Emerging Economy Perspective Research Articles

Is relationship marketing investments–customer gratitude–customer loyalty linkage influenced by contextual and individual moderators? An emerging economy perspective

PurposeThis paper aims to explore the moderating impact of four moderators, namely, retailer brand strength, customer’s perceived purchase regularity, gender and purchase channel (online and offline) on the relationship between relationship marketing investments (RMIs) and customer gratitude, and customer gratitude and customer loyalty. The context of research is the purchase of a high-involvement product by Indian customers.Design/methodology/approachThis study adapts Huang RMIs-Gratitude-Loyalty model and empirically validates the associated hypotheses using structural equation modeling. Data is collected through the survey method.FindingsThe study (N = 385) results suggest a significant impact of preferential treatment and interpersonal communication investments on customer’s feeling of gratitude toward the retailer and, consequently, on loyalty. Purchase channel, gender and, to a lesser extent, customer perceived regularity each moderates the relationships between marketing investment and gratitude, and that between gratitude and loyalty; surprisingly, retailer brand is not a significant moderator.Research limitations/implicationsFuture research can factor in the impact of loyalty program on the proposed relationships.Practical implicationsThis research offers helpful guidelines for retailers, especially for those who currently have a multichannel presence and invest or plan to invest in relationship marketing to obtain benefits from customer loyalty.Originality/valueThis investigation explores not only the relevance of RMIs–gratitude–loyalty model in the Indian retail context but also the influence of moderating variables on the retailers’ efforts of gaining consumer loyalty.

Repurposing production operations during COVID-19 pandemic by integrating Industry 4.0 and reconfigurable manufacturing practices: an emerging economy perspective

The Covid-19 pandemic has had a significant impact on manufacturing industries and supply chains. Manufacturing industries are struggling to repurpose their production activities and ramp up the supply chain to bridge the demand–supply gap. A framework that can cover Industry 4.0 technologies and reconfigurable manufacturing system (RMS) practices is desperately needed. The current study focuses primarily on the framework that could assist managers in decision-making and the stepwise adoption of RMS during repurposing. The extensive literature review was conducted to identify the prominent Industry 4.0 technologies and RMS practices. To compute the weights of selected practices, the novel Pythagorean fuzzy analytical hierarchy process (AHP) was used; while the Pythagorean fuzzy combined compromise solution (CoCoSo) method was used to prioritize the selected performance metrics. To test the robustness of the developed framework, a sensitivity analysis was carried out. According to the findings, smart factory adoption (SFA) practices were the most significant among the major criteria, followed by reconfiguration practices (RCP), soft computing practices (SCP), sustainable & circular economy practices (SCE), and quality practices (QPS). SFA's advanced technologies and SCP's computer algorithms certainly assist in the repurposing of production activities (RPO). The results of the sensitivity analysis demonstrated the robustness of the developed framework. The developed framework will be useful during RPO, and the identified practices can make a significant contribution. Advanced technologies and sustainable practices can help to improve the organization's work culture. Managers will be able to evaluate the organization's performance with the help of identified performance metrics. The work presented here may be the first attempt to develop a framework for RPO in a pandemic situation.

Antecedents of agriculture supply chain performance during COVID-19: an emerging economy perspective

COVID-19 led to several complications like labor shortage, inadequate availability of supply chain facilities, price fluctuation, panic behavior, and uncertainty. Despite the challenges, the farmers and stakeholders adopted different strategies for sustaining the agricultural supply chain performance. Hence, the study proposes to explore the antecedents that led to the ASC performance and their linkages. The study combines literature review and qualitative methods to understand and recognize antecedents that impact ASC performance in developing countries. The conceptual model is built with the underpinning theory (the theory of commitment and organization). A quantitative survey follows the study to validate the theoretical model empirically using covariance-based structure equation modeling (AMOS). The ASC performance in the earlier phase of COVID-19 was disrupted. With time, ASC performance was managed by linking different antecedents. The findings reveal the application and linkage of organization theory and theory of commitment which led to ASC performance. The study finds a unique contribution among academia and practitioners by paving directions to manage the uncertainty during COVID-19 and any such risk triggers in the future. The study offers essential insights for practitioners and policymakers to develop a road map for ASC during the calamities.

The Role of Innovation Capability in Enhancing Sustainability in SMEs: An Emerging Economy Perspective

Today, we are living in the knowledge century. Knowledge-based intangible resources in enhancing sustainable growth of small and medium enterprises (SMEs) is presently a significant scope of research. Innovation capability is the intuitive skill of an individual or a firm to transform an explicit concept towards value orientation that carries an economic value. This economic value would then lead to wealth creation and eventually result in sustainable SMEs. The SME sector has been highlighted for its significant contribution towards the creation of employment, opportunity for innovation and economic dynamism. In this study, evidence derived from knowledge-based view and knowledge creation theory was used to construct a structured model to analyze the relationships among innovation capability, disruptive technology and knowledge creation and their impacts on SMEs sustainability. A sample of 384 owners of SMEs in Sri Lanka was included in the study. The outcome of structural equation modelling (SEM) discovered positive effects of innovation capability, disruptive technology and knowledge creation on sustainability. Innovation capability also emerged as a predictor of disruptive technology and knowledge creation. Moreover, disruptive technology and knowledge creation were found to be partial mediators of the association between innovation capability and SMEs’ sustainability. These findings pave the way for policy makers to promote sustainability in SMEs, by assisting to enhance their performance in competitive and innovative economic environments. Further, the validated model can be empirically tested in future research.

Exploring the impact of green human resource management on firm sustainable performance: roles of green supply chain management and firm size

AbstractThis study examined the impact of green human resource management (GHRM) and green supply chain management (GSCM) on the economic, social, and environmental performance of 272 (ISO-certified) textile firms in Pakistan. It investigated how a firm's size and the number of years since adopting GSCM practices influence performance. Survey data were collected from these firms through a cluster sampling approach and then analyzed through structural equation modeling. Results highlighted that GHRM positively influences a firm's environmental and social performance. Results further indicated that inbound and outbound GSCM activities mediate between GHRM and a firm's environmental and social performance. The moderation results revealed that a firm's size is crucial for improving performance. From an emerging economy perspective, this study draws the attention of policymakers and managers, concluding that implementing GHRM improves the green orientation of all the departments within a firm and helps organizations achieve sustainability goals.

Prioritizing causes and drivers of retail food waste through a fuzzy Dombi-Bonferroni operators-based best-worst approach: an emerging economy perspective.

The food waste hierarchy offers that prevention of the waste is the best solution to deal with this complex issue. Herein, to take a preventive action against food waste, this paper attempts to prioritize the key causes and drivers of retail food waste employing Dombi-Bonferroni operators-based fuzzy best-worst (DB-FBWM) framework. Drawing upon stakeholder theory and contingency theory, causes of retail food waste are categorized into six aspects and their 23 drivers. The results revealed that the "customer-driven" cause is found as the foremost aspect of retail food waste, whereas the "undesirable in-store customer behaviors" is the most vital driver. Identifying the causes and drivers of retail food waste through a reliable model can advance theory and allow building partnership among food supply chain stakeholders for sustainable waste management. The sensitivity and comparison analysis are further performed to confirm the solidity of the approach conducted.

Effects of politically controlled boards on bank loan performance: an emerging economy perspective

PurposeIn this study, the authors explore the effects of politically controlled boards on bank loan performance in both state-owned commercial banks (SCBs) and private sector commercial banks (PCBs) in Bangladesh.Design/methodology/approachThe data consist of 409 bank-year observations from 46 sample SCBs and PCBs of Bangladesh for the period 2008–17. The authors apply ordinary least squares pooled regression with year fixed effect for baseline econometric analyses and generalized method of moments regression for robustness tests after addressing the endogeneity issue.FindingsThe regression results reveal that the presence of bank “boards controlled by politically affiliated directors” (PA) have significant positive effects on non-performing loans (NPLs). Similarly, the presence of “boards controlled by politically affiliated directors without substantial ownership interests” (PAWOI) show positive association with NPLs. In contrast, the presence of “boards controlled by politically affiliated directors with substantial ownership interests” (PAOI) exhibit an inverse relationship with NPLs. These findings support ‘agency conflict’ arguments and document that both PA and PAWOI are detrimental to bank loan performance in Bangladesh, while PAOI do not have significant effect on increasing NPLs.Originality/valueThis study contributes to the existing bank governance literature by providing evidence from an emerging economy perspective, where politically affiliated directors (PADs) exploit their positions for personal and/or political gain at the cost of other stakeholders by taking advantage of relaxed regulatory oversights and investor protections.

Analyzing Impact of Aesthetic Visual Design on Usability of E-Learning: An Emerging Economy Perspective

Objectives: The purpose of the study is to examine various dimensions of aesthetic visual design and their role in predicting usability in e-learning in higher education institutions of northern India. Using quantitative means of data collection, this research identified, ways and means to make learning content effectively usable, that is, attractive, interesting, motivating, and engaging for the learners. Method: A survey questionnaire was developed through focused group discussions with field experts. Data were collected through online as well as offline modes. A Google form was created and its weblink was shared with the students pursuing degree courses in various state universities in northern India. Several visits and revisits were also undertaken to various universities to approach the respondents Results: Results confirmed consistency, typography, graphics, grid, and layout as factors responsible for predicting usability of e-learning. Surprisingly, color and compositional guidelines emerged insignificant. Implications: The study has implications for teaching and learning activities that promote effective learning. The findings are beneficial for course-design faculty who develop modules by considering visual design elements that can facilitate interaction with and understanding of content by students learning in an online modality.

Service brand avoidance in business-to-business relationships

PurposeThis paper aims to examine the drivers of service brand avoidance in business-to-business relationships within an emerging economy setting.Design/methodology/approachThis study used an explanatory research design with a quantitative approach. Data was obtained through self-administered questionnaires and a uniform resource locator via Google Forms. The hypothesised relationships were analysed using the partial least squares structural equation modelling technique.FindingsThis research reveals that unmet expectations, symbolic incongruence and failed communications directly influence brand avoidance, while ideological incompatibility significantly impacts symbolic incongruence. In contrast, unacceptable trade-offs and ideological incompatibility do not directly influence brand avoidance in B2B relationships.Research limitations/implicationsFuture studies may consider examining brand avoidance by business clients within other specific industries and its impact on co-branding agreements.Originality/valueThis study provides empirical evidence of drivers of service brand avoidance within business markets from an emerging economy perspective.

Retail-based Women Entrepreneurship Entry Model through Small Business Orientation (SBO)

Women entrepreneurship converged decades ago through the small business literature. However, the small business orientation (SBO) concept has not been thoroughly and consistently involved in the women entrepreneurship literature. Thus, the aim of the study was to evaluate the opinions of the retail small business women entrepreneurs to learn their entry model towards entrepreneurship practice in Bangladesh, opportunities, and threats, and the future direction of their business. The study was conducted on the in-depth interviews as well as participants and industry observation among the 20 women small retail entrepreneurs. The study constructs an entry model regarding retail-based women entrepreneurship from an emerging economy perspective. The outcomes of this research would play a great role in future research into the field of SBO and women entrepreneurship for emerging economies.

Are Podcast Advertisements Effective? An Emerging Economy Perspective

The evolution and consumers’ acceptance of podcasts has been on the rise. Scholars argue that this rapid rise is due to the ability of podcasts to offer content that consumers find valuable. This has resulted in brands following consumers on the podcast platforms and attempting to reach them through podcast advertisements. The last decade has seen a tremendous rise in the podcast advertising budgets of brands. However, the nature of such podcast advertisements and their effect on consumer-brand relationships and behavioral intention are understudied. The present study explored the efficacy of podcast advertisements by utilizing the theoretical framework of advertising value and their effect on attitude toward Ads (AaD), attitude toward brand (AB), formation of purchase intent, and brand eWOM. The moderating role of the ad placement, through pre, post, and mid roll podcast advertisements, was observed while assessing the effect of podcast advertising on AaD. Data was collected through a structured survey instrument; in total, 389 millennial consumer responses were obtained. SmartPLS3 software was used for data analysis. The results empirically established that podcast advertisements were effective in creating consumer-brand relationships, while informative podcast ads were the most effective of the lot.

Do primary HR functions model work in emerging economies? Sustainable compact perspective for Bangladeshi RMG industry

PurposeThe International Labour Organization’s (ILO) sustainable compact is evident for many labor-intensive industries in emerging economies. This study aims to develop a sustainable human resource (HR) practice model for a labor-intensive industry from the evidence of the Bangladeshi ready-made garments (RMG) sector.Design/methodology/approachThe study tests the factors identified from the literature for model validation. A total of 22 HR function items were used in a survey of 800 randomly selected respondents from the RMG sector in Bangladesh. The factor analysis (both exploratory and confirmatory) techniques were applied to explore and validate the model.FindingsThe study findings reveal that the factory management and policymakers should focus on sustainable HR practices for the betterment of a labor-intensive industry. In detail, the staffing function involves strategic HR planning, recruitment and selection and perfect employee placement; training and development functions entail proper organizational orientation, various training and development programs and employees’ career management and growth; the motivation function necessitates job design, fairness in the appraisal, practicing good organizational citizenship behavior with sound rewarding system and compensation packages; and finally, the maintenance function entails healthy and safe working environment, good communication and relationship management.Originality/valueThe study is original in developing a sustainable HR practice model with the alignment of ILO’s three inter-linked sustainability compact for a labor-intensive industry from an emerging economy perspective. The study’s outcomes will be a torchbearer for any labor-intensive industry’s sustainable HR practice from an emerging economy across the globe.

The effects of internationalization orientation in the sustainable performance of the agri-food industry through environmental collaboration: An emerging economy perspective

In order to deal with sustainability requirements in agri-food supply chains, collaboration among partners is fundamental to collectively achieve competitive advantages. A growing body of literature shows that internationally oriented firms suffer more pressure from stakeholders to develop sustainable initiatives. On the other hand, they may achieve higher levels of sustainable performance due to the access to resources and capabilities from different partners. However, the influence collaboration has on the sustainable performance of internationally oriented firms remains unknown. The objective of this study was to assess the effects environmental collaboration has on sustainable performance, especially in internationally oriented companies. In addition, this study also assessed whether company size influences these relationships. A quantitative study was conducted with 388 medium and large Brazilian companies in the agricultural sector. Data were analyzed using the Partial Least Squares method. We found out that environmental collaboration has a direct effect on sustainable performance. Our study also extends the literature by showing that internationalization orientation strengthens the effects of collaboration on sustainable performance. We found out that all three dimensions of sustainability (environmental, social, and economic) have been positively affected by an increase in environmental collaboration, with a lower effect observed on the economic dimension. Our study also showed that economic outcomes significantly differ between larger and medium companies. Grounded on Relational View and Natural Resources-based view theories, this study extends them by showing that competitive advantage will be achieved when an organization is able to transform itself, environmentally aligned with internal and external stakeholders, and by incorporating collaboration as a relational element that positively affects sustainable performance.

Challenges to agile project management during COVID-19 pandemic: an emerging economy perspective

Globally, COVID-19 pandemic has affected more than 214 countries across the world, creating uncertainty and affecting every institution and individual. The organisations recognise the need of agile projects that may offer several benefits including faster deployments, adaptability and best fit alignment to fulfill the customer needs. Implementing agile projects is the key to survive in the post pandemic situation, but emerging economies have limited scope for implementation. The present study determines the critical factors that restricts implementation of agile projects in emerging economies. The critical factors are identified from literature and validated by experts. The validated critical factors are further assessed to identify the cause-and-effect relationship using Fuzzy Decision-Making Trial and Laboratory (F-DEMATEL) method. The results of the study posit ‘Skepticism towards the new way of working’ is the most significant causal factor affecting other factors. This study is an attempt to help project managers to consider the significant factors for agile project implementation in post pandemic situation. The project managers may be benefitted from this study by considering these factors to manage challenges for agile project implementation in emerging economies. This study contributes to assess the influencing and the influenced challenging factors for agile project implementation.

Energy crisis, firm profitability, and productivity: An emerging economy perspective

Energy shortage has a significant effect on businesses in developing countries. To overcome energy crises, such countries are adopting different strategies in their industrial sectors. This study contributes to the existing literature by analyzing the impact of energy crises on the profitability and productivity of 424 non-financial listed companies in Pakistan over the period 2001–2017. The fixed effect (FE) is used as a basic regression technique, while generalized method of moments (GMM) is used for the robust analysis. Seven measures, in which four measures of electricity shortfall (i.e., neutral period (NP), increasing shortfall (IS), worst shortfall (WS), decreasing shortfall (DS), energy consumption (EC), energy price (EP), and access to electricity (ATE)) were applied to examine their impact on profitability, that is, return on asset (ROA), return on equity (ROE), and productivity, that is, asset turnover ratio (ATO). The results confirmed the negative impact of energy crises on business profitability, where IS, WS, and DS significantly reduce profitability by 39%, 36%, and 33%, respectively. In addition, NP exerts a significantly positive impact on profitability, where a 1% increase in NP increases profitability by 33%. The results concluded that energy supply is highly critical for business profitability and productivity. This study puts forward several key policy implications that may be helpful for policymakers to overcome energy crises.

Ownership, capital structure and operating loss of acquiring firms

PurposeThe article aims to investigate the effects of ownership and capital structure on postacquisition operating performance.Design/methodology/approachThe article extends the ongoing literature from an operating loss perspective and provides empirical evidence on the probability of acquirers’ operating loss in relation to ownership and capital structure. The operating performance of publicly listed manufacturing firms in China was tracked up to five years since the completion of the mergers and acquisitions (M&A) during 2003–2014.FindingsThe empirical results show that, in a five-year postacquisition period, state-owned enterprises (SOEs) are more likely to experience operating loss than non-SOEs. The likelihood of the operating loss is negatively associated with ownership concentration, implying that concentrated ownership may serve as an effective corporate governance mechanism in the emerging economy and improve postacquisition performance. The rise in leverage increases the likelihood of postacquisition operating loss, indicating that the costs of debt may outweigh the benefits.Originality/valueThe findings contribute to the literature on ownership, debt governance and post-M&A performance from an emerging economy perspective.

CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF FOOD INDUSTRY: AN AGRO-BASED EMERGING ECONOMY PERSPECTIVE

This study aims to investigate the relationship between capital structure and profitability of food industry from an agro-based emerging economy perspective. To attain the objective, we have compiled panel data food and allied companies, representing 64% of total population, listed in Dhaka Stock Exchange and administered ordinary least square (OLS), fixed effect model (FEM), and random effect model (REM) estimate to test the impact of capital structure on the profitability of listed food companies in Bangladesh. The current study usage three proxy variables as the measure of profitability, viz., return on assets (ROA), return on equity (ROE), and earnings per share (EPS). Our panel data estimation using EViews 10 demonstrates that short term leverage has a significant negative impact on ROA (OLS model) and a strong positive impact on ROE (REM estimation) of the listed food and allied firms. However, the study do not produce any significant effects of long term debt on the firm profitability. The findings of the current study help develop the understanding of the corporate managers, investors, policy makers, and academics about the relationship between optimum financing mix and financial performance of food industries and provides valuable insights from an agro-based emerging economy perspective.

Lessons from leveraging technology in auditing during COVID-19: an emerging economy perspective

PurposeThis study aims to examine the challenges posed by COVID-19 restrictions for audit processes in India and explore the perceptions of the profession on how technology was leveraged to conduct audits during this period. The opinions of auditors on future changes in post-COVID-19 audit practices and processes are also explored.Design/methodology/approachSemi-structured interviews were conducted with senior auditors working in various audit firms in major business centers in India and subjected to content and thematic analysis using the institutional theory perspective.FindingsThe auditing profession used technology to respond to COVID-19-imposed disruptions of established audit process and practices while maintaining the legitimacy of audit reports. The findings indicate that auditors now seem to strongly support the integration of emerging technologies into their auditing practices post-COVID to ensure data accuracy and transparency. The interviewees displayed keen interest in continuing remote and in-person audits to maintain audit quality in the future. The experience of COVID-19 appears to have forced the auditing profession to overcome their reluctance to adopt technologies that were previously used by only Big 4 and large audit companies.Practical implicationsThe results will be of particular interest to various stakeholders concerned with aspects of the acceptance of technology-assisted audit reports such as legitimacy, required infrastructure, cost involvement and resistance to change. The findings will also assist professional bodies and policymakers in both developed and developing economies in devising useful strategies to promote technology-aided auditing during and after COVID-19. Limitations posed by inadequate infrastructure and resistance to changes must be overcomed before implementation of technology-aided audits.Originality/valueAs COVID-19 pandemic is a recent phenomenon, to the best of the authors’ knowledge, this study is one of the first few studies that have examined the use of technology to facilitate audits during the COVID-19 period, more specifically from a developing economy perspective.

What are the most important consumer decision factors when choosing an airline? An emerging economy perspective

PurposeThe quest to acquire new customers and retain the existing ones is a challenge for all aviation companies. This paper attempts to assist the aviation companies in tackling this challenge by revealing the most important factors that their customers consider to be the most important while making purchasing choices.Design/methodology/approachDrawing on three separate studies, this paper identifies the most important factors that influence consumers' choice of airlines in an emerging economy context. The first study adopts a qualitative approach with 20 respondents (Max QDA is used for analyzing these data), followed by the second study based on a quantitative survey with 105 participants, and finally, the third study which employs a multi-criteria decision-making technique named fuzzy analytic hierarchy process (AHP) on a sample of 12 expert customers.FindingsThe findings of this paper reveal that customer care quality and on-time arrival are the two most important factors that aviation customers consider while making their purchase decisions. In contrast, baggage allowance and fastest route to destination are the two least considered by aviation customers while making their purchasing choices.Research limitations/implicationsThis study includes only a geographic-specific segment of passengers. Future studies of consumer preferences in the aviation industry may include consumers belonging to other geographic regions. Furthermore, future studies may segment their sample populations based on factors other than age, the purpose of travel and booking medium.Practical implicationsThis investigation attempts to give a rich and holistic understanding of the different factors that influence the aviation choices of consumers of varying segments. This study has significant practical implications as modern-day airlines aim to optimally cater to the needs of their target segments without incurring additional costs on services that consumers do not deem to be as important.Originality/valueThis study highlights the importance attributed to each identified factor by passengers, something that previous research has mostly ignored.

Investigating the impact of full-term experiential learning project on management graduates: an emerging economy perspective

PurposeThe gaps between what is taught in the classroom and what is required from the management graduates are evident globally. This research suggests that experiential learning has the potential to address this pronounced gap and examines the impact of a long-term experiential learning project in marketing curricula on management graduates in emerging Indian economy. This paper aims to investigate whether experiential learning results in conceptual clarity and application skills, influence positive behavioral change in the students and at the same time make learning an enjoyable and productive experience for management graduates.Design/methodology/approachThis paper examines the results of a full-term long experiential learning project designed for the graduate students of the introductory marketing course in the emerging economy of India. The assessment of the experiential learning project was undertaken by using a 14-item survey instrument post activity and analyzed results by using quantitative methods.FindingsThe results of the study indicate that incorporation of experiential learning project in marketing curricula offers an excellent opportunity for the educators to ensure a high level of engagement, involvement, motivation, interest and satisfaction among Indian students. The project led to more enjoyment and productivity as compared to regular lecture method and assignments. The project provided an opportunity to apply theoretical concepts and theory in a real-life setting.Practical implicationsThis activity is ideal and relevant for marketing educators who are looking for a semester/term long experiential learning activity/group project to be conducted while teaching introduction to marketing course. This activity offers an excellent opportunity for educators to ensure that students are engaged, motivated and are ready to apply the marketing concepts. This activity can be used in both undergraduate- and graduate-level courses.Originality/value“Marketing Challenge,” a long duration (full-term) experiential learning project described in this paper, provides the students an opportunity to experience the new product development process from the product conception, development to selling the developed product. The authors perceive that in the coming future, educators will use experiential learning elements in the classrooms to achieve the learning outcomes of various management courses.