Participation, Government Legitimacy, and Regulatory Compliance in Emerging Economies: A Firm-Level Field Experiment in Vietnam

2018 ◽  
Vol 113 (2) ◽  
pp. 530-551 ◽  
Author(s):  
EDMUND MALESKY ◽  
MARKUS TAUSSIG
Keyword(s):  
Field Experiment ◽  
Emerging Economies ◽  
Representative Sample ◽  
Regulatory Authority ◽  
Regulatory Compliance ◽  
Firm Level ◽  
Advance Information ◽  
Factory Floor

This paper employs a field experiment in single-party–ruled Vietnam to test whether providing a broad-based representative sample of firms the opportunity to comment on draft regulations increases their subsequent compliance. We find three main outcomes of this treatment. First, treated firms exhibited greater improvement in their views of government’s regulatory authority. Second, these firms were more likely to allow government-affiliated auditors to examine their factories. Third, treated firms demonstrated greater compliance on the factory floor. Access and compliance were not explained by the receipt of advance information about the regulation’s requirements, and none of the three outcomes required that firms offer substantive comments.

scholarly journals An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle

2021 ◽  
Vol 13 (9) ◽  
pp. 4929
Author(s):  
Xiaoli Li ◽  
Hongqi Wang
Keyword(s):  
Technological Innovation ◽  
Industrial Policy ◽  
Emerging Economies ◽  
Evolutionary Process ◽  
Sustainable Growth ◽  
Rolling Stock ◽  
Innovation Capability ◽  
Firm Level ◽  
Industrial Leadership ◽  
Catch Up

In catch-up cycles, the industrial leadership of an incumbent is replaced by a latecomer. Latecomers from emerging economies compress time and skip amplitude by breaking the original strategic path and form a new appropriate strategic path to catch up with the incumbents. Previous studies have found that the original strategic path is difficult to break and difficult to transform. This paper proposes a firm-level framework and identifies the impetus and trigger factors for latecomers to transform the strategic path. The impetus is the mismatch between strategic mode and technological innovation capability. The trigger is the progressive industrial policy. Based on a Chinese rail transit equipment supplier’s (China Railway Rolling Stock Corporation; CRRC) catch-up process, this paper finds that the strategic path transformation is an evolutionary process from mismatch to rematch between strategic mode and technological innovation capability. With the implementation of industrial policy, the technological innovation capability will change. The original strategic mode does not match with changed technological innovation capability, which leads to performance pressure. With the adjustment of industrial policy, a new strategic mode adapted to new technological innovation capability emerges. This paper clarifies the source that determines successful catch-up practices for latecomers and contributes to latecomers’ sustainable growth in emerging economies.

Convergence of corporate governance in Malaysia and Thailand

2014 ◽  
Vol 4 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Syed Abdulla Al Mamun ◽  
Yousre Badir
Keyword(s):  
Corporate Governance ◽  
Emerging Economies ◽  
Annual Reports ◽  
Unconditional Convergence ◽  
Individual Country ◽  
Firm Level ◽  
Content Type ◽  
Prior Literature ◽  
Specific Factors ◽  
Using Data

Purpose – The purpose of this paper is to examine whether there is a firm-level corporate governance (CG) convergence in two emerging economies, namely Malaysia and Thailand in post-Asian financial crisis periods, and how the level of convergence is moderated by different firm-specific factors. Design/methodology/approach – Using data collected from annual reports of top Malaysian and Thai companies in two point of times 2005 and 2008, this research examines the attributes of board of directors to find the firm-level CG convergence. This study, based on prior literature, identified firm-specific factors to assess their moderating impact on the level of convergence. This paper exploits beta and sigma convergence technique to measure the CG convergence. Findings – Results show that top Malaysian and Thai companies have developed internal CG practices in similar way with increasing board independent, separate board leadership, important board committees, board education, and participation in the post-crisis reform regime. Accordingly, there is a firm-level CG convergence within companies of an individual country, i.e. intra-convergence, and companies across the countries, i.e. inter-convergence. Notwithstanding, the study does not find the unconditional convergence in all CG variables. Additionally, it observes that the firm-level CG convergence is moderated by firm-specific factors. Practical implications – Outcomes of the study have the implication to understand the complicated changing aspects of internal CG practices in emerging economies which, in turn, can help to formulate and implement effective CG structure so that firms can tackle adverse effects of any further economic crisis. Because this paper highlights that the firms in these emerging economies have enough room yet to improve their CG practices to become internationally competitive. Originality/value – This paper demonstrates how internal CG practices may evolve and converge in emerging Southeast Asian economies. Results related to moderating factors of firm-level CG convergence contribute in literature by exploring a new dimension of CG convergence.

scholarly journals The Stages of International Growth of the Business Groups From Emerging Economies

2015 ◽  
Vol 6 (2) ◽  
pp. 22-34
Author(s):  
Roderick Bugador
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Transaction Cost Economics ◽  
Institutional Environment ◽  
Business Groups ◽  
Theory Of The Firm ◽  
Analytical Framework ◽  
Growth Stages ◽  
Firm Level ◽  
International Growth

The previous studies have focused on weak institutional environment in explaining the growth of business groups in emerging economies. The recent events, however, show that business groups continue to grow even when the institutions are getting better. This is evident both in the domestic and international growth stages. This paper addresses this by providing a group and a firm-level analytical framework as an alternative in examining the international growth of business groups. The focus is putting the institutional environment in the background and the business groups in the forefront. The paper builds on the endogenous growth of business groups and proposes that their persistence, regardless of institutions and level of economy, can be explained not only through their environment but also by the internal dynamics of their organizational structure and group-specific advantages. This proposition is based on the theory of the firm through the combined application of transaction cost economics, resource-based and dynamic capabilities views.

scholarly journals Soy dairy performance metrics

2021 ◽  
Vol 21 (105) ◽  
pp. 19016-19039
Author(s):  
J Krause ◽  
◽  
M Cornelius ◽  
P Goldsmith ◽  
M Mzungu ◽  
...  
Keyword(s):  
Performance Metrics ◽  
Dairy Product ◽  
Value Added ◽  
Regulatory Compliance ◽  
Fixed Costs ◽  
Firm Level ◽  
Recordkeeping System ◽  
Tropical Environments ◽  
Level Data ◽  
Manufacturing Technologies

Soybean (Glycine max (L. Merr.) has been a crop of interest to address both poverty and malnutrition in the developing world because of its high levels of both protein and oil, and its adaptability to grow in tropical environments. Development practitioners and policymakers have long sought value added opportunities for local crops to move communities out of poverty by introducing processing or manufacturing technologies. Soy dairy production technologies sit within this development conceptual model. To the researchers’ knowledge, no research to date measures soy dairy performance, though donors and NGOs have launched hundreds of enterprises over the last 18 years. The lack of firm-level data on operations limits the ability of donors and practitioners to fund and site sustainable dairy businesses. Therefore, the research team developed and implemented a recordkeeping system and training program first, as a 14-month beta test with a network of five dairies in Ghana and Mozambique in 2016-2017. Learning from the initial research then supported a formal research rollout over 18 months with a network of six different dairies in Malawi and key collaboration from USAID’s Agricultural Diversification activity. None of the beta or rollout dairies kept records prior to the intervention. The formal rollout resulted in a unique primary dataset to address the soy dairy performance knowledge gap. The results of analysis show that the dairies, on average, achieve positive operating margins of 61%, yet cannot cover the fixed costs associated with depreciation, amortization of equipment and infrastructure, working capital, marketing and promotion, and regulatory compliance. The enterprises in our sample operate only at 9% of capacity, which limits their ability to cover the normal fixed costs associated with the business. The challenge is not the technology itself, as when operated, it produces a high-quality dairy product. The challenges involve a business that requires too much capital for normal operations relative to a nascent and small addressable market.

Benchmarking of factors influencing adoption of innovation in software product SMEs

2019 ◽  
Vol 26 (5) ◽  
pp. 1451-1468 ◽  
Author(s):  
Sumukh Hungund ◽  
Venkatesh Mani
Keyword(s):  
Emerging Economies ◽  
Open Innovation ◽  
External Factors ◽  
Decision Makers ◽  
Firm Level ◽  
Content Type ◽  
Factors Influencing ◽  
Adoption Of Innovation ◽  
Innovation Approach ◽  
Closed Innovation

Purpose The purpose of this paper is to investigate the factors influencing small and medium enterprises’ (SMEs) adoption of innovation approaches. Design/methodology/approach The methodology involves two steps. First, all the variables relevant to the adoption of innovation in SMEs are identified. Subsequently, primary data are gathered from decision makers of 213 SMEs, and a multinomial logistic regression analysis is performed. Findings The results indicate that SMEs adopt both open innovation and closed innovation approaches. The firm-level factors such as firm age, firm size, education qualification, work experience and culture, and external factors such as customers, competition, technological advances and ecosystem influence adoption of open innovation approach compared to closed innovation approach. Factors such as culture among firm-level factors and competition among external factors influence the adoption of closed innovation approach. Practical implications The study helps the managers or the decision makers of the SMEs to know the suitable factors influencing the firm to adopt innovation which could potentially help the firms in their business strategy. Originality/value The study explores the adoption of innovation approaches of SMEs in emerging economies. The outcomes of this research have far-reaching implications for theory and practitioners in emerging economies.

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