Operational capabilities in an emerging country: quality and the cost trade-off effect

2018 ◽  
Vol 35 (8) ◽  
pp. 1617-1638 ◽  
Author(s):  
Marcia Regina Santiago Scarpin ◽  
Luiz Artur Ledur Brito
Keyword(s):  
Positive Relationship ◽  
Developed Countries ◽  
Industrialized Countries ◽  
Trade Off ◽  
Content Type ◽  
Multiple Line ◽  
Operational Capabilities ◽  
Emerging Country ◽  
New Perspective ◽  
The Cost

Purpose The purpose of this paper is to identify the operational capabilities in an emerging country, and to analyze the trade-off effect between the quality capability and the cost capability. Design/methodology/approach The empirical data were drawn from 160 firms in Brazil. Scales were validated using the Q-sort method and confirmatory factor analysis. Different techniques were adopted to reduce common method variance. Data were analyzed using multiple line regression. Findings The results showed that quality has a positive relationship with delivery, flexibility, innovation and sustainability capabilities. However, it was not possible to observe a positive relationship between quality and cost that confirmed the presence of a trade-off between these two capabilities. Practical implications An important practical contribution of this study is that it brings a new perspective to the relationship between quality and cost. Although quality is an important capability for the firm, emerging country managers need to understand that its implementation will take time and money; quality does not indicate an immediate reduction in cost. Originality/value This study helps expand research into operational capabilities in lesser-developed countries, such as Brazil. Most of the research on operational capabilities is conducted in industrialized countries. The paper also discusses the trade-off between the quality capability and cost capability. The results show that quality does not always lead to a reduction in cost.

Comparing entrepreneurial communities

2015 ◽  
Vol 9 (3) ◽  
pp. 206-220 ◽  
Author(s):  
Justin Paul ◽  
Archana Shrivastava
Keyword(s):  
Information Technology ◽  
Developed Countries ◽  
Personality Factors ◽  
Asian Countries ◽  
Cross Sectional ◽  
Developed Country ◽  
Content Type ◽  
Mba Students ◽  
Emerging Country ◽  
Survey Responses

Purpose – The purpose of this paper is to compare entrepreneurial attributes of MBA students, the next generation business people, from two important Asian countries, India from South Asia and Japan from East Asia (India, being an emerging country and Japan, a developed country). Design/methodology/approach – Survey responses from MBA students in India and Japan were measured on an entrepreneurial personality index. Bateman and Crant’s scale consisting of 17 traits is used to identify if entrepreneurial traits are a learned cultural behaviour or intrinsic personality factors. Findings – Although the findings indicate that India has benefitted from entrepreneurship in the information technology and information technology-enabled service ventures during the past two decades, the country still has a long way to go when compared to developed countries like Japan, where entrepreneurship is widespread. Research limitations/implications – The results are based on a single survey, using cross-sectional data. Originality/value – The level of entrepreneurship differs considerably across countries and periods. The authors put forward a theoretical framework to denote the linkage between entrepreneurial attitude, pro-active personality and culture, besides highlighting the three pillars of entrepreneurship.

Consumers’ WTP for certified traceable tea in China

2015 ◽  
Vol 117 (5) ◽  
pp. 1440-1452 ◽  
Author(s):  
Xiaolin Liu ◽  
Lingling Xu ◽  
Dian Zhu ◽  
Linhai Wu
Keyword(s):  
Developed Countries ◽  
Price Premium ◽  
Chinese Government ◽  
Payment Card ◽  
Content Type ◽  
Traceability System ◽  
Consumer Organizations ◽  
The Government ◽  
Premium Income ◽  
The Cost

Purpose – The purpose of this paper is to examine consumer attitudes toward and willingness to pay (WTP) for traceability of tea in China. Design/methodology/approach – The authors used the payment card method to elicit WTP for certified traceable tea and logistic regression model to analyze the factors that affected consumers’ WTP. Findings – The results revealed that most consumers in China were concerned over tea safety; however, their WTP for certified traceable tea was limited. Only income and the degree of concern over tea safety affected the consumer’s WTP for certified traceable tea greatly. When it came to consumers’ WTP a positive price premium, income level, education, and attitude toward traceability of tea significantly influenced the actual premium consumers were willing to pay. Practical implications – The Chinese government and tea producers should pay attention when implementing tea traceability system. First, raising the consumers’ income contributes to the premiums that consumers are willing to pay for certified traceable tea. Second, social groups, consumer organizations and tea producers should popularize knowledge of tea traceability. Third, given the low price premiums that consumers are willing to pay, the establishment of viable traceability of tea in China requires the producers and the government to bear some of the cost associated with the implementation of this system. Originality/value – In past studies on WTP for certified traceable food, the study is focussed on meat in developed countries, and the research has expanded range of study, by conducting a survey in China to determine consumers’ WTP for certified traceable tea, and by empirically examining the main factors that influence the willingness of consumers to pay a price premium for certified traceable tea, as well as the premium that these consumers are willing to pay.

Corporate governance and cost of equity: empirical evidence from Latin American companies

2016 ◽  
Vol 16 (5) ◽  
pp. 831-848 ◽  
Author(s):  
Emanuele Teti ◽  
Alberto Dell’Acqua ◽  
Leonardo Etro ◽  
Francesca Resmini
Keyword(s):  
Corporate Governance ◽  
Latin American ◽  
Cost Of Capital ◽  
Negative Relationship ◽  
Developed Countries ◽  
Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
The Cost ◽  
The Relationship

Purpose This paper aims to investigate the extent to which corporate governance (CG) systems adopted by Latin American listed firms affect their cost of equity capital. Several studies on the link between the two aforementioned dimensions have been carried out, but none in the context of Latin American firms. Design/methodology/approach A CG index is created by taking into account the peculiarities of each country and the recommendations given by the corresponding CG institutes. In particular, to assess the level of CG quality, three sub-indexes have been identified: “Disclosure”, “Board of Directors” and “Shareholder Rights, Ownership and Control Structure”. Findings The results indicate a negative relationship between CG quality and the cost of equity. In particular, the “Disclosure” component is the one mostly affecting the cost of equity. Research limitations/implications This study contributes to the literature by adding knowledge on the relationship between CG and cost of capital considering, for the first time, the overall Latin American market. Practical implications The paper proves that institutional investors all over the world are disposed to pay a premium to invest in firms with effective CG standards; moreover, this premium is higher in emerging countries such as those analyzed in this paper, rather than in developed countries. Originality/value To the authors' knowledge, this is the first paper empirically investigating the relationship between CG and cost of capital in Latin America.

Sustainable frugality through EIA: role of socio‐ecological linkages in poverty alleviation

2007 ◽  
Vol 18 (5) ◽  
pp. 556-567 ◽  
Author(s):  
T. Rajaram ◽  
Ashutosh Das
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Local Ecological Knowledge ◽  
Developed Countries ◽  
Ecological Knowledge ◽  
Content Type ◽  
Marginalized Communities ◽  
The Cost ◽  
Ecosystem Linkages

PurposeThe purpose of this paper is to bring out the shortcomings of the EIA model imported from developed countries when it is assessed for its focus on poverty alleviation in a developing nation (India) and to suggest improvements in the existing framework.Design/methodology/approachThe paper explores the current performance of EIA process in India, critically analyses the philosophy of continued sidelining of environmental protection in favour of unrestricted economic growth in the light of evidence regarding growing inequality.FindingsThe paper finds that for the proponent driven EIA model to contribute towards poverty alleviation, a new “socio‐ecological linkage document” is needed. This will bring out the fragile linkages that marginalized communities have with their local ecosystems and can be prepared with the help of local ecological knowledge. A framework to integrate the socio‐ecological linkage document into the EIA‐SEA‐SA domain is presented.Practical implicationsThe paper shows that the supportive framework of generating the “socio‐ecological linkage document” has the potential to enhance the EIA‐SEA‐SA process in terms of ensuring that plans, policies, programs and projects are sensitive to the need of ecosystem dependent poor.Originality/valueThe paper proposes a framework to support the alternative thinking that poverty alleviation can be enhanced through preservation of ecosystem linkages, in contrast to the modern paradigm of economic growth at the cost of ecosystem.

scholarly journals Optimal maintenance scheduling for local public purpose buildings

2016 ◽  
Vol 34 (2) ◽  
pp. 120-135 ◽  
Author(s):  
Arnt O. Hopland ◽  
Sturla F. Kvamsdal
Keyword(s):  
Local Governments ◽  
Formal Model ◽  
Maintenance Scheduling ◽  
Trade Off ◽  
Content Type ◽  
Maintenance Schedule ◽  
Public Purpose ◽  
Trade Offs ◽  
Optimal Maintenance ◽  
The Cost

Purpose – The purpose of this paper is to set up and analyze a formal model for maintenance scheduling for local government purpose buildings. Design/methodology/approach – The authors formulate the maintenance scheduling decision as a dynamic optimization problem, subject to an accelerating decay. This approach offers a formal, yet intuitive, weighting of an important trade-off when deciding a maintenance schedule. Findings – The optimal maintenance schedule reflects a trade-off between the interest rate and the rate at which the decay accelerates. The prior reflects the alternative cost, since the money spent on maintenance could be saved and earn interests, while the latter reflects the cost of postponing maintenance. Importantly, it turns out that it is sub-optimal to have a cyclical maintenance schedule where the building is allowed to decay and then be intensively maintained before decaying again. Rather, local governments should focus the maintenance either early in the building’s life-span and eventually let it decay toward replacement/abandonment or first let it decay to a target level and then keep it there until replacement/abandonment. Which of the two is optimal depends on the trade-off between the alternative cost and the cost of postponing maintenance. Originality/value – The paper provides a first formal inquiry into important trade-offs that are important for maintenance scheduling of local public purpose buildings.

The business value of cloud computing: the partnering agility perspective

2016 ◽  
Vol 116 (6) ◽  
pp. 1160-1177 ◽  
Author(s):  
Sen Liu ◽  
Yang Yang ◽  
Wen Guang Qu ◽  
Yuan Liu
Keyword(s):  
Cloud Computing ◽  
Value Creation ◽  
Business Value ◽  
Cloud Infrastructure ◽  
Content Type ◽  
Computing Services ◽  
External Context ◽  
Market Turbulence ◽  
New Perspective ◽  
The Cost

Purpose – The purpose of this paper is to focus on the value creation potential of cloud computing in inter-firm partnerships. It examines how cloud-based IT infrastructure capabilities in flexibility and integration contribute to partnering agility and, consequently, firm performance. This study also introduces business lifecycle and market turbulence as internal and external context variables, respectively, to investigate the different roles of cloud computing in value creation. Design/methodology/approach – A questionnaire was used to collect data from 184 client firms of the largest cloud computing services provider in China (Alibaba Cloud). The theoretical model was tested using PLS analysis. Findings – Cloud infrastructure (CI) flexibility has a positive effect on partnering agility, while the effect of CI integration on partnering agility is moderated by business lifecycle and market turbulence. Research limitations/implications – The surveyed firms are all Alibaba Cloud clients, which may limit the generalization of the findings. Practical implications – The study suggests that besides the cost benefits, the value creation aspect of cloud computing should also be emphasized in research and practice. The study provides a new perspective to understand the business value of cloud computing in inter-firm partnerships. Originality/value – The study suggests that the flexibility-related and integration-related features of cloud computing can create value for firms by facilitating inter-firm collaboration in exploiting business opportunities.

Web-based disclosure and the cost of debt: MENA countries evidence

2020 ◽  
Vol 18 (3) ◽  
pp. 533-561
Author(s):  
Henda Abdi ◽  
Mohamed Ali Brahim Omri
Keyword(s):  
Information Disclosure ◽  
Developed Countries ◽  
Economic Consequences ◽  
Cost Of Debt ◽  
Mena Region ◽  
Web Based ◽  
Content Type ◽  
Mena Countries ◽  
The Cost ◽  
The Impact

Purpose The aim of this study is to investigate the effect of web - based disclosure on the cost of debt for the MENA region setting. Design/methodology/approach The sample of this paper consists of 237 MENA listed non-financial companies for the year 2017. Multiple regression models were used to examine the impact of online disclosure on the cost of debt. Content analysis is used to measure the extent of web-based disclosure. Findings The results reveal that there is a negative and significant association between the web-based disclosure and the company’s cost of debt. These results support the hypothesis of the economic utility of the information disclosed on the website for creditors in this region. Practical implications The results of the study have important implications for managers in the MENA region. It is necessary for managers to improve the company’s transparency through web-based disclosure. The companies must benefit from the different technologies offered by the Internet in order to offer to the creditors unlimited access to up to date information. In fact, web-based disclosure may mitigate the information asymmetry, the uncertainty of creditors and, consequently, reduces the cost of debt. 10; 10;Moreover, the results of the study provide empirical evidence for the advantages of voluntary web-based disclosure. The results highlight the importance to companies and regulators of understanding the benefits of using the website as a means of information disclosure. The regulators in MENA countries can rely on these results to establish suitable policies to improve the quality of web-based disclosure. The regulators need also to put in rules in relation to the online disclosure. In fact, an understanding of web-based disclosure is important for regulators and companies. Given the positive effect of online disclosure (the reduction of the cost of debt), knowledge about the economic consequences of web-based disclosure would enable companies in the MENA region to optimize their online disclosure policies. Originality/value This study, added to the existing literature by examining the consequences of online disclosure practices in MENA countries. Most previous studies conducted in this region were limited to analyzing the determinants of the company’s web-based disclosure. This paper would extend the literature on the online disclosure practices by investigating the association between these practices and the cost of debt in a developing economics: the MENA region. Previous studies were limited to testing this association only in developed countries.

FDI outflows, exports and financial development

2017 ◽  
Vol 44 (6) ◽  
pp. 987-1002 ◽  
Author(s):  
Long Zhao ◽  
Zuanshi Liu ◽  
William Wei ◽  
Bernadette Andreosso-O’Callaghan
Keyword(s):  
Financial Development ◽  
Financial System ◽  
Developed Countries ◽  
Theory Model ◽  
Production Model ◽  
Trade Theory ◽  
Content Type ◽  
Private Credit ◽  
Current Account Imbalances ◽  
New Perspective

Purpose The purpose of this paper is to argue that financial development, measured by private credit in the economy, affects exports in an inverted U-shaped manner. The authors use the new trade theory model and empirical data to analyze whether the financial system is the reason of global imbalance. Design/methodology/approach This paper builds a simple production model to connect financial development with a country’s export or outward foreign direct investment (ODI) decision. Using a panel data covering 108 countries for the period 1990-2011, the authors find strong evidence to show that when a country is at a lower financial development level, further advancements of its financial system will boost exports. Findings First, an inverted U-shaped relationship between exports, imports and financial development is found in the study of 108 countries over the period 1990-2011; second, ODI provides a substitute effect to exports for financially advanced countries. These findings have provided an alternative explanation to international trade imbalances and contribute constructively to the discussion regarding whether exports and financial development are positively related or not. Originality/value As a result, the findings shed some light on the issue of global current account imbalances between developing and developed countries from a new perspective.

Including decision-makers preferences in the cost-deprivation trade-off during disaster interventions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Florian Diehlmann ◽  
Patrick Siegfried Hiemsch ◽  
Marcus Wiens ◽  
Markus Lüttenberg ◽  
Frank Schultmann
Keyword(s):  
Decision Making ◽  
Humanitarian Logistics ◽  
Decision Makers ◽  
Weighted Sum ◽  
Trade Off ◽  
Content Type ◽  
Multi Objective ◽  
Conflicting Objectives ◽  
The Cost

Purpose In this contribution, the purpose of this study is to extend the established social cost concept of humanitarian logistics into a preference-based bi-objective approach. The novel concept offers an efficient, robust and transparent way to consider the decision-maker’s preference. In principle, the proposed method applies to any multi-objective decision and is especially suitable for decisions with conflicting objectives and asymmetric impact. Design/methodology/approach The authors bypass the shortcomings of the traditional approach by introducing a normalized weighted sum approach. Within this approach, logistics and deprivation costs are normalized with the help of Nadir and Utopia points. The weighting factor represents the preference of a decision-maker toward emphasizing the reduction of one cost component. The authors apply the approach to a case study for hypothetical water contamination in the city of Berlin, in which authorities select distribution center (DiC) locations to supply water to beneficiaries. Findings The results of the case study highlight that the decisions generated by the approach are more consistent with the decision-makers preferences while enabling higher efficiency gains. Furthermore, it is possible to identify robust solutions, i.e. DiCs opened in each scenario. These locations can be the focal point of interest during disaster preparedness. Moreover, the introduced approach increases the transparency of the decision by highlighting the cost-deprivation trade-off, together with the Pareto-front. Practical implications For practical users, such as disaster control and civil protection authorities, this approach provides a transparent focus on the trade-off of their decision objectives. The case study highlights that it proves to be a powerful concept for multi-objective decisions in the domain of humanitarian logistics and for collaborative decision-making. Originality/value To the best of the knowledge, the present study is the first to include preferences in the cost-deprivation trade-off. Moreover, it highlights the promising option to use a weighted-sum approach to understand the decisions affected by this trade-off better and thereby, increase the transparency and quality of decision-making in disasters.

Good governance and preferential trade: evidence from the Swiss generalized system of preferences

2018 ◽  
Vol 45 (2) ◽  
pp. 259-274
Author(s):  
Christian Ritzel ◽  
Andreas Kohler ◽  
Stefan Mann
Keyword(s):  
Good Governance ◽  
Institutional Quality ◽  
Developed Countries ◽  
Utilization Rate ◽  
Industrialized Countries ◽  
Least Developed Countries ◽  
Content Type ◽  
Trade Relations ◽  
Generalized System ◽  
Generalized System Of Preferences

Purpose The purpose of this paper is to determine if the institutional quality of developing countries (DCs) and least-developed countries (LDCs) contributes to a significant increase in the utilization rate of the Swiss generalized system of preferences in the agro-food sector. Design/methodology/approach The authors use state of the art regression techniques accounting for zero values to identify if the institutional quality – separately depicted by the Worldwide Governance Indicators, the Index of Economic Freedom and the Human Development Index – can contribute in overcoming non-tariff barriers (NTBs) to trade. Findings The institutional quality exerts a consistent positive effect on the level of utilization of trade preferences. Research limitations/implications Swiss food trade represents, of course, only a very small share of world trade, therefore it would be worthwhile to extend the analysis to other countries and sectors. Practical implications Industrialized countries’ development policies should more strongly focus on capacity building in DCs and LDCs to strengthen trade-related institutions. Originality/value The study focuses on an often underemphasized element in international trade relations – the role of the institutional quality in overcoming NTBs to trade.

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