Surviving in the digital era – business models of digital enterprises in a developing economy

2019 ◽  
Vol 21 (2) ◽  
pp. 164-178 ◽  
Author(s):  
Eric Ansong ◽  
Richard Boateng
Keyword(s):  
Business Models ◽  
Critical Realism ◽  
Developing Economies ◽  
Low Cost ◽  
Digital Economy ◽  
Developing Economy ◽  
Content Type ◽  
Developed Economies ◽  
Digital Ecosystem ◽  
Enterprise Models

Purpose This study aims to explore the business models and strategies of digital enterprises in a developing economy context to understand the nature of their operations, as well as their survival tactics. Design/methodology/approach A review of literature on digital enterprise models led to the adaptation of a 16 business model archetype for analyzing digital enterprises in Ghana. Using a critical realism perspective, survey data from a sample of 91 digital enterprises were used for the study. Findings The findings suggest that among human, physical and intangible assets, financial assets were the least used assets in the operations of the digital enterprises. This stems from the fact that the online financial business sector is still in its nascent stages in most developing economies. The findings further suggest that all digital enterprises leverage on accessible and low-cost social networking services as part of their operations and use them as an avenue to engage with their target customers. Research limitations/implications The findings from this study provide guidelines to entrepreneurs who wish to venture into the digital ecosystem of Ghana, particularly with regard to the economic, financial and technological factors that enable digital enterprises to survive in the competitive digital economy. Practical implications The findings suggest that it is important for governments to realize that there is an increasing rise in digital enterprises in the developing economies and these enterprises are creating jobs and providing business solutions locally that would hitherto be sought from developed economies. There is therefore the need for the requisite legal infrastructure and financial support that will cushion these enterprises from the fierce competitions that stagnate their growth. Originality/value The study provides a mapping of the digital business models of Ghanaian digital enterprises. This knowledge is arguably the first of its kind in the context of a developing economy. Hence, it serves as a stepping-stone for future studies to explore other areas in the digital economy, especially from a developing economy perspective.

Cognizant India: reinventing the value proposition

2015 ◽  
Vol 5 (8) ◽  
pp. 1-18
Author(s):  
Tripti Sharma ◽  
Tapabrata Ghosh
Keyword(s):  
International Business ◽  
Business Models ◽  
Low Cost ◽  
Subject Area ◽  
Global Market ◽  
Price Sensitivity ◽  
It Industry ◽  
Content Type ◽  
Developed Economies ◽  
Intense Competition

Subject area Strategic management, IT strategy, Business & IT Consulting, International Business. Study level/applicability PGDM and Executive programmes. Case overview Cognizant Technology Solutions, one of the giants in the Indian information technology (IT) industry, has been continually evolving new strategies and business models to cater to the global IT demand. Starting as an in-house technology unit of Duns & Bradstreet, the case highlights the various pioneering and transformative decisions taken by Cognizant to become one among the Fortune 500 companies of the world. However, despite its supremacy in the global market, they are facing tremendous competition from the other IT giants – TCS, Infosys and Wipro, to name a few. Also, the expansion of global IT players like Accenture and International Business Machines (IBM) in India is making matters worse. This intense competition, when juxtaposed with commoditization and price sensitivity on behalf of the IT demand, makes sustainability a big question mark. The million-dollar question remains “How should Cognizant strategize to ensure inorganic growth in the price-sensitive industry?” Expected learning – outcomes The case highlights the market dynamics of the Indian IT industry – from its humble beginning as an attraction for low-cost labour to being one of the strategic outsourcing geographies of the IT sector – and thereby categorically points out the significance of continuous evolution on behalf of the IT firms to stay alive in this client-driven industry. The students are expected to analyze the IT industry of India, keeping in mind its vulnerabilities – price sensitivity, dependence on developed economies and intense competition – and relate the same to different strategies incorporated by Cognizant to remain one of the powerhouses of the Indian IT industry. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Impact of COVID-19 pandemic on indigenous contractors in a developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel Ayinde Olatunde ◽  
Imoleayo Abraham Awodele ◽  
Bosede Olajumoke Adebayo
Keyword(s):  
Developing Economies ◽  
Sampling Technique ◽  
Structured Interview ◽  
Additional Cost ◽  
Developing Economy ◽  
Content Type ◽  
Construction Contracts ◽  
The Government ◽  
And Performance ◽  
The Impact

Purpose The purpose of this study is to examine the impact of coronavirus disease 2019 (COVID-19) on indigenous contractors in a developing economy with a view to enhancing their performance. Design/methodology/approach The study used a purposive sampling technique to select 37 indigenous contractors with ongoing construction contracts in Osun State, Nigeria who provided data for the study. A structured interview protocol was used to elicit the required information from the interviewees and frequency, percentage and content analysis were used for data analysis. Findings The results showed that the critical impact of COVID-19 on indigenous contractors in a developing economy is: time overrun, loss of profit and creation of dispute. Further results showed that other impacts are a disruption in supply of labour, locally sourced materials are with additional cost, the additional cost of implementing COVID-19 protocols, difficulty in sourcing imported materials and absence of new jobs with the corresponding retrenchment of workers. Practical implications The study recommended special palliatives for the indigenous contractors from the government so as to cushion the impact of the pandemic on them, thereby enhance their survival and performance. A special arbitration panel is set up in each state of the federation to look at disputes arising from the aftermath of the pandemic, this is with a view to adequately compensate indigenous contractors with genuine and properly compiled claims. inferring from the findings of the study, it suffices to say that the severity of the impact of the pandemic is very high on indigenous contractors in developing economies, as such a better preparedness strategy could lessen the impact of such pandemic in the future. Originality/value The study is an attempt to unearth the impact of COVID-19 on indigenous contractors with ongoing construction contracts in a developing economy. The study will be of value to construction stakeholders in providing the information needed to devise strategies to minimise the impact of a pandemic on indigenous contractors in future projects thereby enhance their performance.

A survey of social entrepreneurial community-based hospitality and tourism initiatives in developing economies

2014 ◽  
Vol 6 (1) ◽  
pp. 51-61 ◽  
Author(s):  
Philip Sloan ◽  
Willy Legrand ◽  
Claudia Simons-Kaufmann
Keyword(s):  
Developing Economies ◽  
Negative Effects ◽  
Social Entrepreneurs ◽  
Community Based ◽  
Content Type ◽  
Cultural Traditions ◽  
Developed Economies ◽  
Positive Effects ◽  
Entrepreneurial Management ◽  
Hospitality And Tourism

Purpose – The aim of this paper is to report on preliminary research conducted in seven sustainable hospitality and tourism operations set in developing economies which use the principles of social entrepreneurship. The applicability of community-based social entrepreneurial management systems as a means of fostering socio-economic development is analysed. Design/methodology/approach – Online contacts were first made with the selected destinations, who were asked to supply written reports on selected criteria. Purposive sampling was employed, whereby the criteria chosen for analysis were based on characteristics believed to be representative. Analysis of the reports was based on the meaning of words, in particular, in finding commonalities and differences in themes approached by each respondent. Findings – Preliminary conclusions show that the positive effects of employing local indigenous people in these projects far outweigh some negative aspects. Employment possibilities leading to improved living standards have resulted in each case. Local cultural traditions have been maintained and only in a few cases were examples of the negative effects of tourism reported. Research limitations/implications – The findings of this research are limited to a small selection of community-based social entrepreneurial hospitality and tourism projects in developing economies, thus, cannot be applied to similar projects in developed economies, where social and economic factors are considerably different. Originality/value – In developing economies, social entrepreneurs can draw on the success of the projects analysed in this paper for the creation of new, similar ventures. In developed economies, hospitality and tourism businesses wishing to pursue a more socially caring form of development can gain inspiration.

Ryanair: success before love

2015 ◽  
Vol 31 (8) ◽  
pp. 1-3 ◽  
Author(s):  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Public Image ◽  
Necessary Condition ◽  
Sustainable Competitive Advantage ◽  
Value Proposition ◽  
Content Type ◽  
The Public ◽  
True Value

Purpose – This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry. Design/methodology/approach – The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models. Findings – The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

Sectoral analysis of productivity in the developing and developed economies of Asia-Pacific

2019 ◽  
Vol 13 (1) ◽  
pp. 37-71
Author(s):  
Pami Dua ◽  
Niti Khandelwal Garg
Keyword(s):  
Technological Progress ◽  
Developing Economies ◽  
Trade Openness ◽  
Institutional Quality ◽  
Asia Pacific ◽  
Government Size ◽  
Financial Openness ◽  
Content Type ◽  
Developed Economies ◽  
The Impact

Purpose The study aims to empirically investigate the trends and determinants of labour productivity of the two broad sectors –industry and services – and their components, namely, manufacturing and market services sectors, in the case of major developing and developed economies of Asia-Pacific over the period 1980-2014 and make a comparison thereof. Design/methodology/approach The study uses econometric methodology of panel unit root tests, panel cointegration and group-mean full modified ordinary least squares (FMOLS). Findings The study finds that while capital deepening, government size, institutional quality, productivity of the other sector and financial openness affect productivity of all the sectors significantly, the impact of human capital and trade openness varies across sectors in the case of developing economies. Furthermore, the impact of technological progress becomes significant in the post-liberalization reforms period in the developing economies. The study further finds that capital deepening, human capital, government size, institutional quality, productivity of the other sector, government size and trade openness are significant determinants of productivity of all sectors of developed economies under consideration. However, the impact of technological progress is stronger for manufacturing sector than services and its components. Furthermore, while both equity and debt liabilities (as measures of financial openness) influence sectoral productivity of industry and manufacturing sectors positively and significantly in case of developed economies, only equity liabilities have a significant influence on the productivity of developing economies. This may indicate existence of more developed financial markets in the case of developed economies. Originality/value The study identifies important structural differences in determinants of productivity both across sectors and across developing and developed economies of Asia-Pacific.

Comparative analysis of employment trend in African agriculture relative to other regions: a gender perspective

2020 ◽  
Vol 11 (3) ◽  
pp. 359-380
Author(s):  
Mmaduabuchukwu Mkpado ◽  
Ndidiamaka Sandra Mkpado
Keyword(s):  
Developing Economies ◽  
Function Analysis ◽  
Negative Relationship ◽  
Female Employment ◽  
Index Number ◽  
Content Type ◽  
Developed Economies ◽  
Irrigated Lands ◽  
African Agriculture ◽  
Total Labour

PurposeLucrative employment in agriculture is fundamental to poverty alleviation in Africa. The paper examined employment along gender, impact of materials and proportion of female employment in African agriculture.Design/methodology/approachTime series econometrics was employed in the framework of production function analysis involving 36 years of data.FindingsResults show that world labour in agriculture decreased from 49.77 to 40.04% but increased from 12.43 to 16.94% in Africa. World female employment in agriculture ranged from 40.56 to 42.81% and from 40.40 to 43.02% in developing economies, but decreased from 40.39 to 36.08% in developed economies. Total agricultural labour in Africa was negatively and significantly related to agricultural gross production index number (APIN).Research limitations/implicationsInteraction of cattle stock and females employed in agriculture was positive and significant at pooled African values. Interaction of irrigation facilities and female labour was positive and significant in West Africa. Interaction of cattle stock and total labour in Southern Africa had negative relationship with APIN. Interaction of total labour and irrigation had negative relationship with APIN in Africa. Insufficient agricultural facilities in terms of cattle stock and irrigation infrastructure for the populace exist. It recommends increased investments to expand irrigated lands and livestock.Practical implicationsAfrican governments need to use good political will to effect the needed transformation in agriculture. It is possible for agriculture to offer lucrative employment to both males and females in less developed world as in developed economies.Originality/valueThe paper noted very limited agricultural facilities in terms of cattle stock and irrigation facilities for the populace engaged in agriculture. It recommends investments to expand irrigated lands and livestock.

Air Asia India: competing for air space in an emerging economy

2017 ◽  
Vol 27 (5) ◽  
pp. 516-532 ◽  
Author(s):  
Tulsi Jayakumar
Keyword(s):  
Multinational Enterprises ◽  
Business Models ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
Secondary Data ◽  
Emerging Economy ◽  
Competitive Strategies ◽  
Content Type ◽  
Country Specific

Purpose The purpose of this paper is to understand the competitive landscape of emerging market economies (EMEs) and the implications of business models and strategies used by multinational enterprises (MNEs) to enter and operate in such landscapes. It does so by considering the aviation sector in an emerging economy – India, and by studying the strategies pursued by AirAsia India – the Indian joint venture of AirAsia Investment Limited and Tata Sons.. Design/methodology/approach The paper follows a case study approach. Secondary data sources from the library, company website and newspaper articles have been used to build a case that would encourage students to discuss and analyze the competitive strategies followed by MNEs in EMEs. Findings Emerging markets offer attractive investment opportunities to MNEs across several industries. However, their markets for intermediate goods and services possess imperfections. Competitiveness in such markets will require going beyond country-specific and firm-specific advantages. MNEs will need to integrate location-specific advantages with internalization advantages of these market imperfections to operate successfully in the complex environments of EMEs. A one-size-fits-all approach of transposing successful strategies from home markets will fail to create value. Practical implications MNEs, such as AirAsia, will need to develop participatory skills to leverage the location-specific-advantages of EMEs and reduce their own curse of foreignness to be able to succeed in EMEs. Originality/value This paper contributes to extant literature by studying the competitive strategies pursued by a global leader in an EME. The case of the “World’s Best Low-Cost Airline” – AirAsia’s India operations seeks to go beyond the Eclectic Paradigm and the country-specific and firm-specific advantages framework, to provide a location-internalization paradigm for operating in EMEs.

Chinese firms will compete with West in new markets

2020 ◽  
Keyword(s):  
Developing Economies ◽  
Low Cost ◽  
Global Markets ◽  
Cost Advantage ◽  
Chinese Firms ◽  
Content Type ◽  
Brand Building ◽  
Advanced Technologies ◽  
Belt And Road ◽  
Developed World

Significance They are responding by enhancing their non-price competitiveness through advanced technologies, higher product quality, brand-building and entering high-end segments of global markets. Impacts Cost convergence with China will boost reindustrialisation in the developed world. Developing economies such as Vietnam, Indonesia and Bangladesh will occupy the low-cost niche as China vacates it. Belt and Road infrastructure will help Chinese firms produce more in developing countries to preserve their cost advantage.

Retail companies’ internationalization behavior and the 2008 crisis

2015 ◽  
Vol 43 (9) ◽  
pp. 870-894 ◽  
Author(s):  
Daniele Pederzoli ◽  
Volker G. Kuppelwieser
Keyword(s):  
Developing Economies ◽  
Low Cost ◽  
Entry Modes ◽  
Content Type ◽  
Theoretical Assumptions ◽  
Before And After ◽  
International Retailing ◽  
Economic Shock ◽  
Current Financial Crisis ◽  
Internationalization Behavior

Purpose – The purpose of this paper is to challenge earlier recommendations and explanations regarding companies’ behaviour after an economic shock and analyses worldwide retail companies’ internationalization processes before and after the 2008 crisis. Design/methodology/approach – Drawing on information published between 2003 and 2012, the authors focus on the 2008 crisis and analyse 1,500 different internationalization moves by 109 companies from 26 countries. Findings – The analyses confirm that the pace of retail internationalization increased after the 2008 crisis, that these companies had mainly moved into countries with newly developing economies, and that the entry modes ranged from high-cost entry modes and low-cost strategies. Originality/value – This paper provides an initial indication of retailers’ actual internationalization behaviour in the period considered. Such material has not been available previously as international retailing research has primarily focused on theoretical assumptions. By focusing on the current financial crisis, the authors highlight the problem that researchers investigating various company behaviours face when comparing these to the theoretical expectations. By using a worldwide, multisectorial, and longitudinal retailing sample to illustrate the internationalization process, the authors not only generalize companies’ internationalization behaviour, but also challenge earlier recommendations and explanations regarding their behaviour after an economic shock.

scholarly journals The strategic national infrastructure assessment of digital communications

2018 ◽  
Vol 20 (3) ◽  
pp. 197-210 ◽  
Author(s):  
Edward J. Oughton ◽  
Zoraida Frias ◽  
Mischa Dohler ◽  
Jason Whalley ◽  
Douglas Sicker ◽  
...  
Keyword(s):  
Demand Uncertainty ◽  
Business Models ◽  
Digital Communications ◽  
Global Scale ◽  
Expert Elicitation ◽  
Future Research ◽  
Content Type ◽  
Digital Ecosystem ◽  
Horizon Scanning ◽  
Future Demand

Purpose Public policy requires effective identification of the current and emerging issues being faced in industry and beyond. This paper aims to identify a set of key issues currently facing digital communications and reviews their relevance for the strategic provision of infrastructure, particularly within the UK context. Design/methodology/approach The methodology focusses on taking a horizon-scanning approach to obtaining current information from a range of authoritative decision makers across industry, government and academia. After structuring the issues identified, these areas are explored by a multi-disciplinary research team covering engineering, economics and computer science. Findings Five key categories were identified including future demand; coverage and capacity; policy and regulation; economics and business models; and technology. The results are reported for both fixed and wireless networks. Shared issues affecting the wider digital ecosystem are also identified including Brexit, connecting remote areas and the degree to which the economics of infrastructure allows for building multiple overlapping infrastructures. The authors find that future demand uncertainty is one of the major issues affecting the digital communications sector driven by rigid willingness-to-pay, weak revenue and an increasing shift from fixed to wireless technologies. Policy must create the market conditions that encourage the entry of new competitors with innovative thinking and disruptive business models. Research limitations/implications A limitation of the analysis is that it is quite UK-focussed; hence, further research could broaden this analysis to assessing issues at a continental or global scale. Originality/value The value of this paper originates from the breadth of the expert elicitation exercise carried out to gather the initial set of issues, followed by the analysis of this data by a multi-disciplinary team of researchers. The results direct a future research agenda, as many issues are indicative of a lack of existing evidence to support effective decision-making.

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