Can competitors cooperate? The impact of formal institution agents in promoting coopetition among emerging market exporters

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jefferson Marlon Monticelli ◽  
Ivan Lapuente Garrido ◽  
Luciana Marques Vieira ◽  
Adriana Fumi Chim-Miki ◽  
Jorge Carneiro
Keyword(s):  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Export Performance ◽  
Quantitative Methodology ◽  
Shared Resources ◽  
Content Type ◽  
Formal Institution ◽  
Ultimate Objective ◽  
Medium Enterprises ◽  
The Impact

Purpose This paper aims to investigate the effects of formal institution agents on export performance, mediated by coopetition. It presents novel scales for evaluating firms’ adherence to cooperation agreements with competitors, identifying coopetition networks’ main motives and goals. The study also focuses on the relationship between the export performance of small and medium enterprises from emerging markets and coopetition strategies. Design/methodology/approach The study adopts a quantitative methodology using multivariate and confirmatory methods. The sample comprised 166 firms from three different industries in an emerging market (Brazil). Findings The results indicate that adherence to formal institution agents promotes cooperation among competitors and that such coopetition tends to improve export performance. The role played by formal institution agents minimizes the paradoxical tension and fosters coopetitive performance. Firms in developing markets look to mediated coopetition to achieve coopetitive advantages. They cooperate to create collective advantages from shared resources, but they do not lose sight of the ultimate objective of appropriating these advantages. The cycle of creation and appropriation of advantages is fostered by the formal institution agent, acting as the conductor of an orchestra, coordinating movements and setting the rhythm for the partners. The institutional agent, thus, constitutes an important hub of the coopetition network. Originality/value The paper contributes to understanding a type of coopetition that has hitherto been underexplored in the literature – mediated coopetition.

Small and medium enterprises’ internationalisation and business strategy: some evidence from firms located in an emerging market

2014 ◽  
Vol 8 (2) ◽  
pp. 168-186 ◽  
Author(s):  
Syed Zamberi Ahmad
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Qualitative Data ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Peninsular Malaysia ◽  
International Expansion ◽  
Content Type ◽  
The Government ◽  
Medium Enterprises

Purpose – The purpose of this paper is to investigate the international business strategy, key driving factors and the major barriers that may hinder the internationalisation progress of Malaysian small and medium-sized enterprises (SMEs). Design/methodology/approach – Based on the aims of the study, the paper encompasses both quantitative and qualitative data. For quantitative data, structured questionnaires were used, and a total of 216 SMEs that engaged in international business participated using purposeful sampling, covering all the states in Peninsular Malaysia. For the collection of qualitative data, the study involved in-depth interviews with 25 owners/managers of SMEs. Findings – The findings indicate that the motives of SMEs for international expansion are varied, and that SMEs still face many institutional challenges, which have prevented them from making a greater contribution. Research limitations/implications – Due to lack of resources, firms from West Malaysia were included. West Malaysian firms may well possess characteristics concerning the challenges and issues to internationalisation that are unique to their region. Originality/value – The paper addresses a knowledge gap in respect of the internationalisation process of SMEs in the context of Southeast Asia. The findings of this paper will have relevance for policymaking and supportive measures at the government level to create an environment that will stimulate the competitiveness of SMEs in their attempts for internationalisation.

Social media as tool for facilitating knowledge creation and innovation in small and medium enterprises

2018 ◽  
Vol 13 (3) ◽  
pp. 329-344 ◽  
Author(s):  
Armando Papa ◽  
Gabriele Santoro ◽  
Lia Tirabeni ◽  
Filippo Monge
Keyword(s):  
Social Media ◽  
Knowledge Creation ◽  
Small And Medium Enterprises ◽  
Theoretical Perspective ◽  
Innovation Process ◽  
Digital Tool ◽  
Content Type ◽  
Media Usage ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of this paper is to study the effects of social media usage on four knowledge creation processes, namely socialisation, externalisation, combination and internalisation, and innovation in small and medium enterprises (SMEs). Design/methodology/approach A sample of 96 SMEs has been used to gather data through a standardised questionnaire and test the hypotheses through OLS regression models. Findings The results indicate that social media influence positively three out of four knowledge creation processes and that they help to foster the innovation process. Originality/value From a theoretical perspective, the study contributes to literature considering a specific digital tool and its effect on knowledge creation and innovation. In fact, a few studies have considered the impact of social media usage on other variables, such as ROI and productivity, but never on knowledge creation and innovation through a quantitative study. From a managerial perspective, the research suggests managers to implement and involve social media within business and innovation processes.

COVID-19 and Ludhiana’s woolen knitwear industry: way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Swati Mehta ◽  
Manpreet Kaur
Keyword(s):  
Small And Medium Enterprises ◽  
Virus Disease ◽  
World Market ◽  
Feedback Mechanism ◽  
Content Type ◽  
Road Map ◽  
Innovation Approach ◽  
Medium Enterprises ◽  
World Economic Order ◽  
The Impact

Purpose The purpose of this paper is to examine the challenges faced by the Ludhiana’s woolen knitwear industry that got accentuated with the outbreak of Corona Virus Disease 2019 (COVID-19). The paper discusses the road map for building capabilities within the industry from the perspective of “system of innovation” approach that would help the industry to comply with the recent call for “AatmaNirbhar Bharat Abhiyan.” Design Methodology Approach The woolen knitwear industry from Ludhiana district of North Indian state, Punjab, was taken as a case to examine the impact of COVID-19. Data was collected online through self-structured questionnaire along with telephonic interviews. Stage I was the period of “total lock-down” and Stage II was conducted after the announcement of “stimulus package” and during the unlocking period. Some local industry associations and labor unions were also interviewed to understand the wider perspectives of different stakeholders. Descriptive statistic was applied to analyze the results of the survey. Findings It is estimated that the industry would lose about INR 2,000 crores approximately US$282.1m with the monetary loss of man-days nearing INR 157 crores approximately US$22.1m for the total lockdown period of 68 days. This amount is feared to increase with the lackluster re-opening of the industry in the unlocking period. The study reveals that there were some concerns, such as infrastructural bottlenecks, obsolete internal and international connectivity and institutional rigidity with cumbersome rules and regulations that get heightened with the outbreak of COVID-19. The entrepreneurs and workers are skeptic regarding the nature of demand revival in the changing world economic order. The paper suggests a dynamic policy intervention with inbuilt feedback mechanism along with reviving the organizations to infuse enthusiasm among various actors of industry. Originality/value The study is one of the first few to conduct surveys at two different stages to assess the impact of COVID-19 from the perspective of micro, small and medium enterprises and workers working therein while taking the case of Ludhiana woolen knitwear industry. The findings of this study will aid the industry and policymakers to take essential steps to make the industry more innovative and competitive in the dynamic world market.

Corporate governance and underpricing of small and medium enterprises IPOs in India

2020 ◽  
Vol 20 (3) ◽  
pp. 503-525
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Curvilinear Relationship ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Explanatory Variables ◽  
Corporate Governance Mechanisms ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India. Design/methodology/approach Most of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing. Findings The results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model. Practical implications The findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards. Originality/value The present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

Omani SME perceptions towards Islamic financing systems

2019 ◽  
Vol 11 (4) ◽  
pp. 369-386
Author(s):  
Yasmeen Al Balushi ◽  
Stuart Locke ◽  
Zakaria Boulanouar
Keyword(s):  
Banking Industry ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Capital City ◽  
Islamic Finance ◽  
Future Research ◽  
Islamic Banking ◽  
Content Type ◽  
Face To Face ◽  
Medium Enterprises

Purpose This paper aims to investigate small and medium enterprises’ (SMEs) owner–managers’ awareness, willingness and perceptions concerning Islamic financing instruments as an alternative sourcing decision in SMEs’ businesses. Design/methodology/approach The research employed mixed methods to gather data. A questionnaire survey was conducted via face-to-face interviews with 385 SME owner–managers operating in Muscat, Oman’s capital city, along with face-to-face discussion on Islamic finance with 86 SME owner–managers. Descriptive and thematic analysis were used to analyse the data. Findings The findings indicate that SME owner–managers are aware of Islamic banking principles and have knowledge of Islamic financial instruments, despite Islamic finance being new to Oman. Interestingly, although the majority of the participants indicated their intention to adopt this new finance method, they were motivated by special requirements other than finance. Their positive perception of Islamic financing methods could play a significant role in developing the Islamic banking industry. Research limitations/implications The research is limited in that its data came only from Omani SME owner–managers in Muscat. Future research could investigate wider samples. Secondly, the study’s findings lack generalisability to larger and public enterprises, because only SME owner–managers were surveyed. Practical implications This study will be important for policy makers concerned about SMEs’ financing, Islamic financial institutions and new entrants into the Islamic banking industry, as it provides empirically evidence of Omanis’ views, and more specifically those of Omani SME owner–managers, on the recent introduction of Islamic finance into the country. The insights this study offers should help them to develop the strategies required to attract SMEs and to construct policies and regulations to improve Oman’s Islamic banking industry. Originality/value The research is significant, as it is the first study to investigate the awareness, willingness and perceptions of Omani SMEs regarding Islamic banking in Oman. Even though all Omanis are Muslims, Oman was the last of the six-nation Gulf Cooperation Council countries to introduce Islamic finance. Thus, this emerging market provides an important basis from which to extend future research on Islamic finance to other potential Islamic finance markets.

An examination of strategies under the financial tsunami

2010 ◽  
Vol 110 (9) ◽  
pp. 1319-1336 ◽  
Author(s):  
G.T.S. Ho ◽  
K.L. Choy ◽  
S.H. Chung ◽  
C.H.Y. Lam
Keyword(s):  
Hong Kong ◽  
Global Economy ◽  
Quantitative Research ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Content Type ◽  
Corporate Strategies ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to identify the factors, such as the different strategies adopted and the size of the company, that have a significant determining impact on the financial performance of companies in extreme circumstances.Design/methodology/approachThe research target of this paper is the small and medium enterprises (SMEs) in Hong Kong. This is quantitative research and it is done on a survey basis, which includes hypothesis setting and statistical analysis. In addition, constructive suggestions are given to companies after analyzing the current situation.FindingsIn total, ten factors from four dimensions are determined as the critical strategies for the company to adopt in an uncertain financial situation. The result shows the influence of different factors on return on investment for the companies with different backgrounds.Practical implicationsThe business environment today is full of turbulence and uncertainties; this, along with the fierce global competition, means that manufacturers are all struggling to survive. The financial tsunami that has swept across the global economy is believed to be the most catastrophic in living memory. Therefore, this research will be especially valuable and useful to companies which wish to achieve excellence in business performance in spite of such a global disaster.Originality/valueManufacturers worldwide have suffered badly from the impact of the financial tsunami. The SMEs in Hong Kong are certainly not an exception. However, under the same adverse conditions, some have been able to maintain their stability or even thrive. The findings suggest some specific corporate strategies which will enable companies to survive and remain competitive.

The cooperation mechanisms of trade associations

2018 ◽  
Vol 31 (4) ◽  
pp. 701-718 ◽  
Author(s):  
Jose Brache
Keyword(s):  
Latin American ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Contextual Factors ◽  
Export Performance ◽  
Multiple Streams ◽  
Trade Associations ◽  
Policy Makers ◽  
Content Type ◽  
Medium Enterprises

Purpose The purpose of this paper is to propose a conceptual model that portrays how contextual factors and behavioural cooperation mechanisms influence the effect of trade associations on the export performance of small and medium enterprises (SMEs) in a Latin American emerging economy. Design/methodology/approach The author draws on multiple streams of literature including: co-location, networks, cooperation and export performance to suggest a series of solid theoretical insights to the literature on SMEs’ export performance, networks and co-location in the Latin American context. Findings Contextual factors and behavioural cooperation mechanisms influence the effect of trade associations on export performance determining the final sign of such effect. Trust plays a role within all proposed mechanisms, but is not as fundamental as previously characterised in studies on the export performance of SMEs. Cooperation might exist, prevail, and exert a positive impact on SMEs’ export performance even in the absence of trust. Originality/value This paper contributes to the literature on SMEs’ export performance, networks and co-location in the Latin American context by presenting a theoretical model that enfolds co-location, networks, trade associations and cooperation effects on SMEs’ export performance under the same foundation. It creates the categories of “contextual factors” and “behavioural cooperation mechanisms” to differentiate the elements that weight on the relationship between firms and trade associations, thus facilitating or hindering export performance. It guides policy makers and company managers on where to focus when incentivizing conduct towards a more productive export performance in Latin America and other emerging economies.

Exploring the barriers to SMEs’ open innovation adoption in Ghana

2020 ◽  
Vol 12 (1) ◽  
pp. 21-51 ◽  
Author(s):  
Stephen Oduro
Keyword(s):  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Partial Least Square ◽  
Least Square ◽  
Research Approach ◽  
Content Type ◽  
Survey Interviews ◽  
The Right ◽  
Medium Enterprises

Purpose Open innovation (OI) is now recognized as one essential innovation paradigm to help small and medium enterprises (SMEs) quell their liability of newness and smallness. However, little is known about SMEs’ OI barriers, particularly in emerging economies. Drawing on both network and transaction cost theory, this study aims to explore the barriers to SMEs’ OI adoption in Ghana. Design/methodology/approach The study adopted an exploratory sequential research design that involved both qualitative and quantitative study methodologies. A total of 644 responses (21 survey interviews and 623 usable questionnaires) across SMEs in Ghana were collected and analyzed in the study. A qualitative analysis involving quotations extracted from the respondent’s statement was used to present the qualitative findings, whereas SEM-partial least square, co-variance approach, was used to analyze the formulated hypotheses. Findings Results show that significant barriers to SMEs OI adoption are collaboration barriers – difficulty in finding the right partners and problems of cooperation and coordination of operational functions; organizational barriers – lack of flexible internal procedures and structures and organizational inertia; and strategic barriers – opportunistic behavior of partners and lack of strategic and resource fit. Contrary to existing findings, financial and knowledge barriers were disclosed as driving factors, rather than barriers, to SMEs’ OI adoption; these findings challenge conventional thinking about SMEs’ major OI barriers. Research limitations/implications This study focuses on only SMEs in one emerging economy, namely, Ghana, which may limit the generalization of the findings. Practical implications The findings of this study, while limited to Ghana, offer useful insights to SMEs managers, development practitioners and policymakers respecting the overall importance of the OI model, its associated impediments, as well as the strategic measures to quell those barriers. Originality/value This study provides a pioneering empirical investigation into the main barriers to SMEs’ OI adoption in a less-explored emerging market context through a mixed research approach.

Impact of service quality on satisfaction and loyalty at manufacturer-distributor dyad

2019 ◽  
Vol 16 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Surjit Kumar Gandhi ◽  
Anish Sachdeva ◽  
Ajay Gupta
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Northern India ◽  
Indian Setting ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to investigate the role played by service quality (SQ) in manufacturer–distributor working partnerships in the context of Indian small and medium enterprises (SMEs), and present two models which propose and validate that contributions toward SQ, made by both the manufacturing unit and distribution firm lead to satisfaction which consequently results in business-to-business (B2B) loyalty.Design/methodology/approachThe research design for this study includes a combination of literature review, exploratory interviews with a focus group and a questionnaire survey conducted through interview schedule from 101 information rich and willing respondents working in SMEs of northern India.FindingsThe paper brings out scales foe measuring organizational (internal) and distributor (external) SQ. Further, two models using structural equation modeling are developed. Model-I examines the effect of organizational SQ on distributor SQ. Model-II examines the impact of distributor SQ on satisfaction and loyalty and also tests a set of four propositions related to their working relationship. The models are empirically tested and are found to be fit.Research limitations/implicationsFuture researchers may validate these scales, and empirically test the proposed models in alternate settings. Insights derived from this study may be transferred to other partnerships, which may exist in a manufacturing supply chain including suppliers, employees, retailers and end consumers.Practical implicationsThis study would be of interest to SME practitioners interested in improving SQ with their distributors. The study also finds support for strengthening collaborative relationships with B2B partners to achieve a win-win situation.Originality/valueThere are very few empirical studies that measure SQ w.r.t. distribution function in SMEs and the concept is in nascent stage, especially in Indian setting.

Internationalization of industrial small-medium enterprises in an emerging country

2019 ◽  
Vol 33 (1) ◽  
pp. 71-94 ◽  
Author(s):  
Luis Enrique Ibarra-Morales ◽  
Monica Blanco-Jimenez ◽  
Beatriz Alejandra Hurtado-Bringas
Keyword(s):  
Export Performance ◽  
Negative Relationship ◽  
Multiple Regression Model ◽  
Product Price ◽  
Content Type ◽  
Emerging Country ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Installed Capacity ◽  
The Impact

Purpose The purpose of this paper is to boost the internationalization of companies by implementing key factors that will help them to increase their exports in a context of an emerging country such as Mexico, where very few small- and medium-sized enterprises (SMEs) achieve internationalization. Design/methodology/approach According to different theories on the internationalization of companies, five independent variables were designed to measure their effect on the export performance using a multiple regression model on a sample of 95 Mexican industrial SMEs. In this context, the objective of this study is to investigate the impact of the product price, product quality, installed capacity, innovation capacity and financial capacity on the export performance of SMEs; and to identify the factors that are more significant. Findings The results indicate that innovation has a positive relationship, while the price of the product has a negative relationship with the internationalization of small- and medium-sized enterprises, showing that there is a possibility of overemphasizing the role of both variables in export performance of SMEs, at least in the Mexican context. The rest of the variables were not statistically significant to the generated model, perhaps because they are implicitly considered at the time of exporting and entering international markets. Originality/value These results will help companies to focus their efforts on obtaining resources to maintain and expand exports and find new opportunities in foreign markets to grow. They also show that companies can implement different types of internationalization strategies with the study’s variables to achieve better performance.

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