Outward FDI and productivity spillovers in China: an industrial perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Usman Ali ◽  
Yanxi Li ◽  
Jian-Jun Wang ◽  
Zhen Chen
Keyword(s):  
Productivity Growth ◽  
Spillover Effects ◽  
Business Practices ◽  
Outward Fdi ◽  
Productivity Spillovers ◽  
Content Type ◽  
Industrial Sectors ◽  
Ex Post ◽  
The Government ◽  
Industrial Level

PurposePrior research demonstrated that China's Outward FDI (OFDI) is aimed at sustaining long-term economic growth by promoting industrialization and technological upgrading in the country. However, empirical evidence on the effectiveness of this strategy remains scarce. This study intends to fill this gap by exploiting endogenous changes in industrial productivity stemming from OFDI to examine if China's new strategy to spur OFDI is economically beneficial for the industries involved.Design/methodology/approachThe authors employed the two-step system-GMM and pooled mean group approaches on a panel dataset of 18 Chinese industries over the 2004–2017 period. The industrial sectors are further classified into the state dominated and non-state dominated ones to evaluate whether the productivity growth impact of OFDI varies by the level of ownership structure. Besides, the dataset is further decomposed into the ex ante and ex-post BRI era to test if this initiative has altered the underlying relationship.FindingsThe results provide robust evidence that China's OFDI through reverse spillover effects promotes productivity growth in the domestic industries, and such productivity gains are greater for the non-state dominated industries, and the OFDI in the BRI era. The findings suggest that OFDI can act as a catch-up strategy to release excess capacity and acquire technology and smart business practices.Originality/valueThis study is the first attempt to highlight the reverse productivity spillovers associated with OFDI at the industrial level. The study's findings guide the government officials and the practitioners of foreign investment to better understand the implications of their investment projects in terms of technology improvements and to optimize market opportunities.

Impacts of strategic orientations on new product development and firm performances

2019 ◽  
Vol 22 (2) ◽  
pp. 257-280
Author(s):  
Wassim J. Aloulou
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Equation Modeling ◽  
Future Research ◽  
Business Practices ◽  
Industrial Firms ◽  
Content Type ◽  
Strategic Orientations ◽  
Industrial Sectors

PurposeThe purpose of this paper is to investigate the relationships between strategic orientations as well as the role played by them to impact the performance of industrial firms.Design/methodology/approachThe paper formulates some hypotheses from the literature review. These hypotheses are tested using structural equation modeling with data collected from 292 randomly selected firms operating in several industrial sectors in the Kingdom of Saudi Arabia.FindingsThe findings of this study showed the importance of these strategic orientations in enhancing the performance of Saudi industrial firms and emphasized the mediating role of entrepreneurial orientation in the relationships of market orientation and technology orientation to new product development performance and firm performance.Research limitations/implicationsThe study discusses the findings and advances certain limitations and research and managerial implications for future research avenues. It proposes some recommendations to help Saudi firms to choose more than one orientation simultaneously and adopt an appropriate configuration of orientations. Future research has to consider the interplay between these strategic orientations and the impacts of environmental turbulence in terms of market and technology turbulence on strategic orientations – performance relationship.Practical implicationsThe study suggests that managers of Saudi industrial firms should utilize a mix of aspects from several strategic orientations such as market and technology through entrepreneurial capabilities and resources that enhance higher levels of performance.Originality/valueThis study contributes to the literature on entrepreneurship and strategic management by showing the reliability of scales used and the confirmatory of the factor structure. It also contributes to business practices by showing the importance for Saudi firms to combine different strategic orientations and provide more attention to the interplay of these orientations in order to perform better in such a transitional context.

Recovery will not reverse poverty woes in Argentina

2017 ◽  
Keyword(s):  
Income Distribution ◽  
Social Indicators ◽  
Spillover Effects ◽  
Social Spending ◽  
Economic Downturn ◽  
Content Type ◽  
The Government ◽  
Will Force ◽  
Structural Poverty

Significance In 2016, the economic downturn boosted unemployment, especially in the manufacturing and construction industries, while inflation undermined real incomes, hitting the poorest households the hardest. The government extended social aid, but this was not enough to prevent a worsening of income distribution and a rise of poverty. Impacts Strike and protest threats are mounting and will force the government to boost social spending to avoid a crisis. Spillover effects from any recovery may improve social indicators but will not overcome high levels of structural poverty. The government is over-optimistic about the extent of recovery in advance of the October elections.

Growth and productivity performance of small manufacturing enterprises (SMEs)

2009 ◽  
Vol 1 (1) ◽  
pp. 39-56 ◽  
Author(s):  
S.N. Rajesh Raj ◽  
Mihir K. Mahapatra
Keyword(s):  
Total Factor Productivity ◽  
Low Income ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Sample Survey ◽  
Annual Data ◽  
Factor Productivity ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
The Government

PurposeThe purpose of this paper is to examine the performance of small manufacturing enterprises (SMEs) in India during the pre‐reforms (prior to 1991) and reforms period (1991 onwards) with focus on 15 major states from different levels of development.Design/methodology/approachIn order to capture variation across different categories of states, 15 major states in India have been classified into high‐, middle‐ and low‐income states. Further, to capture productivity growth in the sector during the pre‐reforms and reforms period, both partial factor productivity and total factor productivity method (growth accounting approach) have been adopted. The analysis is based on different rounds of nationwide survey conducted by the National Sample Survey Organization (NSSO) of the Government of India during 1978‐2001.FindingsThe findings of the study reveal erosion in growth of output in the SMEs during the reforms period as compared to the pre‐reforms period with variation across different categories of states. The decline in growth of output during the reforms period can be primarily on account of fall in growth of employment and investment. The total factor productivity growth has also declined during the reforms period suggesting the need to enhance the level of technical efficiency and skills of the labour force in the sector. This is noticed in spite of major role played by the SMEs in providing employment (80 per cent of the total manufacturing sector employment) opportunities and in generating output (contributes 60 per cent of net domestic product) in the country.Research limitations/implicationsOn account of non‐availability of annual data, the study relied on data collected by the NSSO of the Government of India periodically. In addition, the study did not examine the factors that explain decline in productivity growth in the sector.Originality/valueThere is a large body of literature on regional growth and productivity in the Indian manufacturing sector but most of the studies have considered only the organized manufacturing sector. This study contributes to the literature by analyzing the inter‐state variation in growth and productivity performance of SMEs in the pre‐reforms and reforms periods.

scholarly journals Critical perspectives on “manufactured” risks arising from Eurocentric business practices in Africa

2018 ◽  
Vol 14 (2/3) ◽  
pp. 210-229 ◽  
Author(s):  
Kweku Adams ◽  
Bhabani Shankar Nayak ◽  
Serge Koukpaki
Keyword(s):  
Multinational Corporations ◽  
Research Question ◽  
Historical Narrative ◽  
Business Practices ◽  
Business Systems ◽  
Economic Implications ◽  
Operational Strategies ◽  
Content Type ◽  
Global Corporations ◽  
The Government

Purpose This paper considers the Eurocentric conceptualisation of risk, which reinforces language, culture and business practices that are in conflict with Africa’s own traditional business methodologies. It attempts to identify the rent-seeking methods and resource-seeking strategies that sustain the hegemony of global corporations in Africa. Design/methodology/approach The paper explores non-linear historical narrative around the concept and construction of the idea and language of risk. It follows discourse analysis to identify how the Eurocentric concept of risk was exported and incorporated within the language of international business in non-Western business traditions. The fundamental research question driving this paper is: To what extent does the conceptualisation of risk perpetuate the African continent as risk-ridden? Findings The rent and resource-seeking strategies used by multinational corporations (MNCs) are central to “manufactured” risks, and this negatively creates impact for post-independent Africa. Whilst the state is inconsistent in its approach to dealing with this crisis, global corporations continue to do business, extract resources and expand their capital and market base in Africa. Research limitations/implications The paper, therefore, proposes a further full empirical and theoretical enquiry to examine the nature of manufactured risk from an African perspective on the discursive psychological methodology to investigate how African leaders report on risk as the authors believe that risk theories in the Western-based theories are exaggerated and discursively shaped by their own ideals which do not necessarily apply to the contextual realities in Africa. Practical implications It is imperative for African governments to implement a nationalist-modernising strategy whereby initially the levels of export from local businesses could be proportioned to the levels of MNC resource-seeking activities. This approach would ensure the proliferation of local business groups that could gain access to local and international capital to maximise local production. In this sense, the government would not have to deal with manufactured risk and the challenges that emanate from the flight of capital. Social implications There are political implications for the nation-states, as MNCs use the instabilities and weaknesses of governments on the continent to seek and exploit resources to maintain their competitive advantage at the global level. On the economic implications side, weaker governments cannot have a proper development programme for their countries, thereby perpetuating a cycle of uncertainty and unemployed younger graduates. Instability in economic realms leads to social unrest whereby governments are constantly and fully blamed for the inadequacies in social equality. Originality/value The philosophical basis of risk and its historical foundations in the African context are presented. Neo-colonial business methods, languages, cultures and strategies are explored and consideration is given as to how African governments could address the issue of co-option, as well as how to respond to the risks arising by MNCs’ business practices. The paper adds to the theoretical narratives by arguing that when considering entry into the marketplace, MNCs must ensure they integrate African perspectives (native categories) into their operational strategies. Moreover, management practitioners might consider addressing the essential topics of language, culture, business systems and business practices using ethnomethodological lenses.

An exploration of US-made clothing in China

2017 ◽  
Vol 21 (2) ◽  
pp. 247-261
Author(s):  
Dong Shen ◽  
Qiuyue Wang
Keyword(s):  
Purchase Intention ◽  
Future Research ◽  
Business Practices ◽  
Chinese Consumers ◽  
Content Type ◽  
Industrial Sectors ◽  
Potential Market ◽  
Perceived Price ◽  
The Usa ◽  
Within Subjects

Purpose The purpose of this paper is to examine Chinese consumers’ perception of US-made clothing and purchase intention to US-made clothing; to explore the role of brand in the relationship between country of origin (COO) and consumer perception and purchase intention; and to investigate whether China is a potential market for US-made clothing. Design/methodology/approach A survey was conducted among college students in three cities in China. A 2×3 within-subjects design with two countries and three brands was performed. Findings For Chinese consumers, country equity of China is significantly higher than the USA. However, Chinese consumers hold significantly higher perceived quality and perceived price of product for US-made clothing for all American brands. Chinese consumers have significantly higher purchase intention for US-made clothing for popular American brands with average price points. Research limitations/implications Further research could sample different groups which are better representative of the whole population. Different COOs and industrial sectors will be worth of studying. Future research also needs to quantify the potential price increase. Practical implications The conclusions can be applied to business practices by American companies identifying their brand category before developing effective sourcing strategies. Social implications This study sheds light on policy making by bringing a new approach to position US-made products in China and address the trade imbalance between the two countries. Originality/value This study deeply examines how different brands affect Chinese consumers’ perception of US-made clothing and purchase intention to US-made clothing.

The logics of political business in state-owned enterprises: the case of Indonesia

2019 ◽  
Vol 14 (5) ◽  
pp. 709-730 ◽  
Author(s):  
Indri Dwi Apriliyanti ◽  
Stein Oluf Kristiansen
Keyword(s):  
Good Governance ◽  
Separation Of Powers ◽  
Continuous Process ◽  
Business Environment ◽  
Rent Seeking ◽  
Business Practices ◽  
Checks And Balances ◽  
Content Type ◽  
Organisational Structures ◽  
The Government

Purpose The purpose of this paper is to illuminate the hidden process of collusion among power holders in state-owned enterprises (SOEs) in an emerging economy, which endures despite comprehensive reforms towards democracy and good governance. Why are mechanisms of checks and balances not functioning in the way they should? Design/methodology/approach The analysis is based on in-depth interviews with board members, executives, politicians, bureaucrats and representatives from auditing boards involved in the management of SOEs in Indonesia. Findings The findings reveal practices of collective conservatism, reciprocal opportunism and normalisation of corruption. The costs of getting into powerful positions are so high that conglomerate business owners gain control over the management of SOEs. The authors use the terms “wall-building and gatekeeping” to explain such cases. Research limitations/implications There is a continuous process of wall building and gatekeeping occurring among business oligarchs, bureaucrats and elected politicians in Indonesia. New entrants into the system are co-opted by the established elite. Practical implications This study shows collusion, rent-seeking and corruption among political and business elites as well as top officials in the government hinder good governance reforms in state-owned Indonesian enterprises. Social implications Collusion and illicit business practices in SOEs are clearly grounded on wall building and gatekeeping. Tackling this problem is a precondition for good governance and an improved legal and regulatory business environment in Indonesia. The ideal separation of powers and the checks and balances for good governance apparently need more than a democracy to break through. A further strengthening of the free press and critical academics will be one crucial contribution. Originality/value There is generally a lack of understanding of the context of corruption, such as the influence of institutional and organisational structures. The topic of corruption is also under-researched due to the difficulty of finding empire evidence. This paper contributes to explaining why new political and organisational structures, such as a democratically elected parliament and a particularly designed corruption eradication commission, are not able to hinder rent-seeking practices and illicit political business in state agencies.

A real product scandal’s impact on a high-equity brand: a new approach to assessing scandal impact

2018 ◽  
Vol 27 (4) ◽  
pp. 427-439 ◽  
Author(s):  
Verena Sabine Thaler ◽  
Uta Herbst ◽  
Michael A. Merz
Keyword(s):  
Brand Management ◽  
A Priori ◽  
Spillover Effects ◽  
Negative Effects ◽  
New Approach ◽  
Content Type ◽  
Ex Post ◽  
Research Findings ◽  
Longitudinal Support ◽  
The Impact

Purpose While product scandals generate many negative headlines, the extent of their impact on the scandalized brands’ equity remains unclear. Research findings are mixed. This might be because of the limitations of existing measurement approaches when investigating the effects of real crises after they occurred. This study aims to propose a new approach for measuring the impact of a real scandal on a high-equity brand using only post-crisis measures. Design/methodology/approach To overcome the challenge of comparing a priori and ex post outcome measures, this study draws on the brand management literature to evaluate a real scandal’s impact. Volkswagen’s emission scandal serves as a failure context. Two consumer experiments are conducted to examine its impact. Findings The results provide (longitudinal) support for the proposed evaluative approach. They reveal new evidence that building brand equity is a means to mitigate negative effects, and indicate that negative spillover effects within a high-equity brand portfolio are unlikely. Finally, this research identifies situations in which developing a new brand might be more beneficial than leveraging an existing brand. Practical implications This research has significant implications for firms with high-equity brands that might be affected by a scandal. The findings support managers to navigate their brands through a crisis. Originality/value This research adds to the discussion concerning the role of a brand’s equity in a crisis. Existing research findings are contradictory. This research provides new empirical evidence and another view on how to measure “impact”.

Asia Pacific productivity development determinants

2017 ◽  
Vol 13 (1) ◽  
pp. 57-64 ◽  
Author(s):  
Elsadig Musa Ahmed ◽  
Rahim Kialashki
Keyword(s):  
Technology Transfer ◽  
Productivity Growth ◽  
Spillover Effects ◽  
Output Growth ◽  
Asia Pacific ◽  
Series Data ◽  
Growth Theory ◽  
Content Type ◽  
Extensive Growth ◽  
Sustainable Productivity

Purpose The purpose of this paper is to measure the factors determining the productivity development in the Asia Pacific countries such as Malaysia, Indonesia, Singapore, Philippines, Thailand, China, Japan, Korea, India, Australia and New Zealand. Design/methodology/approach The extensive growth theory that is expressed as the decomposition of the contribution of changes in employment, physical capital, foreign direct investment (FDI), human capital (HC), telecommunications investment and total factor productivity (TFP) growth on the selected Asia-Pacific countries’ output growth is used in this study. In this respect, an annual time series data over the period 1970-2012 for the aforementioned variables are employed. Findings The study found that the FDI spillover effects through the TFP are considered as productivity-driven economic growth in which the FDI spillover effects have significant effect on the productivity growth of the majority of these countries. It should be noted that most of these countries showed technological progress through the FDI spillover effects that is translated into a form of technology transfer and HC skills development. Originality/value This study empirically compared the FDI spillover effects on sustainable productivity growth of the most growing countries in the Asia Pacific region by using modified extensive growth theory that closed the gaps in the past studies and addressed the issues of technology transfer, HC development and sustainable productivity growth brought by the technical progress in these countries through the FDI spillover effects on productivity growth.

Impact of externalities on sustainable development: evidence from public-private partnerships in Kazakhstan and Russia

2014 ◽  
Vol 14 (5) ◽  
pp. 653-669 ◽  
Author(s):  
Nikolai Mouraviev ◽  
Nada Kakabadse
Keyword(s):  
Sustainable Development ◽  
Interest Rates ◽  
Risk Premium ◽  
Market Failure ◽  
Spillover Effects ◽  
Government Support ◽  
Public Private Partnerships ◽  
Negative Externalities ◽  
Content Type ◽  
The Government

Purpose – This paper aims to investigate the influence of public-private partnerships (PPPs) on social and economic conditions in Kazakhstan and Russia from a public economics perspective, namely, through the lens of a market failure and PPPs’ negative externalities. Design/methodology/approach – Drawing on the concept of a market failure and using the externalities perspective, the paper investigates whether partnerships are instrumental in solving market problems, which is illustrated by the evidence from ongoing PPP projects in Kazakhstan and Russia. Findings – Results show that citizens face expansion of monopolistic trends in the service provision and decreased availability of public services. Additionally, the government support to partnerships recreates a negative externality in the form of a higher risk premium on loan interest rates that banks use to finance PPPs. The partnerships’ impact on sustainable development often appears detrimental, as they significantly intensify the struggle between sub-national governments for increased transfers from the national budget. Practical implications – The government agencies must incorporate the appraisal of the PPP externalities and their effects on the society in the decision-making regarding the PPP formation. Originality/value – The authors suggest that, although government is interested in PPPs’ positive externalities, in reality many negative externalities may offset the positive spillover effects. As a result, the partnerships’ contributions to economic and social sustainability remain controversial. Extending the value-for-money concept to incorporate the assessment of PPP externalities might significantly enhance the partnership conceptualisation by more comprehensive and accurate assessment of PPPs’ economic and social value.

The ambiguities of money-making

2019 ◽  
Vol 15 (3) ◽  
pp. 215-234
Author(s):  
Alexander Styhre ◽  
Björn Remneland-Wikhamn
Keyword(s):  
Video Game ◽  
Career Planning ◽  
Economic Value ◽  
Creative Industries ◽  
Business Practices ◽  
Game Development ◽  
Content Type ◽  
Ex Post ◽  
Video Game Development ◽  
Meaning Of Money

Purpose Indie developers are part of the creative fringe of the video game industry, fashioning an identity for themselves as a community committed to the development of video games as a cultural expression and art form. In playing this role, money-making is ambiguous inasmuch as economic return is honorable if such interests remain unarticulated and execute minimal influence on the development work process, while the possibility of producing a successful commercial video game is simultaneously one of the primary motivations for new industry entrants. The paper aims to discuss this issue. Design/methodology/approach The paper reports on the empirical material drawn from a study of indie video game developers in Sweden, a leading country for video game development. Findings To reconcile tensions between video game development in terms of being both cultural/and artistic production and business activity, easily compromising the perceived authenticity of the subject in the eyes of audiences (e.g. hardcore gamers), indie developers distinguish between monetary motives ex ante and compensation ex post the release of the game. Indie developers thus emphasize the metonymic function of money as this not only indicates economic value and currency but also denotes a number of business practices that indie developers have otherwise avoided in their career planning as they believe these practices would restrain their creativity and skills. Originality/value The study contributes to the scholarship on video game development, the literature on creative industries, and the economic sociology literature examining the social meaning of money and how social norms and values are manifested in professional ideologies and practices.

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