Trade credit in emerging economies: an interorganizational power perspective

2020 ◽  
Vol 120 (4) ◽  
pp. 768-783 ◽  
Author(s):  
Bai Liu ◽  
Yibo Wang ◽  
Yongyi Shou
Keyword(s):  
Market Power ◽  
Market Share ◽  
Emerging Economies ◽  
Trade Credit ◽  
Resource Dependence Theory ◽  
Interactive Effects ◽  
Content Type ◽  
Political Ties ◽  
Buyer Power ◽  
The Impact

PurposeThe extant literature recognizes that trade credit is influenced by the power imbalance between buyers and suppliers but most studies focus on either buyer power or supplier power. The purpose of this study is to investigate how buyer power and supplier power interact and jointly influence trade credit. Moreover, this study examines the moderating effects of political ties in an emerging economy context.Design/methodology/approachA research framework was developed by combining resource dependence theory and institutional theory to investigate the interactive effects of market power (i.e. market share and supplier concentration) and non-market power (i.e. political ties) on trade credit. The proposed hypotheses were empirically tested by a fixed effects model using secondary data from 2,433 listed firms in China.FindingsThe results show that a buyer firm's market share promotes trade credit but this effect is weakened by supplier concentration. Moreover, the buyer's political ties enhance the impact of market share on trade credit and attenuate the negative moderating effect of supplier concentration.Originality/valueThis study contributes to the trade credit and supply chain power literature by identifying the interactive effects of market share, supplier concentration and political ties in trade credit. It advances our understanding of how trade credit is jointly determined by a variety of factors in emerging economies.

Quiet life hypothesis reborn: is “holdinglisation” relevant?

2019 ◽  
Vol 45 (2) ◽  
pp. 278-293 ◽  
Author(s):  
Maria Christina Liem
Keyword(s):  
Market Power ◽  
Market Share ◽  
Commercial Banks ◽  
Banking Industry ◽  
Least Square ◽  
Content Type ◽  
Indonesian Government ◽  
Financial Failure ◽  
Conventional Banks ◽  
The Impact

Purpose Quiet life hypothesis (QLH) states that banks with a higher market power will generate high profitability quietly, even though it could cause inefficiency. In the long term, it could turn a high profitability into a lower future profitability. This paper identifies QLH-reborn through the holdinglisation strategy of the Indonesian Government to include all state-owned banks into one holding, hence increasing the market power of Indonesian state-owned banks within ASEAN. Optimum profitability and optimum efficiency are the objectives of the “holdinglisation” idea. Therefore, the purpose of this paper is to analyse the relevance of holdinglisation within the Indonesian banking industry. Design/methodology/approach This paper focusses on analysing the efficiency and soundness of four state-owned conventional banks and four state-owned Islamic banks in Indonesia during 2011–2015. Subsequently, this paper analyses the impact of bank effectiveness index and soundness rank on return on average asset (ROAA) and ROAE through the data panel of general least square regression using STATA. Findings This paper shows that all state-owned commercial banks in Indonesia during 2011–2015 are efficient and sound. Furthermore, this paper finds that market power (market share for deposit and market share for loans) has an insignificant impact on bank efficiency (BE) index, bank soundness rating, ROAA and EM. Meanwhile, BE index and BS rating have a significant impact on ROAA. Therefore, this paper concludes that holdinglisation regulation as QLH-reborn is irrelevant for Indonesian state-owned banks at this moment. Research limitations/implications This paper has a crucial limitation. Holdinglisation as QLH-reborn is irrelevant under the condition that all state-owned commercial banks in Indonesia are efficient and sound. Moreover, this paper contributes another actual empirical study of QLH. Practical implications This paper represents a scientific argumentation towards a holdinglisation strategy of state-owned commercial banks in Indonesia. Therefore, this paper could be a scientific reference for the Indonesian Government to improve Indonesian state-owned commercial banks competitiveness in ASEAN. Originality/value This paper is urgently needed for the Indonesian banking industry because the Indonesian Government should consider the drawbacks of holdinglisation as QLH reborn to the Indonesian banking industry, such as inefficiency and the risks of financial failure. Moreover, if the bank experiences financial failure, it could have a detrimental and lasting effect on the country’s macroeconomic condition.

EXPRESS: Investigating the Effects of Excise Taxes, Public Usage Restrictions, and Anti-Smoking Ads across Cigarette Brands

2021 ◽  
pp. 002224292199456
Author(s):  
Yanwen Wang ◽  
Michael Lewis ◽  
Vishal Singh
Keyword(s):  
Market Power ◽  
Market Share ◽  
Brand Choice ◽  
Continuous Model ◽  
Marketing Strategies ◽  
Brand Strength ◽  
Excise Taxes ◽  
Cigarette Tax ◽  
Pass Through ◽  
The Impact

The prevalence of strong brands such as Coca-Cola, McDonald’s, Budweiser, and Marlboro in “vice” categories has important implications for regulators and consumers. While researchers in multiple disciplines have studied the effectiveness of anti-tobacco counter-marketing strategies, little attention has been given to how brand strength may moderate the efficacy of tactics such as excise taxes, usage restrictions, and educational advertising campaigns. In this research, we use a multiple discrete-continuous model to study the impact of anti-smoking techniques on smokers’ choices of brands and quantities. Our results suggest that while cigarette excise taxes decrease smoking rates, these taxes also result in a shift in market share towards stronger brands. Market leaders may be less affected by tax policies because their market power allows strong brands such as Marlboro to absorb rather than pass through increased taxes. In contrast, smoke-free restrictions cause a shift away from stronger brands. In terms of anti-smoking advertising we find minimal effects on brand choice and consumption. The findings highlight the importance of considering brand asymmetries when designing a policy portfolio cigarette tax hikes, smoke-free restrictions, and anti-smoking advertising campaigns.

Banking market structure and efficiency: an assessment of the USA and Canada

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salah U-Din ◽  
David Tripe
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
Banking Market ◽  
Cost Efficient ◽  
The Impact

PurposeThe study aims to analyze the changes in banking market structure and their impact on the bank efficiency.Design/methodology/approachThis study uses a one-stage stochastic frontier analysis (SFA) to compare the impact of the market structure and the GFC on the economic efficiency of the major banks in both countries.FindingsA significant negative impact of the GFC is observed on bank efficiency. Overall, Canadian banks posted better efficiency scores than their American counterparts. Additionally, cost-efficient banks are found to be more resilient to crises and more profit-efficient in the post-GFC period. The authors found that market power had a positive impact on the cost and profit efficiency of banks. Higher levels of equity, market power and concentration helped banks be more cost-efficient.Research limitations/implicationsOnly large banks are selected for study although it represents the majority stake of both banking sectors.Practical implicationsBanking regulators should include more measures to assess the banking market structure and performance.Originality/valueAs per the best knowledge of the authors, it is the first study to assess the change in banking market structure and efficiency of the US and Canadian banking sectors in the post-GFC period.

scholarly journals Competition, performance and financial stability in US agricultural banking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhav Regmi ◽  
Allen M. Featherstone
Keyword(s):  
Market Power ◽  
Financial Stability ◽  
Relationship Lending ◽  
Net Income ◽  
Bank Competition ◽  
Content Type ◽  
Linear Effect ◽  
And Performance ◽  
The Impact ◽  
Agricultural Banking

PurposeThe number of US commercial banks has declined by about 50% over the last two decades. This change could lead to a potential decline in competition and a potential increase in market power in the agricultural banking market. The focus of this study is to examine whether the risk of failure and the performance of agricultural banks has been affected by bank consolidations.Design/methodology/approachThe impact of bank competition on performance and financial stability of agricultural banks is studied using a Lerner index as a measure of market power. A Z-score is constructed to measure bank stability. Similarly, the return on assets (net income to total assets ratio), return on equity (net income to the total equity ratio), agricultural loan ratio and agricultural loan volume are used as performance measures for agricultural banks. Two-way fixed effect regression models are estimated to measure the impact of competition on financial stability and performance.FindingsResults indicate that bank competition has a U-shaped effect on the probability of default and an inverted U-shaped effect on volume and proportion of agricultural lending. There also exists evidence of a positive but non-linear effect of bank market power on the profitability of agricultural banks.Originality/valueThere is limited literature on the impact of bank competition on financial stability and performance of US agricultural banks. Agricultural banks hold more than 40% of US farm debt. A decrease in the number of banks or the level of competition in agricultural banking may cause an adverse effect on relationship lending. The key findings imply that bank regulatory strategies should focus on enhancing (reducing) competition in more (less) concentrated banking markets to improve the financial health and performance of agricultural banks.

Brand awareness: revisiting an old metric for a new world

2017 ◽  
Vol 26 (5) ◽  
pp. 469-476 ◽  
Author(s):  
Jenni Romaniuk ◽  
Samuel Wight ◽  
Margaret Faulkner
Keyword(s):  
Market Share ◽  
Brand Management ◽  
Brand Awareness ◽  
Underlying Structure ◽  
Cross Sectional ◽  
Content Type ◽  
Country Level ◽  
Global Brand ◽  
The Impact ◽  
Over Time

Purpose Brand awareness is a pivotal, but often neglected, aspect of consumer-based brand equity. This paper revisits brand awareness measures in the context of global brand management. Design/methodology/approach Drawing on the method of Laurent et al. (1995), this cross-sectional longitudinal study examines changes in brand awareness over time, with sample sizes of approximately 300 whisky consumers per wave in three countries: United Kingdom, Taiwan and Greece. Findings There is consistency in the underlying structure of awareness scores across countries, and over time, extending the work of Laurent et al. (1995). Results show that a relevant operationalisation of brand awareness needs to account for the history of the brand. Furthermore, the nature of the variation of brand awareness over time interacts with a brand’s market share. Research limitations/implications When modelling the impact of brand awareness researchers need to consider two factors – the brand’s market share and whether a more stable or volatile measure is sought. This avoids mis-specifying the country-level contribution of brand awareness. Practical implications Global brand managers should be wary of adopting a “one size fits all” approach. The choice of brand awareness measure depends on the brand’s market share, and the desire for higher sensitivity or stability. Originality/value The paper provides one of the few multi-country investigations into brand awareness that can help inform global brand management.

Improving service employee work affect: the transformative potential of work design

2014 ◽  
Vol 28 (1) ◽  
pp. 71-81 ◽  
Author(s):  
Steven W. Rayburn
Keyword(s):  
Self Determination Theory ◽  
Psychological Needs ◽  
Work Design ◽  
Self Determination ◽  
Interactive Effects ◽  
Specific Work ◽  
Content Type ◽  
Design Variables ◽  
Work Affect ◽  
The Impact

Purpose – The purpose of this article is to employ Self-Determination Theory to explain the mediated impact of work design – empowerment and serial and investiture socialization – on employee work affect. The theory proposes fulfilment of three psychological needs – autonomy, competence, and relatedness – will mediate individuals' ability to achieve contextually relevant well-being. An empirical study tests this claim and exposes the structure of the mediating effects. Design/methodology/approach – Survey responses were collected from a sample of 239 front-line service employees using snowball data collection. SEM was used to test hypotheses. Findings – Findings suggest that empowerment and serial and investiture socialization are significantly differentially related to need fulfilment. Additionally, all forms of need fulfilment do not directly influence employee affect. Instead, there are both direct and interactive effects that work simultaneously to influence employees' positive work affect. Practical implications – This study exposes specific work design levers managers can manipulate to benefit employees. This research highlights the different effects of specific work design variables on employee work affect. Originality/value – This paper extends understanding of Self-Determination Theory by exposing the direct and interactive effects of need fulfilment on work affect for service workers. Also, it delivers a deeper exploration of the impact of work design on employees by modelling multiple work design variables as well as process variables simultaneously to provide a more detailed picture of how work design influences employee work affect.

The bright and dark sides of green customer integration (GCI): evidence from Chinese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taiwen Feng ◽  
Hongyan Sheng ◽  
Minghui Li
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Positive Impact ◽  
Resource Dependence Theory ◽  
Dark Side ◽  
Opportunistic Behavior ◽  
Moderating Effects ◽  
Customer Integration ◽  
Content Type ◽  
The Impact

PurposeBased on resource dependence theory and transaction cost economics this study explores how green customer integration (GCI) affects financial performance via information sharing and opportunistic behavior, and the moderating effects of dependence and trust.Design/methodology/approachThis study develops a theoretical model and tests it using data from two-waved survey data of 206 Chinese manufacturers. The hypotheses were tested using hierarchical linear regression analysis.FindingsThe results show that GCI has a significant and positive impact on information sharing, but its impact on opportunistic behavior is insignificant. Notably, information sharing has a significant and positive impact on financial performance, while opportunistic behavior has an insignificant impact on financial performance. In addition, dependence negatively moderates the impact of GCI on information sharing and positively moderates the impact of GCI on opportunistic behavior. Trust negatively moderates the impact of GCI on opportunistic behavior.Originality/valueAlthough GCI has received widespread attention, how it affects a firm's performance remains unclear. Most previous studies have focused only on its bright side and ignored its dark side. This study highlights how GCI affects financial performance through information sharing and opportunistic behavior, and the moderating effects of dependence and trust. This enriches the understanding of how and under what conditions GCI affects a firm's performance.

Empirical evaluation of structure-conduct-performance paradigm as applied to the Iranian Islamic banking system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Ghaemi Asl ◽  
Muhammad Mahdi Rashidi ◽  
Alireza Ghorbani
Keyword(s):  
Market Structure ◽  
Market Share ◽  
Balance Sheet ◽  
Empirical Evaluation ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Simple Regression Model ◽  
The Impact

Purpose This paper aims to investigate the impact of market structure and market share on the performance of the Islamic banks operating in the Iranian banking system based on the structure-conduct-performance (SCP) paradigm. Design/methodology/approach The Iranian Islamic banking system’s market structure is evaluated by using the econometrics method to test the validity of the traditional SCP paradigm. For this purpose, the authors estimate a simple regression model that is consisted of several independent variables, such as the market share, bank size, real gross domestic product, liquidity and Herfindahl-Hirschman index as a proxy variable for concentration and one dependent variable, namely, the profit as a proxy for performance. The panel data includes a data sample of 22 Islamic banks operating from 2006 to 2019. Data are extracted from the balance sheet of Islamic banks and the time-series database of the Central Bank of Iran and World Bank. Findings The study’s findings indicate that both concentration and market share have a positive impact on the performance of banks in the Iranian Islamic banking system. This result is contradicted with both traditional SCP and efficient structure hypotheses; however, it confirms the existence of oligopoly or cartel in the Iranian Islamic banking system that few banks try to gain the highest share of profit and maintain their market share by colluding with each other. This result is in contradiction with other research studies about the market structure in the Iranian banking system that claimed that banks in Iran operate under monopolistic competition. In addition, it shows that the privatization of some banks in Iran does not improve and help competition in the Iranian banking system. Originality/value This paper is a pioneer empirical study analyzing the market structure, concentration and collusion based on the SCP paradigm in Iranian Islamic banking. The results of the study support the existence of collusive behavior among the Islamic bank in Iran that is not aligned with Sharia. This study clearly shows the difference between ideal Islamic banking and Islamic banking in practice in Islamic countries. This clearly indicates that only prohibiting some operations like receiving interest, gambling and bearing excessive risk is not enough. In fact, the Islamic banking system should be based on the Sharia rule in all aspects and much more modification and study have to be done to achieve an appropriate Islamic banking system. These possible modifications to overcome the issues of cartel-like market structure and collusive behavior in the Iranian Islamic banking system include making the Iranian banking system more transparent, letting foreign banks enter the Iranian banking system and minimizing the government intervention in the Iranian banking system.

Your network is your net worth: political ties and innovation performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Ali Raza ◽  
Abdul Waheed
Keyword(s):  
Partial Least Square ◽  
Innovation Performance ◽  
Least Square ◽  
Equation Modeling ◽  
Unique Contribution ◽  
Content Type ◽  
Net Worth ◽  
Political Ties ◽  
The Impact

PurposeBased on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive capacity (AC) and a moderation role of technology turbulence.Design/methodology/approachA hypothetico-deductive approach is adopted to test the hypotheses. Data were collected from the small and medium enterprises (SMEs) managers/owners through a structured questionnaire.FindingsPartial least square structural equation modeling technique is used to analyze the hypothesized relationships; the findings showed that political ties significantly impact the innovation performance, and this relationship is mediated by AC. Moreover, technological turbulence moderated the relationship between political ties and innovation performance.Originality/valueDespite the increasing attention to the role of networking in improving innovation, there is a scarcity of studies on the role of political ties, AC and technology turbulence in fostering organizational innovation; thus, this study is a unique contribution to literature.

Teaching for creativity and entrepreneurial intentions: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thuy Thu Nguyen ◽  
Diep Ngoc Do
Keyword(s):  
Active Learning ◽  
Emerging Economies ◽  
Structural Equation ◽  
Methodological Approach ◽  
Entrepreneurial Intention ◽  
Entrepreneurial Intentions ◽  
Learning Methods ◽  
Content Type ◽  
Structural Relationships ◽  
The Impact

Purpose This study aims to investigate the structural relationships between pedagogy methods, creativity and entrepreneurial intentions. This study theorizes that work-integrated and active learning methods positively influence personal creativity, which in turn positively influences entrepreneurial intention. Moreover, entrepreneurial inspiration moderates the impact of creativity on entrepreneurial intentions. Design/methodology/approach A sample of 701 valid questionnaires from university students is used to investigate the proposed research model empirically. As the methodological approach, structural equation modelling with multigroup analysis is used. Findings The statistical results confirm the positive impacts of work-integrated and active learning methods on individual perceived creativity and of creativity on entrepreneurial intentions. Further, inspiration towards entrepreneurship moderates the link between individual creativity and entrepreneurial intentions. Originality/value This research fills the gap in the realm of examining the structural relationship among learning methods, creativity and entrepreneurial intentions in an emerging economy context. Specifically, this study confirms experiential teaching methods as important predictors of the development of students’ creativity capability and the moderating role of entrepreneurial inspiration in the relationship between perceived creativity and entrepreneurial intention. These results add to the academic literature on entrepreneurial intentions in emerging economies and provide new insights into how universities in emerging economies can foster the entrepreneurial intentions of their students.

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