ties and SLCG which previously was seen as an inverted U-shape, but became U-shaped.
Keywords: Learning race; coopetition; strong ties; technological diversity.
Trust, business, and society in a post-conflict scenario the case of managing workplace practices in Colombia
by Ulf Thoene, Alvaro Turriago-Hoyos
Abstract: Colombia has been plagued by outbreaks of violence for several decades. As a post-conflict scenario emerges, businesses face new challenges and opportunities. Ending the conflict inevitably involves an effort of somehow integrating ex-guerrilla combatants into the formal labour market. Given the high levels of mistrust or fear that Colombians manifestly have towards such individuals and the low levels of educational attainment they have achieved, a thorough debate on the issue of trust on an overall societal level as well as within firms cannot be avoided. Regarding opportunities, the post-conflict scenario opens a window to modernize relations between different groups making up society. The central thesis of this research is that trust has perhaps become more reciprocal than unidirectional or top-down. We provide survey data, and conduct in-depth, semi-structured interviews with business leaders representing four economic sectors.
Keywords: Business for Peace; Colombia; Peacebuilding; Peace through Commerce; Trust; Voice at Work; Workplace Relations.
Special Issue on: Innovations and New Frontiers for International Marketing and Management
Cost of equity capital in small and medium sized private companies Theoretical considerations and empirical and case-studys results concerning SMEs in southwest Germany
by Bernd Britzelmaier
Abstract: Cost-of-capital rates are used for a number of purposes in finance and accounting such as the determination of imputed interest, investment appraisal or value-based management. While stock-listed companies are able to use capital market oriented methods to determine their cost of equity such as CAPM or APT other companies have to follow different approaches. The aim of this paper is to summarize and update research papers published during the last couple of years dealing with the relevance and application of cost of equity in SMEs (Britzelmaier et al 2013; Britzelmaier et al 2014; Britzelmaier et al 2015). After a brief intro-duction the characteristics of SMEs are discussed. A critical overview of fundamentals and common calculation methods of the cost of equity capital is provided. After the literature re-view findings of empirical studies are presented as well as findings of a case study. A conclusion and an outlook are given.
Keywords: cost of capital; SME; CAPM; Germany.
Industrial development in North Africa: a comparative analysis for the period 2004-2012
by Jaime Moll De Alba
Abstract: This article examines the status of industrial development in North Africa during the period 2004-2012. The objective is to find out whether, during a period of relatively significant economic growth of the African continent followed by a global crisis, the industrial sector of the North African region has experienced significant changes which have underpinned its growth. We carry out a comparative analysis with other selected developing regions, based on a set of key indicators relating to the industrial production and trade of manufactured products using internationally comparable datasets for the reference period. Our analysis indicates that the manufacturing base of the region remains weak. We identify two patterns of industrial development within the region: rich natural resource countries, Algeria and Libya, show a meagre manufacturing base and remain dependent on their natural resources. On the other hand, Egypt, Morocco and Tunisia show a larger manufacturing base but their economic growth has stagnated or declined during the reference period. Moreover, North Africa plays a minor role in the global trade of manufacturing products. Our study contributes to understand the status and the patterns of structural transformation of the North African region and proposes recommendations.
Keywords: Industrial development; structural change; manufacturing; trade of manufactures; North Africa.
Communicating Sustainability Practices and Values: A case study approach of a micro-organisation in the UK
by Panayiota Alevizou, Claudia Henninger, Chloe Spinks
Abstract: This article investigates sustainability communication through the lens of integrated marketing communication (IMC) by focusing on one case organisation that sees aspects of sustainability at the heart of its operations. This qualitative inquiry utilises a case study approach and a variety of methodological tools, including in-depth semi- structure interviews and semiotic analysis of online and offline media. Findings highlight although the case organisation seeks to use an IMC approach across their multiple communication channels the same message cannot always be conveyed as, especially social media channels, have restricted formatting settings. As a result the encoded message is confusing and leads to a loss of meaning. Although this research is based on a single case study, it allows for an in-depth investigation of a phenomenon and practical recommendations on how to overcome challenges with online platforms. This research is of value as it investigates IMC in and under researched context micro-organisations, as well as combines it with challenges of effectively broadcasting sustainability messages to an end-consumer.
Keywords: Integrated marketing communications; IMC; micro-organisations; sustainability communication; sustainability.
Investigating Chinese Audience-Consumer Responses towards TV character based Fashion related Social Media Content
by Delia Vazquez, Jenny Cheung, Xiangran Xu
Abstract: Products and brands placed in film media content is acknowledged as an important source of influence in group discussion topics with viewers (Noguti and Russell, 2015). Parasocial relationships are often developed between audiences and their favourite characters (Russell and Stern, 2006), which can influence audiences evaluation and consumption of products/brands placed within a TV series. This study investigates brands placed within the context of a TV series, as TV series have long been identified as a source of peer group discussion with audiences (Noguti and Russell, 2008). TV audience consumer engagement is particularly compelling when TV series feature emotionally empathic characters. This study aims to analyse the effect of social media fashion brand communications with Chinese TV series audiences online purchase behaviour. An online survey (n=150) was conducted to analyse the links connecting parasocial relationships between TV audiences with the characters, and audiences purchase intention and product/brand evaluations. The results indicate that consumers develop parasocial relationships with TV characters that positively affect their social media purchase intentions. These results are significant, as fashion brands and marketeers of all brands seek to find strong emotional connections with their consumers across an increasingly fragmented media landscape. Emotional connections and emotional brand engagement are key to future brand growth; integration within empathic storylines in lifestyle based TV series can be viewed as a vitally effective future marketing tool.
Keywords: Parasocial relationship; Social Media; TV audiences; Fashion; Word of Mouth; Purchase Intention.
NEW TRENDS IN LUXURY GOODS CONSUMPTIONS. A CROSS-CULTURAL ANALYSIS.
by Adriana Calvelli, Chiara Cannavale, Clara Bassano, Elena Laurenza
Abstract: Luxury is a very subjective concept, strictly connected to the values and assumptions people use to orientate their choices and behaviors. Values are concepts or beliefs, which refer to desirable states or behaviors, and are used as standards or criteria to select or evaluate behavior and events (Schwartz, 1994). They impact on individuals perceptions and choices, and this happens both at an individual and at a collective level. Our paper investigates the effects of cultural values on the demand of luxury goods, to answer the following questions: Does consumers perception of luxury goods vary across countries? Does culture affect this perception?
Keywords: Luxury goods; luxury perceptions; consumer purchase behavior; culture; materialism; hedonism.
The effects of rebranding on customer-based brand equity
by Marta Blazquez Cano, Kurt Mattich, Claudia Henninger, Eva Helberger
Abstract: The luxury fashion market is predicted to continue to grow rapidly, as millennials are becoming the new luxury consumers. Differentiation from competitors, attracting new consumers, and continuously maintaining brand equity is more challenging than ever, especially for global brands. The purpose of this study is to explore the drivers and process of rebranding and its influence on brand awareness and customer-based brand equity within the luxury fashion market. This study adopts a multi-method qualitative approach, employing semi-structured interviews with practitioners, consumer based focus groups, and semiotics - in order to measure the impact of rebranding processes on customer-based brand equity. The findings outline the most frequent drivers and the crucial steps of a rebranding process for the luxury market. Radical and moderate changes can be made to the brand image and further support customer-based brand equity, yet it is vital to remain true to the original heritage and brands DNA.
Keywords: customer-based brand equity; re-branding; brand knowledge; brand awareness; brand image; brand associations; luxury fashion.
International Flagship Stores: An exploration of store atmospherics and their influence on purchase behaviour
by Marta Blazquez, Rosy Boardman, Luyu Xu
Abstract: Flagship stores are luxury retailers most prestigious market entry method and serve as impressive representations of their brand image. However, there is a lack of extant research investigating how the holistic experience created in luxury flagship stores has an effect on consumers purchase behaviour. This study aims to fill this gap in the academic literature by using a qualitative methodology to explore how the atmospheric cues in luxury flagship stores influence consumers impressions of the brand and, ultimately, their impulse and non-impulse purchase behaviour. The findings show that atmospheric cues and design features have a significant impact on the perceived brand image and on both impulse and non-impulse purchase behaviour. Furthermore, the results show that the most influential atmospheric cues on purchase behaviour are the customer service provided, followed by the product displays, the layout of the store and the design and experience of the fitting rooms.
Keywords: Flagship stores; store atmospherics; international retail; in-store experience; luxury retailing; purchase behaviour.
Examining Corresponding Project Management and Change Management Roles in Practice
by Katalin Pádár, Zoltán Sebestyén, Béla Pataki
Abstract: Project sponsors and change sponsors, as well as project managers and change agents, are corresponding roles of project management (PM) and change management (CM) on the domain of projects that are also second-order changes (i.e., change projects). However, the number of sources putting this theoretical notion to test is close to none. We examined the knowledge and understanding of practitioners from different fields regarding CM and PM (role) conceptsbased on an international online survey. Our findings point to an observable asymmetry regarding CM-related and PM-related knowledge. Respondents answers varied a lot more when it came to defining changes compared to having to define projects. PM is the better known scientific field and has a more prevalent methodology. Survey results support previous theoretical findings regarding the correspondence of the roles of the 1) change sponsor and project sponsor and the 2) change agent and project manager.
Keywords: project sponsor; change sponsor; change agent; project manager; project management; corresponding roles; project management roles; change management roles.
Special Issue on: Strategies for Global Competitiveness and Economic Growth
An Evidence of FeldsteinHorioka Puzzle in Selected Asian Economies
by Harwinder Kaur, Vishal Sarin
Abstract: The purpose of the study is to investigate the level of capital mobility in selected economies of Asia by testing the FeldsteinHorioka puzzle. This paper seeks to contribute to the study of relationship between savings and investment in a panel of eight Asian economies namely; China, Japan, India, Hong Kong, Iran, Indonesia, Saudi Arabia, Thailand. Data for investment and savings over the period 1980-2016 has been compiled from the World Development Indicators (WDI) Database 2016. Augmented Dickey Fuller test has been applied to confirm the non-stationarity of data. Then, panel cointegration method has been applied to examine the relationship between savings and investment for selected countries. Further, to estimate the value of β (saving retention coefficient) the study used Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS) techniques. The results shows that saving and investment are co integrated for selected panel and results of FMOLS and DOLS indicate a fall in the value of β after crises, which implies that these economies are becoming open to capital flows after Asian crises. Hence the study confirms the evidence of F-H Puzzle to explain that high correlation between saving and investment implies lower capital mobility.
Keywords: Asian; Capital Mobility; Co-integration; Economies; Feldstein–Horioka; Panel,.
Work-family conflict and intention to quit: the mediating role of emotional dissonance
by Subhash C. Kundu, Nidhi Gaba
Abstract: The current study was performed to explore the linkages between work-family conflict, emotional dissonance and intention to quit. Primary data drawn from 346 employees belonging to 93 organisations were analyzed to ascertain whether emotional dissonance mediates the relationship between work-family conflict and intention to quit. Multiple regression analysis was carried out to test the stated hypotheses. Based on the results of the data analysis of the study it was found that the work-family conflict had positive significant influence on intention to quit. Further, emotional dissonance is established as a key mediating mechanism between the work-family conflict and intention to quit.
Keywords: Keywords: work-family conflict; family-work conflict; emotional dissonance; intention to quit; India.
Perception of Advisors regarding behaviour of Investors while selecting Wealth Management Services: an AHP Approach
by Ashish Arora, Rashim Verma
Abstract: Technology and World Wide Web opened the financial management world to larger audience. Traditionally Wealth Management Services (WMS) were perpetuate of very rich, who to preserve and grow wealth needed services of Wealth Managers. Now, a day no one needs to be a multi millionaire to take advantage of WMS. Significant contributing factor for the growth of WMS can be Global increase of wealth, especially India and China given the vigorous boost to the wealth. Also the need of the clients extends far beyond the old stock picking, rather becoming more sophisticated, requiring more exciting products and services. Client globalization with respect to their domicile and wealth management outlook along with new technical possibilities, give Wealth Management industry a new height and become one of the most preferred industry in world. Investors face baffling choices about what to do with their money. Factors like increasing uncertainty and volatility, the growing number of financial products, increasing complexity of available financial products and increasing personal responsibility for retirement planning, have made need of financial advice, a necessity. Having anticipating significant increase in number of High Net Worth (HNW) clients and their diverse investment requirements, Financial intermediaries comprising of Bank Financial Advisers(BFA), Independent Financial Advisers (IFA) and Corporate Financial Advisers (CFA) began offering investment advisory services to HNW under the umbrella of WMS and there is significant change in their investment strategies. Study of Wealth Management Industry has become significant owing to the fact that today‟s competitive environment presenting tremendous challenges and Punjab is totally unexplored area with regard to WMS. In this paper, attempt has been made to identify the key factors influencing the behaviour of investor as perceived by Wealth Managers of Punjab.
Keywords: Wealth Management Services; Analytical Hierarchy Process; Financial Advisers.
Factors leading to adoption of Video on Demand (VOD) service: An Exploratory Study
by Amit Kakkar, Ruchi Kakkar
Abstract: As the wireless and wired internet market is approaching the maturity levels, the subscribers of wireless as well as wired internet services are continuously looking for improved performances and more extensive applications and on the other hand, the wireless service and wired internet providers are continuously fighting for the market share by offering new services and in turn, hoping that the new services will bring higher revenues. Video on demand (VOD) is one such service that is pinned as the next big thing for the telecommunication industry, content development industry and for the entertainment industry from the advertisement and viewership point of view. Video on Demand (VOD)/moving TV service involves providing entertainment content on the smartphones/laptops etc. via wireless networks. This paper is intended to explore the various factors which will encourage the customers to adopt VOD service in Indian context using Exploratory Factor Analysis. The extracted factors will help in understating the psyche of customers and will also help in developing the strategies which can help the companies to make people adopt the VOD services.
Keywords: Online Viewing; Video on Demand; Entertainment; Anytime Viewing; Smartphones; Online Watching; Content Development; EFA.
Tourism led economic growth in India: an application of vector error correction model
by Tushinder Preet Kaur, Pooja Kansra
Abstract: Tourism promotes economic growth in a significant manner. The importance of tourism to economic growth has been widely recognised due to its contribution to employment, balance of payment, Gross Domestic Product (GDP) etc. In the present paper an effort has been made to examine the link between the economic growth, investment and net exports from tourism sector by employing the technique of co-integration and VECM. The resulting co-integrating vectors indicate that there exists a long run relationship between GDP, investment in tourism sector, net exports from tourism and employment generation. Thus, it is one of the important factor affecting the economic growth in India with significant multiplier effect.
Keywords: economic growth; GDP; tourism; employment; investment; net exports; causality; co-integration; domestic spending; FDI.
Assessment Potential of Community Enterprises to Enhance Their Sustainable Competitive Advantage in Thailand.
by Wilailuk Meepracha, Tatri Taiphapoon, Achara Chandrachai, Sukree Sinthupinyo
Abstract: Assessment potential of community enterprise in Thailand is evaluated every year by government agencies. According to review previous literature, there was still not enough research carried out in the fields and not have identifying factors for achieve competitive advantage. It shows that the gap is research. The purpose of this research is to develop criterion to assess the potential of community enterprises and to evaluate them empirically. The methodology used mixed methods, semi-structured Interviews expertise and survey questionnaires. Data was analyzed using confirmatory factor analysis. The results demonstrated 11 factors and 33 indicators to assess and solve operations of the community enterprise, this research identified factors of philosophy of sufficiency economy and sustainability in the criterion as these perspective with become the key activity to achieve competitive advantage. The result can be applied for the community enterprise and will be beneficial for the Royal Thai Government. This study will also benefit to other countries which similar circumstance as Thailand.
Keywords: Assessment; Evaluation; Potential; Community Enterprises; Sustainable; Achievement; Competitive; Advantage.
Special Issue on: 4th SMICBES Financial Development and Business Innovation in Emerging Markets
Related Party Transactions on Tunneling and Propping Perspective
by Hety Budiyanti
Abstract: This research investigates the relationship between related party transactions (RPTs) and shareholders value. Using a sample of Indonesian listed firms from 2009 to 2015, we find that considerable shareholder value was destroyed when the RPT is considered as tunnelling activity, while on the other hand firms earn positive significantreturn when it is considered as propping activity. Our findings also suggest that firms with concentrated ownership structure experience larger value loss. Our further investigations also indicate the abnormal returns are positively related to proxies of corporate governance and information disclosure.
Keywords: related party transaction; tunneling; propping; market reaction; good corporate governance.
REPUTATION OF EXTERNAL DIRECTORS, AUDITORS AND EARNINGS MANAGEMENT
by Aphichet Chaiwut, Ravi Lonkani, Chaiwuth Tangsomchai, Suchanphin Suwanaphan
Abstract: External directors and auditors are crucial elements in determining corporate governance. The efficiency of monitoring and controlling mechanisms depends upon the effectiveness of external directors and auditors. However, the efficiency of each external director and auditor is varies. In this research, the key question is whether the reputation of external directors and auditors reflects upon the potentiality and the perceptions of monitoring and controlling in a consistent manner or not. If the reputation of external directors and auditors reflects the potentiality of monitoring, this may mitigate earnings management. Nonetheless, if reputation represents the busyness of external directors and, auditors, the results occurring would be inconsistent with the aforementioned hypothesis. In this respect, reputation was measured by the number of companies in which each external director and auditor had been appointed. According to the results, it was disclosed that the more the reputation of an external director or auditor leads to increasing of burden on external directors and auditors. As a result, this affects efficiency in controlling and monitoring the operating processes of the management.
Keywords: external director; auditor; earnings management; reputational hypothesis; busyness hypothesis.
Modeling the Competitiveness of Regional Bank: Empirical Evidence from Sumatera, Indonesia
by KAMALUDIN KAMALUDIN, Muhammad Nashsyah
Abstract: This research examines the effect of competitive strategy, Customer Relationship Management (CRM), and service culture on the competitiveness and performance of regional bank in Sumatera Island. The data is obtained through the observations and survey to managers in Sumatera region banks (BPD). The results of our study indicate that the competitive strategy applied by BPD significantly contributes to the improvement of bank performance. Competitiveness mediates the relationship between the independent variables (Competitive strategic, CRM, service culture) and dependent variable (Bank performance). Further, it is reported that the effect of competitiveness on bank performance is stronger than the effect of the competitive strategy. We point out that CRM is not directly affecting the performance, but CRM has contributed to improving the competitiveness and indirectly affects the growth of the BPD. Moreover, the construct of service culture directly affects the performance of the BPD and have shown no effect on competitiveness. Otherwise, the direct and significant effect is indicated by the implementation of service culture on the BPDs performance.
Keywords: ccompetitive strategy; CRM; service culture; competitiveness; BPD.
The Perspective of Indonesian Students Abroad, Professionals, and Indonesian Government of International Mobility of Indonesians
by Tutik Inayati, Utomo Sarjono Putro, Santi Novani
Abstract: Increasing interests of students and professionals to go abroad generate a problem in terms of the lack of capable human resource along with various reasons that support this phenomenon. This paper addresses preliminary research regarding this matter, explores the circumstances faced by Indonesian Government, and more importantly, how quantitative and qualitative collected data can be combined to generate effective public policy recommendation. Quantitative data is collected using surveys shows that majority of Indonesian students abroad will return and that there are differences in variable importance between our students and professionals preferences, while qualitative data shows valuable information in relation to research condition in Indonesia and international migration. This paper contributes to the evidence-based preliminary research in order to suggest Indonesian Government which direction that certain policies should be created to anticipate the possibility of scientists and engineers scarcity in the future.
Keywords: scientists and engineers; students; professionals; abroad; Indonesia; public policy; research.
Shariah rural Bank and the empowerment of micro and small Economic:strategies and business differentiation in Indonesia
by Muhammad Said, Abdul Hamid, Dudu Duswara Machmuddin
Abstract: The current study aims at exploring the shariah Rural Bank's role in the development of the rural areas community. It focuses on three main issues which are business networks of shariah rural banks to compete in multi business competition; the differentiation of BPRS in competitive business environments in building market share; and, roles played by shariah rural banks in rural development, especially in helping to grow micro and small enterprises. Qualitative approach was applied by using in-depth interview, observation and study documentation to collect data. Informants were purposely decided are manager of shariah rural bank, financing unit; customers financed by SRB and the members of shariah rural bank micro community. Document was the source to extract SRB's profile and other related to the study. Observation applied to understand the relation between bank and its customers, the approach and process of empowering the customers and the micro and small enterprises. The study revealed that Shariah rural bank develops market share networks through religious sentiment, approaching Muslim public figures, leaders of Islamic organizations, and those who have high influence in the society. SRB also develops an inclusive pattern with non-Muslim consumers. Its business differentiation in empowering micro and small enterprises group by mosque-based empowerment, increasing potency of human capital and social capital as the new agent in developing its business and public education as well. The presence of shariah rural bank impact to the economic development agent, social solidarity tie; religious awareness and its relation to economic and business activities.
Keywords: shariah rural bank; human capital; social capital; innovative products; and small-micro community.
Special Issue on: Sharing Economy/Collaborative Consumption A European Perspective
SHARING ECONOMY IN THE GERMAN ENERGY TRANSITION
by Ingela Tietze
Abstract: Several definitions for the term sharing economy exist. Depending on the extent of consideration of the typical characteristics of a sharing economy, energy cooperatives with renewable energy capacities are part of the sharing economy. Based on an extensive literature review, this paper analyses those characteristics of the energy sector that boost or impede its alignment with the tenets of a sharing economy. Major constraints are that both electricity and heat cannot themselves be shared, and constitute low-interest products. In electricity supply, the common access to electricity grid, the transition of the energy systems towards renewable systems, amongst others, make up the principal drivers. A comparative analysis of two energy cooperatives in Germany is carried out to support analyses. Conclusions drawn depict the future role of community ownership in the energy sector.
Keywords: renewable energy; energy transition; collaborative consumption; electricity; Germany; Energiewende; sharing economy; community ownership; energy cooperativern.
What can we learn from digitalization and servitization to shape a new mobility paradigm?
by Veronique Goehlich, Guy Fournier, Alexander Richter
Abstract: The ongoing transformation of our industry structure is closely related to digitalization. Smart connected products create new consumption schemes. The automobile industry is at the forefront of this process and internal rivalry between OEMs evolve towards a play of competing eco-systems. Digitalization enables the coupling of very heterogeneous organizations. Moreover, the integration of technologies for connected products and e-mobility accelerates the servitization process. These two phenomenon disrupt established business rules and create a creative destruction process. The produce and sell a car business model is becoming obsolete. The focus is shifting increasingly to the customer data that can generate entirely new and scalable revenue streams. We aim to identify key success factors for new value propositions in the mobility sector and to show that digitalization enables customer orientation. Although product oriented business models are threatened, new opportunities for third parties raise. This process of creative destruction thus open new opportunities.
Keywords: Transformation;e-mobility; digitalization; servitization; Business models; eco-systems;creative destruction;paradigme; automotive industry.
New Trends in Collaborative Economy in Tourism. Diversification of traditional accommodation to a non-regulated offer in Spain
by Ana Mandri Álvarez
Abstract: The new models of shared economy that are being introduced in Spain are generating a significant impact, on the tourism sector. The new model of sharing what is deprecated, is causing important destruction to the tourist market. This rises a concern by traditional agents and neighbours, showing their displeasure to the new platforms of timeshare homes for rent. So, given good relations with one another, a definition is required, which is built on the basis of this new phenomenon.
Keywords: Tourism; collaborative; accommodation; regulation; platforms; business; sharing economy; houses of tourist use; hotels; services; economy.
COLLABORATIVE TOURISM IN EUROPE: THE ROLE OF TRAVEL MOTIVATIONS ON NEW PLATFORMS AND INFORMATION SOURCES
by Arminda Almeida-Santana, Sergio Moreno Gil, José Boza-Chirino
Abstract: The sharing economy has emerged as an alternative of suppliers of goods and services traditionally provided by long-established industries. Since its inception, the tourism industry has presented itself as one of the sectors that has allowed it to keep growing and in which the sharing economy has had a greater impact. Thus, this study analyses collaborative tourism (the sharing economy in tourism) and the use of other information sources (comparators, social media), and explores the profile and behavior of tourists who participate in it (sociodemographic characteristics, nationalities and travel motivations). The paper also identifies the differences between the profile of tourists who use different kinds of collaborative platforms (Airbnb, HomeAway, TripAdvisor, Wikipedia, Coachsurfing, BlaBlaCar), differentiating between platforms where an economic transaction is required and those that are free. The results indicate the existence of a grouping together of cultures (countries) in four segments, depending on the use they do of sharing economy platforms. Applying a comprehensive analysis with 9,383 tourists from 19 European countries, the study provides interesting conclusions for destinations with a view to better designing marketing activities across different European countries.
Keywords: Sharing Economy; Collaborative Tourism; Motivations; Europe.
The sharing economy community on the role of local government in promoting, steering and governing the sharing economy. An exploratory study
by Monica Bernardi
Abstract: The phenomenon of the sharing economy is gaining momentum and has become a focus of analysis, debate, and study for the scientific community as well as for a range of other actors. Thus, an identifiable broader community of knowledge-based experts and practitioners is generating a meta-discourse on the sharing economy. This is the point of departure for the current paper, which examines the phenomenon in depth, particularly focusing on the role that local governments can play in promoting, steering and governing this disruptive social innovation. Drawing on the input of a panel of ten experts from academia, the consultancy sector, policy-making, and business, the sharing economy is analysed and reassessed. The communitys reflections on its own nature and characteristics are also reported.
Keywords: sharing economy; local government; knowledge-based community; sharing city.
A Study on Carpooling Applications: The Development of Sharing Economy in the Age of Internet
by Ruhet Genc
Abstract: Globalization and the development of technology lead to the emergence of different economic practices. Among these, sharing economy receives considerable attention, as people communicate with each other and propose themselves plausible offers, which make both parties better off. Moreover, recent findings suggest that especially young generations start to use carpooling applications when they want to travel from one destination to the other. However, the activity of carpooling has not been sufficiently taken into consideration in the context of scientific inquiry. This paper intends to investigate the impact of carpooling activity as a form of sharing economy. After providing an introduction about the concept of sharing economy, the study will discuss the importance of technological advancements for the development of carpooling activity. Finally, the manuscript will suggest a model in which total revenues, quality of life of passengers and drivers and technological progress will be considered in order to measure the impact of carpooling activity. In conclusion, the paper will show that carpooling activity is beneficial not only for the financial well-being of individuals who take part in, but it also increases the overall satisfaction of travelers.
Keywords: Sharing Economy,Car Pooling,UBER,GRAB.
Special Issue on: Circle Conference Creating and delivering value in a contemporary world
Volatility spillovers between European financial markets: evidence since the Brexit
by Anna Golab, Anna Zamojska
Abstract: In the light of the big rumour around another potential financial crisis: the United Kingdoms decision to exit the European Union, this paper presents an analysis of volatility spillover effects around Brexit meltdown time. A number of European countries such as Germany, Poland, Hungary, Czech Republic, Norway, Switzerland, Ireland, Denmark and Sweden are taken into consideration. The analysis contains period from January 2010 until November 2016. This capture the European Severing debt crisis, Greek crisis, Chinas Black Monday crash and Brexit referendum outcome shock. The analysis covers the Diebold and Yilmaz (2009) Spillover Index, constructed in a VAR framework, to assess spillovers across stock markets returns, multivariate CCC GARCH and Cholesky variance decomposition model. The analysis shows there is no evidence for Europe and the UE to bring other global financial crises, however this paper explains reasons and potential consequences of the Brexit.
Keywords: Brexit; Spillover Index; CCC-GARCH; Variance Decomposition.
Frequency of retail services, membership fees and real store shopping experience: Analysing consumer preferences
by Mitsunori Hirogaki
Abstract: As the Japanese population ages, retailers of all sizes in Japan are trying to develop new retail business models to meet the needs of the emerging market segment. This study identifies Japanese consumers preferences in choosing new grocery retail services that are currently in the early stages of development. A conjoint analysis was conducted through a nationwide survey in Japan to identify these preferences. The results revealed that the retail format is the most important attribute, with these consumers preferring formats that closely imitate bricks-and-mortar style retail. Second in importance is the membership fee, followed by the service frequency. Consumers who consider shopping as a fun activity emphasise service frequency. Our findings provide retailers with information regarding Japanese consumers shopping attitudes in the future. Moreover, it provides a useful clue to a successful multichannel retailing strategy in food deserts.
Keywords: types of retail services; ageing society; food deserts; consumer behaviour; conjoint analysis; real store shopping experience; Japan; online grocery; membership fee; frequency of retail services.
The role of content analysis in the brandconsumer relationship: a Systemic view.
by Nicola Capolupo, Gianpaolo Basile, Roberto Chionne
Abstract: In this paper the authors, analysing Ceres case on Facebook, aim to show that the brand has changed the role moving from static and unidirectional communication tool to a semantic and semiotic space in which company and numerous and heterogeneous social agents (consumer and/or individual) exchange several information to meet their relative needs. \r\nIn this scenario the active role that the digital marketing tools can play in a constant condition of bidirectional relationship becomes important.\r\nThis kind of relationship amount to some conditions: the firm is a Complex Adaptive System (CAS) in which the boundaries are the cultural values (CCT Theory) that allow to create and maintain relationship with consumer/individual; the low level of boundaries shows a relational horizontal structure that defines an holonic organization in which emerges a property which is the brand composed of both efforts of firm and individual/consumer; the consumer/individual engagement reduces the product materiality reinforcing the service logic (Service Dominant Logic).\r\nThe relations between brand and the numerous and heterogeneous individual create a no-linear system that owns and shows many attractive characteristics. So, these systems can be studied with a qualitative analysis. On this epistemological basis, the authors will apply the content analysis to study Ceres Facebook page collecting users feedback to the brand posts through their comments to evaluate the brand positioning and to plan, with consumer/individual, different behaviours. \r\n
Keywords: consumer culture theory; Service Dominant Logic; participatory marketing; systems and holonic theory; viable system model; content analysis; brand\r\n.
Is The Sharing Economy Socially Responsible? Case study examination about Sharing Economy Companies with the help of Stakeholder Theory
by Georgina Görög
Abstract: Sharing Economy is a relatively new method of supplying products and services to the market place that have traditionally been the domain of classic industries. This innovative and new form of business has disrupted these traditional patterns of production and consumption, leading to more possibilities for the consumer. This new model has great potential in the field of Sustainable Development and Corporate Social Responsibility (CSR) and this paper examines the relationship between Sharing Economy and CSR. The author argues that the companies, whose business models are based on the sharing concept, take responsibility for people who use their product and services. Based on the literature, three basic sharing economy entrepreneur groups have been found; Redistributing Markets, Product Service Systems, and Collaborative Lifestyles. Each of the groups classified is represented by at least one multinational company. For the purposes of this paper the multinationals concerned are eBay (Redistributing Markets), UBER (Product Service Systems), and Airbnb (Collaborative Lifestyles), with each being analysed with the help of the stakeholder outline model. In this study, some identified stakeholder groups differ from the classic CSR stakeholder theory as their power, contributions, and expectations are more significant than in the case of traditional business. These groups are competitors, employees, governments, local community, and the natural environment.
Keywords: Sharing Economy; Sharing Economy Business Model; Disruptors; CSR; Stakeholder Theory; Stakeholder Outline Model; selected companies; Case Study.
Special Issue on: Entrepreneurial Ecosystems Issues, Trends and Challenges
Celebrity Entrepreneurship and Advertising Effectiveness: An Empirical Test
by Jugal Kishor
Abstract: Entrepreneurs are considered to be important stimulus for economic and social growth of any country. For instance, every developing economy is promoting the startup concept to mark their edge in the world economy. All though many attributes like creativity, risk, and innovation have been associated with entrepreneurs. In country like India Entrepreneurship can be promoted as tool for income generation and employment. Entrepreneurship refers to carrying out of new venture to be called Enterprise and the individual whose role is to run the venture is to be called Entrepreneurs. Celebrity advertising is popular communication strategy for entrepreneurship promotion. This paper elucidates the role of advertising in entrepreneurship promotion. This research proposes so that source thought and advertisement thought positively propel the consumers attitude against advertisement, attitude against brand and attitude against buying decision. The findings assert that the source thought and advertisement thought affects impact on consumers attitude for advertisement, attitude for purchase intention and attitude for brand.
Keywords: Entrepreneurship Promotion; Source Thought; Advertisement Thought; Advertising Effectiveness; Entrepreneurship; India.
A CONCEPTUAL FRAMEWORK FOR ENTREPRENEURIAL ORIENTATION: IS PHILANTHROPY MISSING IN FAMILY BUSINESS?
by Omvir Gautam, Pooja Agrawal, Dipti Sharma
Abstract: The purpose of this study is to explore conceptual knowledge of entrepreneurial orientation by examining the moderating impact of family support. Theoretical model explains the importance and utility of an entrepreneurial orientation in the context of a family business. This study identifies ten dimensions in context to entrepreneurial orientation such as entrepreneur career, the transformation assimilation, entrepreneurial knowledge, innovation and idea generation, funds availability, entrepreneurial optimism, risk taking ability and recognize social and economic support by encompassing a moderating variable like family support. Based on the available literature from past studies in this paper a conceptual framework has been constructed with ten major arguments (prepositions). This study significantly contributes in the form of a conceptual model of entrepreneurial orientation with philanthropic concern by entrepreneurs. Further, it explores the family support as an important moderator determinants to family business.
Keywords: Entrepreneurship Orientation; Family Business; Philanthropy; Optimism; Family Support.
Linking Sustainable Development to Startup Ecosystem in India A Conceptual Framework
by Bharat Chillakuri, Sita Vanka, Ramanajaneyulu Mogili
Abstract: Entrepreneurship and innovation are the engines of economic growth and the societal progress (Allen, 2009). Experience evidence that entrepreneurial drive by itself cannot deliver sustainable economic growth and hence, requires the support of an ecosystem that is sustainable and scalable (Bala Subrahmanya, 2015). Although the impetus for the mushrooming of several startups across the world and India, in particular, was provided by the respective governments, it was only in the last decade that an increased number of enterprises took shape. As per the NASSCOM Report, there are more than 5000 startups at a net growth of 7% year on year (NASSCOM, 2017). India is home to the third largest startup base and is just behind U.S and UK. In spite of the considerable advances and breakthroughs in the growth of startups, the number of startups that have attained the status of Unicorns is not so encouraging and thus, the need for a sustainable ecosystem assumes significance. The 2017 Global Startup Ecosystem Report indicates that several Indian startups struggle for survival, shifting the focus from quantity to quality. A renewed focus on the recent advances and the forces that underpin the startup ecosystem in India attained prominence. Literature also evidences that the development of an ecosystem is a continuous process with the support of many players that will occur over a period. Against this background, the paper underscores the need for linking sustainability to the startup ecosystem and proposes a framework with the help of triple bottom line approach to sustainable development, forcing organizations to build a sustainable business strategy to convert these startups as Soonicorns in the near future.
Keywords: Entrepreneurship; Startups; Ecosystem; Sustainable Development; India.
Awareness, Entrepreneurial Event Theory and Theory of Planned Behaviour as antecedents of Student Entrepreneurial Intentions: An Indian Perspective
by Mihir Joshi, Geeta Joshi, Swati Pathak
Abstract: The studies concerning the evaluation of entrepreneurial theories across Indian subcontinent are scarce. Current study evaluates the theory of Planned Behavior, Entrepreneurial event Theory and their relationship to entrepreneurial intentions in Indian context. 200 students from selected Northern Indian Universities were covered for the present research. Awareness related to the skill based initiatives taken and Startup platform developed by the Indian government was also included as one of the antecedents in the study. The t-tests statistics show no significant difference in the entrepreneurial intentions of the male and female groups. The results of the study show a significant influence of the components perceived desirability, perceived feasibility and awareness on the intentions. The antecedents of the theory of planned behavior also show a significant positive impact on the entrepreneurial intentions of University students. CFA was applied to test the measurement models for both the EET and TPB theories.
Keywords: Awareness; TPB; EET; Entrepreneurial Intentions; Startups; CFA; Perceived Feasibility; Perceived Desirability; Perceived Social Norms; Attitude.
Psychological Empowerment and Entrepreneurship: Insights from Indian Corporate
by Ruby Sengar, Narendra Singh Chaudhary, Smriti Pande, Santosh Rangnekar
Abstract: The present study has tried to explore the impact of psychological empowerment on entrepreneurship and attempted to fill underlying research gap especially in the Indian corporates. A theoretical model is developed that highlights the relationship between psychological empowerment and entrepreneurship. The results depict that psychological empowerment is a strong predictor of the entrepreneurial behaviour of the employees working in Indian corporates. All the four cognitions are found to be positively and significantly associated with entrepreneurial behaviour. The authors have suggested the various ways which can help in enhancing the entrepreneurial behaviour among the workforce of the organisation.
Keywords: Corporate Entrepreneurship,Psychological Empowerment,Competence,Self- Determination,Entrepreneurial Behavior,Cognition.
Impact of Digitisation on Entrepreneurial Ecosystems: An Indian Perspective
by Anushree Tandon, Ashish Gupta, Puja Goel, Vinod Kumar Singh
Abstract: The development of Indias start-up base has been the subject of much discussion due to its anticipated ramifications on the entire economy. But this development is coupled with maturity in entrepreneurial ecosystem, which in itself is largely being driven by technology and innovation (Nasscom, 2016). The objective of this paper is to study the impact of digitization on the entrepreneurial ecosystem in India, coupled with the rise of digital entrepreneurs especially, in context of start-ups. This paper is divided into different sections that focus on understanding Entrepreneurial and Digital Ecosystems and the emergence of the intersecting field of Digital Entrepreneurship. The later sections discuss in detail about Indias entrepreneurial ecosystem, specifically Government support and attempt to draw implications for Indian entrepreneurs who are hoping to build successful technology based start-ups.
Keywords: Entrepreneurship; Eco-system; Start-ups; Technology; Digitisation; India.
Special Issue on: BAASANA 2018 Research on Business and Globalisation in Vietnam An Interdisciplinary Issue
Entrepreneurial Attitude Orientations and Entrepreneurial Intention of Vietnamese Adults: the Moderating Role of Sources of Capital
by Quang Long Tran, Ha Minh Quan Tran
Abstract: Entrepreneurship has drawn a great deal of attention and become the topic of discussion among government leaders, academic scholars, business practitioners, and the like, in Vietnam, an emerging economy in Southeast Asia. This study examines the impacts of Entrepreneurial Attitude Orientations (EAO) on Entrepreneurial Intention (EI) of Vietnamese Adults. It also investigates the moderating role of sources of capital on the relationship between EAO and EI. Using the EAO instrument including Achievement, Self-Esteem, Innovation, and Personal Control developed by Robinson, Stimpson, Huefner, and Hunt (1991) and the EI instrument developed by Linan and Chen (2009), the authors surveyed 337 Vietnamese adults and found some significant results. Achievement, Self-Esteem, and Innovation were found to have significant impacts on EI. In addition, sources of capital including savings, borrowing and sharing were found to be moderating the relationship between EAO and EI.
Keywords: Entrepreneurial Attitude Orientations; Entrepreneurial Intention; Moderating Role; Sources of Capital; Vietnam.
Special Issue on: LIOCCKD 2018 Leadership in Organisations Contemporary Concerns and Key Developments
Study of Role of Business Strategy on Competencies and Human Capital- Indian Context
by Yogesh Misra, Vandna Sharma
Abstract: The personal competencies and the human capital of their employees is used by organisations to convert business strategy into results leading to their competitiveness. This paper aims to assess whether business strategy impacts employee competencies and whether employee competencies in turn impact the human capital in terms of value and uniqueness. This is assessed empirically using responses from 334 senior H.R. professionals in India. The findings from Structural Equation Modelling (SEM) reveal that Prospector strategy is positively related to three competency, Adaptability, Customer Orientation and Innovation while Defender strategy is positively related to two competency, Result Orientation and Technical Expertise. Adaptability, Customer orientation and innovation competency are positively related to Human Capital Uniqueness while Result Orientation and Technical Orientation competency are positively related to Human Capital Value. Our study supports the contingent view of competency implying that H.R managers should choose their competency framework depending upon the business strategy and requirement of Human Capital and recruit, train employees accordingly.
Keywords: Business Strategy,Employee Competency; Resource Based View; Human Capital; Leadership.
Special Issue on: Business and Economic Challenges in the Post-Great Recession Global Economy and Business at a Crossroads
HIGHER EDUCATION: SHOULD OTHER COUNTRIES FOLLOW THE US MODEL?
by Jeffrey Miller
Abstract: Higher education is becoming increasing important if countries want to be competitive in the world economy. While there are a wide variety of ways to organize systems of higher education, The Economist (April, 2015) divides these into two general categories: the US system and the European system. The Economist sees the US system spreading to other countries. In this paper we provide a description of the US system of higher education. The US system has important strengths and weaknesses. Because the US system is so dependent on competitive pressures, it is not appropriate for small countries unless the country opens its higher education system to global competition.
Keywords: higher education; US and European higher education; global competition in higher education.
Education expenditures and human capital: can austerity compromise growth in Portugal?
by Sofia Amaral, Marta Simoes
Abstract: In this study we estimate a trivariate VAR model with public expenditures on education, schooling levels and output and perform cointegration, causality and impulse response analysis for the period 1975-2008 to investigate whether the recent expansion of the Portuguese public education system fostered higher output levels highlighting human capital accumulation as the mechanism that connects the two variables. The data used in this study was retrieved from www.pordata.pt and the necessary calculations were done using the econometric software package GRETL. The results indicate that a change in public expenditures on education has a positive effect on output in Portugal, supporting in this way education spending as an expansionary fiscal policy instrument that can alleviate the downturn in output in the short-term. The long-term role of education spending is however less clear since we were not able to find a long-run equilibrium relationship between our variables.
Keywords: public expenditures on education; human capital; schooling; economic growth; cointegration; causality; impulse response; VAR; Portugal.
Comparative Analysis of Economic Systems Goals: Ranking Approach.
by Alexander Katkov
Abstract: Each economic system has the same mission and the same list of major economic goals but every economic system has its own order of prioritization of these goals. In this article the author first, will select the list of four main economic goals common to every economic system. Then, after the brief analysis of three main economic systems - pure market, pure command, and mixed economies - I will establish a theoretically defined goals ranking orders for pure market and pure command economies. Finally, I will compare an empirically evaluated ranking order of economic goals for a few selected countries with the theoretically defined ranking order. The interpretation of calculated coefficients of correlations could be used for further comparative analysis of economic policies of different countries.
Keywords: Economic systems; comparative analysis; government regulation; ranking correlation.
Monetary Aggregation Theory and Nominal GDP Targeting
by William Barnett, Liting Su
Abstract: We investigate bivariate time series properties of Divisia money and nominal GDP to investigate the viability of recent proposals advocating a role for a Divisia monetary aggregate in nominal GDP targeting. There are two particularly relevant proposals: (1) the proposal by Barnett, Chauvet, and Leiva-Leon (2015) to use a Divisia monetary aggregate as an indicator in the monthly Nowcasting of nominal GDP, as needed in implementation of any nominal GDP targeting policy; and (2) the proposal by Belongia and Ireland (2015) to use a Divisia monetary aggregate as an intermediate target, with nominal GDP being the final target of policy. We run well-known diagnostic tests of bivariate time series properties of the Divisia M2 and nominal GDP stochastic processes. Those tests are for properties that are necessary, but not sufficient, for the conclusions of Belongia and Ireland (2014) and Barnett, Chauvet, and Leiva-Leon (2015). We find no time series properties that would contradict those implied by either of those two approaches.
Keywords: money; aggregation theory; index number theory; Divisia index; Divisia monetary aggregates; nominal GDP targeting.
The role of innovations in fostering economic growth: An empirical analysis for selected CEE countries
by Darko Lazarov, Goce Petreski
Abstract: The main aim of the paper is to investigate whether the innovation performance is a driving force to economic growth in selected CEE countries. To fulfil this goal we use dynamic panel regression approach (system GMM), for the period 2002-2014. The innovation performance is derivate from several indicators (general expenditure on R&D, number of patents, journal articles and scientific publications, as well as royalty payments) by using principle component factor analysis. The estimated results suggest that innovation performance has positive and significant influence on economic growth, indicating that those countries with more efficient innovation system have experienced higher economic growth. Moreover, the paper found the higher magnitude in the impact of innovation performance on economic growth in new EU member state economies, compare to less developed non-EU countries. This indicates that innovations become more important growth determent how the countries are catching-up to developed countries.
Keywords: Economic growth; innovation performance; dynamic panel (GMM) method; CEE countries.
Drivers for eco-innovation: an exploratory study in Spain
by Pilar Portillo-Tarragona, Sabina Scarpellini, Luz María Marín-Vinuesa
Abstract: The authors study the determinants of the behaviour of protection of the innovations through green patents, as an approximation of eco-innovative profile in firms. To this end, a large sample of firms from three regions in Spain is analysed through a binomial logit model. The authors find that age, size and financial performance significantly affect the choice of having green patents as eco-innovative conduct in firms. They also find that the sector of activity and the legal structure of firms are related with the choice of having, or not having, green patents to protect the innovations. Implications are explored for policy makers promoting the green patents registration and for practitioners introducing environmental improvement in the innovation processes.
Keywords: Eco-innovation; Green Patents; Economic-Financial Characteristics; Binomial Logit Model; Corporate finance.
Working Capital Management and Firm Profitability: Evidence from Emerging Markets
by Nurlan Orazalin
Abstract: The purpose of this study is to provide empirical evidence on the relationship between working capital management (WCM) and the profitability of top manufacturing firms in two main emerging markets in the Commonwealth Independent States region (CIS). The study employs panel data methodology using data of top manufacturing firms operating in Kazakhstan and Russia over the period 2010-2014. The empirical results show that Kazakh firms, following more aggressive strategies of working capital, exhibit higher profitability than Russian firms. The study also established a linear relationship between profitability and working capital, which indicates the absence of an optimal working capital level that could maximise the profitability of Kazakh and Russian firms. The findings indicate that managers can maximise shareholder value by following more aggressive practises of WCM in transition economies similar to Kazakhstan and Russia.
Keywords: Working capital management; Profitability; Emerging markets; Kazakhstan; Russia.
ON THE ASSESSMENT OF REGIONAL INTELLECTUAL AND INNOVATION ACTIVITIES BASED ON MEASUREMENT THEORY METHODS AND PANEL DATA REGRESSION ANALYSIS
by Igor N. Dubina
Abstract: This paper presents the authors approach to the assessment and analysis of regional intellectual and innovation activities with such main components as intellectual and innovation potential, climate and capital. The validity and reliability of the developed indexes were tested on the basis of a set of economic and statistical data characterising the development of 12 Russian regions for 15 years with methods of factor analysis, correlation and regression analysis and measurement theory. This research demonstrates a stable and statistically significant relationship between economic development of the regions and their intellectual and innovation activities. The panel data regression analysis of the aggregated indexes and the indicators of regional economic development proved the authors hypothesis of the mutual influence of regional innovation and economic development with a deferred (time lag) effect.
Keywords: regional intellectual and innovation activities; regional innovation system; regional intellectual and innovation capital; regional intellectual and innovation potential; regional intellectual and innovation climate; measurement theory; panel data; regression analysis; internal consistency; time lag effect.
Lessons Learned From the Global Recession - Redesigned Framework of Key Macroeconomic Policies
by Borce Trenovski, Biljana Tashevska
Abstract: This research provides a critical analysis of the available relevant theoretical and empirical literature regarding the key lessons about fiscal and monetary policy during the latest global crisis. The main contribution of this paper lies in offering a new redesigned framework for the key macroeconomic policies which can serve as a general guide to policymakers for designing these policies to respond to future financial and economic crises. Our critical analysis points out 15 lessons for monetary policy which the monetary authorities should take into account in the process of designing their future policies. The analysis also includes 14 lessons as a guide for governments to design their fiscal policy during future global imbalances, addressing the efficiency of fiscal policies during large-scale economic crises, the role and significance of fiscal space, the effectiveness of austerity programs, the coordination of fiscal policies on a global level, the coordination and mutual interactions with monetary policy etc.
Keywords: global economic crisis; fiscal policy; monetary policy; redesigned macroeconomic policy framework; policy coordination; financial stability; fiscal space; economic theory; financial regulation; economic cycles; speculative booms; tax regulation; Keynesianism; macroprudential interventions.