Context Of Developing Economy Research Articles

English

Firms that are both sustainable and able to grow rapidly are an important stimulus to any economy and essential for increasing employment opportunities. Theory and case studies describing high growth firms in the developed economies are vast. However, much less is known about high firm growth firms within developing economies. By identifying profitable high growth firms within a developing economy context and beginning to understand why and/or how these firms survive and even prosper will hopefully provide insights for other firms that would want to emulate their success. In the present study, the researchers aimed to gain insight into possible key considerations that should be taken into account by academics and practitioners alike in effectively managing firm growth, by specifically focusing on companies that have proven themselves successful in terms of growth management. For purposes of this present study qualitative research by means of observation was conducted. Annual reports of purposefully selected listed companies were analysed by observing the official views and reflections of the executive managers of the selected companies, within a specified time frame. Findings revealed that the most common attributes of the directors are extensive industry experience, followed by being highly qualified (having a masters or doctoral degree) and lastly, entrepreneurial experience. Firms in the information, communication and technology (ICT) sector significantly outperformed the other sectors in terms of profitability. Most successful high growth firms followed a combined growth strategy, which included organic growth, acquisitions and expansion into Africa. Key words: AltX, attributes, characteristics, entrepreneur, experiences, firm growth, SME.

Audit fees, auditor choice and stakeholder influence: Evidence from a family-firm dominated economy

Despite the dominance of family-owned publicly listed companies in developing economies, prior research has paid relatively little attention to this area and the socio-economic context of these countries has been mostly ignored. This study contributes to the accounting literature by providing empirical evidence of the effects of family control and ownership on audit pricing and auditor choice in a developing economy context. Using 1058 firm-year observations of publicly listed companies in Bangladesh, where family firms are the most dominant form of public companies, we find that in comparison with non-family firms, our sample family firms pay significantly lower audit fees and choose lower quality auditors. However, for export-oriented industries, family firms seem to pay significantly higher audit fees and recruit better quality auditors compared to non-family firms. Collectively, our findings have important implications for audit markets in emerging economies in which the sustainability of family firms is crucial for overall economic development.

Evolving Regulatory Structures and the Receding Public Sector Seeking a Convergence

Two seemingly unrelated phenomena of the post-reform India, viz. the evolution of the independent regulators and the shrinking of the public sector are discussed. Firstly, the slowing in the privatization and disinvestment drives in developing economies is recognized and explained. Taking the case of Indian Telecom, it is shown then that it was the strong lobbying of the private players and their resolve to dismantle the state-owned player than mere efficiency rationale which led to the setting up of the independent regulator. Then we link the mushrooming independent regulators and the drive for rapid privatization to the policy advocacy of international donor agencies. Further, taking a stand that the State can still deliver better, a case for significant public sector presence in a developing economy context is made. Finally, an attempt to connect both these questions through convergence asks for rejuvenating the public sector as much as for incentivizing the private interests through regulation. After all, being market-friendly does not have to mean being government-unfriendly.

Prize or Price? Corporate Social Responsibility Commitment and Sales Performance in the Chinese Private Sector

ABSTRACTStudies on the relationship between corporate social responsibilities (CSR) and firm performance have mostly looked at large public firms in developed countries. In this study, we analyze this relationship using a sample of privately owned firms in China, a developing economy context. We hypothesize a negative relationship between commitment to CSR and average sales growth for privately-owned firms operating in weak institutional environments. Further, we hypothesize that smaller firms will show a stronger negative relationship than larger firms. CEO survey data from a sample of 630 Chinese private firms confirm the moderating role of firm size. However, the results are not entirely as expected. The negative relationship is observed in small firms (100 or fewer employees), but the relationship is positive for large firms (greater than 1000 employees), consistent with the literature. We discuss implications for public policy and future research.

Sustainability reporting among Ghanaian universities

ABSTRACTThis is an exploratory study that brings to the fore the extent to which universities in Ghana report on their sustainability performance. It explores the issue of whether Ghanaian universities report on their sustainability performance, as well as the dimensions of sustainability they report on. A framework based on the Global Reporting Initiative (GRI) guidelines and campus sustainability assessment tools was used as the basis for investigating sustainability reporting among the six biggest universities in Ghana. Despite the fact that none of the six universities had stand-alone sustainability reports, they all reported on their university sustainability performance through websites and annual reports, despite not explicitly claiming to be addressing sustainability. It was also noted that there is variable coverage of sustainability issues among the universities investigated. It appears that sustainability reporting in Ghanaian universities, while still in its infancy, is emerging. Universities in developing economy contexts might be encouraged to explicitly address and report sustainability issues through ‘soft’ regulations which address the imperative and content of sustainability reporting.

Innovation Strategy Complexity and Scope in Automotive Component Manufacturing in Developing Economies

:Associations between complexity of innovation strategy and scope of innovation were investigated in automotive component manufacturing in the developing economy contexts of South Africa and India. Understanding how strategy complexity relates to scope of innovation enables engineering managers to select the appropriate level of complexity for their firms' market access strategy. An empirical study was conducted in South Africa and in the Pune region of India. The India data yielded several significant associations between strategy complexity and scope of innovation, but the South African data yielded none. It indicates that engineering managers should consider more complex market access strategies if an increased degree of novelty or increased diversity of innovation is required; however, a simpler strategy should be considered in developing country automotive component manufacturing with a foreign vehicle manufacturer's subsidiary as the customer.

Intermediation for technology diffusion and user innovation in a developing rural economy: a social learning perspective

Technology intermediaries are seen as potent vehicles for addressing perennial problems in transferring technology from university to industry in developed and developing countries. This paper examines what constitutes effective user-end intermediation in a low-technology, developing economy context, which is an under-researched topic. The social learning in technological innovation framework is extended using situated learning theory in a longitudinal instrumental case study of an exemplar technology intermediation programme. The paper documents the role that academic-related research and advisory centres can play as intermediaries in brokering, facilitating and configuring technology, against the backdrop of a group of small-scale pisciculture businesses in a rural area of Colombia. In doing so, it demonstrates how technology intermediation activities can be optimized in the domestication and innofusion of technology amongst end-users. The design components featured in this instrumental case of intermediation can inform policy making and practice relating to technology transfer from university to rural industry. Future research on this subject should consider the intermediation components put forward, as well as the impact of such interventions, in different countries and industrial sectors. Such research would allow for theoretical replication and help improve technology domestication and innofusion in different contexts, especially in less-developed countries.

Information Search, Alternatives Evaluation, and Coping Mechanisms of Functionally Illiterate Consumers in Retail Settings: A Developing Economy Context

Little research has been carried out with regard to marketing to functionally illiterate consumers, despite the size and purchasing power of this market segment. This qualitative study examined the decision-making processes and coping mechanisms of functionally illiterate consumers in the South African grocery shopping environment. The findings provide insights that have important theoretical and practical implications for marketers, retailers, and policy makers. For functionally illiterate consumers, the information-search stage of the consumer decision-making process is either nonexistent or limited to a few trusted sources, such as friends and family, which often occurs only after a purchase has been made. Furthermore, these consumers face difficulties in a grocery store environment but have developed several coping mechanisms to compensate for their limited literacy skills.

Sustainability -- Rethinking the Social Responsibility of Banking Businesses

The purpose of this paper is to explore the issue of sustainability, as it is practised by firms operating within developing economy contexts. It defines sustainable strategic corporate social responsibility (CSR) and proposes a framework that outlines the stages involved in the proficient performance and disclosure of sustainable strategic CSR initiatives. This was done by adopting a firm-oriented perspective, combined with insights banking, CSR and sustainability.The proposed framework identifies four main stages involved in sustainable strategic CSR. The author outlines a framework for understanding how the company can manage the different stages of the sustainable strategic CSR process and discusses its implications. The conceptual elaboration creates new research issues that should lead to a deeper understanding of firms’ strategic motivations, choice of initiative, timing and methods of disclosure in implementing sustainable CSR. The firm-based perspective and the focus on the design, performance and disclosure of sustainable CSR, provide a new approach to analysing and understanding sustainable CSR. The paper contributes to CSR research by introducing conceptualisations of sustainable strategic CSR which have an interest for both academic research and practitioners.

Microfinance and the Socio-economic Wellbeing of Women Entrepreneurs in Ghana

Normal 0 false false false EN-US X-NONE X-NONE Abstract Microfinance has been touted as a means of improving the lives of the poor and the provision of funds for business enterprises. This study examines the impact of microfinance on the socio-economic lives of women entrepreneurs in Ghana. Using Ghana as the study area, this paper provides valuable insights into micro financing in a developing economy context. A multi-method approach was used in data collection and analysis. Eight hundred and forty (840) women beneficiaries of microfinance loans were surveyed; and interviews conducted with 35 of them. The overall results suggest that the women’s enterprises have expanded while their socio-economic status have improved tremendously after taking the loans. It is however recommended that microfinance institutions provide education in finance management for their clients, since only few of them undertakes such an exercise. /* Style Definitions */ table.MsoNormalTable {mso-style-name:Table Normal; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:Calibri,sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Times New Roman; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:Times New Roman; mso-bidi-theme-font:minor-bidi;}

Credit-rationing and entrepreneurial experience: Evidence from a resource deficit context

This study explores the following novel research question: Do attributes relating to the resources and signals of lead entrepreneurs, particularly prior business ownership experience quality signals, reduce the probability that entrepreneurs will be chronic credit-rationed entrepreneurs in a developing economy context with resource deficiencies? Guided by insights from signalling, resource-based view of the firm and human capital theory, profiles of credit-rationed entrepreneurs (i.e. debt finance obtained but below the amount requested) are highlighted. The length of the debt finance gap was considered with regard to temporary (over one year), major (over two years) and chronic (over three years) finance gaps. We find support for our hypotheses relating to entrepreneurs whose firms are more innovative being more likely to be chronically credit-rationed, whilst firms with partners, entrepreneurs with longer prior business ownership experience and habitual entrepreneurs are less likely to be credit-rationed. The interaction with serial or portfolio entrepreneur reduces the chronic credit-rationing problem faced by innovative firms. A case for developing linkages between inexperienced novice entrepreneurs and habitual entrepreneurs, particularly successful portfolio entrepreneurs, is made. Notably, we suggest that building upon the experienced entrepreneurs who do exist may be particularly beneficial in resource deficit contexts such as Ghana

Exploring different measures of wage flexibility in a developing economy context: the case for Turkey

In this paper we use Turkish household labor force data to address a number of conceptual issues pertaining to the wage curve, an empirically derived negative relationship between the real wage level and the local unemployment rate. First, we show that in developing economies where labor markets are prone to high degree of segmentation by skill level, local unemployment rates disaggregated by education provide more accurate measures of the degree of group-specific wage competition and hence yield more robust results of the wage curve analyses. Second, we estimate the wage curve using various definitions of the unemployment rate, including discouraged and marginally attached workers, and the long-term unemployment rate to explore the most relevant measure of local labor market tension in the wage setting process. We find that broader definitions of unemployment serve as a more effective reference point in measuring wage flexibility for women, whose attachment to the labor market is substantially weak in the Turkish context; while for men the official and long-term unemployment rates perform well. Finally, using quantile regression we show that wage responsiveness to unemployment cannot be assumed to be constant along the wage distribution. In the Turkish case, we find a higher unemployment elasticity of wages around the median segment of wage distribution. This effect is more pronounced for women.

Climate Change: A Comparison Of Market-Based Instruments From A South African Perspective

This article aims to consider the relevancy of (i) cap-and-trade schemes and (ii) carbon tax schemes in a developing economy context. Even though both schemes have a common goal of reducing greenhouse gas emissions, they operate very differently, each with their own set of advantages and disadvantages. Sustainable developments comprise various elements categorised in three primary dimensions environmental, economic and social. The objective of reducing greenhouse gases via the implementation of carbon tax or cap-and-trade schemes primarily addresses the environmental dimension of sustainable development. Notwithstanding the aforementioned, the impact of both schemes on the economically sustainable development, including industry competitiveness and growth, still has to be determined. In South Africa, the National Treasury made a decision to implement carbon tax as opposed to cap-and-trade schemes. In this article, the reasoning behind their decision in favour of carbon tax in the South African context is critically considered, firstly by evaluating the key characteristics between cap-and-trade and carbon tax schemes and secondly by considering the effectiveness hereof in the global context. It was found primary reason behind the favourable consideration of carbon tax was the fact the implementation thereof would be simpler using the existing taxation systems, whereas cap-and-trade would require the implementation of sophisticated mechanisms that may not provide the optimum benefit in a developing economy context.

IMPACT OF BUSINESS COMMUNICATION ON ORGANIZATIONAL PERFORMANCE IN NIGERIAN COMPANIES

The purpose of this study was to investigate the impact of business communication on organizational performance in Nigerian companies. In business, message is conveyed through various channels of communication, including internet, print (publication), radio, television, etc. Whether or not significant change(s) results in the performance of an organization as a result of business communication is yet to be empirically established. This study, therefore, was carried out to investigate the relationship between business communication and organizational performance in Nigeria (a less developed economy) using a contextualized and literature based research instrument to measure the application of the investigated “constructs”. Using the survey method, the study obtained sample data from 100 small and large manufacturing and service companies operating in Lagos State of Nigeria. The research instrument showed encouraging evidence of reliability and validity. Data were analyzed using descriptive statistics, percentages and t- test analysis. The study found that effective business communication is emphasized to a reasonable extent in the surveyed Nigerian companies. However, the ‘level of emphasize’ is a question of degree. It was also found that the extent of practices of effective business communication, were related to the category of business (service versus manufacturing) and its size. The research findings are limited to some extent by the confounding effect of variations within and between industry types of firm and industry sectors, and the use of respondents’ own-assessments of performance. The established research beyond the usual context of developed western economies, and thereby, potentially contains some lessons for practitioners and researchers in other developing countries.

Transferring technology from university to rural industry within a developing economy context: The case for nurturing communities of practice

The primary aim of this paper is to demonstrate how technology transfer between universities and rural industries in developing countries can be achieved effectively, using independent research and advisory centres as intermediaries. It draws on a longitudinal action research study, which experiments with the process of nurturing and bridging communities of practice amongst recipients of technology and stakeholders concerned with technology diffusion, productivity and economic development. Its empirical evidence is from an academic-related, non-government intervention initiative targeting two small-scale industries, namely fish farming and coffee production, in the Cauca region of Colombia. Results demonstrate how barriers to transfer can be overcome. The intervention is considered as instrumental; its key components and outcomes are discussed in detail.

Energy-Based Economic Development: Mapping the Developing Country Context

Energy-based economic development (EBED) can provide economic, social and environmental benefits related to national economic development and sustainable growth activities. As both policy and research interests in responsible mechanisms for economic development grow, EBED benefits are becoming increasingly attractive to planners in both developed and developing countries. The incentives, trade-offs, and payoffs for developing countries, however, are not well documented. To help address that gap, this paper identifies the general scope and role of EBED in a developing economy context, and outlines opportunities and challenges for decision-makers.

Conceptualising corporate social responsibility (CSR) and corporate social investment (CSI): the South African context

PurposeWith globalisation pressures and increasing burdens on governments to provide comprehensive social services, there is now a need to better understand how firms play their part in sharing these burdens. Views vary from those who believe that CSR and CSI are distractions from profit maximisation to those who argue that participation in such activities contributes to positive social transformation and also benefits participating firms themselves. This paper seeks to conceptualise these debates.Design/methodology/approachThe paper largely utilises a literature review to derive the research conclusions. Specifically, it examines how CSR, CSI and the socially responsible investment (SRI) index has been used to evaluate corporate behaviour in South Africa, as a novel way of addressing pressing development problems.FindingsCSI has emerged from the specificities of South African historical development, and it has arguably been driven primarily by legislation and industry charters. It is in this context that CSI, with its paraphernalia of the SRI Index and social capital market, promises to present a new and radical way of addressing developmental problems.Originality/valueThis paper is one of the few studies examining the phenomenon of corporate social investment from a developing economy context.

Industrial land use and heavy metal contaminated wastewater used for irrigation in periurban Zambia

Studies on urban and periurban agriculture in Zambia have not adequately tackled land use practices in relation to problems associated with wastewater irrigated farming. This study investigated land use practices in two wastewater irrigated farming areas in the industrial towns of Mufulira and Kafue respectively in the Copperbelt and Lusaka provinces of Zambia. Drawing on data from field interviews and focus group discussions, as well as laboratory analysis of the heavy metal content in the wastewater used for irrigation in farm plots at both sites, the study outlines the problems associated with wastewater irrigated farming, including the vulnerability context of those whose livelihoods depend on insecure access to vacant land for informal farming. The findings also confirm the heavy metal contamination of the wastewater used for farming, as well as seepage into the surrounding environment, from mining and industrial enterprises located amidst residential areas. The characteristics of mixed land use, high crop diversification, multiple cropping systems and multiple livelihood practices found in these areas of informal farming are similar to those noted in periurban farming in other developing economy contexts. Given that wastewater irrigated crop farming forms part of the livelihood portfolio among the majority of periurban populations, these preliminary results reinforce the need for municipal authorities to improve scrutiny of land use regulation, raise awareness among informal farmers of the hazards associated with using domestic sewage wastewater and untreated industrial effluents, and ensure improve treatment of the wastewater used for human consumption.

Socio-economic and transport trends in India and the United States: a preliminary comparative study

The demand for travel is growing very rapidly in developing nations around the world. Increasing population, standards of living, vehicle ownership, massive infrastructure investments, and economic and recreational opportunities are just some of the factors contributing to increases in travel demand. While the rate of increase in travel demand may begin to slow in some developed economies of the world, the rapidly developing economies (such as China and India) are just beginning to experience the rapid increases in travel demand that the developed economies experienced several decades ago. Thus, there are challenges and issues in the development of multimodal transport systems, understanding of travel behavior and drivers of growth in travel demand, and deployment of advanced analysis tools that are common to both the developed and developing economy contexts. Resource and data constraints, as well as workforce training and development issues, confront transportation professionals both in developed and rapidly developing environments. At the same time, there are socio-economic, cultural, and demographic differences that persist across geographical contexts. This paper highlights some of the socio-economic and transport trends and conditions in India and the United States to shed light on differences and similarities between the two contexts. The paper highlights the trajectory of travel demand in the two contexts with a view to identify potential strategies that a rapidly developing nation such as India can deploy to accommodate growth in a sustainable way.

E‐business financing: preliminary insights from a developing economy context

PurposeThe deployment and strategic use of e‐business, from basic e‐mail utilization to total enterprise integration, involves the commitment of financial and technical resources. The resources have to be financed. The purpose of this paper is to ascertain the views of trade promotion organizations, donors, export associations and banks on e‐business financing in Ghana's non‐traditional export (NTE) sector, with the view to making policy contributions to the e‐business financing phenomenon in a developing economy (DE) context.Design/methodology/approachThe research design is qualitative since this is an exploratory study and deep preliminary insights were sought about a hitherto under‐researched information systems topic from a developing country perspective. Officials from the trade promotion; export association, donor and financial communities were interviewed to generate insights to help understand the phenomenon under investigation.FindingsSome banks find it difficult financing e‐business in NTE firms because it is considered a new area with relatively higher risks and uncertainties. Banks would rather grant small loans to a few select small and medium enterprise exporters in an attempt to limit their default risk. The trade promotion organization is helping (albeit in a moderate manner) with up‐skilling for the improvement in e‐competencies in Ghana's NTE sector. The export product association in collaboration with the donor interviewed is in the throes of designing e‐business interventions in Ghana's NTE sector after recently completing an e‐readiness survey in the same sector.Originality/valueThis paper presents a modest contribution to the export firm‐electronic business literature from a resource‐centered perspective, in a DE context. Studies on e‐business financing in DEs are virtually non‐existent and the policy prescriptions could apply with minor modifications to other related contexts in respect of e‐business financing.