scholarly journals What makes MNCs succeed in developing countries?

2015 ◽  
Vol 23 (3) ◽  
pp. 224-247 ◽  
Author(s):  
Michael W. Hansen ◽  
Wencke Gwozdz

Purpose – The purpose of this paper is to examine the evolution in subsidiary performance and the factors influencing this performance based on a unique database of approximately 800 multi-national company (MNC) subsidiaries in developing countries. Developed-country multi-national companies (MNCs) are increasingly establishing subsidiaries in developing countries. The potential gains are high; however, so are the risks. While the issue of subsidiary performance should be at the heart of any international business (IB) enquiry into MNC activity in developing countries, surprisingly little research has examined this issue. Design/methodology/approach – Based on a comprehensive literature review of the IB performance literature, it is hypothesized that subsidiary performance essentially is shaped by five clusters of factors: location, industry, MNC capabilities, subsidiary role and entry strategy. These factors’ ability to explain variance in subsidiary performance is tested through a multiple regression analysis. Findings – MNC subsidiary performance in developing countries has improved enormously in recent decades. Especially, MNC capability and subsidiary role-related factors appear to explain variance in performance, while location factors appear to have less explanatory power. This suggests that strong MNC capabilities and organization can make MNCs succeed regardless of location. Practical implications – The key preparatory work for MNCs contemplating entry into developing countries is to carefully scrutinize internal capabilities and organization. Originality/value – The paper presents a model for explaining variation in subsidiary performance in developing countries specifically. The paper offers unique empirical insights into the state and drivers of subsidiary performance in developing countries.

2017 ◽  
Vol 29 (4) ◽  
pp. 743-758 ◽  
Author(s):  
Jeremy J. Sierra ◽  
Harry A. Taute ◽  
Byung-Kwan Lee

Purpose The purpose of this paper is to explore the indirect effect of smartphone-brand tribalism on the need for achievement. Design/methodology/approach Using survey data from 272 South Korean respondents, path analysis is used to evaluate the hypotheses. Findings Only the sense of community dimension of brand tribalism affects brand pride (PRIDE), which in turn leads to a sequential process of brand attitude, purchase intention, and need for achievement (NACHIEVE). Research limitations/implications South Korean data may confine generalizability. As effect sizes in this context are understood, researchers have an additional benchmark for future brand tribalism and PRIDE research. Practical implications The psychological underpinning and, the presence of brand tribes in society cannot be overlooked by strategists. Such tribal-laden following is also evident within smartphone communities. By further understanding brand tribalism outcomes, marketers and brand leaders are in an improved position to develop strategies that appeal to targeted customers, ultimately growing and strengthening their brand tribes. Originality/value Supported by the anthropological view of brand tribalism, this research contributes to the branding literature by examining the indirect effects of brand tribalism on the NACHIEVE through brand-related attitudes and behavioral intentions. Where previous research using westerners indicates the explanatory power of defense of the tribe on brand-related factors, no effect in this regard is found here using eastern smartphone consumers.


2017 ◽  
Vol 33 (8) ◽  
pp. 36-38

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings It is said that Latin America is one of the hardest places in which to do business, and within Latin America as well as considering the differing challenges that Argentina or Columbia may present, Brazil is perhaps the most difficult place to go to in order to develop trade and commercial agreements. In addition to the different language as compared to the rest of the region, there is a very specific culture and life view that will be wholly alien to many business people, whether they are from developed or developing countries around the world. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrew Ebekozien ◽  
Matthew Ikuabe ◽  
Andrew Igiebor Awo-Osagie ◽  
Clinton Aigbavboa ◽  
Solomon Oisasoje Ayo-Odifiri

PurposeSeveral studies have shown that climate change is a threat to sustainable human living and high consumption of energy by buildings is a contributory factor. However, green practices in buildings have been proved as one of the successful technologies to mitigate global warming. Previous studies have shown lax green practices in developing countries’ buildings, but how far concerning green certification of buildings in Nigeria is yet to be explored. Therefore, this paper investigated the barriers to green certification of buildings (GCB). Also, the paper proposed a model for promoting GCB in Nigeria.Design/methodology/approachEighteen experts with green building certification knowledge were engaged across three of Nigeria’s cities (Benin City, Abuja and Lagos) via scheduled WhatsApp video and teams calls. Collated interview data were analysed and presented in themes.FindingsFindings show that there is an absence of a framework to promote GCB in Nigeria. Hence, GCB is low across the states. Twelve main sub-themes emerged as the barriers to GCB in Nigeria. Also, eight key sub-themes emerged as the possible concepts that can be used to improve GCB in Nigeria and formulated into a proposed framework to promote GCB in Nigeria.Research limitations/implicationsThis paper is limited to GCB in Nigeria and only 18 participants were engaged. Thus, this paper suggests that a mixed-methods approach should be conducted in future studies with wider coverage. This may assist to validate the paper’s findings.Practical implicationsFindings from this paper will stir up practitioners in green building and influence the promotion of GCB in the sector. As part of this study’s implications, suggestions through the paper’s proposed framework will benefit Nigeria’s policymakers to make decisions towards achieving GCB. This can be achieved via the proposed framework to promote the concept across Nigeria.Originality/valueThis paper is probably the first that attempted to investigate the barriers and proffer policy solutions via a framework to promote GCB in Nigeria and by extension in other developing countries.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Riddhi Rajendra Thavi ◽  
Vaibhav S. Narwane ◽  
Rujuta Hemal Jhaveri ◽  
Rakesh D. Raut

PurposeThe paper focuses on reviewing and theorizing the factors that affect the adoption of cloud computing in the education sector narrowing the focus to developing countries such as India.Design/methodology/approachThrough an extensive literature survey, critical factors of cloud computing for education were identified. Further, the fuzzy DEMATEL approach was used to define their interrelationship and its cause and effect.FindingsA total of 17 factors were identified for the study based on the literature survey and experts' input. These factors were classified as causes and effects and ranked and interrelated. “Required Learning Skills and Attitude,” “Lack of Infrastructure,” “Learners' Ability” and “Increased Investment” are found to be the most influential factors.Practical implicationsThe resultant ranking factors can be used as a basis for managing the process of cloud adoption in several institutions. The study could guide academicians, policymakers and government authorities for the effective adoption of cloud computing in education.Originality/valueThe study investigates interdependency amongst the factors of cloud computing for education in context with developing economy. This is one of first study in higher education institutes of India.


2019 ◽  
Vol 11 (2) ◽  
pp. 102-119 ◽  
Author(s):  
Nsubili Isaga

Purpose Research on women-owned business is more extensive in developed countries than in developing countries and such one cannot compare the results. This paper aims to examine the motives of women in Tanzania (a less developed country) to start their own businesses and the challenges they faced in running their businesses. Design/methodology/approach Based on 400 response to a semi-structured questionnaire and in-depth interview with 20 female entrepreneurs. Subsequently, descriptive and factors analysis were performed to analyze the data Findings Based on survey responses, the primary reason for starting a business was to create employment for the woman herself. Other motives include supplementing income and enabling women to be able to do the kind of work they wanted to do. According to the factor analysis, female entrepreneurs are driven more by push factors than pull factors. The most serious problems faced by female entrepreneurs are lack of access to finance, gender-related problems and social and cultural commitments. Research limitations/implications The sample was selected from urban areas of only three regions, out of 26 regions in Tanzania. Researchers may extend the study to other regions; also, the non-probability sampling method used in this study essentially means that there is a limitation to the extent to which the research findings can be generalized to the rest of the population of female entrepreneurs in Tanzania. Practical implications Policy makers, financial institutions and all organization that have a stake on development on female entrepreneurs in Tanzania should design policies and programs that encourage and promote the creation and growth of businesses. Collective efforts from the government, public and private institutions and NGOs are needed to eliminate the challenges, especially gender-related problems. Practical implications By studying female owner-managers’ motivations and constraints, the author suggests that to a greater extent, gender-related problems, social and cultural commitments and access to finance and networks are the constraints faced by female entrepreneurs. Originality/value The research on female entrepreneurs in the context of Tanzania is scarce, this study responds to a need of better understanding women motivations and constraints. By studying these factors, this study shows that startup motives and constraints faced by female entrepreneurs are unique to different contexts.


2018 ◽  
Vol 26 (4) ◽  
pp. 748-772
Author(s):  
Tolu Olarewaju

Purpose The purpose of this paper is to contribute to the occupational status and entrepreneurship research in developing countries by proposing that there are implications for household consumption depending on the occupational status proportion of households. When the occupational proportion of the household changes, household consumption is affected. This effect also changes depending on what quantile level the household is in terms of household consumption. Design/methodology/approach The paper makes use of OLS and quantile regressions to examine 6,919 households comprising 40,294 individuals from the 2009 Nigerian Living standards measurement survey. Findings The paper finds that there are implications for household consumption based on the proportion of individuals in each occupational category. The contributions of each employment proportion changes at different quantiles with self-employed individuals increasing household consumption at the lower quantiles but reducing household consumption at the upper quantiles. Crucially, having a higher proportion of unemployed individuals in the household is oftentimes better than having a higher proportion of own account self-employed individuals. Research limitations/implications This paper offers new insights into how occupation proportion influences household consumption in developing countries. As a result, the household could seek to organise its members in such a way as to maximise combined household consumption, as diverse occupational statuses contribute differently to the household consumption at different quantile levels. The nature of the data used in this study however does not allow for causality tests. Practical implications The proportion of employment statuses in the household has implications for household consumption and so the mix of employment in the household is important. The self-employed could also be involved in activities to enhance household consumption that are not captured by labour income. However, self-employment does not seem to always have a positive effect on household consumption and sometimes unemployment might be better. Originality/value The paper provides a new way to view the household as an organising entity in terms of how it can allocate employment proportions to maximise household consumption.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nnedinma Umeokafor ◽  
Chioma Okoro ◽  
Ikechukwu Diugwu ◽  
Tariq Umar

PurposeThe purpose of this paper is to investigate the critical opportunities for design for safety (DFS), the potential statutory (and non-statutory) health and safety (H&S) responsibilities of designers including DFS and its workability in developing countries.Design/methodology/approachInterviews were conducted among 28 multi-designers including Architects, Civil Engineers and Builders and the data was analysed thematically.FindingsThe study revealed that the likelihood of designers, clients, etc. inclining to change because of the infancy stage of H&S in developing countries, making it “fallow” for H&S was a barrier. The opportunities for DFS include the willingness of designers to develop DFS skills and knowledge, which results in a welcoming attitude towards DFS. Further, the success recorded by professional bodies on other regulatory matters and designers' greater inclination to comply with DFS when professional bodies are involved in the regulatory process of DFS remain key opportunities for DFS.Practical implicationsFor statutory-backed DFS to achieve the objective at the optimum level, the role of professional bodies in the regulatory and sensitisation processes, geographic differences in DFS legislation enforcement, nuanced and strategic design and enforcement of any legislation that will support DFS should be taken into consideration.Social implicationsA grassroots collaborative approach to developing and implementing DFS in the country and the exploitation of the zeal of designers to have DFS-related knowledge, is recommended.Originality/valueTo the knowledge of the authors, this is the first study that examines the opportunities for DFS in developing countries when it is (or not) supported by statute and the need to advance the understanding of DFS in developing countries through qualitative enquiry.


2014 ◽  
Vol 14 (1) ◽  
pp. 104-119 ◽  
Author(s):  
James Baba Abugre

Purpose – The purpose of this paper is to examine the managerial role in the practices of corporate social responsibility (CSR) in developing economies. Design/methodology/approach – The paper takes the form of an empirical analysis of employees' opinions based on a quantitative survey of 100 middle and senior level managers from four organisations chosen from relatively high impact industry sectors. Findings – Managerial role in the practice of CSR is limited and ineffective in Ghana. Difficulties of effective CSR implementation mainly stem from leadership weak spots in the form of mismanagement and corruption, lack of leadership commitment and unwillingness to allocate monies due for CSR activities. Organisations can do better in the practice of CSR if management's attitude to CSR, corruption, and work behaviors are positive. Practical implications – The paper provides valuable information on managerial activities with regards to organisational CSR, and how these can be improved. Originality/value – Empirical literature on CSR in developing countries is limited. This paper identifies the roles that management and organisational leadership can play in the practice of CSR in developing countries. The paper proposes a universal approach which aims to address the need for adequate and effective enforcement of CSR.


2020 ◽  
Vol 25 (2) ◽  
pp. 201-223
Author(s):  
Abdulmalik Sa'eed ◽  
Nuru Gambo ◽  
Ibrahim Ibrahim Inuwa ◽  
Innocent Musonda

Purpose The purpose of this study is to assess the effects of financial management practices of small-scale building contractors on the technical performance of the contractors in the northern part of Nigeria with international best practices. Previous studies argued that the technical performance of small-scale building contractors in developing countries is poor because of insufficient cash to acquire strategic resources at the outset of a project. This continues to pose a challenge to the sustainable development of the construction industry, particularly in developing countries like Nigeria. There is, therefore, a need to identify, assess and compare the effects of financial practices of the contractors with technical performance best practices. Design/methodology/approach The technical performance of each contractor was evaluated using a five-point Likert scale. This is used to obtain the mean technical performance levels of the contractors. A questionnaire survey was administered to the professionals in the industry who were selected by using a proportionate stratified random sampling technique. The contractors’ performance was compared using ANOVA with post hoc, and the effects of contractors’ financial management practices were determined using multiple regression analysis. Findings The results of this study indicated that the contractors in Nigeria were average technical performers and there were large effects of financial management practices on the technical performance of contractors in building projects. Research limitations/implications This study is limited to small-scale building contractors in northeast Nigeria. One of the implications of this study is that it provides the criteria for an evaluation of small-scale building contractors’ technical performance in Nigeria and other developing countries that faced similar problems. Practical implications The practical implications of this study are that it establishes the current level of contractors' technical performance and serves as an awareness of contractors' current financial practices. Social implications This study created bases for self-evaluation of contractors’ technical performance and competition among small-scale contractors in Nigeria for the enhancement of productivity particularly in rural areas for national development. Originality/value This study emanated from the government reports and past studies in the area of performance management based on the persistence of poor technical performance of small-scale contractors in the construction industry.


2020 ◽  
Vol 37 (1) ◽  
pp. 25-27

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on deploying advergames to engage customers in a brand’s ecosystem of products. The results urged advergame designers to pay attention to four concepts, in descending order of importance: game design, technical elements like multiplayer chat, player personalization, and brand/product-related factors such as integrating product comparisons into the game. To create maximum value from an advergame project, it’s recommended that forming an emotional connection between the player and the brand should be the ultimate aim for anyone working on advergames. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


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