Context Of Emerging Economies Research Articles

Disruptive innovation and national cultures: Enhancing effects of regulations in emerging markets

Research on the effects of national cultures and their interactions with the regulatory institutional environment on disruptive innovation in emerging economies context remains scarce. Thus, to answer this gap, we draw from the sociological framework of Institutional Anomie Theory and hypothesized that disruptive innovation is a form of positive deviance to anomic conditions in societies. Using multilevel analysis, the results showed support for moderating effects of the regulatory institutional context, i.e., rule of law and regulatory quality on the cultural drivers and disruptive innovation relationships. Finally, we discuss the results, the study's contributions and conclude with limitations and future research.

Managerial perceptions of the strategic relevance of resources and capabilities and its configuration for firm competitiveness: an exploratory study

PurposeHighlighting the important role of managerial action in resource orchestration, the purpose of this paper is to explore how differences in managerial perceptions about the strategic relevance of resources and capabilities influences the resource configurations in SMEs from an emerging economy context.Design/methodology/approachUsing a survey-based instrument that was developed by the Global Competitive project (www.gcp.org), the authors identify 62 Mexican SMEs and perform a cluster analysis based on firm size and age and estimate the competitiveness of the SMEs in each cluster.FindingsThe results of our cluster analysis indeed suggest the existence of four configurations of SMEs based on the managerial perceptions of the value creating potential of the different resources and capabilities at the firms' disposal. The authors find evidence that managerial perception of the strategic relevance of resources and capabilities at a firm's disposal could influence firm-level competitiveness. Managers of firms that perceive high value or importance to the resources and capabilities, considered the ten resource pillars for competitiveness in this study, are also likely to be the most competitive.Research limitations/implicationsThis study is exploratory in nature and intends to provide an initial and more descriptive analysis of SME competitiveness in an emerging economy context. Additionality, the study does not take into account the effect of industry membership.Originality/valueThe choice of an emerging economy that are often characterized by asymmetric information and informal rules and regulations provides an original context for an understudied area of research in firm-level competitiveness.

Self‐concept, individual characteristics, and counterfeit consumption: Evidence from an emerging market

AbstractThe study draws on a sample of over 350 consumers from 10 department stores in an emerging market where counterfeit products are available in abundance and there is a huge demand for such goods. The findings reveal that interdependent and independent self traits significantly affect individual characteristics, that is, susceptibility to normative influence, readiness to take social risk, and status acquisition (SA), which in turn influences counterfeit purchase intention. It was discovered that such individual characteristics play a mediating effect on the self‐concept—purchase intention relationship and that high degrees of interdependent self traits positively affect consumers' purchase intention. The study adds to the theory of reasoned action (TRA) by incorporating SA variables into the TRA framework and discovers their significant influence on purchase intention. Some novel insights surrounding counterfeit consumption in an emerging economy context are presented and several implications are extracted to help practitioners appeal to such individual characteristics for combating counterfeit consumption.

The social – market convergence in a renewable energy social enterprise

The paper examines how the market and social logics which are supposedly counter to each other, converge into one rather than being two distinctive sets of actions, in the actions of a renewable energy social enterprise in an emerging economy context. To provide a foundation, the research draws upon literature on renewable energy, social entrepreneurship, market orientation, and social value creation. A qualitative in-depth case study research design with inductive theory-building approach for grounded theory development was conducted with two socially and environmentally inclusive renewable energy social enterprises in rural India. This resulted in a novel framework on a converging process comprising of: (a) Involved Searching, (b) Dialogic Localizing, and (c) Engaged Implementing. First, there is ‘involved searching’, where insights are generated through involved interactions for searching problematized contextual realities. Then, there is ‘dialogic localizing’, where insights are shared and acted upon through dialogically inclusive and localized solving. Finally, there is ‘engaged implementing’, where solutions are implemented through honest convincing and engaging mutuality. The findings make a novel contribution towards: (a) Going beyond the duality perspective and revealing social entrepreneurship as a phenomenon where the social and the market converge as an articulated whole, (b) Advancing hybrid organizing as a converging action with trappings of social value creation and market orientation, and (c) Revealing the potential of renewable energy social enterprises in blending the social and the market while working towards a sustainable environment.

Pro-environmental behaviour among tourists visiting national parks: application of value-belief-norm theory in an emerging economy context

ABSTRACT Understanding pro-environmental behaviour (PEB) of tourists visiting protected areas is imperative to mitigate the negative effects of tourism on environment. This study provides empirical support for value-belief-norm (VBN) theory in context of nature based tourists visiting national park in India. The findings indicate that biospheric value has the highest impact on new environmental paradigm, whereas egoistic value negatively influenced new environmental paradigm. Awareness of consequences and ascription of responsibility significantly predict pro-environmental personal norms which statistically predict pro-environmental behaviour of nature based tourists. Specific recommendations for policy makers are suggested to encourage pro-environmental behaviour among tourists.

Lean manufacturing implementation in time of crisis: the case of Estaleiro Atlântico Sul

The implementation of Lean Manufacturing (LM) philosophies in the 1980s and 1990s revolutionized manufacturing in high volume flow-oriented production processes. In project-oriented industries such as shipbuilding, long lead times, lumpy demand, and dependence on external and often international suppliers have made LM implementation challenging. This paper analyzes lean manufacturing implementation at Estaleiro Atlântico Sul (EAS) a shipyard located in an underdeveloped region in northeastern Brazil. EAS was the recipient of multiple oil tanker contracts from the Brazilian oil company Petrobras, but was unable to meet delivery deadlines and suffered cost overruns until a strong LM culture was introduced. From the EAS case, we make suggestions for a more appropriate lean manufacturing implementation in an emerging economy context. This is especially relevant in those situations associated with special project types of manufacturing initiatives such as shipbuilding, aviation, construction projects and other forms of low volume high complexity and other long-lead time production operations.

Modes of innovation in an emerging economy: a firm-level analysis from Mexico

ABSTRACT Firms that combine both the science, technology, and innovation (STI) and learning-by-doing, learning-by-using, and learning-by-interacting (DUI) modes of innovation are more likely to attain innovation outcomes than those employing either mode separately. Different studies across Europe and Canada support this proposition to different extents. However, the core of these studies has been carried out in advanced economies, inadvertently neglecting other relevant innovation milieus. This study examines the nuances of such innovation strategy in an emerging economy context. We explore differences and potential limitations in the existent literature. The analysis covers 9 628 Mexican firms with 10 or more employees. The results of the logit regressions suggest that a combined STI and DUI innovation approach yields better results in terms of product innovation. Contrary to the existing literature, our results point out that in an emerging economy context, the weight of DUI mode of innovation is larger on product innovation than the STI mode. Finally, DUI mode has a greater impact on process innovation than STI mode as well as the combination of STI and DUI; thus, showing that the benefits of combining STI and DUI are limited only to product innovation.

CSR ‘sustainability’ practices and firm performance in an emerging economy

In this paper we seek to understand the impact of corporate social responsibility (CSR) environmental and supplier sustainability practices on firm performance within the manufacturing industry in India. We also investigate the moderating effect of an important internal factor – plant capability – that is likely to affect sustainability practices of a firm. Employing the Global Manufacturing Research Group’s survey instrument, data was collected from manufacturing companies in India and then a structural equation modelling (SEM) was performed to arrive at the findings. A rigorous reliability and validity of the scales was ensured. The firms’ size, industry type and export percentage were taken as control variables for the study and the performance of the firms was assessed based on financial and marketing measures. The study determined that environmental sustainability had a direct impact on firm performance, whereas the impact of supplier sustainability on firm performance was found to be positively moderated by plant capability. The justification for the findings is based on the institutional context and pragmatic concerns linked to market logics that shape the strategic choices made by the companies. Thus, the paper ends by proposing that dominant CSR theories in developed western countries, such as political corporate social responsibility (PCSR) and corporate political activity (CPA), may not be best suited as theoretical lenses to understand CSR actions in an emerging economy. Alternatives to these can be provided by institutional and strategic perspectives to CSR, which may offer deeper insights in an emerging economy context.

Supplier relationship management and organizational performance of hospitals in an emerging economy context

PurposeIntegrating the social exchange and resource dependency theories, the study aims to comparatively examine the supplier relationship management (SRM) dimensions and organizational performance links of private and public hospitals in Ghana.Design/methodology/approachComparative in nature; employing a quantitative approach; and using simple random and convenience sampling techniques, the study tested the proposed hypotheses using structural equation model-partial least square based on 205 usable questionnaires. Partial least square-multigroup analysis (PLS-MGA) was performed to test the significance of the difference in the parameters between the two samples: private and public hospitals in Ghana.FindingsThe dimensions of SRM (communication, cooperation, trust, atmosphere and adaptation) have a significant, positive impact on private hospitals’ performance in Ghana. Similarly, communication and trust were found to be positively and significantly correlated to public hospitals’ performance. In contrast, cooperation, atmosphere and adaptation dimensions showed no significant, positive effect on public hospitals’ performance. PLS-MGA disclosed that these observed differences in the findings between the private and public hospitals in Ghana are statistically significant.Research limitations/implicationsThe findings of the study, while limited to hospitals in Ghana, are likely to be relevant in other emerging economies for effective and enhanced supply chain relationship management.Practical implicationsThe findings provide pragmatic insights for marketing practitioners and organizational leaders of hospitals about the significance of SRM dimensions in today’s globalized marketplace, and how to nurture them to enhance organizational performance.Originality/valueThe value of the study lies in the examination of the relationship between SRM and organizational performance in the health sector by comparing private and public hospitals in an emerging economy context.

Sustainability, brand image, reputation and financial value: Manager perceptions in an emerging economy context

AbstractSustainability has become a fundamental concern in today' world—one which firms can no longer remain oblivious to. Through CSR, companies can shore up financial sustainability by acting in responsible, socially and environmentally sustainable ways. Yet the vast majority of literature addressing this phenomenon to date has focused almost exclusively on developed economies. The objective of the present study, therefore, is to contribute to filling this gap by analyzing the potential impact of CSR on sustainable financial value in the context of an emerging economy, Peru. To this end, we used the PLS technique to carry out quantitative analysis of data from a sample of over 200 managers at Peruvian companies. Our model is based on the premises of Social Capital Theory and Theory of Resources. Specifically, we analyze the extent to which CSR impacts corporate reputation, brand image and financial value in the context of an emerging economy. Our data indicate that—unlike more developed economies—in emerging economy contexts, direct relationships linking CSR and company financial value are lacking, though may occur by way of the path CSR > reputation > brand image > financial value. We also find that size moderates this path, while the sector of activity does not moderate the causal model. Hence, we suggest that both the cross‐cultural component and differing degrees of economic development and market maturity affect the perceived impact of CSR on financial value. The present study is pioneering in that it analyzes the impact of sustainability on financial value from the perspective of managers in an emerging economy context. Key theoretical and practical implications of our findings are provided in the final section of the paper.

Using Motivation, Opportunity, and Ability Model in Social Marketing to Predict “Galamsey” Behavior in Ghana

Background: Illegal mining (hereafter referred to as “galamsey”) has adverse effect on human life, the environment, and other living organisms that support human existence. However, the traditional strategies employed by governments and other stakeholders to tackle “galamsey” have proved ineffective in changing “galamseyers” behavior. Focus: This research thus aims to apply the motivation, opportunity, and ability (MOA) model in social marketing to predict and explain behavior change toward galamsey activities in Ghana. Specifically, the paper investigates the influence of Motivation (i.e., attitudes toward stopping “galamsey” activities, beliefs and subjective norms) on intentions toward the behavior, as well as opportunity and ability on the intentions–behavior nexus. Key Hypotheses: The study tested the following key hypotheses: There is a positive and significant relationship between beliefs and intention to stop galamsey activities, there is a positive and significant relationship between attitude and intention to stop galamsey activities, there is a positive and significant relationship between social norms and behavioral intention to stop galamsey activities, and there is a positive and significant relationship between intention to stop galamsey and galamsey behavior change. Methods: Self-administered survey was used to collect data from “galamsey” operators ( n = 238) in Kyebi-Ghana, using convenience and snowball sampling techniques. The hypothesized relationships were analyzed using partial least squares structural equation modeling (PLS-SEM). Results: The findings of the study reveal that “galamseyers” behavioral intention toward stopping “galamsey” is mainly determined by the respondents’ beliefs about and positive attitudes toward the behavior. The results further establish a positive significant relationship between intention and actual behavior change. Moreover, the findings suggest a strong interactive relationship between intentions and ability, intentions and opportunity and actual behavior. The study however did not find a significant relationship between social norms and intentions to stop “galamsey” activities. Recommendation for Research or Practice: These findings can be used to develop interventions aimed at fostering positive behavior change toward “galamsey.” Importance to Social Marketing Field: By applying the MOA model to a social marketing context, the study contributes to knowledge by providing a deeper theoretical understanding from an emerging economy context. Limitation: Although the MOA model was able to predict “galamsey” behavior change, the model has been criticized for including opportunities and failing to mention that inhibitors (barriers) to be reduced to foster sustainable behavior change. Hence, future studies should include other variables in the model to cater for this gap.

Relevance of salespeople profiles: an analysis in an emerging economy

PurposeThe purpose of this paper is to analyze the impact of the salespeople profile (i.e., effort, commitment and creativity) – and its degree of market orientation (MO) – on the success of new product launch and sales outcomes. An emerging economy context is taken as a reference.Design/methodology/approachA structural equations model is proposed. The data are based on a sample of retail sector sales managers in Peru.FindingsThe results indicate that salespeople effort, creativity and degree of MO influence overall sales performance. Salespeople commitment, however, does not have a significant impact. These antecedents are helpful when attempting to understand both the potential success of a new product and sales outcomes.Originality/valueThere is no evidence to date of studies that simultaneously assess the impact of seller profiles and degree of MO on new product launch success and sales outcomes. This paper breaks new ground in analyzing this phenomenon in the context of an emerging economy. The findings are of general interest both for sales force management and for companies interested in familiarizing themselves with the peculiarities of emerging economies and the potential need to adapt policies to these specific realities.

Business model and business model innovation: scholarly incongruence and implications to entrepreneurial firms

Entrepreneurship research in recent years emphasise the importance of the emerging knowledge in business model and business model innovation that can be considered critical strategic approaches for businesses to disrupt and compete effectively in the currently dynamic and uncertain business environment. However, to date, there still is a high degree of scholarly incongruence in definitions and conceptualisation of these concepts which results in inconsistent empirical findings, conclusions and implications meaningful to scholars and entrepreneurial firms in a larger scale. Thus, this study examines key previous literature in the business model and business model innovation realm and their implications in contributing success to entrepreneurial firms. It attempts to review influential definitions/terminologies and conceptualisations that are agreed and contrary among scholars as well as implications to entrepreneurial firms following the narrative literature review approach. The study focuses particularly on the emerging economy context in which the body of knowledge is substantially fragmented with the aim of reaching more common understanding of these concepts in this particular context. The study then attempts to clarify more congruent understanding of business model and business model innovation while justifying implications to contemporary entrepreneurial firms in emerging economies. The knowledge accrued from this study should offer new insights to both scholars and practitioners, yet its generalisability needs to be further amplified by future studies.

Linking Entrepreneurship Education and Entrepreneurial Intentions: An interactive effect of social and personal factors

Relatively few studies have sought to investigate the 'person × context' interaction in relation to its impact on the effectiveness of entrepreneurship education (EE) in determining an individual's entrepreneurial intentions (EI). This study endeavours to fill this crucial research gap in an emerging economy context by examining the moderating effect of personal and social factors on the EE-EI link. Using maximum variation sampling to survey 1,046 students in the urban city of Lahore, Pakistan and employing a hierarchical multiple regression analysis, this study examines the influence of explanatory variables on EI sequentially. Our counter-intuitive findings reveal that the rewarding impact of EE with regards to EI is greater for students with higher need for academic achievement (NAA) than for those with a lower NAA, and for non-business majors than for business majors, while EE has negligible effect on the EI of students from a family business background.

CEO Power and Corporate Social Responsibility (CSR) Disclosure: Does Stakeholder Influence Matter?

Purpose – This study examines the association between Chief Executive Officer (CEO) power and the level of corporate social responsibility (CSR) disclosure, as well as the moderating role of stakeholder influence on this association. Design/methodology/approach – Using a sample of 986 Bangladeshi firm-year observations, this study employs a content analysis technique to develop a 24-item CSR Disclosure Index. The ordinary least squares (OLS) regression method is used to estimate the research models, controlling for firm-specific factors that potentially affect the levels of CSR disclosure. Findings – The study findings indicate that CEO power is negatively associated with the level of CSR disclosure, and that the negative effects of CEO power on the level of CSR disclosure are attenuated by stakeholder influence. CEO power is documented as reducing the positive impact of CSR disclosure on a firm’s financial performance, with this negative impact attenuated if stakeholders have greater influence on the firm. Practical implications – This study suggests that CEO power and stakeholder influence are important factors in determining firms’ incentives to disclose CSR information. Both CEO power and stakeholder influence need to be considered in the CSR–firm performance nexus, given the mixed findings documented in the literature. Originality/value – This study makes a significant contribution to the literature on CSR practices by documenting that firms with a powerful CEO have lower levels of CSR disclosure, and that stakeholder influence affects CSR disclosure in the emerging economy context.

Effects of External and Internal success factors on SMEs performance in emerging economies: Evidence from Saudi Arabia

Abstract Purpose -The aim of this study's to examine the influence of external and internal factors that are claimed by the literature to affect Small and Medium Enterprises SMEs' performance. The literature is relatively rich in this regard with several published researches, but the contribution of the current study is primarily related to the emerging economies context in general and the Saudi Arabian SMEs sector in particular. Methodology / design / approach – The study uses a quantitative approach based on a structured questionnaire that is administered to a convenient sample consisting of 142 SMEs. Findings – The findings revealed that all of the six proposed factors (independent variables) are significantly influencing the SMEs performance (dependent variable). Legal & Administrative Factors (LAF)is found to have the strongest relationship with performance. Research Limitation / future research recommendations –The study is applied in Saudi Arabia, therefore the results generalisation should be treated with caution. Arab, Muslim, and other conservative societies are likely to generalise the findings of this study to their own context. Future studies are encouraged to extend this study to other countries, use qualitative research methods to induce knowledge, and/or examine the mediating / moderating effect of other variables. Practical implications –Several implications for practitioners and entrepreneurs emerge. The study elects a group of success factors that the literature suggests and puts them to empirical examination to assess their validity. The study is conducted in Saudi Arabia, taking into consideration the aspects that influence small enterprises' success. Originality / value – Numerous studies have contributed to the development of SMEs conceptualisation, and many studies have examined the success and failure factors that affect SMEs. Having said that, noticeable scarcity of studies examining SMEs' success factors in developing countries and in Saudi Arabia in particular elaborates the contribution and value of the study.

Impact of culture on organizational readiness to change: context of bank M&A

PurposeThe purpose of this paper is to examine the influence of culture on organizational readiness to change (ORC) within the context of merger and acquisition (M&A) in the banking sector in India.Design/methodology/approachA multisource approach is used to collect data from a public-sector bank in India for testing our hypothesis. A hierarchical approach based on higher-order modelling has been deployed for confirming the path model. The foundation of the study is based on power distance (PD) and uncertainty avoidance (UA) cultural dimensions of Hofstede (1984).FindingsEmployees in organizations with large PD and high UA index exhibit low readiness to change. Findings support a negative relationship of culture (large PD and high UA) with organizational readiness to change at the individual level.Research limitations/implicationsThe study has three major implications. First, measures and importance of change readiness at the individual level during corporate events such as M&A is elucidated in the study. Second, a paradigm for assessing higher-order models grounded in theoretical and methodological rigour for testing our hypothesis is presented in the paper. Last, the role of culture in M&A processes is highlighted vis-à-vis factors related to PD and UA on ORC.Practical implicationsThe findings of the research answer to the call for a study on factors that help in creating a synergy for successful M&A across all sectors especially in the banking sector. People representing high UA and large PD often look forward to direction and guidelines for guiding employee actions. Leaders therefore need to set clear agenda and effectively communicate the appropriateness of change to their employees for developing positive behaviour towards desirable organizational outcomes. This study touches upon this important perspective for its practical utilization.Originality/valueThe study adds to the limited literature on change which addresses the need for studying socio-cultural factors in the M&A process, especially in an emerging economies context.

Gender and Climate Change Disclosure: An Interdimensional Policy Approach

This paper investigates the impact of corporate boards’ gender diversity on voluntary public disclosure of climate change risks in an emerging economy context in which environmental regulations are weak and markets are ineffective. The investigation relies on data from the CDP (formerly known as the Carbon Disclosure Project) as a corporate sustainability reporting initiative supported by institutional investors, based on a sample of Turkish firms that were invited to disclose their climate change risks and greenhouse gas emissions over the period of 2010–2019 through the CDP platform. We report that the presence of women on board committees, as a proxy for their active involvement in corporate governance, increases the likelihood of voluntary climate change disclosure. We, on the other hand, found no evidence of a positive impact on climate change reporting with women’s overall representation in boards. These findings lend support to board reforms that aim to increase effective representation of women on boards for the better management of sustainability risks and responsiveness to stakeholder demands in countries where legislators are reluctant to introduce climate change reforms.

Firm age, ultimate ownership, and R&D investments

Firms’ innovation activities change over time, yet little is known about how R&D investments, as a critical input to innovation, change with firm age. Moreover, previous studies have documented that ownership, as a fundamental component of corporate governance, influences R&D investments. However, no prior study has ever investigated whether types of ownership affect the age–R&D relationship. Examining R&D investments according to firm age and ultimate ownership casts light on the dynamics of innovation. Based on a sample of publicly listed R&D performing manufacturing firms in China during 2007–2014, this study reveals that R&D investments differ according to firm age. The relationship between firm age and R&D investments is bell-shaped in general. The type of ultimate ownership moderates the age–R&D relationship, as the relationship is more dramatic among SOEs. The findings of this study contribute to ongoing literature on corporate governance and innovation from an emerging economy context.

Consumer adoption of smartphone fitness apps: an extended UTAUT2 perspective

Purpose The purpose of this paper is to examine the determinants of user adoption of smartphone fitness apps in context of an emerging economy. Design/methodology/approach The present study uses the extended unified theory of acceptance and use of technology (UTAUT2) as the base model along with two additional constructs, i.e. self-efficacy and personal innovativeness. The data collection was done through an online survey, wherein a total of 324 valid responses were obtained for the statistical analysis. All the hypothesized relationships were tested through partial least square structural equation modelling (PLS-SEM) using an open source programming language and software environment, i.e. R Software along with plspm-package. Findings Significant predictors of smartphone fitness app adoption intention include effort expectancy, social influence, perceived value, habit and personal innovativeness. Further, this study confirms significant relationship between personal innovativeness and habit, self-efficacy and effort expectancy and effort expectancy and performance expectation. This study reveals that personal innovativeness is the strongest predictor of behavioural intention. Contrary to the expectations, factors like performance expectancy, facilitating conditions and hedonic motivation did not influence behavioural intention. Practical implications This study gives significant clues to app developers that can drastically influence the adoption of fitness apps. The findings suggest that marketers should focus on users with high personal innovativeness that can further act as role models and significantly influence their social circle. Interestingly, the findings suggest that fitness apps, as compared to other apps, should not emphasize much on the hedonic value of their offerings. Originality/value This study is one of the few studies to examine the adoption of smartphone fitness apps in an emerging economy context by using extended version of UTAUT2 model. Further, this study shows how new endogenous and exogenous variables (i.e. self-efficacy and personal innovativeness) contribute to better explanatory power of the UTAUT2 framework.