International Market Dynamics Research Articles

The Corporate Honesty Effect and Its Boundary Conditions: B2B Firms’ Communications on Withdrawal from Russia

ABSTRACT Purpose Against the backdrop of the Russia-Ukraine conflict and ensuing industrial turmoil as well as the pressure of stakeholder sentiments, numerous U.S-based multinational B2B firms announced about their intent to withdraw from the Russian market. This study aims to probe the veracity of this form of corporate communication, exploring the corporate honesty effect by juxtaposing the stated withdrawal intentions against the actual scale of divestment. Methodology/approach We identify 241 cases of response to the Russia-Ukraine conflict pertaining to U.S-based multinational B2B corporations. This includes 34 cases of no withdrawal (i.e., no communication) and 207 cases of announcements about the firm’s intent to withdraw from Russia. For these cases, we calculate the actual scale of withdrawal (Actual Divestment Index) based on the data from Federal Tax Service of Russia and the Central Bank of the Russian Federation. Considering Actual Divestment Index as a fractional measure, we conduct fractional logit regression analysis, where the effect of the withdrawal communication on Actual Divestment Index is interpreted as the corporate honesty effect. Findings Controlling for variables such as firm size, leverage, return on assets, institutional ownership, entry mode, and industry, the analysis reveals that the scope of intended withdrawal – reflected in the stages of no action, non-essential pullout, suspension, partial core, and full core withdrawal – is positively associated with the observed level of divestment. The findings further show that firms with larger corporate resources, higher profitability, and deeper local market exposure exhibit a greater level of corporate honesty. Research implications This study builds on the MFHB framework (Cooper et al., 2023) that differentiates several distinct dimensions of corporate honesty. Our research applies these dimensions to formulate an operational definition of corporate honesty which emphasizes the fidelity to the firm’s communicated intent, situationally activated in response to external pressures and emergent socio-political sentiments, in the context of established domestic/international business relationships. Also, we contribute to the current body of knowledge on corporate honesty by introducing a method of measuring the corporate honesty effect. Practical implications Marketing managers of multinational B2B firms must endeavor to maintain the stakeholder perceptions of corporate legitimacy by constantly monitoring the level of corporate honesty effect, specifically during the time of war-induced disruptions and turmoil in B2B markets. Managers of B2B firms with larger resources, better profitability, and deeper market exposure can leverage their advantageous position to further highlight and promote their actual performance in this aspect to assuage the concerns and negative sentiments of stakeholders. Originality/value/contribution This research contributes to theories of corporate honesty by contextualizing the concept of corporate honesty within the framework of communication-action congruence. This is done in relation to the strategic divestment communications and actions undertaken by B2B multinational firms in a market embroiled in moral turmoil during a geopolitical conflict. Our alternative operationalization of corporate honesty facilitates a quantifiable assessment of this construct, offering an alternative methodology to evaluate the integrity of corporate communications vis-à-vis actual organizational action in crisis contexts. Our findings about the boundary conditions of the corporate honesty effect contributes to a nuanced understanding of the phenomenon within the domain of sociopolitical corporate activism, ethical business practices, and international market dynamics.

Post-Pandemic Natural Gas Utilization in Trinidad and Tobago: A Sectoral Analysis (2020–2023)

This paper examines the impact of post-pandemic shifts on natural gas utilization in Trinidad and Tobago, one of the largest producers of liquefied natural gas (LNG) in Latin America and a significant exporter of ammonia and methanol. Employing a qualitative analysis supplemented by Granger Causality tests, the study analyzes the changes in natural gas demand across key sectors from 2020 to 2023. The findings reveal substantial volatility in natural gas prices post-COVID-19, influenced by global events that have heightened the sensitivity of Trinidad and Tobago’s economy to international market dynamics. With the nation at the crossroads of diversifying energy sources and addressing climate change imperatives, the study suggests strategic investments in renewable energies, energy efficiency, and technological upgrades. The research highlights the economic benefits of using natural gas for petrochemical production over electricity generation and points to the resilience offered by the diversity in the petrochemical export market, contrasted with the concentrated LNG export market. The study concludes with a call for integrated policy planning and an accelerated energy transition, advocating for a sustainable and resilient energy sector aligned with global climate goals.

Agricultural change and resilience: Agricultural policy, climate trends and market integration in the Mexican maize system

Abstract Ensuring that national food systems have capacity to withstand volatility and shocks is a growing concern. Given the complex processes involved, multi-scalar, multi-stressor analyses of critical food systems are needed. This paper presents a multi-scalar analysis of the Mexican maize system to provide insight into the sector’s evolution. The literature suggests that, over the last 30 years, climate trends, domestic and international market dynamics, and domestic policy changes have affected Mexico’s maize sector. In contrast, this study finds no conclusive evidence of wide-spread abandonment of maize. In addition, while economic globalization and climatic changes are often presented as the primary drivers of change in Mexico’s maize sector, results of this study show that domestic policy has been equally, if not more, influential in the sector’s evolution. More than international market integration, the relatively recent geographic concentration of commercial supplies within Mexico has increased national sensitivity to idiosyncratic shocks affecting the dominant supply region. In this light, smallholder persistence across Mexico may represent an underutilized strategic asset in policy efforts to enhance both domestic food security and national-level resilience. The Mexican case illustrates the potential role for proactive domestic policy in shaping sensitivities in the national food system to both internal and exogenous shocks.

Accounting for “land-grabbing” from a biocapacity viewpoint

The comparison of the Ecological Footprint and its counterpart (i.e. biocapacity) allow for a classification of the world's countries as ecological creditors (Ecological Footprint lower than biocapacity) or debtors (Ecological Footprint higher than biocapacity). This classification is a national scale assessment on an annual time scale that provides a view of the ecological assets appropriated by the local population versus the natural ecological endowment of a country. We show that GDP per capita over a certain threshold is related with the worsening of the footprint balance in countries classified as ecological debtors. On the other hand, this correlation is lost when ecological creditor nations are considered. There is evidence that governments and investors from high GDP countries are playing a crucial role in impacting the environment at the global scale which is significantly affecting the geography of sustainability and preventing equal opportunities for development. In particular, international market dynamics and the concentration of economic power facilitate the transfer of biocapacity related to “land grabbing”, i.e. large scale acquisition of agricultural land. This transfer mainly occurs from low to high GDP countries, regardless of the actual need of foreign biocapacity, as expressed by the national footprint balance. A first estimation of the amount of biocapacity involved in this phenomenon is provided in this paper in order to better understand its implications on global sustainability and national and international land use policy.

Between a Rock and a Hard Place: International Market Dynamics, Domestic Politics and Gazprom's Strategy

Gazprom, Russian's prime state owned gas producer, is facing severe pressure stemming from international gas market dynamics, EU regulation and the Ukraine crisis. Slowing gas demand coupled with shifting pricing models and a persisting transit issue pose significant challenges for Gazprom's business going forward. Domestic pressure emerges from competition arising from private companies, mainly Notatek, but also state owned rival Rosneft, and is reinforced by governmental moves toward more market oriented Russian gas sector organization. Gazprom's options include pivoting to alternative markets, notably China; reverting to international legal bodies and market principles to counter EU regulatory pressures; and to depoliticize gas trade in order to generate long term expectations on its prime market - Europe. We pose that neither of these options is likely to fully solve Gazprom's dilemma, whose competitive position will arguably further weaken both domestically and internationally. We believe that Gazprom's best option would be to aim for depoliticizing gas trade, by way of giving up its de facto monopoly on gas exports to Europe.

From coping to adaptation to economic and institutional change – Trajectories of change in land-use management and social organization in a Biosphere Reserve community, Mexico

Smallholder farming communities are increasingly affected by local impacts of international market dynamics, and (inter)governmental economic and nature conservation policies to which they respond through coping or adaptation. Although the attributes that underpin the capacity to adapt are widely agreed upon in literature, empirical evidence on how rural communities can develop adaptations are still scarce. Here, we provide such evidence based on a comprehensive driver-response reconstruction of a community in the buffer-zone of a Biosphere Reserve in Chiapas, Mexico. We found that coping (between 1990 and 2000) was gradually replaced by adaptations (1995–2010) based on: (i) diversification of land-use, (ii) improved social organization, (iii) improved communal decision-making, and (iv) more sustainable forms of land management. The diversification of local farming systems through inclusion of organic forest-based palm and coffee cultivation and the establishment of associated organizations, formed the basis of these changes. These adaptations were mainly supported by improved social, institutional and political capital. Communal forest resources, long-term support of an NGO and a highly motivated population, were essential circumstances that allowed these trajectories to develop. However, current unequal land and power distribution could undermine and debilitate adaptive capacity. Communities and supportive organizations need to be aware and capable to adjust continuously to prevent today's adaptation strategies from becoming tomorrow's coping responses.

Housing Market Failure in a Booming Economy

This paper presents national data and two case studies investigating the links between housing market failure and the context of Australia's recent resource mining boom. It demonstrates how unprecedented international demand for mineral resources resulted in critical, local housing issues in mining communities. We conclude that without careful strategic planning and understanding of the economic and social role of housing, international market dynamics can create local housing situations that are vulnerable to market and social failures. While this paper highlights the challenges inherent in managing housing issues in Australia during a mining boom, there are likely to be lessons which can be applied in international settings. These challenges include the diversity in scale, cyclical and often unpredictable nature of booms; differences in housing policy and institutional arrangements across jurisdictions and the importance of leadership in growth management and planning.

Mandorle, una materia prima strategica: dinamiche di mercato e fabbisogno dell'industria dolciaria

In the last decade even almonds went through relevant price increases. This essay focuses on recent international market dynamics through the analysis of primary production and international trade data. The main features of industrial procurement are taken into consideration as well as the critical aspects of the upstream supply chain. The market, increasingly global but still highly concentrated, encourages all economic operators to improve their performances and, following the Californian example, to establish a dialogue and new ways of trade collaboration.