International Business Environment Research Articles

Managers’ Perception on Adaptation of Green Building Practices and Environmental Performance

The need for sustainability has gained remarkable momentum in the context of the global challenges of environmental pollution, climate change, and global warming. In this context, as the largest single share in global resource use and pollution emission, the building construction industry must play a remarkable role to overcome this negative impact. In this setting, the concept of Green Building (GB) provides an alternative sustainable solution for the environmental impacts of buildings while supporting sustainable development. Green building provides benefits not only from an environmental perspective but also from economic and social aspects. Thus, stakeholders of real estate tend to adopt green building technology to avoid the pressure of the internal and external business environment. In this background, by following the Melvilles’ Belief-Action-Outcome framework, the study argued that green building practices of an organization are the outcome of the integrated micro and macro level pressure created by stakeholders for better adaptation of the GB concept, and beliefs of decision-makers on future consequences of non-adaptation of GB concept. Thus, this study aims to investigate the impact of macro and micro factors on the action of executives of the apparel sector of Sri Lanka on the adoption of green building practices. The population of the study is defined as executives of apparel companies in Sri Lanka. A total of 300 questionnaires has been distributed to executives who were selected using convenience sampling techniques and 86 valid responses were received. The Partial Least Squares Structural Equation Modeling (PLS-SEM) was used as the analytical technique of the study. The results suggest that macro factors namely coercive and mimetic pressure were not able to make a significant influence on executives’ attitudes toward GB practices adoption. However, it is confirmed that the attitudes of executives significantly contribute to managers’ actions on adopting pollution prevention, adoption for product stewardship, and adoption for sustainable development practices. Out of these three actions, product stewardship and sustainable development significantly contribute to the environmental performance of the organization. Accordingly, the study concludes that neither future consideration nor pressure created by the business environment act as motivators of the adoption of the green building concept within the apparel industry in Sri Lanka.

Development of Organisational Resilience within SMEs through Implementation of Strategic Thinking

The focus of entrepreneurial, strategic and managerial concerns regarding the ensuring of survivability and achievement of successful competitive leverage within, primarily, the turbulent international commercial and business environments, has become concentrated on the development of organisational resilience to withstand the pernicious implications imparted by business discourses by situational complications. The recurrent global financial crises, trigger by divergent and multiplicity of factors, have impinged upon the survivability of business organisations of differential demeanours. The corresponding research endeavour has been oriented towards evaluation of development of constructive response based strategic policies of such SMEs from the organisational resilience angle through determination of the implications of strategic planning and thinking processes which could be employed by such business entities to foment crisis management capacities at the functional and operational domains. Specific research effort has been utilised to demonstrate the characteristics and constituents of the concept of organisational resilience and the influence of strategic management doctrines on such conceptual disciplines. The focal point of the research has been to assessment the empirical evidence regarding achievement of required degrees of organisational resilience, especially by the SMEs. The research undertaking has been cognisant equitably about the inherent deficiencies of SMEs and has involved considerable academic rigour regarding analysis of the prospects of latent opportunities within crisis situations which could be achieved through proficiencies of strategic planning and implementation of the same. The utility of the conducted research has been envisioned as outlining strategic features through which SMEs could ensure organisational resilience-based survivability.

Gross operating rate of trade entities

Introduction. In connection with the harmonization of Ukrainian official statistics according to European Union standards, "value added at production costs" included to enterprises economic indicators. However, the accepted monetary dimension limits its analytical significance. Analysis of recent research and publications. The EU practice, unlike Ukraine, supplements the main indicators of enterprises structural statistics with a relative indicatorthat based on value added at production costs – the indicator "gross operating rate". The purpose of the paper is to substantiate the feasibility of determining the gross operating rate of trade entities in Ukraine to ensure further harmonization and unification of Ukraine and the EU official statistics to obtain relevant information on the impact of internal and external business environment. Results. The analysis showed that the gross operating rate of trade entities in Ukraine is unstable and heterogeneous; this is due to a set of influencing factors. In addition, this indicator is characterized by abnormally high values: close to the values of processing industry and almost twice the values observed in the EU. Conclusions. The gross operating rate indicator is more analytical for effective monitoring of national economic and development of state economic policy, macroeconomic analysis and international comparisons, calculation and analysis of which allows determining the main directions of improving the relevance of statistics and optimizing domestic enterprises.

Облік в інформаційному забезпеченні сталості бізнес-процесів підприємства

The article focuses on the importance of information in the business management process. The changes in the economy of states and enterprises related to the COVID-19 pandemic and appropriate quarantine measures are indicated. The dynamics of changes in the financial results of large and medium enterprises of Ukraine is shown. The assessment of small business and its vulnerability to the impact external factors and unstable economic situations are carried out. The problem of unemployment growth in Ukraine in 2019-2020 and the impact of COVID-19 on employment are highlighted. It is proved that information support of sustainability of enterprise’s business processes is important in the context of obtaining information that is key to business decisions. The algorithm of interaction of external business environment (suppliers, buyers, competitors, agents of interaction) and internal business environment (goals, resource potential, infrastructure, key influences, risks and opportunities of economic entity) for objective assessment of enterprise and role of information in the strategy of its performance has been created. The special place and role of strategic accounting in the enterprise management system is highlighted. It is stated that the increase in problems and premature closure of small businesses are confirmed by the lack of adequate anticrisis management strategies. Ukraine's tasks in restoring public confidence (stability of macroeconomic environment, integration strengthening, strengthening of financial stability, creating a favorable environment for business, stopping further loss of investment potential, improving living standards and well-being) are pointed out. It is stated that the accounting system is designed, along with the formation of information for external users, to provide management with the necessary and timely information in order to make strategic decisions. The system of strategic accounting plays a special role in providing information to the effective operation of the enterprise and its structural units.

Perencanaan Strategis SI/TI Menggunakan Metode Ward and Peppard (Studi Kasus : Bale Hidroponik Salatiga)

In the current era of information development, companies are required to be able to innovate and compete with other companies. The sales process at the Salatiga Hydroponic Bale currently utilizes simple but not optimal information technology. Thus, IS/IT Strategic Planning was made to analyze internal and external business and determine IS/IT strategies for selling organic and hydroponic vegetables at Bale Hydroponics Salatiga to make it more profitable in the future. Data collection in this study used descriptive research methods with a qualitative approach. The method used in this research is the Ward and Peppard method with analysis tools namely Value Chain, SWOT (Strengths, Weaknesses, Opportunities, and Threats), McFarlan Strategic Grid. This research produces an IS/IT proposal which is mapped using the McFarlan Strategic Grid and produces an output in the form of recommendations for the company from the analysis of the IS/IT internal and external business environment within the company.

Perencanaan Strategis Sistem Informasi Pada Sistem Informasi Bisnis Menggunakan Ward and Peppard Pada Mister Pithik

Mister Pithik is a small and medium business engaged in the food business in the form of rice bowls which is quite well known in Salatiga and Ambarawa. Currently, Mister Pithik has experienced many developments in his business, but in his business processes, Mister Pithik has not implemented systems and information technology as a whole and is still applying manual methods in the work process, such as recording sales, cashiers, and bookkeeping, so the work process is not effective. and frequent errors in processing business data. Therefore, it is necessary to have the right IS/IT strategic planning to meet the business needs of Mister Pithik to support existing business processes to be more effective and efficient. This research was conducted using the Ward and Peppard method which consists of several stages of analysis, namely Value Chain analysis, SWOT analysis, PEST analysis, and internal and external analysis from Mister Pithik. The results of this study are strategic recommendations from the results of the analysis of the internal and external business environment which are compiled and mapped using the McFarlan Strategic Grid, accompanied by gap analysis and implementation plans for the next few years.

Taking a conflict perspective to explain an employee’s creativity

PurposeA dynamic and changing international business environment and higher needs for innovation have increased the importance of creativity in organizations. Organizations need creative employees to develop new methods and procedures that stimulate innovation. However, prior research indicates that employees are sometimes passive and avoid engaging in creative behavior. To promote individual creative behavior, this study aims to better understand the role of task conflict and conflict management. More specifically, the authors draw on Deutsch’s conflict theory of cooperation and competition to test whether an employee’s conflict management moderates the indirect relationship between task conflict and creativity through cooperation.Design/methodology/approachTo test the hypotheses, the authors conducted a three-phase survey study with 428 employees from different German organizations.FindingsThe results suggest that task conflict has only a positive indirect relationship with creativity through cooperation with teammates when employees avoid a competitive conflict management style.Originality/valueThe authors draw on Deutsch’s conflict theory of cooperation and competition to integrate research on task conflict and conflict management, allowing them to explain why and when task conflict with teammates influences an employee’s creativity. The findings show that task conflict is particularly beneficial for cooperation and creativity if employees avoid closed-minded discussions and competitive interactions with coworkers.

Improvement of Methodological Tools for Business Analysis of the Effective Company’s Performance

The subject of the paper is the improvement of methodological approaches to the formation of an objective assessment of the system of financial indicators that comprehensively reflect the achieved and projected level of development of economic entities. In these conditions, the issues of substantiating the perimeter and content of the information and analytical support system for the functions of operational and strategic business management are being updated. The purpose of the study is to develop methods of analysis and algorithms for calculating the most important characteristics of assessing the performance of economic entities for internal management and external stakeholders based on a complementary approach to the use of classical methods of forming a piece of information and analytical base by clarifying the values of the indicators used in financial and management reporting and supplementing the list of analytical indicators. To achieve the goal, the author has identified several tasks related to the critical analysis of the existing methodological apparatus for evaluating the performance of commercial organizations. Also, the author updated the content, and clarified the algorithms for calculating indicators to form reliable information and analytical base necessary for making managerial decisions by various subjects of business relations. The author analyzed the supplementing the system of analytical indicators for assessing and forecasting business performance in accordance with the doctrine of sustainable development; expansion of the model range of factor analysis to get a holistic view of the impact of external and internal drivers on the level of financial stability and profitability of business entities. To substantiate the scientific hypothesis, form methodological provisions within the scope of the research, generalize the empirical base and develop practical proposals, the research clarified and supplemented the algorithms for calculating several performance indicators traditionally used in analytical practice, as well as initial indicators of financial and management reporting, have been involved. The practical application of the proposed adjusted procedures for calculating indicators contributes to getting a reliable and aimed assessment of the quality of the management system of organizations in the real sector of the economy. Also, it promotes a reliable measurement of the influence of factors of the external and internal business environment on its effectiveness, the development of an optimal resource potential management policy in order to increase competitiveness, strengthen financial stability and increase investment attractiveness.

Corruption as a perverse Innovation: The dark side of digitalization and corruption in international business

Digitalization has had pervasive effects on corruption, introducing new opportunities and challenges to minimize the use of corruptive behaviours. This study investigates the dark side effects of digitalization, documenting its facilitation of corruption across countries as a form of perverse innovation. Building upon the theory of moral intensity and the extant literature on innovation, modularity, and complexity and considering the international business context, we develop a multilevel conceptual model with testable future research propositions. The core of our model is that each act has a component of moral intensity that determines the likelihood of individual MNE agents engaging in corrupt business behaviour. Furthermore, the complexity and modularity of products and services, coupled with a highly complicated international business environment, can facilitate the ease with which individual actors can engage in corrupt business practices. Finally, we provide recommendations for both theory and practice.

Strategic Implementation of Planning in Information Systems and Information Technology in "XYZ High University"

Information Technology Strategic Planning is a derivative of an institution's Strategic Plan (Renstra). The purpose of this research is to find the need for Information Systems and Information Technology (IS / IT) for institutions with a case study method of the Strategic Plan "XYZ College"
 The research begins with an analysis of the “PT XYZ” external and internal business environment to determine the five forces model and critical success factors. Next is an analysis of the external and internal IS / IT environment in order to determine world technology trends and the current application portfolio of institutions. The next stage is the strategic process (IS, IT, and IS / IT management. The final stage is to determine the institute's future IS / IT applications. The results achieved are recommendations for the IS / IT application portfolio that "PT XYZ" should have.

Bajaj Auto (B): challenges in LATAM and Southeast Asian (SEA) markets

Learning outcomes After working through the case and assignment questions, students will be able to critically analyze a firm's international partnership strategies for its export market; assess international markets and a firm's entry strategies in them; identify various problems that a firm can face in international markets; and recommend strategies for growth in international markets. Case overview/synopsis Bajaj Auto's (BA) strategy to be a global motorcycle manufacturer had enabled it to hold its ground in the difficult times posed by the COVID-19 pandemic. For the first time, two-wheeler exports from India between January and May 2021 were equivalent to domestic sales showing increased exports and decreased domestic sales. This reinforced BA's belief in its global expansion strategies. Rakesh Sharma (Sharma), the Executive Director at BA, was increasingly buoyant of BA's ambitious plans to enter new markets in Latin America (LATAM) and South-East Asian (SEA) Market.Sharma knew very well that though the LATAM and SEA markets were up-and-coming and lucrative, there were innumerable challenging factors pertaining to Indian and foreign competitors, domestic and international economic and business environment, supply chain and logistical issues, as well as uncertainty brought by the COVID-19 pandemic that BA had to face before tasting success in these markets. Was BA moving in the right direction with its global business expansion strategies? Would Sharma be able to handle the challenges and successfully take BA toward its goal? Complexity academic level The case can be taught in advanced undergraduate, MBA or executive-level programs. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 5: International Business.

Regulatory policy in the context of effective public governance: evidence of Eastern European Countries

The purpose of the article is to study the regulatory policy of Eastern Europe in the context of effective public administration and to identify areas for ensuring its effectiveness in modern development conditions. The need for conceptual substantiation of the regulatory policy implementation directions, development of appropriate applied nature recommendations taking into account public administration system transformational processes has caused urgency of a theme. The methods of comparative analysis, statistical analysis, method of abstraction and formalization, grouping method, SWOT-analysis method were used as empirical research methods. It was substantiated that modern science considers this concept in the following aspects: complex, special, normative and globalization. In the context of the Good Government concept, regulatory policy was analyzed according to the transparency criterion. It was determined that the disadvantage for Ukraine is the lack of regulatory policy transparency, the lack of single database with draft regulatory acts and performance monitoring reports. It is proposed to use SWOT-analysis as a strategic tool for regulatory impact analysis. Conceptual bases of improvement of regulatory policy realization process have been developed in the following directions: economic development, improvement of internal business environment, harmonization of normative-legal regulation system, stimulation of partnership in the regulatory policy field.

Scientific basis of commercial activities of entities of the international business environment

Methods. The methodological foundations of the research are the theories of international economy and commercial relations. The research results are based on general scientific and specific methods. The author used the methods of comparison, etymology and generalization to interpret the concept of «commercial activity». The research used methods of systems analysis to formalize the role of commercial activity in the international business environment. The method of graphic visualization made it possible to describe the place and role of commercial activity in the transformation of the international economic space. Results. The article examines approaches to the interpretation of the concept of «commercial activity». The author summarizes the scientific approaches to the definition: entrepreneurial, effective, process-market and client-oriented approaches. The entrepreneurial approach defines «commercial activity» in the international business environment through the internal processes of production and sale of products. The effective approach examines the profitability and socio-economic consequences of commercial activity. The process-market approach studies business processes and the behavior of entities in international markets. The customer-oriented approach is based on the influence of consumer satisfaction on the conditions of commercial activity. The article substantiates the author’s interpretation of the concept of «commercial activity in the international business environment», formalizes the entities and objects of international markets. Novelty. Approaches to the management of commercial activities are defined. It is substantiated that commercial activity in the international business environment is the process of economic activity of entities of international economic relations regarding the realization of their goals of functioning on the markets, ensuring the profitability and competitiveness of business processes, as well as mutual influences between market participants, regulators of the international economic system. Practical value. The results of the study made it possible to form the characteristics of changes in the commercial activity of the international business environment.

Information Systems Strategic Planning Using the Ward and Peppard Method

The application of information systems that have not been maximized at BPR Centradana Kapuas is due to the unplanned development of an information system that refers to the information system strategic planning document. This study aims to produce a strategic plan of information technology and systems that are appropriate and sustainable, as well as analyzing business areas and making strategic information so that it is easier to determine strategic decisions and can overcome problems that exist in BPR Pancur Banua Khatulistiwa. The research method used in strategic planning of this information system uses the Ward and Peppard Model. The proposed information system strategy planning is based on internal and external business environment analysis as well as IS/IT internal and external environmental analysis through SWOT analysis, SWOT Matrix, Value Chain Analysis, PEST analysis and IS/IT analysis which produces a portfolio for future information system needs.

The International business environments of franchising in BRICS economies

This article aims to analyze the factors that explain the growth and success of the franchising in BRICS economies, and study the long-term relationship between determinants and impacts of franchising in these economies.
 We propose a panel data regression model for determining the factors affecting the franchising market in BRICS economies. The model is designed for the time period of 2000-2019. We use a Granger causality to study the long-term relationship between determinants and impacts of franchising.
 The Results suggests that the development of franchising in BRICS economies is determinated by economic, social, political and legal factors. On the one hand GDP per capita and degree of International competitiveness has a positive impact on franchise, so the purchasing power and the level of individual income affect franchising investment. On the other hand, the market size and level of urbanization have an important impact on franchising investment. Although, there is evidence of interactions between determinants and impacts of franchising in BRICS economies.

Challenges in the EU Banking Sector as Exemplified by Poland in View of Legislative Changes Related to Climate Crisis Prevention

The activity and initiatives undertaken by financial institutions to protect the environment are now the goal of the evolution of the entire financial market. However, it is important not to ignore the legal issues and their implications, which to a large extent now permeate many financial decisions and affect the practices and behaviours of banks. The main objective of this paper was to identify the current condition of and ongoing developments in European Union legal regulations concerning Environmental, Social, Governance (ESG) and sustainable finance. An important aspect of this study was also to analyse the tools, legal instruments, standards and guidelines of the European Commission and the European Banking Authority (EBA) and those proposed by the international business environment in the area of non-financial reporting ESG disclosures in the EU banking sector as exemplified by Poland. In addition, this paper analyses the status of implementation of ESG-related requirements set by the EU legal framework by banks, banking associations and associations of cooperative banks operating in Poland. To achieve the objectives of this study, and to answer the research questions posed, an analysis of primary and secondary sources was carried out in conjunction with a review of the (national and foreign) literature on the subject. Two non-reactive research methodologies were used in the design of this study: the doctrinal legal method and desk research. The results of the analysis indicate that EU regulations are at the drafting stage and those adopted so far require a number of amendments. Banker associations have voiced extensive criticism of the regulations, which are viewed by banks as inadequate, unclear and inconsistent. Both EU and Polish banker associations primarily point to a high degree of generality in the solutions and legal frameworks adopted. The legal acts enacted to date do not correspond to the needs of the market. The analysis of the positions of the banking associations also revealed that the EU legislation still has gaps preventing a harmonised approach to the comprehensive and consistent integration of ESG factors by banks in their strategy and operations.

Coefficient analysis in achieving a reliable assessment of the effectiveness of the organization’s activities

The article presents methodological approaches to the formation of realistic values of financial coefficients for the purposes of reliable evaluation of the performance of commercial organizations by clarifying the classical algorithms of their calculations, taking into account the economic content of the initial indicators of financial and management reporting used, formed in accordance with the provisions of Russian and international standards. The use of adequate values of reporting indicators and the adjustment of formulas for calculating a number of coefficients contribute to obtaining a reliable retrospective assessment of the quality of the management system of organizations in the real sector of the economy, identifying and correctly measuring the impact of factors of the external and internal business environment on its effectiveness, optimizing the resource potential management policy to strengthen competitiveness, financial stability and investment attractiveness of companies.

How does liability of origin influence cross-border acquisition completion? Evidence from Chinese firms

PurposeThe environment of international business (IB) and the capabilities of emerging market multinational enterprises (EMNEs) as well as their home countries have changed significantly, leading to some new features of liability of origin (LOR). This paper aims to extend the LOR literature by particularly focusing on the LOR of Chinese multinational enterprises (MNEs) and by taking into account the heterogeneity among industries and across individual MNEs.Design/methodology/approachBased on the stereotype content model and organizational legitimacy perspective, this study explores how LOR influences Chinese MNEs’ cross-border acquisition completions. Several hypotheses were tested by using a binary logistic regression model with panel data techniques based on data of 780 Chinese MNEs’ acquisition deals between 2008 and 2018.FindingsThe results of this study show that when the competence dimension of China’s LOR is perceived as high in the host country, Chinese MNEs are less likely to complete cross-border acquisitions. Moreover, deals are less likely to be completed when the warmth dimension of China’s LOR is perceived to be low. Global experience and the foreign-listed status of individual Chinese MNEs can alter the relationship between the LOR and deal completions.Originality/valueThis study advances and enriches the LOR research. It shows that a high level of competence in the home country has led to LOR for Chinese MNEs rather than the low level of competence proposed by existing LOR studies; and the LOR for Chinese MNEs is also determined by the perceived low level of warmth in the home country resulting from the geopolitical conflicts between two countries. In addition, the LOR suffered by EMNEs could vary based on certain industry- and firm-level characteristics. The findings of this study provide important practical implications for emerging economy governments and for firms intending to go abroad.

Digitalization as a Trend of Modern Development of the World Economy

Transformation of economies with the application of information and communication technologies not only strengthens the competitiveness of countries in the international market, but also helps optimize and improve business processes in the international business environment. The purpose of the academic paper is to study the impact of digitalization on the development of the world economy on the example of the economies of the European Union member states. The following methods have been used, namely: analysis, description, generalization, induction, deduction, tabular representation, graphical representation, correlation analysis, systematization and grouping. Results: The positions of the European Union member states that are actively implementing the Digital Single Market strategy have been analyzed. It has been established that according to The Digital Economy and Society Index (DESI), Finland, Sweden, Denmark, the Netherlands and Malta have been among the top 5 leaders with the highest level of digitalization of the economy in 2020. Based on the study of The IMD World Digital Competitiveness Ranking, it has been found that the European Union member states, which are among the top 10 leading countries, such as: Denmark, Sweden and the Netherlands, have a high level of ability and readiness to research and implement digital technologies in order to achieve economic transformation and business transformation. The results of the correlation analysis have revealed the interrelationship between the values of Digital single market – promoting e-commerce for individuals and Enterprises that have provided training to develop / upgrade ICT skills of their personnel (%). It has been proved that Sweden, Malta and Estonia show a very high positive correlation, which indicates that these countries are actively implementing digital technologies in the development of economic processes.

Factors Influencing Investments into Human Resources to Support Company Performance

Human resources are very important in a business; however, the return on investment in human resources is longer than in fixed assets, so entrepreneurs frequently consider how much to actually invest. This article, based on primary research, examines the motivations for investment when a 20% profit is typically invested with a model return of around 14%. Those findings are supported by the results presented in Archetype models based on similarity clustering. The results are based on an empirical study (278 respondents, omnibus survey) in the Czech Republic. Moreover, the study concludes that the business experience positively influences human resource management and future development to increase the investment share. In essence, this article displays the paramount importance of human resources and human resource management in the international business environment, demonstrating that investments in human resources are crucial to the success of all businesses, positively and consistently supporting organizations’ performance, and entrepreneurship will continue to remain a vital component of the activities belonging to the post COVID-19 era. In addition, in an era governed by the influences specific to the knowledge-based society and the knowledge-based economy, in which intellectual capital will be considered one of the most relevant intangible assets of entities all over the world, the measurement of human resources investment will turn out to be essential for the success of all businesses, while taking the necessary steps in supporting sustainability, sustainability assessment and Sustainable Development Goals (SDGs).