International Journal of Business and Emerging Markets (13 papers in press)
R&D spending and small-cap performance: moderating role of ownership concentration
by Manali Chatterjee, Titas Bhattacharjee
Abstract: Drawing from the value creation perspective of corporate governance, this study explores on investors perception of value creation approach and whether it holds across all the institutional contexts even where value protection may be of utmost importance due to lower investor protection framework and significant presence of concentrated ownership across the firms. Cross-sectional data of 134 R&D based Indian small-cap firms have been employed to probe the hypotheses. This study finds that the individual influence of both promoters holding and R&D intensity is positive yet insignificant on stock market performances. However, Market performance improves significantly when both ownership concentration and R&D intensity are present.
Keywords: Ownership concentration; small cap; R&D spending; emerging market; India.
Measuring Service Convenience and Its Impact on Satisfaction towards Online Shopping in India
by Kedar Bhatt, Faizan Khokhar
Abstract: Service convenience, a measure of consumer perception of reduction in time and effort in buying a service, is relatively unaddressed in online shopping context. And, the existing studies in this domain differ in terms of number of dimensions and operationalization of the dimensions. Thus, this study seeks to identify the dimensions of service convenience and validate the multidimensional scale of service convenience in growing online shopping context. The scale of service convenience is adapted from exiting literature and modified to suit the context. Data for the study is collected from 302 Indian online shoppers using convenience sampling method. Four dimensions of online service convenience namely search convenience, order convenience, transaction convenience and post-purchase convenience are identified using exploratory factor analysis (EFA). Validity and reliability of this 12-item scale is established using Confirmatory Factor Analysis (CFA). The paper also tests the conceptual model linking the four convenience dimensions to customer satisfaction.
Keywords: Service Convenience; Customer Satisfaction; Online Shopping; E-retailer.
Evaluation of Foreign Products in the Context of South
by Igor Makienko
Abstract: The quality perceptions of imported goods create advantages and disadvantages for exporting countries. This conceptual paper examines how geographical stereotypes about South and North in addition to country-specific stereotypes affect consumers product evaluations. Similar to country-specific stereotypes, there exist numerous stereotypes about different regions within one country (such as Hollywood) and different groups of countries (such as EU) that also affect consumers product evaluations. We take one step further and propose that South and North geographical cues may become strong factors when made salient during foreign product evaluations. Specifically we propose that consumers stereotypes about the North as more industrialized may favorably affect their evaluations of technical products. Alternatively, their stereotypes about the South as traditionally agricultural may favorably affect their product evaluations of food products. At the same time we admit that in some situations the proposed effect may be too weak to override the country of origin effect.
Keywords: country of origin; evaluation of foreign products; international marketing; South-North geographical cues; consumers geographical stereotypes; country of origin match concept; economic development.
Policies Versus Politics: Which is the more important determinant of public sector supplier selection decisions in Nigeria?
by Eyo E. Essien, Glory S. Etim
Abstract: Government policy requirements and external political influence are two important factors that have been associated with public procurement processes, but only few studies have considered their relative effect on public supplier selection outcomes in emerging markets. Using Nigerian public sector firms as research setting, this study aimed to empirically determine which of these two factors is more important/influential in explaining supplier selection decisions. Data were obtained from a purposeful sample of 342 senior level staff drawn from 40 public sector firms via structured self-administered questionnaires. Result of regression analysis shows that relative to the importance attached to government policies during public supplier selection decisions, considerations for the interests of important politicians predominate the process. In other words, though important, government policy measures aimed at constraining public sector supplier selection behaviour will continue to appear ineffective in the face of inordinate political influence in the selection process. The implications of the studys finding to prospective investors and policy makers, as well as suggestions for further research, are also discussed.
Keywords: Public sector; public firms; supplier selection decisions; politics; partisan politics; government policies; government policy requirements; emerging market countries; Nigeria.
Capital regulation and default risk: a comparative analysis between Islamic and conventional banks in MENA region
by Amal Bakour, Mohamed Imen Gallali
Abstract: This research aims to study the relationship between capital and default risk of Islamic banks through a comparative analysis with their conventional counterparts. To do this, we will use a risk indicator called Z-score proposed by Roy (1952); Blair and Heggestad, (1978), Boyd and Graham, (1986) and Goyeau and Tarazi, (1992) and Capital Adequacy Ratio as proposed by the Basel agreements. Our sample includes a panel of 97 banks, including 30 Islamic banks and 67 conventional banks from 10 MENA countries namely: Bahrain, Egypt, Jordan, Kuwait, Qatar, UAE, Palestine, Sudan, Yemen and Tunisia, over a ten-year period (2004-2013). Our regressions show that the capital regulation has a positive impact on the default risk in the case of the global sample as well as in the case of the sub-samples of Islamic and conventional banks.
Keywords: Capital Adequacy Ratio; Z-score; Islamic banks.
Factors that drive the perceived success of franchises in South Africa
by Russell Abratt, Geoffrey Bick, Stefanie De Wet
Abstract: Franchising as a business format has become increasingly popular on a global scale in both developed and emerging countries, as it develops entrepreneurship, provides growth, fosters skills transfer, and leads to job creation. While prior studies have focused on financial growth, network expansion, survival, and franchisor/ franchisee relationships, there is limited knowledge about the drivers behind franchise success, particularly in emerging markets. Consequently, the purpose of the research was to identify the key factors that drive franchise success in South Africa. A mixed methods approach was used, with a qualitative study of eight franchisors, and a quantitative study of 156 franchisees. Confirmatory factor analysis revealed seven factors that drive franchise success: brand strength and support, mutual trust and sharing, customer-centricity, franchisee dedication, relationship experience, brand consistency and brand resonance. The three factors, customer-centricity, brand consistency and brand resonance, are new findings. A conceptual framework has been developed for franchise success, comprising three categories: Brand Support, Intellectual Connection and Emotional Commitment.
Keywords: Franchising; South Africa; Emerging markets; customer relationships; Franchise success factors; mixed methods; Franchise framework; agency theory; resource based view theory; relational exchange.
Examining the effect of message characteristics, popularity, engagement, and message appeals: Evidence from Facebook corporate pages of tourism organizations
by Sujo Thomas, Sonal Kureshi, Arpan Yagnik
Abstract: This study investigated the use of Facebook marketing by tourism brands to manage the promotional branding of national and state tourism organizations in the Indian context. This sought to unravel the underlying mechanisms of social media marketing by tourism brands on Facebook, which is one of the major digital platforms in India with highest number of active users in gross terms. From a total of twelve tourism departments with active Facebook pages, 5 tourism departments were selected based on their level of high social media activity. Content from 1095 Facebook posts of five tourism brand pages were analyzed to find answers to three research questions concerning message characteristics, popularity and engagement, and message appeals. Findings of the study suggests that positive emotional appeals would be most effective while dealing with experiential products. It further indicates that mere acquisition of social media fans and followers does not result in better engagement.
Keywords: Tourism Marketing; Facebook; Social Media Marketing; Branding; India.
Examining the Weak-Form Efficiency and Opportunities for Technical Analysis in Foreign Exchange Market: New Insight From Trading Partners of Pakistan
by Bushra Sarwar, Wu MengYun, Um -e-Habiba, Muhammad Husnain
Abstract: Prime objective of our study is to analyze the weak form efficiency of foreign exchange market of major trading partners of an emerging country of Pakistan (China, Germany, Hong Kong, Italy, Japan, Kuwait, Saudi Arabia, UAE, UK, and USA). Therefore, it is an attempt to provide guidelines regarding the utility of technical analysis for forecasting of exchange rate quotes. We use battery of parametric and non-parametric test on the most recent data set (January 1, 2006 to January 31, 2017) on daily, weekly and monthly basis which provides robustness of our findings. Results confirm foreign exchange market are weak form inefficient, therefore there exist opportunities for technician in term of technical trading strategies in the foreign exchange market of major trading partners of Pakistan. Study has important implication for series of technical trading strategies, for developing diversified portfolios and for the application of risk management techniques in foreign exchange market.
Keywords: Market Efficiency; Technical Trading Strategies; Emerging Market; Exchange Rate; Variance Ratio Test.
Resource Orchestration in Emerging Markets
by Luciana Maines Da Silva, Guilherme Trez
Abstract: This study aims to understand the contribution of resource orchestration to the creation of competitive advantage in international foreign companies in emerging markets. We used a bibliographical review of the state of art studies based on emerging markets and resource orchestration themes. This paper contributes to understanding the relationship those themes. Based on two cases, of Norwegian companies that are nowadays established on Brazil, we propose a framework, demonstrating the relevance of the perspective of the macro-institutional environment when building the relationship between studies related to resource orchestration and the context of emerging markets.
Keywords: Emerging markets; Resource orchestration; Institutional weakness.
Assessment of Risk Management Practices in the Public Sector of Malaysia
by Md. Mahmudul Alam, Jamaliah Said, Razana Juhaida Johari
Abstract: Public sectors around the world, especially in the developing counties, are not functioning well due to widespread fraud, governance, corruption, and inefficacy. For this reason, the worlds public sectors need to improve their efficacy by using a sound risk management system. This study attempts to comprehend the phenomenon of current risk management practices among the public sector employees in different service schemes in Malaysia. A questionnaire survey was utilized to collect primary data from 194 department heads in Malaysias federal ministries. The collected data was analysed using descriptive statistics and factor analysis. Findings revealed that 94.7% of respondents agreed to implementing risk management in their respective departments, but the level of priority for these risk management factors differs based on the service schemes. This study will assist policymakers to identify what is needed to enhance risk management practices in the public sector.
Keywords: Pubic Sector; Risk Management; Factor Analysis; Malaysia.
INFLUENCE OF SALES REPRESENTATIVE CHARACTERISTICS ON CUSTOMER PURCHASE BEHAVIOUR
by Shalini Gautam, Sakshi Agarwal, Utkarsh Kumar
Abstract: The present study examines the influence and effectiveness of sales representative in an emerging market in enhancing retail sale in cases of a high involvement product like apparel and low involvement product like grocery. The present research examined the effect of five factors, namely, sales representatives personal characteristics, competence, sales representatives-initiated promotion, involvement and ethical behaviour on purchase behaviour of consumers. The step-wise regression method was used to support the proposed hypotheses. The results of the study concluded that in the both high and low involvement product category, sales representatives-initiated promotion and involvement affect the purchase behaviour of consumers. Other than these two factors, the competence of the salesperson plays an important role in high involvement products, whereas his personal characteristics are important in case of low involvement products. The research provides a guide for sales managers for developing a training and strategy development programme for their sales force.
Keywords: Sales representative; Purchase Behaviour; Competence; Ethical Behaviour; Low and High involvement products.
Engineered wood products as substitutes in the Canadian building construction industry
by Shashi Shahi, Mathew Leitch, Mohamed Dia
Abstract: Engineered and reconstituted wood products play an important role in building construction, and have positive environmental impacts. However, the wood products compete with other construction material (concrete and steel) in terms of prices in the Canadian building construction industry, and the price competition has not been explored in past literature. In order to promote the use of wood and wood-based products, there is a need to understand how prices influence the choice of construction material. We estimated the own and cross price elasticities of demand of construction material in Canada using standard log-linear regression models with consumption and price data from 1990 to 2017. Our study shows that engineered and reconstituted wood products are substitutes for cement and steel, and hence there is a need to focus on the development of these value-added forest products, to create sustainable local economies that are economically viable, environmentally sound and socially responsible.
Keywords: building construction industry; construction material; engineered wood products; price elasticity; sustainability; wood-based products.
Hospital Choice by Indian Customers
by Palanisamy Ganesan, Lallu Joseph, Sivakumar Alur
Abstract: This studys purpose was to understand and test a modified model of service-provider selection-criteria in hospital service settings. Using a thorough literature review, scaled items under eight hospital selection criteria were identified and an instrument was developed. The study covered 55 hospitals in Indian cities. All the eight hospital selection criteria studied positively influenced customer choice. The results validate the applicability and relevance of the modified model in healthcare context. Eight criteria positively influence patients hospital choice. The moderation analysis highlights that there is no difference between gender and age while considering the eight criteria on the hospital choice. Hospital marketing, operations, administration, and planning can be better with understanding of factors that increase patient satisfaction.
Keywords: Patients Choice Criteria Hospital Services.