Emergent Countries Research Articles

Social, Economic and Competitiveness aspects of Green Innovation

Objective: The purpose of this study is to analyze how the adoption of green innovation practices by companies can affect the economic (Gross Domestic Product - GDP), social (Human Development Index - HDI) and competitiveness (Global Competitiveness Index - GCI) Development of Developed Countries (DC) and Emerging Countries (EC). Method: For the analysis, a three-level hierarchical regression model was used with repeated measures and estimated by Maximum Likelihood from a sample of 4061 publicly traded companies, 80% of which from the G7 countries and 20% from the BRICS (Brazil, Russia, India, China, and South Africa). Results: The results showed that in relation to GDP, all green innovation indicators negatively influenced economic development in both DC and EC. With regard to the HDI, green innovation practices such as environmental management and environmental investments positively influence social development in DCs and ECs, respectively. As for competitiveness, the results revealed that only green innovation practices related to environmental policies showed statistically significant results demonstrating a negative relationship with the GCI both in the DC and in the EC. Contributions: The study contributes with possible ways for companies and governments to set goals to achieve Sustainable Development Goals, SDG-8 to promote sustainable and inclusive economic growth, SDG-9 to promote inclusive and sustainable industrialization and foster innovation, and SDG-10 to strengthen and revitalize the global partnership for sustainable development.

Natural laboratories in emerging countries and comparative advantages in science: Evidence from Chile

AbstractEntering the knowledge society and mobilizing science and technology are critical for emerging countries (ECs) to address important challenges of society and promote long‐term economic growth. Natural laboratories (NLs) are geographical or geophysical singularities that provide comparative advantages and leverage to ECs for scientific research and international collaboration. Based on empirical evidence and learning experiences from five NLs in Chile, we propose the foundations of a conceptual framework for public scientific policies based on NLs and their possible implementation in ECs. Scientific research in NLs may address local, national, and global societal challenges while decentralizing scientific activities, encouraging transdisciplinary research in territories, anticipating the effects of climate change, and protecting biodiversity while promoting international partnerships and alignment with 2030 Sustainable Development Goals.

Digital transformation by enabling strategic capabilities in the context of “BRICS”

PurposeThis study characterizes the scenario of emerging countries (ECs) – “Brazil, Russia, India, China and South Africa (BRICS)” concerning digital transformation and its association with the Industry 4.0 (I4.0) value creation system. For such, the authors developed a discussion paper based on content analysis of 857 journals in business administration, describing in a proposed framework the institutionalization “BRICS” policies that nurture global competitiveness among ECs and development needs to catching up.Design/methodology/approachData from 16 official documents of government, ministries and economic studies were analyzed by applying Atlas TI contrasting theory of 875 papers to develop and discuss the framework. Content analysis showed research gaps, technological needs and governance to enable firms to sustain competitive advantages applying I4.0 value creation system. Results converged into a microfoundation of the agile journey of a digital transformation to global organizations in between BRICS.FindingsThis paper's central question is to understand: How can organizations achieve a sustainable I4.0 value creation system adopting digital transformation in “BRICS”? The reduced transaction costs driven by platforms and ecosystems orchestration and the related or integrated multiple level sources of knowledge could speed benefits of domestic firms and subsidiaries of global organizations. Research gaps could be understood by a new combination of resources and knowledge, exploiting technologies and, also, the discussion of social economic relevance of I4.0.Research limitations/implicationsBecause of the complexity and the novelty of the framework, further studies could be discussed by its elements. New structures and paths for alternative strategic factors may be proposed in the future with the inclusion of new relationships in the adoption of platform business models and ecosystems. Future studies should consider digital knowledge-based assets attained to economic activities across national boundaries; data analytics or data-driven technology adoption and their effects on global attractiveness.Practical implicationsThe paper implicates in evaluating whether dynamic capabilities subsidize performance propitiating the catching up with a focus on the I4.0 system and digital transformation management journey. The proposed framework demonstrates the benefits of digital transformation by enabling strategic capabilities, making efforts to reduce a lack of research paths concerning the policy attributes that define the platform use strategy from an architectural standpoint and its benefits.Social implicationsThe particularities of turning either an I4.0 global organization or a digital organization operate in various environments, allowing access to the activities' digital context. Social implications concerning digital resources as strategic accelerators are determined by the BRICS peculiarities, such as social behavior, consumerism or communication pattern, leadership and workforce skills. Finally, political aspects and interference in the economy are deployed in society what must be considered.Originality/valueThis paper proposes a conceptual framework to better understand whether the heterogeneity of resources could explain I4.0 and digital configurations, while new platforms have driven features in global industrial environments and ecosystems. The seizing opportunities in these countries and sense-making use of platforms and orchestration of ecosystems are found as the critical topics being the main value of this important discussion.

Determinants of Bilateral FDI Positions: Empirical Insights from ECs Using Model Averaging Techniques

ABSTRACT Although FDI determinants have been broadly studied, there is a lack of consensus on theoretical and empirical analysis from the perspective of emerging countries (ECs) as sources. However, this study aims to address the model uncertainty and non-universality in the empirical findings by performing two model averaging techniques as Bayesian Model Averaging (BMA) and Weighted Average Least Squares (WALS) approach. Using a bilateral FDI position dataset for the period 2009–2016, we investigate the robust FDI determinants of 24 ECs in developed, emerging, and other developing countries both at the source and destination level separately. Our findings reveal that the estimated FDI determinants are remarkably heterogeneous with change in the destination. Accordingly, the policymakers of ECs frame somewhat different strategies to channelize their FDI positions.

Willingness to work for multinational enterprises from emerging countries: The case of Chinese multinational enterprises in the Netherlands

How do perceptions of country-of-origin image (COI) relate to willingness of Western people to work for subsidiaries in advanced countries of multinational enterprises from emerging countries (EMNEs)? We seek to shed light on this question by exploring six hypotheses based on environment-processing metatheory. Applying a PLS-SEM analysis of online survey data from the Netherlands, we find that the COI and familiarity with the EMNE’s home country are positively associated with willingness to work. Additionally, we reveal a few mediating effects indicating that familiarity and individual difference are indirectly related to willingness to work. This study contributes to our understanding of the inability of EMNEs to attract talent in the Western world by adding a macro perspective to the human resource management literature. Furthermore, we extend environment-processing metatheory by expanding the focus from the perceived internal context (corporate information) to the perceived external environment (country of origin), as well as to the antecedents (familiarity and individual differences) of the perceived environment.

An insight into R&D in emerging countries and prominent concepts within the literature

Multinational companies (MNCs) show an apparent tendency toward research and development (R&D) for the last three decades. Many kinds of research have recently focused on R&D in emerging countries (ECs) to reveal the differences from R&D in developed countries. This paper presents a literature review consisting of 23 articles from 2004-2019 on R&D in emerging markets. By conducting content analysis, it has been analyzed their prominent concepts and results. According to the research focus, the articles examined have been classified into five main groups – internationalization of R&D, R&D activities, R&D investments, technology-based R&D, R&D offshoring – along with articles that cannot be grouped. The main purpose of this study is to determine the current tendency of R&D in emerging markets. Thus, it provides to understand in which position R&D has in emerging markets, and under which circumstances it is successful. Furthermore, practitioners can benefit from the results of the presented study. The systematic evaluation of the findings contributes to the formation of a general view for future research.

PDB66 THE COST OF COMPLICATIONS OF TYPE 2 DIABETES (T2D) IN ESTABLISHED AND EMERGING MARKETS: ESTIMATES FROM THE G15 REVIEW

T2D complications are a serious drain on healthcare resources as well as a source of personal hardship for the individual patient. The cost incurred by complications can differ between markets. Using data from the G15 Review, we sought to determine the cost of T2D complications in established (EST) and emerging (EMG) markets. The G15 Review is a systematic literature review (SLR) in T2D focusing on the following countries: Australia, Canada, France, Germany, Italy, Spain and UK (EST), and Brazil, China (CHN), Philippines, Russia, Saudi Arabia, Taiwan, Turkey and the United Arab Emirates (UAE) (EMG). A SLR of cost studies (2001-2018) was conducted using EMBASE, MEDLINE, MEDLINE-IN-PROCESS and conferences. Study eligibility was assessed independently by 2 researchers in 2 stages, using pre-defined criteria. Extracted data were converted into euros and analysed descriptively. 43 studies were identified (EST= 20; EMG= 23, 15 from CHN). Data was absent for Australia, Philippines, Russia, Saudi Arabia and UAE. The mean annual direct costs per patient associated with macrovascular, microvascular and acute metabolic complications combined were (range) €11,548(France)-€26,090(UK) (EST) and €1,504(CHN)-€2,504(CHN) (EMG). The range for the mean annual direct costs per patient across markets was €860(CHN)-€9,497(UK), for macrovascular and €769(CHN)-€4,865(UK) for microvascular complications. In matched studies, chronic complications resulted in 2 to 9-fold increase of direct costs compared to control T2D subjects. Specifically, cardiovascular (n=9) and renal complications (n=6) increased cost by 1.5 to 3-fold and 1.5 to 6.3-fold, respectively. T2D complications are associated with considerable cost in both EST and EMG. Economic data however, are lacking in many EMG countries. Given the rising tide of T2D globally, healthcare strategies for the prevention of complications are now a pressing priority for both patient care and economic sustainability. This calls for timely and appropriate clinical intervention.

Ideas production and international knowledge spillovers: Digging deeper into emerging countries

Research and Development (R&D) activities of emerging countries (EMEs) have increased considerably in recent years. Recent micro studies and anecdotal evidence points to industrialized countries as the sources of knowledge in EMEs. In this context, we examine ideas production and international knowledge spillovers in a panel of 31 EMEs by accounting for six diffusion channels and two types (national versus USPTO) of patent filings. Knowledge spillovers to EMEs accruing from (i) the industrialized world, (ii) the emerging world, (iii) different country and regional groups, (iv) selected bilateral cases, and (v) those within the regional clusters of EMEs, are modeled. Spillovers from the industrialized world appear robust via geographical proximity and disembodied channels only. Other conduits, including trade flows, are either insignificant or not robust. Spillovers from the emerging world are virtually non-existent. Analyses of regional clusters of EMEs do not support any role of language, culture or geographical characteristics in knowledge diffusion. Overall, the breadth and depth of knowledge spillovers to EMEs appear extremely moderate; however, we find pockets (specific countries and certain groups) generating positive spillovers. A carefully choreographed policy focusing on such pockets might be fruitful. We hope that this study (i) complements the micro literature, (ii) furthers the existing macro literature and (iii) provides some new policy insights. Our results are robust to a range of robustness checks, including the estimators – a cointegration approach versus a simple fixed effects OLS estimator.

Novel LoadProGen procedure for micro-grid design in emerging country scenarios: application to energy storage sizing

This paper is devoted to describe the development, implementation and application of a novel procedure to properly design the electrification process in rural areas of Emerging Countries (EC). The procedure exploits a bottom-up approach, i.e. target applications are related to micro-grids devoted to satisfy the electrical needs of small communities. The procedure starts from microscopic data (i.e. single electric appliances) to effectively catch the customer needs (i.e. bottom) and it matches them with the available energy sources in the target area. In particular, a tool named LoadProGen developed by the Energy4Growing research group of Politecnico di Milano, is presented: the mathematical approach proposed is detailed and a real field case study relevant to a micro-grid deployed in Tanzania is provided. The tool is based on the gathering of information about the target area, i.e. to get information from interview and field audit, and on a stochastic approach to build up realistic estimation of the electric load profile of the considered uses. The energy needs forecast (cfr. load profile) is then adopted in a second procedure devoted to design a micro-grid capable to properly feed the loads. In this work, for sake of exemplification, this latter is supposed to be a photovoltaic based micro-grid integrated with an electrochemical storage.

Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals

The rise of multinational enterprises from emerging countries (EMNEs) poses an important test for theories of the multinational enterprise such as internalisation theory. It has been contended that new phenomena need new theory. This paper proposes that internalisation theory is appropriate to analyse EMNEs. This paper examines four approaches to EMNEs—international investment strategies, domestic market imperfections, international corporate networks and domestic institutions—and three case studies—Chinese outward FDI, Indian foreign acquisitions and investment in tax havens—to show the enduring relevance and predictive power of internalisation theory. This analysis encompasses many other approaches as special cases of internalisation theory. The use of internalisation theory to analyse EMNEs is to be commended, not only because of its theoretical inclusivity, but also because it has the ability to connect and to explain seemingly desperate phenomena.

Emerging multinationals investing in developed countries

PurposeThe aim of this work is to investigate the key factors that lead to a successful deal in the case of acquisitions of Western companies by multinationals from emerging countries (EMNCs).Design/methodology/approachThis study adopts a qualitative paradigm and uses a case study method as a tool of analysis. The case concerns Fondalmec, an Italian unlisted medium-sized joint stock company. The company was acquired in 2007 by the Indian multinational Endurance. Primary data were collected through semi-structured interviews and integrated with secondary data retrieved from relevant documents such as annual reports prepared before and after the acquisition.FindingsResearch findings show that EMNCs have some country-specific characteristics, which should be adequately assessed and realigned to the characteristics of the host country and targets’ resources during both the evaluation phase and the integration process.Research limitations/implicationsThe research limitation is attributed to there being only one case study analysis.Practical implicationsThe study recommends examining the country of origin of the acquirer and suggests EMNCs’ managers to prefer a “light-touch” integration of Western target companies to gain access to their intangible assets and achieve success.Originality/valueThis work differs from much of the existing literature on mergers and acquisitions because it focuses on EMNCs and analyses the target company together with the buyer and their post-operative development strategy. Furthermore, it is one of the few empirical research studies on non-listed companies, which are often overlooked given the greater difficulty of accessing data.

Regional strategic assets and the location strategies of emerging countries’ multinationals in Europe

ABSTRACTThis paper explores the location strategies of multinational enterprises (MNEs) from emerging countries (EMNEs) in search for regional strategic assets. The analysis is based on a systematic comparison between EMNEs and multinationals from advanced countries (AMNEs) in order to unveil similarities and differences between these two major sources of foreign investment into the regions of the European Union. The empirical results suggest that EMNEs follow a distinctive logic in their location strategies. They are attracted by the availability of technological competences only when their subsidiaries pursue more sophisticated and technology-intensive activities. Conversely, EMNEs share some behavioural similarities with AMNEs in their response to the spatial agglomeration of investments.

The power of the fish is in the water

Every organisation (‘the fish’) is embedded in a certain setting (‘the water’). These metaphors imply a highly reciprocal, interdependent relationship between the organisation and its setting. The purpose of my article is to explore the utility of the conceptual distinction drawn by Aguinis and Glavas (2013) between Embedded and Peripheral Corporate Social Responsibility (CSR), as applied from an emerging countries (ECs) perspective. Firstly, I elucidate unique EC organisational/people features. Secondly, I highlight the implications of these features for CSR. Finally, I address ‘contextually fit’ CSR, arguing that Embedded CSR is the sole imperative for organisations in ECs, but as an active, societal transformation partner.Every organisation (‘the fish’) is embedded in a certain setting (‘the water’). These metaphors imply a highly reciprocal, interdependent relationship between the organisation and its setting. The purpose of my article is to explore the utility of the conceptual distinction drawn by Aguinis and Glavas (2013) between Embedded and Peripheral Corporate Social Responsibility (CSR), as applied from an emerging countries (ECs) perspective. Firstly, I elucidate unique EC organisational/people features. Secondly, I highlight the implications of these features for CSR. Finally, I address ‘contextually fit’ CSR, arguing that Embedded CSR is the sole imperative for organisations in ECs, but as an active, societal transformation partner.

DEVALUATION, COMPETITIVENESS AND NEW BUSINESS FORMATION IN EMERGING COUNTRIES

In September 2010, Brazil’s Finance Minister, Guido Mantega, used the term “currency war” with reference to monetary policies implemented by different countries to generate an artificial devaluation of their currency and achieve a cheaper, more competitive domestic economy that may be attractive to foreign investors. Similar cases have been documented since the 1930’s Great Depression, when several countries abandoned the gold standard as backing for their currencies. More recently, a large-scale asset purchase by Japan’s Central Bank in 2013 was singled out as a strategy aimed at generating devaluation of the yen. This research uses statistics of new business formation density reported by Doing Business for 30 emerging countries in the period from 2004 through 2011 to evaluate the impact of devaluation measured by the behavior of the real effective exchange rate (REER) on the rate of new business formation (NBF). It is determined how variables associated with competitiveness affect the relationship between devaluation and business formation. Results show that devaluation has a positive effect on NBF in the short term, which gets diluted in the long term. Countries with greater competitiveness have less dependence on devaluation to increase the number of businesses.

Location Strategies of Multinationals from Emerging Countries in the EU Regions

This paper contributes to the current debate in both Economic Geography and International Business on the nature and strategies of Multinational Enterprises (MNEs) from emerging countries (EMNEs). The paper fills a relevant gap in the existing literature by shedding new light on the location strategies of EMNEs at the national and regional level, looking at their investment drivers and systematically comparing them with those of multinationals from advanced countries (AMNEs).The empirical analysis looks at the location choices of MNEs in the European Union (EU-25) regions and unveils that EMNEs follow distinctive location strategies. Their attraction into large regional markets is similar to AMNEs as well as their irresponsiveness to efficiency seeking motives. Conversely, the most knowledge-intensive investments of EMNEs respond mainly to two ‘attraction’ factors: strategic assets (in the form of local technological dynamism) and the agglomeration of foreign investments in the same business functions. In addition, both the national and the regional levels are simultaneously relevant to EMNEs decisions.

Polarized business cycles

Four stylized facts motivate this paper: (i) business cycle movements are wider in emerging countries (EC) than in developed ones; (ii) EC experience greater economic policy uncertainty; (iii) EC are more polarized and less politically stable; and (iv) EPU is positively related to political polarization. A standard real business cycle model augmented to incorporate political polarization, a ‘polarized business cycle’ (PBC) model, is shown to be consistent with these facts. We first derive our results analytically, and then quantify the effects of a permanent increase in polarization to the US economy.

Acquisitions by emerging market multinationals: Implications for firm performance

This study develops and tests a framework about the resource- and context-specificity of prior experience in acquisitions. Although extant research has explained why multinational companies from emerging countries (EMNCs) acquire companies in developed countries, we have an incomplete and inconsistent understanding of the consequences of such acquisitions for the performance of target firms. First, we show that despite the concerns raised by politicians and the general public in developed countries, the acquisitions made by EMNCs often enhance the performance of target firms. Second, we examine whether the role of EMNCs' idiosyncratic resources (such as access to new markets and cheap production facilities) and investment experience in enhancing the performance of target firms differs across acquisition contexts. We demonstrate that not all types of resources and investment experience are equally beneficial and, in fact, some types of experience even have a negative effect on the performance of target firms. By contrast, other types of experience that EMNCs accumulate from prior investment enhance the performance of target firms by facilitating resource redeployment and the exploitation of complementarities.

Immunotherapy Targeting Tau and Amyloid Aβ Pathology in AD Animal Models

Immunotherapy Targeting Tau and Amyloid Aβ Pathology in AD Animal Models

Resources and Internationalization Strategies:The Case of Latin American Multinationals

In light of the recent interest in the internationalization of multinationals from emerging countries (EMNCs), we propose an analytical framework that challenges the somewhat condescending way in which these global players have been portrayed. Case studies of Latin American multinationals provide empirical evidence of the way certain resource attributes – availability, transferability and substitutability – are related to the decision to exploit, develop or defend their resources in foreign markets. We find that the internationalization strategies deployed by EMNCs are similar to those of traditional multinationals in many respects. To characterize them as resource 'laggards' is an oversimplification and hinders the development of comprehensive theories of the internationalization of EMNCs.

Improving global competitiveness with branding strategy

PurposeThe purpose of this paper is to compare how some firms from China and some from other emerging countries (EC) are using a variety of branding strategies to improve their global competitiveness. A total of 14 firms have been compared on criteria related to possible acquisition of foreign brands, development of local brands, personality of the leaders and in some cases use of ideological messages.Design/methodology/approachThe paper is mostly based on case studies coming from literature, interviews from marketing executives of major enterprises from China or other EC. It is mainly exploratory in its approach.FindingsThe critical success factors for the competitiveness of emerging countries brands are either coming from the choice to create a local brand from scratch, to buy an existing famous brand, or to imitate successful foreign brands. Few strategic differences appear between Chinese firms and the ones from other EC. The factors explaining success or failure are linked to the type of industry and the way it relates to the country of origin effect, the level of marketing “maturity” as well as the personality and visibility of the entrepreneur.Research limitations/implicationsThe study does not aim at being statistically representative, the firms which are selected may not be a full representation of Chinese firms branding strategy or from emerging nations.Originality/valueThe definition of the brand strategy for emerging countries firms is a relatively new subject and this study is a contribution to helping enterprises in finding the best approach as well as giving examples for academic studies on Chinese firms marketing efficiency.