Market Context Research Articles

Board Dynamics, Dividend Pay-out Policy and Banking Efficiency in an Emerging Market Context

Board Dynamics, Dividend Pay-out Policy and Banking Efficiency in an Emerging Market Context

TRUCAGE, АБО ОДИН ВИПАДОК ІЗ ІСТОРІЇ ФАЛЬШУВАЛЬНИЦТВА

The paper is a part of the author’s larger research on the history of restoration of Limoges painted enamels in the end of the 19th and the beginning of the 20th century in Paris. It treats about a well-documented case of a French restorer and merchant Simon-Emérique Pierrat, accused in 1858 for selling false Limoges enamels to the members of the Rothschild family. The transcript of this process sheds light on methods and approaches used by some XIXth century forgers in the field of applied arts. Due to the high rank of his deceived clients, Pierra’s case was widely known by his contemporaries, and the restorer himself was considered as a faker par excellence. To succeed in his business, Pierrat, used to acquire enamels produced by his contemporaries and resell them to collectors. To make them look ancient, the restorer used to add some dirt and fire it on the object, so that it looks like the dirt of the time. He also used sophisticated narrative methods to add more credibility to his merchandise. However, sometimes objects talked for themselves. That is why, the presence of decorative elements imitating antique vases discovered during the Herculaneum excavations on a Renaissance enamel allowed an expert to expose a fake at the Rothschild collection and thus put an end to Pierrat’s fraudulent business. The method of his trucage (fr. Process or set of processes used, in the field of decorative arts and fine arts, to make fakes, counterfeits of antiques - Larousse) was largely discussed and denounced, but was also, though rarely, seen as a natural result of collectors’ blind chase over authentic Limoges enamels at the time. As the question of false objects and “honest” imitations rises for museum curators all over the world, such testimonies could be seen as a valuable piste to follow for a better understanding of the XIXth century applied art market context and its actors.

PENGUATAN DIGITALISASI MARKETING UNTUK MENINGKATKAN PENJUALAN PADA PELAKU UMKM PEREMPUAN DI KOTA MEDAN, SUMATERA UTARA

Digital marketing plays an important role for MSMEs in marketing their products so that later it is expected to be able to increase sales. This condition also results in consumer changes in fulfilling lifestyles. In order to continue to increase this contribution and participation, MSMEs are required to be involved in digital platforms. The digital world is expected to become a crucial thing for business activities. Digital marketing is promotional activities as well as market search carried out through digital media. The use of digital marketing must immediately be responded positively by MSMEs, especially women MSMEs located in the city of Medan. From the initial mapping it is known that the majority of these MSME actors do not yet have a website. Promotional activities are carried out only through Facebook, Instagram and Tik Tok. Only one MSME actor was identified as having a website. With this service activity, it is hoped that more specific identification of problems and constraints in selling MSME products can be carried out. In addition, through this activity, the team will educate and introduce product marketing methods through the use of digital marketing media to increase market share and reach consumers more broadly. It is important to note that MSME actors must carefully analyze the market context in which the business operates, identify opportunities, and then plan how to compete effectively.

Contextual factors of disruptive innovation: A systematic review and framework

Since its inception over two decades ago, the theory of disruptive innovation has sparked heated discussions. Especially because of the increasing importance of societal influences and novel forms of competition and technology, questions about its theoretical value and practical relevance remain. Researchers have focused on firm-internal factors of disruptive innovations to resolve discussions about the validity of the theory. However, the literature lacks an integrated understanding of contextual factors, such as demand, market structure, culture, and regulation, that influence disruptive innovation because of its dispersed, fragmented character across disciplines. Our study addresses this fragmentation and lack of integrated understanding by systematically reviewing 62 articles. The study makes three main contributions. First, we integrate and synthesize the literature on contextual factors of disruptive innovations. Second, we derive a three-phase framework of contextual factors: (1) disruptive susceptibility, (2) emergence and diffusion, and (3) endgame and outcome. Third, we contribute to resolving discussions about the theory's core elements and its predictive value by showing how, depending on the societal, cultural, or market context, the implications of the theory can change. Overall, this article shows how disruptive innovation can start, and be started, by social change. We conclude by suggesting areas for future research.

Consumers’ awareness and loyalty in Indonesia banking sector: does emotional bonding effect matters?

PurposeThis study aims to examine the relationship between emotional bonding (e.g. brand love, brand commitment and brand trust) and consumers’ awareness and consumers loyalty to conventional and Islamic banking products in Indonesia.Design/methodology/approachThe sample consists of 585 Muslim and bank consumers obtained through a survey study and using structural equation modeling to test the research hypotheses.FindingsThe empirical results indicate that brand love, commitment and trust have significant and positive effects on consumers’ awareness and loyalty. Furthermore, as the mediator variables, consumers’ awareness partially mediates the relationship between emotional bonding and consumers’ loyalty.Research limitations/implicationsThis study was validated by Indonesian Muslims; therefore, future study is needed to validate across the region and sector.Practical implicationsThis study enlightened the bank managers from a marketing and psychological context. The bank managers need to enhance the control and promote their brand and products to improve their relationship and consumers.Originality/valueThis study provided the Muslim consumers' decision-making process by developing and testing a model of emotional bonding and consumers’ perspective toward bank products.

House price dynamics under lower leverage: the case of metropolitan cities in India

PurposeThis paper aims to examine the dynamics of house prices in metropolitan cities in an emerging economy. The purpose of this study is to characterise the house price dynamics and the spatial heterogeneity in the dynamics.Design/methodology/approachThe author explores spatial heterogeneity in house price dynamics, using data for 35 Indian cities with a million-plus population. The research methodology uses panel econometrics allowing for spatial heterogeneity, cross-sectional dependence and non-stationary data. The author tests for spatial differences and analyses the income elasticity of prices, the role of construction costs and lending to the real estate industry by commercial banks.FindingsLong-term fundamentals drive the Indian housing markets, where wealth parameters are stronger than supply-side parameters such as construction costs or availability of financing for housing projects. The long-term elasticity of house prices to aggregate household deposits (wealth proxy) varies considerably across cities. However, the elasticity estimated at 0.39 is low. The highest coefficient is for Ludhiana (1.14), followed by Bhubaneswar (0.78). The short-term dynamics are robust and show spatial heterogeneity. Short-term momentum (lagged housing price changes) has a parameter value of 0.307. The momentum factor is the crucial dynamic in the short term. The second driver, the reversion rate to long-term equilibrium (estimated at −0.18), is higher than rates reported from developed markets.Research limitations/implicationsThis research applies to markets that require some home equity contributions from buyers of housing services.Practical implicationsStakeholders can characterise stable housing markets based on long-term fundamental value and short-run house price dynamics. Because stable housing markets benefit all stakeholders, weak or non-existent mean reversion dynamics may prompt the intervention of policymakers. The role of urban planners, and local and regional governance, is essential to remove the bottlenecks from the demand side or supply side factors that can lead to runaway prices.Originality/valueExisting literature is concerned about the risk of a housing bubble due to relaxed credit norms. To prevent housing market bubbles, some regulators require higher contributions from home buyers in the form of equity. The dynamics of house prices in markets with higher owner equity requirements vary from high-leverage markets. The influence of wealth effects is examined using novel data sets. This research, documents in an emerging market context, the observations cited in low-leverage developed markets such as Germany and Japan.

Taktike distributivnog pregovaranja

In the context of business negotiation, negotiation is both a science and a skill; in terms of skill, business negotiation implies certain behaviours, skills, abilities and experiences, while knowledge on negotiation is considered a useful tool that facilitates process implementation; knowledge must be applied (used) as often as possible in order to, due to at times highly competitive differences in the concept of negotiation, shape it as a business process, in which the gap between theory and practice is bridged. Business negotiation is most often analysed in two contexts: the context of buying and selling and relationships within the business entity (internal negotiation). As an increasingly important business skill that finds solutions to conflict, but interdependent situations, effective business negotiation has a multiplier effect in terms of creating added value. Business negotiation is the “exchange of something beneficial for something else beneficial”, and what is beneficial and how to get there is decided by each side for themselves, which can be identified through the approach to negotiations as well as the strategies and tactics used. The paper analyses the strategy of distributive negotiation, which was the dominant negotiation approach in the past (and is still used today) with an emphasis on negotiation tactics used by distributive negotiators, as well as ways of responding to them. The tactics themselves, i.e. their names or terms are derived from negotiation experience, and arouse the interest of the general public due to the terms used for the description of the negotiation tactics.

Pola Interaksi Sosial di Warung (Studi Kasus pada Interaksi Sosial di Warung Sembako di Kelurahan Pulogebang Kota Jakarta Timur)

Purpose: The purpose of this study was to determine patterns of social interaction in stalls and to determine the behavior of buyers. Research Methodology: The research method used is descriptive qualitative method. Data collection was carried out by participant observation, namely researchers involved in direct interactions with data sources in the field and by observing daily activities at four stalls in Pulogebang Village and researchers also conducted interviews with eight informants. Results: The results of this study show that social interactions that occur in stalls are not only in terms of buying and selling, but there are other conversations outside the context of buying and selling. The interactions that occur in the warung can be associative (cooperation, accommodation, assimilation) and dissociative (competition, contradiction, conflict). As well as the behavior of customers in the Pulogebang Village stalls is a positive behavior in social life. Contribution: This research is expected to be useful for the development of sociology, and can add to the knowledge of sociologists about social interaction, besides that it can help stall visitors and sellers be aware of the importance of good social interaction with the community.

Giving-by-proxy triggers subsequent charitable behavior

How can we foster habits of charitable giving? Here, we investigate the potential power of giving-by-proxy experiences, drawing inspiration from a growing trend in marketing and corporate social responsibility contexts in which organizations make charitable donations on behalf of employees or consumers. We create laboratory models of giving-by-proxy in workplace (Studies 1a-3) and consumer (Study 4) contexts. We then investigate how giving-by-proxy experiences (with varying amounts of autonomy) influence subsequent charitable behavior. Across five preregistered studies (N = 3255), we provide evidence that (i) giving-by-proxy experiences (that mirror those that typically occur in both workplace and consumer contexts) trigger increases in subsequent charitable behavior, (ii) this process is mediated by participants taking “charitable credit” for their behavior, and (iii) manipulating the amount of autonomy involved in the giving-by-proxy experience does not moderate these effects. Results highlight potential societal impacts of giving-by-proxy policies and campaigns.

Cultural Profile as Determinant of Work Outcomes in a Collectivist Context

Extant research evidence shows that interpersonal bonds—the bond to the immediate supervisor and work team—have an incremental predictive effect in western settings, neglecting emerging economic and cultural environments. This study, thus, examines the impact of cultural profiles on interpersonal bonds and related performance in an emerging market context. Specifically, the study examines the emergence of profiles based on micro-level psychological collectivism (individualism) and power distance orientations. The study further examines the effect of the emerged profiles on interpersonal bonds and the performance of activities related to the targets of the bonds. A survey questionnaire was used to collect data from 148 multiple public and private organizations of varied industries (banking, manufacturing, education, and local government) in an emerging market. Using the MANOVA analytic procedure, the study finds that the supervisor-oriented and team-involved profile rather than the team-alienated profile demonstrates a significantly higher level of work outcomes involving interpersonal commitment to the supervisor and substantially higher task performance. The outcome suggests that power distance cultural value may have a negative psychological effect while collectivism has a positive psychological effect on work outcomes in this context. The implication of the outcome for theory and policy in the collectivist context is discussed.

Graduating in uncertain times: The impact of COVID‐19 on recent graduate career prospects, trajectories and outcomes

AbstractThis article examines the impacts of the COVID‐19 pandemic on recent UK graduates' initial employment outcomes and how they experience the transition into a challenging labour market context. We draw on longitudinal survey and interview data, collected from recent graduates who had mainly graduated during the onset of the COVID‐19 pandemic in summer 2020 that examines graduate perception of the labour market, impacts on labour market entry impacts and early career progression and effects of periods of unemployment or under‐employment. The article shows some of the main impacts of the recent pandemic‐affected labour market, including: widespread concerns about job opportunities and employer support, the perceived employment impacts of the pandemic and early signs of scarring and labour market disorientation amongst those who were struggling to find employment of their choice. Such experiences are clearly intensified during the specific COVID‐19 context, but the policy implications they raise have wider relevance for supporting graduates during future periods of labour market volatility.

An agent-based modelling framework for the simulation of large-scale consumer participation in electricity market ecosystems

The role of consumers as price-sensitive participants in electricity markets is considered essential to ensure efficient and secure operations of electricity systems. Yet the uncertain or unknown consequences of active market participation remain a large barrier for active consumer-side market participation. Simulations are a powerful tool to reduce this uncertainty by giving consumers an insight on the potential benefits and costs of market participation. However, the simulation setup must be adapted to each market context and each consumer market participation strategy. To simplify the simulation development process and improve the comparability of simulation results, this paper proposes a modular yet systematic electricity market modelling framework. The framework applies object-oriented programming concepts for business ecosystem modelling presented in previous works to develop an agent-based model of a consumer-centric electricity market ecosystem. The market ecosystem is represented by a multitude of interacting submarkets with their own logic. Within submarkets, context-independent and context-dependent elements are distinguished to provide model abstraction which can be adapted to different contexts. This framework is illustrated by applying it to three different submarkets in the Western Danish electricity market context: the Nordpool day-ahead market, the Nordpool intraday market, and the Frequency Containment Reserve market. The submarket role abstractions allow to benefit from the commonalities between the analysed submarkets during model implementation, while the role parametrisations allow to quickly adapt the roles to each market context. The implementation of the modelling framework in the Nordic context highlights the benefits of a modular approach in a liberalised and unbundled market context.

How much does interpersonal guanxi matter to business performance? The mediating role of relationship learning in an emerging market context

PurposeBy adopting learning theory and a guanxi perspective, this study aims to investigate the effects of interpersonal guanxi (interpersonal networks or connections) and relationship learning on companies’ business performance when operating in a large emerging market.Design/methodology/approachUsing a sample of 294 sales managers and salespeople in the Chinese hotel sector, the authors empirically test the authors' arguments through a structural equation modeling (SEM) approach.FindingsThe authors' findings indicate that strong interpersonal guanxi tends to generate more positive business performance. Furthermore, the authors find that relationship learning plays a mediating role in the association between interpersonal guanxi and hotel companies’ business performance in a Chinese context. Finally, the authors empirically explore the moderating effect of inter-firm dependence on the contribution of interpersonal guanxi to relationship learning. Findings demonstrate that this effect varies significantly based on inter-firm dependence, with interpersonal guanxi exhibiting a greater positive impact if such dependence is high.Originality/valueThis study enriches our understanding of interpersonal guanxi and of how companies can enhance the companies' business performance in an emerging market context.

Language of Persuasion and Negotiation in Ghanaian Market

This paper examined the language of persuasion and negotiation in the Ghanaian market context using a local community market (Agartha Market) in Koforidua as a case study. It investigates how the language of persuasion and negotiation is couched in the context of the market by both traders and customers. The theoretical framework within which this study is hinged is the stylistic theory of Leech and Short [1]. Specifically, the grammatical and figure-of-speech prong of the theory have been used. While observation and audio recordings were used to collect the data, the content descriptive method was used in the description and analysis of the data. The findings revealed that, relative to sentence complexity, persuasion and negotiation made adequate use of compound sentences than simple sentence structures. While simple sentence structures are used by traders to attract customers’ attention and arouse their psychological interest and curiosity, customers used them in negotiations for mainly interrogative and position-shift purposes. Compound and complex structures were used by traders for elaborative purposes in order to espouse the good qualities that are inherent in their products in order to convince their customers to buy their wares. Figuratively, repetition, hyperbole, and suspense are the key tropes used. These tropes are dominant in persuasion than in negotiation. Again, while the language of persuasion is monologue that of negotiation is dialogue. Code-mixing is also common characteristic in the language of negotiation and persuasion. The dominant local language (Twi) and the official language (English) are usually used in the communication process. This research thus has implication for research and pedagogy as it extends the literature and can also influence the restructuring of educational polices especially those related to language since society and school (education) are intricately related.

White-collar money laundering through opportunistic earnings management: fair value accounting practices of failed finance companies in Sri Lanka

PurposeThe purpose of this paper is to discuss how the failed finance companies in Sri Lanka used fair value accounting practices as an opportunistic earnings management practice to launder money under weak corporate governance structures.Design/methodology/approachThis paper uses a qualitative design under the philosophy of interpretivism. The case study research strategy is used inductively to investigate how fair value accounting had been used for money laundering.FindingsThe dishonest intention of major shareholders and board of directors had forced failed companies to misuse fair value accounting to manipulate performance and use them for personal benefits which were detrimental to the depositors and stability of the companies. The weak corporate governance structures which were developed because of regulatory forbearance were influential for manipulations. The concentrated ownership had reduced agency conflicts between shareholders and managers because major shareholders were the members of the board of directors. The appointed committees were not effective because of an inadequate number of independent directors with sufficient expertise. The reduced agency conflict between shareholders and managers has exaggerated the agency conflict with depositors. Therefore, it is recommended to dilute ownership concentration to establish good corporate governance structures and make stable institutions.Research limitations/implicationsThis study does not discuss the dishonest fair value accounting practices of all licensed finance companies because of the sensitivity of the matter for surviving companies.Originality/valueThis paper is an original work of the authors which discusses how fair value accounting practices had been used to launder money in failed finance companies in Sri Lanka as an emerging market context.

The shifting foundations of territorial embeddedness in food retailing: recent insights from China

ABSTRACT Economic geographers exploring the globalisation of food retailing have argued that retail TNCs might secure a foothold in host markets by deepening their territorial embeddedness in regional logistics and supply networks, consumer markets and cultures, and property markets. Yet, over the past decade in China, hitherto one of the most prominent foci for food retail TNC entry, the market has rapidly morphed in ways that have profoundly challenged the ability of international food retailers to deepen or even maintain their territorial embeddedness, with divestment an increasing reality. This paper argues that the advantages retail TNCs initially enjoyed (e.g., superiority in store format design and planning; marketing and IT infrastructure; favourable host market regulations; and efficient sourcing/logistics networks) have atrophied in the face of a maturing retail market characterised by strengthening domestic retail competition, less favourable host market regulations, the rise of digital platforms and markedly shifting customer expectations. As such, a reformulation is required that identifies how three imperatives – which we term online integration, offline reconfiguration and strategic reinforcement – crosscut the existing dimensions of territorial embeddedness and set the context for the strategic responses of retail TNCs and their highly variable effectiveness. More broadly, the paper exposes the dynamic, multi-agent and temporal nature of the retail embeddedness process, with the retail TNC and their strategic responses set against a host market context of intersecting stakeholders, institutions and regulations that are themselves also in a constant state of flux.

MEASURING THE ECONOMIC VALUE OF WOMEN’S HOUSEHOLD WORK

The “unpaid household work” as recognized by the society is often not considered to be a productive activity or a work having an economic value attached to it. However, Unpaid domestic work is indeed an important and an indispensable factor which contributes not only to the smooth functioning of a household, but also to the economy. The conventional economy often fails to recognize this aspect of work where women stand hidden and unacknowledged. This type of work was termed as the ‘Economy of Care’ by Elson (1995) Understanding the nature of their unpaid employment is critical, since it has a substantial influence on their economic participation rate. Due to several factors like the stereotypical gender roles, social and religious constraints, the patriarchal set up of the society and the low opportunities for women in the market, women often end up engaging in unpaid domestic work. Therefore, a broader context of household, state, market, and activity should be seen through a macro lens in order to accelerate women’s status in the economy. Women are put under the shadow of invisibility because of their predominance in household work, hence keeping them from the purview of ‘economic activities’ and outside the production boundaries and economic policies of the country. Consequently, such ignorance of their contribution to economic activity, growth and well-being creates serious macroeconomic consequences. This study project aims to address the repercussions of portraying hard working Indian women as economically ineffective and undervalued in their domestic duties. In addition, the aim of this research paper is to recognize the scope and elements that impact Indian women's status as unpaid houseworkers

Adaptive distributed leadership and circular economy adoption by emerging SMEs

Extant literature has identified the role of leadership skills in facilitating circular economy (CE) adoption. However, this claim is underexplored in the empirical literature. Similarly, examining the nexus in small and medium-sized enterprises (SMEs) from an emerging market context is limited. We address these gaps by exploring CE through the adaptive distributed leadership lens and developing a theoretical model for business innovation. We collected data using semi-structured interviews with 30 process-intensive SME managers in India. The findings suggest that distributed leadership facilitates CE adoption. It emphasises the importance of an environment where power-sharing, delegation, decision-making, authority-sharing, and a collaborative mindset are permitted. These invariably develop trust, skill sets and employee confidence, facilitating CE adoption. Our research offers several theoretical contributions. First, we highlight the relevance of the human element in CE adoption by emphasising the role of distributed leadership. We also contribute to the distributed leadership literature by showing its relevance to understanding significant business transformations such as adopting CE practices.Furthermore, we provide a model that demonstrates the conditions necessary to facilitate innovation and a creative organisational culture. Our study is one of the first to explore the importance of distributed leadership in facilitating CE practices. The findings provide practical insights into how CE can be adopted in SMEs, especially in emerging markets.

The Interplay between Potential Capital Market Development and Bank Performance in an Emerging Economy Context: Do they Compete or Co-evolve?

Recent theoretical arguments regarding financial institutions and capital market relationships signpost a paradigm shift from a superiority to interdependence. This study investigated the interplay between potential capital market development and bank performance in an emerging market context. To achieve its objective, the study used primary data collected through interviews with subject matter experts, consultants and seasoned leaders. The AHP and DEMATEL multi-criteria models were employed to establish a level of importance and interdependence relationships. AHP results in descending order indicate liquidity, capital adequacy, asset quality, profitability and efficiency as key performance indicators of banks in Ethiopia. The bank-market interdependence analysis projects market capitalisation, efficiency and asset quality as causes for the group and liquidity, trade volume and profitability as effects for the group. The study predicted competitive interdependence in future bank-market interplay in Ethiopia. Following the competition from the capital market, Ethiopian banks will have lower liquidity, improved service, and a higher interest rate structure. To mitigate a potential liquidity crunch, the study proposed lowering asset maturity periods and raising capital adequacy as plausible central bank policy measures.

Country-of-origin and online retailing ethics: the mediating role of trust and satisfaction on purchase intention

PurposeOnline shoppers feel insecure due to the various unethical practices of e-tailers. It is, therefore, crucial for online retailers to alleviate customer concerns. Extant literature indicates that country-of-origin (COO) cues influence consumer perception. A relatively underexplored phenomenon in an emerging market context, the COO image of the online retailer, i.e. a foreign-origin online retailer (FOOR) or an Indian-origin online retailer (IOOR), needs validation. The current study investigates customer expectations of online retailers' ethical behaviour against the backdrop of online retailer-based signals in emerging markets.Design/methodology/approachThe researchers floated an online questionnaire using a seven-point Likert scale. The authors sought recipient responses in Google Forms shared via e-mails and social media connections. The authors analysed 1,018 useable responses using partial least square structural equation modelling (PLS-SEM) in Smart PLS 3.FindingsThe empirical study examined the influence of the consumer perception of ethics of online retailers (CPEOR) and COO on consumer purchase intention. It validated the proposed research model. The research findings inform that the CPEOR and the COO influence purchase intention through the mediation effects of trust and satisfaction. Results indicate that privacy, security, non-deception, fulfilment, customer service, FOOR and IOOR strongly predict consumer trust. In contrast, privacy, non-deception, fulfilment, customer service and FOOR strongly predict consumer satisfaction. However, security and IOOR did not influence consumer satisfaction.Research limitations/implicationsThe study results have theoretical and practical implications for academic researchers and online retailing managers. Future studies can validate the model in different geo-demographic scenarios and e-commerce settings.Originality/valueThe study enriches the extant literature on CPEOR in the Indian context. This study is pioneering work examining consumer purchase intention by adding the COO construct to the CPEOR model.