Bitter taste: an agency agreement in Vietnam goes awry

2017 ◽  
Vol 7 (2) ◽  
pp. 1-17
Author(s):  
Beat Hans Wafler ◽  
Rian Beise-Zee
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Subject Area ◽  
Third Party ◽  
Longitudinal Case Study ◽  
Acceptable Solution ◽  
Food Ingredients ◽  
Content Type ◽  
Asian Emerging Markets ◽  
The Relationship

Subject area The case authentically illustrates a common problem encountered within the business scope of an agent who is representing a European food ingredients manufacturer in an emerging market. The case describes the kind of legal set-up and contracts that are necessary to safeguard the long-term prospective of the business for both parties, the agent and overseas supplier. It explains what each party has to observe in case of a termination of the agency agreement. Study level/applicability This is a longitudinal case study of a market entry by a European food ingredients manufacturer through a foreign-owned third agent. The authors studied how sales developed over the first few years and then concentrated the investigation on the fact that after the sales volume was reached, the overseas manufacturer wants to cancel the agency agreement and do the business directly without getting the agent involved. Case overview This case describes and explains a common problem encountered frequently by overseas manufacturers who want to enter an emerging market through a third-party agent representation. The overseas supplier uses the agent’s service and solid reputation to enter an emerging market with limited exposure to costs and risk. The agent works towards guarding the relationship with the overseas supplier for as long as possible. The development of the relationship illustrates what kind of conditions have to be stipulated in advance to provide an acceptable solution to both parties concerned once they part ways. Expected learning outcomes This research is based on a European food ingredients manufacturer, who was expanding its business in different Asian emerging markets, namely, Vietnam and Cambodia. The agent was a long-time established trading house who acted frequently as agent for overseas companies that wanted to get a foothold in these promising Asian emerging markets. 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. Subject code CSS 5: International Business

The impact of artificial intelligence (AI) finance on financing constraints of non-SOE firms in emerging markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jun Shao ◽  
Zhukun Lou ◽  
Chong Wang ◽  
Jinye Mao ◽  
Ailin Ye
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Financing Constraints ◽  
Content Type ◽  
Emerging Market Countries ◽  
Finance Development ◽  
Cash Flow Sensitivity ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

PurposeThis study investigates the impact of AI finance on financing constraints of non-SOE firms in an emerging market.Design/methodology/approachUsing a sample of non-SOE listed companies in China from 2011 to 2018, this research employs the cash–cash flow sensitivity model to examine the effect of AI finance on financing constraints of non-SOE firms.FindingsWe find that the development of AI finance can alleviate the financing constraints of non-SOE firms. Further, we document that such effect is more pronounced for smaller firms, more innovative firms and firms in developing areas.Practical implicationsThis study suggests that emerging market countries can ease the financing constraints of non-SOE firms by promoting AI finance development.Originality/valueThis study, to the best of our knowledge, is the first one to explore the relationship between AI finance development and financing constraints of non-SOE firms in emerging markets.

How much does valuation model choice matter? Target price accuracy of PE and DCF model in Asian emerging markets

2017 ◽  
Vol 7 (1) ◽  
pp. 90-107 ◽  
Author(s):  
Samie Ahmed Sayed
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Institutional Setting ◽  
Research Report ◽  
Target Price ◽  
Predictive Utility ◽  
Content Type ◽  
Valuation Model ◽  
Asian Emerging Markets ◽  
Dcf Model

Purpose The purpose of this paper is to focus on valuation practices applied by analysts to derive target price forecasts in Asian emerging markets. The key objective of this study is to understand valuation model preference of analysts and to compare the predictive utility of target price forecasts derived through heuristics-driven price-to-earnings (PE) model and theoretically sound discounted cash flow (DCF) model. Design/methodology/approach Each research report in the sample of 502 research reports has been studied in detail to understand the dominant valuation model (PE or DCF) applied by analyst to derive target price forecasts. These research reports have been issued on stocks trading in seven emerging markets including India, Malaysia, Indonesia, Taiwan, Philippines, Korea and Thailand during a six-year period starting 2008. Standard OLS and logit regression analysis has been performed to derive empirical findings. Findings The study finds that lower regulatory and reporting standards prevailing in emerging markets have no significant bearing on analyst choice of valuation model (PE or DCF). Time-series analysis suggests that emerging market analysts did not rely upon the usage of DCF model and preferred PE model during and immediately after the financial crisis of 2008. Multivariate regression results show weak evidence that PE model produces better results than DCF model after adjusting for the complexities associated with analyzing emerging market equities. The results imply that PE model, to some degree, is better equipped to capture market moods and sentiment in dynamic emerging markets rather than theoretically sound DCF model. Originality/value Most past studies on valuation model practices have focused on developed markets and this study provides a fresh perspective on analyst valuation model practices and performance in a new institutional setting of Asian emerging markets. The marginally better predictive utility of PE model as compared to DCF model is possibly a feature limited to Asian emerging markets.

Effects of ownership structure on the relationship between multinationality and downside risk

2019 ◽  
Vol 26 (3) ◽  
pp. 401-421
Author(s):  
Chao Zhou
Keyword(s):  
Emerging Markets ◽  
Real Options ◽  
Ownership Structure ◽  
Emerging Market ◽  
Downside Risk ◽  
Publicly Traded ◽  
Data Set ◽  
Content Type ◽  
Real Options Theory ◽  
The Relationship

Purpose The purpose of this paper is to explore how multinationality affects multinational companies’ (MNCs) downside risk and the moderate effects of ownership structure in the setting of emerging markets based on Chinese publicly traded manufacturing MNCs. Design/methodology/approach The author derives hypotheses based on real options theory and agency theory, and tests hypotheses by using Tobit model and a unique data set of Chinese A-shared publicly traded manufacturing MNCs in the period of 2010–2016. Findings The empirical results suggest that multinationality is positively related to downside risk and this effect is subjected to ownership structure for firms in emerging markets. In particular, multinationality of MNCs with a high level of ownership concentration, managerial ownership and institutional ownership is more likely to reduce downside risk. Practical implications The main conclusion of this paper highlights the importance of ownership structure of MNCs in explaining the real options value of multinationality, and conveys to owners of MNCs in China and other emerging markets the need to strengthen firms’ governance if they want to maximize the benefits of multinational operations. Originality/value This study extends existing studies by taking ownership structure into consideration and highlighting the importance of agency problem in the examination of multinationality and downside risk, which provides a potential explanation for previous mixed evidence. This study also provides new evidence for the relationship between multinationality and downside risk by using a unique sample from China, an emerging market country.

Gender roles and customer organisational citizenship behaviour in emerging markets

2017 ◽  
Vol 32 (8) ◽  
pp. 503-517 ◽  
Author(s):  
Jessica Sze Yin Ho ◽  
Sanjaya S. Gaur ◽  
Kok Wai Chew ◽  
Nasreen Khan
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Willingness To Participate ◽  
Content Type ◽  
Internal Customers ◽  
Level Of Satisfaction ◽  
Voluntary Commitment ◽  
Internal Stakeholders ◽  
The Relationship

Purpose Organisational citizenship behaviour (OCB) entails employees’ voluntary commitment to an organisation beyond their contractual responsibilities and has been found to be contributing to an organisation’s success. While the roles of gender and OCB exhibited by employees (as internal stakeholders) are documented, the role of gender in OCB by customers (as external stakeholders) of an organisation, especially within the context of emerging markets, is not found, therefore necessitating further studies. This research aims at bridging this research gap. Design/methodology/approach In total, 203 male and 194 female customers representing the young working professionals segment rated their level of satisfaction with the relationship that they had with their banking website. They also indicated their willingness to participate in different dimensions of OCB. Findings Generally, both men and women, who are satisfied with the relationship that they have with the organisation, indicated their willingness to contribute to the organisation by displaying OCB. Contrary to past studies, where women at workplace were reported to be more likely to participate in OCB, the findings from the customer’s perspective revealed that men are more likely to engage in OCB. Research limitations/implications The results indicated that OCB is not limited to internal customers (employees) but could also be expanded to external customers. The stereotypes causing females to be perceived as stronger OCB contributors may not remain constant in all types of circumstances. Originality/value To the best of the authors’ knowledge, this appears to be the first study to establish the gender role in OCB from the customer’s perspective in the context of an emerging market.

Examining the brand name – mark relationship in emerging markets

2014 ◽  
Vol 23 (4/5) ◽  
pp. 262-267 ◽  
Author(s):  
Richard R Klink ◽  
Gerard A. Athaide
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Brand Names ◽  
Sound Symbolism ◽  
Future Research ◽  
Brand Name ◽  
Intended Meaning ◽  
Content Type ◽  
Brand Marks ◽  
The Relationship

Purpose – The purpose of this research is to investigate whether the brand name–mark sound symbolism relationship extends beyond US marketplaces to emerging markets. Sound symbolism research indicates that consistent brand name meaning can be conveyed across international marketplaces. Yet, prior work has not investigated whether visual branding elements provide consistent meaning across such contexts. Design/methodology/approach – To contrast effects across international contexts, we replicate both studies of Klink (2003) with bilingual subjects in Mumbai, India. Study 1 examined whether the sound symbolic relationship between brand name and brand mark holds in this emerging market. Study 2 investigated whether both the brand name and brand mark together can enhance brand meaning in this context. Findings – Study 1 finds support for the relationship between higher-frequency brand names and brand marks that are angular and smaller in size, with limited support regarding color. Study 2 finds a significant effect for brand marks and a marginally significant effect for brand names on conveying intended meaning. Originality/value – The authors confirm the relationship between the brand mark and brand name; however, color meaning may be less universal than prior theory and research indicates. In addition, the effect of the brand name on conveying sound symbolism meaning may be less important than visual branding elements in emerging markets. Hence, future research may wish to include additional branding elements in experimental stimuli when testing sound symbolism theory.

Impulse buying tendencies among Indian consumers: scale development and validation

2016 ◽  
Vol 8 (3) ◽  
pp. 205-226 ◽  
Author(s):  
Sheetal Mittal ◽  
Deepak Chawla ◽  
Neena Sondhi
Keyword(s):  
Factor Analysis ◽  
Emerging Markets ◽  
Emerging Market ◽  
Reliability And Validity ◽  
Future Research ◽  
Impulse Buying ◽  
Content Type ◽  
Statistical Measures ◽  
Asian Emerging Markets ◽  
Impulse Buying Tendency

Purpose The purpose of this paper is to conceptualize, develop and validate the measurement of impulse buying tendency India, an emerging market in Asia. Design/methodology/approach The conceptualization of India’s impulse buying tendency (IBT) has been based on a review of academic literature and an analysis of qualitative data from 30 observations at retail stores and 25 in-depth consumer interviews. The scale’s reliability and validity were assessed by content, convergent, discriminant, nomological and predictive validity using statistical techniques such as exploratory factor analysis and confirmatory factor analysis. Findings A two-dimensional measure for IBT was developed for the Indian market, and then tested and validated using appropriate statistical measures. Research limitations/implications The study was skewed towards offline retail with both observations and interviews focusing on the bricks-and-mortar model. With e-retailing in India growing at a rapid rate, future research should extend the study and verify the IBT instrument’s validity specifically for impulse buying behaviour online. Originality/value To the best of authors’ knowledge, the present study is the first to bridge the gap in the existing research of impulse buying in context of emerging markets like India that are culturally, unlike both the western/developed and other Asian/emerging markets; and socio-economically, facing an interplay of variety of factors that are in a state of flux. The developed IBT scale would help by providing academics and practitioners with means of broadening their perspectives and understanding of retail behaviours in a context that is characterized by unprecedented consumer spending, increasing proliferation of modern retail and influence of a culture traditionally been given to simplicity and frugality.

scholarly journals Organisational performance and the use of multiple performance measures in an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdallah Amhalhal ◽  
John Anchor ◽  
Marina Papalexi ◽  
Shabbir Dastgir
Keyword(s):  
Emerging Markets ◽  
Financial Performance ◽  
Performance Measures ◽  
Emerging Market ◽  
Manufacturing Companies ◽  
Organisational Performance ◽  
Cross Sectional ◽  
Content Type ◽  
Financial Performance Measures ◽  
The Relationship

PurposeThis study is an empirical investigation of the relationship between the use of 41 multiple performance measures (MPMs), including financial performance measures (FPM), non-financial performance measures (NFPMs) and organisational performance (OP) in Libya.Design/methodology/approachThe results are based on cross-sectional questionnaire survey data from 132 Libyan companies (response rate 61%), which were obtained just before the so-called Arab Spring.FindingsMPMs are used by both manufacturing and non-manufacturing companies. Libyan business organisations are more likely to use FPMs than NFPMs. However, these companies still rely more heavily on FPMs. The relationships between the use of NFPMs and OP and the use of MPMs and OP are positive and highly significant. The relationship between the use of FPMs and OP is positive but not significant.Research limitations/implicationsThe high power distance associated with the conservative, Libyan, Arab context will reinforce the tendency to use FPMs more than NFPMs. This may provide a performance advantage to those organisations which do adopt NFPMs.Practical implicationsAlthough there may be institutional barriers to the use of NFPMs in Libya, and other emerging markets, these are not insuperable and there is a payoff to their use.Originality/valueNo previous studies of emerging markets, such as the Middle East or North Africa, have looked at the relationship between OP and the adoption of such a large array of MPMs.

CSR in banking in emerging markets – stakeholder perspective

2012 ◽  
Vol 2 (8) ◽  
pp. 1-2
Author(s):  
Stephanie Jones
Keyword(s):  
Risk Management ◽  
Emerging Markets ◽  
Emerging Market ◽  
Subject Area ◽  
Foreign Bank ◽  
Operating Conditions ◽  
Content Type ◽  
The Real ◽  
Doing Business ◽  
The Way

Subject area This case considers the attitudes of stakeholders in a risk management challenge of a major foreign bank operating in an emerging market country in the Mediterranean region. The case provides insights into the task facing an international organisation trying to operate in a sociallyresponsible way in a developing economy, where operating conditions are quite different from the head office environment. Study level/applicability The case is designed for MBA and MSc students studying corporate social responsibility (CSR), international business, emerging markets, country risk (and related subjects). Case overview The case discusses the implications of the actions of a negligent/possibly dishonest lawyer in undermining an international bank's risk management systems. The lawyer did not register the sale of a house, causing it to be repossessed by the bank, thinking that the property still belonged to the vendor, who had allowed a large overdraft to accumulate. By chance, the repossession of the house and subsequent forced judicial sale was averted, but to ensure undisputed ownership the real owner of the house was left with heavy legal bills. There were several players possibly at fault here: the lawyer; the bank; the vendor; the local courts; and the real estate agents (who recommended the dishonest lawyer to the purchaser in the first place). Expected learning outcomes These include a clearer understanding of the different stakeholder perspectives, and a greater appreciation of the challenges of doing business for aWestern multinational company now operating in emerging markets worldwide. Social implications The concept of CSR in emerging markets is very different from the way CSR is viewed in more developed ones – posing several challenges for international companies (especially banks) in the way they operate. Making assumptions of ethical ways of doing business can cause great problems, as discussed in this case – especially in the way that different stakeholders are impacted. 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.

A strategic mismatch: organizational politics and creative propensity

2018 ◽  
Vol 28 (2) ◽  
pp. 223-239
Author(s):  
Fatima Omer ◽  
Hamid Hassan
Keyword(s):  
Emerging Markets ◽  
Structural Equation ◽  
Positive Relationship ◽  
Emerging Market ◽  
Negative Relationship ◽  
Organizational Politics ◽  
Equation Modeling ◽  
Content Type ◽  
Foreign Companies ◽  
The Relationship

Purpose This paper aims to investigate the relationship between negatively perceived organizational politics (NPOP) on creative propensity (CP), while also studying their interplay with organizational commitment (OC) and job satisfaction (JS). Design/methodology/approach A survey technique was used in three different IT-related companies in an emerging market. Customers also included foreign companies for two of the three. In terms of age, these companies were roughly a decade old or more. Respondents were employees who were involved in IT-related jobs. Instrument was used five-point Likert scale. Data analysis involved partial least squares structural equation modeling (PLS-SEM). Findings JS appears to have a positive relationship with OC. Both factors have been shown to have a positive relationship with CP. NPOP appears to have a negative relationship with not only CP but also JS and OC. Originality/value This research aids in bridging a gap in research and contributes to literature with respect to the relationship among CP with JS, OC and NPOP. There is a need for greater research with respect to the relationship of CP with JS, OC and particularly with NPOP between these factors. This research would aid in bridging the gap by investigating relationships among these factors. Globalization and international business may increase the importance of creativity for IT-related as well as other companies. Businesses in emerging markets may require creativity for growth, survival and catching up to companies in developed markets or for competitiveness. With the prevalence of politics in organizations, it may be of strategic value for businesses in emerging markets to be able to calibrate these factors to increase their potential for creativity.

scholarly journals Restraining forces and drivers of supply chain collaboration: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adegboyega Oyedijo ◽  
Adebayo Serge Francois Koukpaki ◽  
Simonov Kusi-Sarpong ◽  
Fahd Alfarsi ◽  
Ying Yang
Keyword(s):  
Supply Chain ◽  
Emerging Markets ◽  
Driving Forces ◽  
Emerging Market ◽  
Developed Countries ◽  
Third Party ◽  
Supply Chain Collaboration ◽  
Structured Interviews ◽  
Content Type ◽  
Future Studies

Purpose This paper aims to investigate how restraining forces and driving forces impact SC collaboration in the context of Nigeria. Design/methodology/approach A qualitative approach was adopted. Using semi-structured interviews, data was obtained from manufacturers and third-party logistics providers in Nigeria’s food and beverage sector. The data was analysed using the thematic analysis method. Findings Interesting findings were revealed regarding how some underlying forces impact SC collaboration. These findings were categorised into internal, SC and external environment level factors. However, certain forces were also identified at these distinct levels which can sustain the collaboration between SC partners in emerging markets such as Nigeria. Research limitations/implications The issues highlighted in this paper create opportunities for future studies to dig deeper into the concept of SC collaboration in emerging markets. Future studies may find other unique contextual factors which may influence SC collaboration asides from those identified in this paper. Practical implications This research aids managerial understanding of the restraining forces and drivers of SC collaboration in an emerging market. The research also provides new insights on how to manage SC collaboration in emerging markets. Originality/value Many studies on supply chain management have wholly focussed their attention on developed countries, often neglecting emerging markets such as Nigeria in the discourse. Although SC collaboration has been well researched, the study attempts to shift the attention to the most populous country in Africa. With the help of the force field theory, this research reveals new insights on the restraining forces and drivers of SC collaboration, offering the foundation for a new line of research on this subject in emerging markets.

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