Emerging Economy Perspective Research Articles

Disruptive production process innovation for sustainable business: evidence from an emerging economy

PurposeThe study aimed to develop a disruptive production process innovation model from an emerging economy's agro-based dairy farming perspective based on the case of a Bangladeshi model dairy farm named Central Cattle Breeding and Dairy Farm (CBBDF), Savar, Dhaka.Design/methodology/approachThe study used qualitative in-depth interviews, participants and document observation. Around 20 key informants were purposefully selected from the case organization.FindingsThe findings propose two different models for disruptive production process innovation toward sustainable agribusiness dairy farming from an emerging economy perspective and the modified process model from traditional dairy farms to modern dairy based on the stakeholders' (such as consumers, owners, managers and government) demand.Originality/valueThis study is the first attempt to develop a disruptive production process innovation and technology model for the dairy industry and its stakeholders' responsibilities from the experience of an emerging economy. The value of the research is in identifying factors under traditional dairy farming that need to be reduced and eliminated, and the factors under society, health concerns and value-added to existing farms need to be raised as per the global industry standard.

Digital technology adoption in circular startups: An integrated framework

AbstractWhile the role of digital technologies (DTs) in facilitating entrepreneurship is well established, research on understanding the role of DTs among circular start‐ups as part of their overall strategy is scarce. This is vital from the perspective of emerging economies, such as India. The study aims to identify and analyse the factors influencing digital technology adoption in circular start‐ups using the Technology‐Organisation‐Environment (TOE) framework and Technology Acceptance Model (TAM) to form a novel Circular Startup Digital Adoption (CSDA) framework. In addition to integrating the TOE framework and TAM, the study utilises a systematic literature review with subject‐matter‐expert (SME) consultation in order to determine the factors of the CSDA framework. To the best of the authors' knowledge, this is among the first studies to analyse the factors behind the adoption of DTs by circular startups from an emerging economy perspective, offering theoretical, managerial and policy implications.

Identification of challenges to Industry 5.0 adoption in Indian manufacturing firms: an emerging economy perspective

ABSTRACT This study aims to identify a comprehensive list of challenges and empirically evaluate their impact on Industry 5.0 adoption, particularly in developing countries in Indian manufacturing firms. Challenges were classified into four significant categories: human, environmental, legal and ethical, and financial through an extensive literature review conducted and experts’ inputs. Multi-criteria decision-making (MCDM) is a method for analyzing complex issues by assessing multiple alternatives based on specific criteria. The analytic hierarchy Process (AHP) aids in selecting suitable options, while the analytical network processes (ANP) technique determines relevant criteria. A sensitivity analysis was carried out to validate the research findings. The most preeminent challenges were identified as human critical thinking, human-machine teams, incorporation of ethics, investment in Industry 5.0 technologies, human well-being perspective, over-dependency on technology, and personalization and hyper-customization 5.0, respectively, in the adoption of Industry 5.0. The comprehensive challenges proposed in the study will assist decision-makers, practitioners, and managers in determining fair benchmarking strategies to precipitate Industry 5.0. This research helps to gauge manufacturing firms’ readiness index to adopt Industry 5.0, provides a distinct perspective, and foregrounds the significance of research to assist the industry in its long-term to anticipate Production 6.0.

The Impact of COVID-19 on Industry 4.0 Adoption: An Emerging Economy Perspective

The Impact of COVID-19 on Industry 4.0 Adoption: An Emerging Economy Perspective

Investigating digital marketing readiness among tourism firms: an emerging economy perspective

ABSTRACT The study aimed at investigating the readiness of firms in the tourism industry to adopt digital marketing as a marketing strategy – from an emerging economy perspective. The technology–organisation–environment framework and technology acceptance model were used to identify potential determinants of firms’ intention to adopt digital marketing. Data was collected from a sample of 191 tour and travel agencies using standardised questionnaire. Of the technological, organisational, and environmental factors, convenience, managerial commitment, government regulation, and customer pressure were found to be significant determinants of perceived usefulness and perceived ease of use of digital marketing. Both the mediating variables (perceived usefulness and perceived ease of use) were found significant in affecting firms’ intention to adopt digital marketing as a marketing strategy. Leader digital skill was not found to be a significant moderator on the effect of perceived usefulness and perceived ease of use on intention to adopt digital marketing. Devising conducive policies and regulations, strategic consideration of customer feedback, and creating awareness about the technology are essential for tourism firms and key stakeholders of the sector to capitalise on the advantages of digital marketing.

Quality of accounting graduates and employers’ expectationsin Ghana

PurposeThis paper aims to examine the skills expected by employers and the skills demonstrated by accounting graduates with data from 160 employers of accounting graduates in Ghana. From the perspective of employers, the authors compare the expected skills to the skills demonstrated by accounting graduates and identify any significant gaps.Design/methodology/approachOne-way analysis of variance, T-tests and factor analysis are used to test significant gaps that exist between expected and demonstrated skills by employers and accounting graduates using survey questionnaires and purposive sampling.FindingsThe results reveal that there are significant gaps between the expected skills of employers and the demonstrated skills of accounting graduates. The authors find generic skills to be more expected by employers, while technical skills are demonstrated most by accounting graduates. The top five skills expected by employers are: business ethics and integrity; problem solving and decision analysis; written communication skills; learning skills; and application of accounting principles.Research limitations/implicationsThe study focuses only on organizations that use fresh accounting graduates in Ghana. Further studies may consider other business-related fields like finance, human resource management and marketing.Practical implicationsThe study provides insights on standards that serve as benchmarks for the conduct of accounting graduates as well as the development of accounting curriculum in Ghana. Accounting education should incorporate work-integrated learning as part of their curriculum to enable accounting graduates to solve problems and make decisions through a practical application of accounting principles, standards and concepts, especially in conducting audit and writing reports.Originality/valueThis study fills the gap in the literature on accounting education from employers’ perspectives in a developing country. It conducts a comparative analysis between the most important skills required by employers and the ones demonstrated by accounting graduates to provide insights on standards that should serve as benchmarks for the development of the accounting curriculum from an emerging economy perspective.

Invasiveness, privacy concerns and mobile banking services technology adoption by millennials: Emerging economy perspective

Purpose: This study was conceptualised to investigate the relationships of invasiveness, privacy concerns, perceived usefulness and the adoption of mobile marketing technology by millennial banking customers in an emerging market economy.Design/methodology/approach: This was a quantitative study that targeted millennial banking service customers from an emerging market environment. The non-probability sampling approach was used, and the data were collected via a survey questionnaire. For data analysis, SPSS and SmartPLS Structural equation modeling were used.Findings/results: The results confirmed a direct relationship between privacy, invasiveness and usefulness perception. It also confirmed a direct relationship between perceived usefulness and the intention to accept mobile-marketed banking services. In addition, the results also showed that in addition to the direct impact of perceived usefulness on intention to adopt mobile marketing usage for banking services, it acts as a mediator variable.Practical implications: Academics can pursue a qualitative study to unpack the reasons for sensitivity around banking technology in emerging markets. The study should lead to better understanding of both the investigated market and others like it. Organisations will gain valuable insight for informed investment in such markets.Originality/value: The article is the first empirical investigation into the adoption of mobile-marketed banking services by millennials in a developing economy context. The study adds a valuable component to academic debates by using two independent theories to gain a holistic view of the performance of advanced technology in banking business. The study adds to the literature by also proving the mediation role of perceived technology usefulness in banking.

Firm resilience as a moderating force for SMEs’ innovation performance: Evidence from an emerging economy perspective

This study delves into the relationship between organizational resilience and organizational ambidexterity in the context of small and medium-sized enterprises (SMEs) facing exogenous shocks in emerging economies. Specifically, it investigates how firm resilience influences the connection between innovation capabilities and innovation performance. A cross-sectional database comprising 170 SMEs in Bosnia and Herzegovina forms the basis of this research. Utilizing multivariate linear regression analysis, the study tests its research hypotheses. The study reveals that exploitative innovation capabilities positively contribute to innovation performance, and firm resilience moderates this relationship. However, the analysis does not support the significance of explorative innovation capabilities in impacting innovation performance. The findings underscore the pivotal role of organizational resilience for SMEs in navigating external shocks within small emerging economies. Cultivating and enhancing resilience becomes imperative for coping with such challenges effectively. This paper contributes by linking resilience theories with existing literature on organizational ambidexterity. Additionally, it sheds light on the differing impacts of exploitative and explorative innovation capabilities on determining innovation performance.

Environmental social and governance (ESG) disclosure motives for environmentally sensitive industry: an emerging economy perspective

Environmental social and governance (ESG) disclosure motives for environmentally sensitive industry: an emerging economy perspective

Prioritization of critical factors toward Industry 4.0 adoption in service industries: an emerging economy perspective

PurposeSignificant developments in the service sector have been brought about by Industry 4.0. Automated digital technologies make it possible to upgrade existing services and develop modern industrial services. This study prioritizes critical factors for adopting Industry 4.0 in the Indian service industries.Design/methodology/approachThe author identified four criteria and fifteen significant factors from the relevant literature that have been corroborated by industry experts. Models are then developed by the analytical hierarchy process (AHP) and analytical network process (ANP) approach to ascertain the significant factors for adopting Industry 4.0 in service industries. Further, sensitivity analysis has been conducted to determine the sensitivities of the rank of criteria and sub-factors to corroborate the results.FindingsThe outcome reveals the top significant criteria as organizational criteria (0.5019) and innovation criteria (0.3081). This study prioritizes six significant factors information technology (IT) specialization, digital decentralization of all departments, organizational size, smart services through customer data, top management support and Industry 4.0 infrastructure in the transition toward Industry 4.0 in the service industries.Practical implicationsThe potential factors identified in this study will assist managers in determining strategies to effectively manage the Industry 4.0 transition by concentrating on top priorities when leveraging Industry 4.0. The significance of organizational and innovation criteria given more weight will lay the groundwork for future Industry 4.0 implementation guidelines in service industries.Originality/valueOur research is novel since, to our knowledge, no previous study has investigated the potential critical factors from organizational, environmental, innovation and cost dimensions. Thus, the potential critical factors identified are the contributions of this study.

Circular economy and the hospitality industry: A comparison of the Netherlands and Indonesia

The concept and practice of the Circular Economy is a key response to sustainability concerns, pioneered by the manufacturing sector and mainly explored from a developed economy perspective. This leaves a gap in relation to other sectors and contexts. This research investigates the adoption of circular economy initiatives and barriers to their implementation in the hospitality sector in the Netherlands and Indonesia through a comparative case study. Findings suggest that businesses in the Netherlands are hindered by their prioritization of delivering quality service as well as insufficient access to information on actionable circular interventions. For Indonesia, the predominant barriers include weak infrastructure, lack of regulatory enforcement and facilitation, and a lack of education and mindset. Our results provide an emerging economy perspective to knowledge of the circular economy, an under explored area of research. We also provide insights into the application of the circular economy in the hospitality industry. We uncover new challenges, especially in the context of emerging economies, and are able to confirm the relevance of previously identified barriers to both emerging economy and hospitality industry contexts.

Entrepreneurial orientation, social media and SME performance: an emerging economy perspective

Purpose This study examines the role of social media adoption (SMA), opportunity recognition (OR) and opportunity exploitation (OE) in mediating the relationship between entrepreneurial orientation (EO) and the performance of newly established small and medium-sized enterprises (SMEs) in emerging economies, with a particular emphasis on Ghana.Design/methodology/approach This study adopts a post-positivist philosophical stance and uses a quantitative approach and a survey design. A purposive sampling technique was used to select 336 SME owners and managers from Ghana’s manufacturing, trading and service sectors. Questionnaires were administered to source the empirical data for this study. Structural equation modelling (SEM) was used to analyse the proposed hypotheses.Findings The results reveal that EO positively and significantly influences the performance of new-born SMEs. SMA, OR and OE partially mediated this relationship.Practical implications This study is a wakeup call to policymakers, practitioners, managers and owners of recently established businesses. Policymakers should provide support and resources for newly established SMEs to adopt effective social media marketing strategies, bolstering their online presence and customer engagement. Simultaneously, they should invest in entrepreneurship education and create an environment conducive to innovation to cultivate an entrepreneurial mindset among fresh SMEs. Business owners and managers should proactively monitor market trends and consumer preferences, adapting their strategies to identifying and seizing emerging opportunities.Originality/value This study introduces a significant novelty to previous literature and one of the first to employ the dynamic capability theory to examine the interplay between EO, SMA, OR and OE in influencing the performance of new SMEs in the context of emerging markets. Furthermore, it extends the scope of understanding of the mechanisms through which SMEs can prosper in these dynamic environments. This unique combination of theoretical framework, comprehensive variables and contextual focus sets this study apart from existing research, enriching the literature on SME performance in emerging markets.

Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition

PurposeThe investment behaviour of individuals has been a major area of interest for several researchers and policymakers due to its great impact on the economy. This study aimed to assess the investment behaviour of individuals in light of their risk appetite and how financial literacy regulates this relationship.Design/methodology/approachA self-administered structured questionnaire was used to collect responses from individuals using purposive and convenience sampling techniques. Individuals were presented with 16 investment avenues widely offered by the Indian financial market to choose from to construct a hypothetical portfolio. The association between risk appetite, financial literacy and the composition of the hypothetical portfolio was analysed using a gologit model.FindingsIncreased risk appetite increased the probability of respondents creating a portfolio with a greater proportion of risky assets and less diversification. Lower levels of financial literacy pointed towards portfolios with traditional and low-risk avenues. The results also revealed a significant moderating impact of financial literacy on risk appetite and the creation of the type of a hypothetical portfolio.Research limitations/implicationsEven though the intended behaviour is a close estimate of actual behaviour, there is a possibility of deviation that cannot be ignored.Originality/valueThe present study provides insights into how individuals make portfolio choices by incorporating risk appetite and diversification factors whilst making investment decisions, thereby expanding the literature from an emerging economy perspective. The role of financial literacy as a moderator has not been studied in the domain of hypothetical portfolio creation in India, which has been empirically explored in the current study.

Corporate board, audit committee and earnings manipulation: does the corporate regulation matter? An emerging economy perspective

Purpose This paper aims to investigate the impact of the revised Code of Corporate Governance 2017 (CCG-2017) clauses pertaining to board independence, mandatory inclusion of female directors, audit committee (AC) chair independence and directors’ expertise on earnings manipulation. Design/methodology/approach Using an unbalanced panel of 323 listed companies from 2015 to 2019, this study uses panel data regression models with a robust methodology called difference-in-differences to tackle the potential endogeneity. Findings This study’s findings show that, as compared to the pre-CCG-2017 period, board- and AC-related variables increased significantly in the post-CCG-2017 period. Furthermore, financial experts on the board and board independence have a negative effect on discretionary accruals (DAs), whereas female directors and DAs are positively related, as is real activity manipulation. The AC-related variables, such as AC independence, expertise in AC, and AC chair independence, are significantly different from the preperiod to the postperiod, whereas their relationship is not according to the hypotheses of the study. Moreover, these results are robust to additional analysis of the alternative proxies for female directorship and the endogeneity problem. Practical implications The findings of this study have implications for regulators and practitioners who are concerned with the functions of the board of directors (BOD). The findings of this research study show that earnings management (EM) may be reduced by independent and expert directors. However, board gender diversity is not reducing the EM. Therefore, the decision to appoint female directors to the board should be based on their business and professional attributes rather than simply filling quotas or blindly adhering to regulations. Moreover, the findings of this research may assist the regulator in encouraging listed firms to enhance board governance via independence, diversity and competency, which are useful for effective monitoring. Originality/value This study fills a gap in the literature by providing the first evidence of country-specific regulation (CCG-2017), concerning the BOD and AC-related clauses on EM in Pakistan, which is missing in the relevant literature general and in Pakistan in particular.

Exploring the Impact of Bonding, Bridging and Linking Social Capital on Scaling Social Impact: An Emerging Economy Perspective

Although past research has established the importance of social capital for scaling social impact, few studies have quantitatively explored such relationships in the context of emerging economies. To fill this gap, we examine how bonding, bridging and linking social capital impact scaling social capital in an emerging economy context. Using structural equation modelling with AMOS 23, we have conducted a survey and found that all bonding, bridging, and linking social capital are significantly and positively associated with scaling social impact. These findings of our study generate important theoretical and managerial contributions which would advance the social entrepreneurship research domain significantly.

A causal sustainable evaluation of barriers to remanufacturing: an emerging economy perspective

A causal sustainable evaluation of barriers to remanufacturing: an emerging economy perspective

From systemic to sustainability transitions: An emerging economy perspective on urban sprawl and the automobile revolution

There is mounting evidence that the current model of economic development negatively affects many ecological processes and creates serious threats to the sustainability of economic processes and welfare. In response to those threats, policies have been introduced at supranational and national levels to alleviate the most burning environmental challenges and mitigate their consequences for humanity. At the same time, however, there is a growing understanding that economy–environment relations have to be analysed and approached from a geographical perspective, as this sheds more light on spatial differences and specificities, the unevenness of transition processes and their social consequences as well as the need to perform the transition towards sustainability in a spatially sensitive manner. This article seeks to reconstruct and analyse two processes – urban sprawl and the automobile revolution – that took place in the Polish urban regions during the systemic transformation period and to discuss their potential consequences for the transition to sustainability from a geographical perspective. We show that different places, due to their specificities and legacies, start sustainability transitions from different initial conditions that might affect the pace of this process as well as its environmental and social consequences.

Entrepreneurial Finance and Sustainability of Nascent Firms

The sustainability challenges of nascent firms in developing economies were a motivation for this study. Hence, a direct effect of entrepreneurial finance on nascent firms’ sustainability was investigated. The study proposed an integrative model that accounts for innovation capability and government support, as mechanisms in explaining the entrepreneurial finance and sustainability nexus. Data collection was with questionnaire from a sample set of 235 nascent entrepreneurs. Structural equation model with the aid of SmartPLS was used for the data analysis. The study found that entrepreneurial finance, innovation capability and government support all have a direct positive effect on nascent firms’ sustainability. Innovation capability, in contrast, partially mediates the relation between entrepreneurial finance and sustainability. However, the study failed to account for a conditional effect of government support on the indirect effect of innovation capability on nascent firms’ sustainability. The study validates the resource dependence theory as a theoretical lens and highlights the fundamental issues that drive sustainability as it relates to new-born firms, most especially from an emerging economy perspective.

Proactive and Reactive Approaches towards Sustainable Practices in Manufacturing Companies: Emerging Economies Perspective

This study aims to analyse the two competing conceptual models driving the relationships of external pressure, sustainable practices, and sustainability performance. The understanding of such relationships is important in enabling manufacturers to strategically manage external pressure and engage in sustainable transition. Using a sample of 202 plants from the Sixth International Manufacturing Strategy Survey (IMSS-VI), this research tests two hypotheses: (1) the role of sustainable practices in mediating the relationship between external pressure and environmental and social performance, and (2) the role of external pressure in moderating the link between sustainable practices and environmental and social performance. These hypotheses are tested through the hierarchical regression analysis and bootstrapping method. The findings show the mediating role of sustainable practices in the relationship between external pressure and environmental performance, suggesting a reactive approach to environmentally oriented sustainable practices adoption. Furthermore, the results show the moderating role of external pressure on the relationship between sustainable practices and social performance, indicating that plants take a proactive approach to the adoption of socially oriented sustainable practices for improving social performance of the buying firms, whereas there is no moderating effect for environmental performance. Studies addressing the relationships between external pressure, sustainable practices, and sustainability performance in the context of emerging economies (China and India) are limited, so there is a need to address these relationships in this context for generalisation. Studies that address the sustainability outcomes consisting of both environmental and social performance of the reactive and proactive approaches to sustainability initiatives in emerging economies are lacking. This research adds to the literature by investigating the sustainability outcomes of reactive and proactive methods in two emerging countries, China and India. The distinction between reactive and proactive approaches has important implications for sustainability performance in the context of emerging economies, as the rapid growth of these economies raises a number of sustainability issues.

Sustainability reporting and earnings management engagement from an emerging economy perspective

Sustainability reporting and earnings management engagement from an emerging economy perspective