Developing effective local content regulations in sub-Sahara Africa

2016 ◽  
Vol 24 (4) ◽  
pp. 354-374 ◽  
Author(s):  
Desmond Tutu Ayentimi ◽  
John Burgess ◽  
Kerry Brown
Keyword(s):  
Emerging Economies ◽  
Foreign Investment ◽  
Investment Incentives ◽  
Content Type ◽  
Investment Incentive ◽  
Local Content ◽  
Developed Economies ◽  
Incentive Policies ◽  
Policies And Programs ◽  
Strategic Balance

Purpose The authors propose a strategic-balance approach to local content laws in which less developed economies in sub-Sahara Africa can develop investment incentive policies for attracting multinationals and direct foreign investment but, at the same time, have a structured and operational framework for the enforcement of local content laws. The purpose of the paper is to identify the elements involved in the equation: the incentives, the potential spillovers and the criteria for evaluation. Design/methodology/approach The approach involves a review of the literature and the operational details and limitations of local content laws in sub-Sahara Africa. Findings The paper develops a conceptual model for a holistic understanding and management of this dilemma by policymakers and development practitioners to maximize the benefits of natural resources to less developed countries in sub-Sahara Africa towards the fight against poverty and underdevelopment. Research limitations/implications This paper provides the opportunity to influence policy direction in relation to the adoption of investment incentive policies and programs and the enforcement of local content policy guidelines and regulations in sub-Sahara Africa. Practical implications Multinational companies (MNCs) operating in less developed and emerging economies in sub-Sahara Africa should consider how their economic and corporate social responsibility activities can help develop the capabilities of the local workforce through training and development activities; develop domestic firms’ capabilities via enterprise development programs; and develop local firm’s absorptive capacities through knowledge transfers and innovation systems to support development activities. Social implications Policymakers in less developed and emerging economies in sub-Sahara Africa need to strike a balance in adopting investment incentives policies towards attracting foreign investments and the enforcement of local content regulations to make sure they derive the maximum benefits from their strategic resources. It is important for policymakers to understand that the mere attraction of MNCs into an economy does not explicitly guarantee domestic job creation; rather, it depends on how MNCs respond to local content policy regulations through their business strategies. Linking investment incentives with local content policy regulations at a critical point could potentially support and strengthen industrial development in sub-Sahara Africa. Originality/value This paper is among the first to examine the challenges of both attracting foreign direct investment and enforcing local content laws and regulations in sub-Sahara Africa. This paper contributes to the understanding of this dilemma and how less developed economies can manage such a crucial and important issue using our proposed strategic-balance approach. The contribution of local content laws and the design and adoption of investment incentives policies and programs to attract foreign investment to promoting sustainable domestic growth and development must depend on the balance between the enforcement of local content policy guidelines and the provision of such investment incentive packages to attracting foreign investment.

How do MNCs translate corporate talent management strategies into their subsidiaries? Evidence from MNCs in Thailand

2020 ◽  
Vol 30 (4) ◽  
pp. 537-560
Author(s):  
Chaturong Napathorn
Keyword(s):  
Emerging Economies ◽  
Management Practices ◽  
Management Strategies ◽  
Talent Management ◽  
Emerging Economy ◽  
Future Research ◽  
Content Type ◽  
Developed Economies ◽  
Institutional Structures ◽  
Skill Shortages

Purpose This paper aims to contribute to the literature on global talent management by examining how multinational corporations (MNCs) from developed and emerging economies manage talented employees in other emerging economies. Specifically, it aims to understand why MNCs from developed economies are likely to face lower levels of challenge than MNCs from emerging economies when translating corporate-level talent management strategies to their subsidiaries located in emerging economies and how local contextual factors influence the translation processes. Design/methodology/approach This paper undertakes a matched-case comparison of two MNCs, one from a developed economy and the other from an emerging economy, that operate in the emerging economy of Thailand. Evidence was obtained from semi-structured interviews field visits and a review of archival documents and Web resources. Findings Based on the obtained evidence, this paper proposes that MNCs from developed economies tend to face challenges in terms of skill shortages, and these challenges affect their translation of talent management strategies to the subsidiary level. By contrast, MNCs from emerging economies tend to face challenges in terms of both skill shortages and the liability of origin (LOR) (i.e. weak employer branding) in the translation process. Both groups of MNCs are likely to develop talent management practices at the subsidiary level to address the challenge of successfully competing in the context of emerging economies. Research limitations/implications One limitation of this research is its methodology. Because this research is based on a matched-case comparison of an MNC from a developed economy and an MNC from an emerging economy, both of which operate in the emerging economy of Thailand, it does not claim generalizability to all MNCs and to other emerging economies. Rather, the results of this research should lead to further discussion of how MNCs from developed and emerging economies translate corporate-level talent management strategies into subsidiary-level practices to survive in other emerging economies. However, one important issue here is that there may be a tension between the use of expatriates and local top managers at MNCs’ subsidiaries located in other emerging economies as drivers for knowledge sourcing in that the importance of expatriates may diminish over time as the subsidiaries located in those economies age (Dahms, 2019). In this regard, future research in the area of global talent management should pay special attention to this issue. The other important issue here is that it is possible that the two case study MNCs are very different from one another because of their organizational development stage, history and current globalization stage. Thus, this issue may also influence the types of talent management strategies and practices that the two case study MNCs have developed in different countries. In particular, MNCs from emerging economies (ICBC) may not have developed their global HR strategies, as they have not yet operated globally as in the case of MNCs from developed economies (Citibank). This can be another important issue for future research. Additionally, both MNCs examined in this research operate in the banking industry. This study, therefore, omits MNCs that operate in other industries such as the automobile industry and the hotel and resort industry. Future researchers can explore how both groups of MNCs in other industries translate their talent management strategies into practices when they operate in other emerging economies. Moreover, this study focuses only on two primary contextual factors, the skill-shortage problem and LOR; future research can explore other local contextual factors, such as the national culture, and their impact on the translation of talent management strategies into practices. Furthermore, quantitative studies that use large sample sizes of both groups of MNCs across industries might be useful in deepening our understanding of talent management. Finally, a comparison of talent management strategies and practices between Japanese MNCs and European MNCs that operate in Thailand would also be interesting. Practical implications The HR professionals and managers of MNCs that operate in emerging economies or of companies that aim to internationalize their business to emerging economies must pay attention to local institutional structures, including national skill formation systems, to successfully implement talent management practices in emerging economies. Additionally, in the case of MNCs from emerging economies, HR professionals and managers must understand the concept of LOR and look for ways to alleviate this problem to ensure the success of talent management in both developed economies and other emerging economies. Social implications This paper provides policy implications for the government in Thailand and in other emerging economies where the skill-shortage problem is particularly severe. Specifically, these governments should pay attention to solving the problem of occupation-level skill shortages to alleviate the severe competition for talented candidates among firms in the labor market. Originality/value This paper contributes to the prior literature on talent management in several ways. First, this paper is among the first empirical, qualitative papers that aim to extend the literature on global talent management by focusing on how MNCs from different groups of countries (i.e. developed economies and emerging economies) manage talented employees in the emerging economy of Thailand. Second, this paper demonstrates that the institutional structures of emerging economies play an important role in shaping the talent management practices adopted by the subsidiaries of MNCs that operate in these countries. In this regard, comparative institutionalism theory helps explain the importance of recognizing institutional structures in emerging economies for the purpose of developing effective talent management practices. Finally, there is scarce research on talent management in the underresearched country of Thailand. This study should, therefore, assist managers who wish to implement corporate-to-subsidiary translation strategies in Thailand and other emerging economies.

How different cost behaviour is in emerging economies? Evidence from Argentina

2019 ◽  
Vol 10 (1) ◽  
pp. 21-47
Author(s):  
María Inés Stimolo ◽  
Marcela Porporato
Keyword(s):  
Emerging Economies ◽  
Long Term Results ◽  
Content Type ◽  
Administrative Costs ◽  
Developed Economies ◽  
High Inflation ◽  
Cost Behaviour ◽  
Insurance Firms ◽  
Social And Cultural Factors ◽  
Behaviour Changes

Purpose Cost behaviour literature is expanding its reach beyond developed economies; however, there is limited knowledge about its causes in emerging economies. This is an exploratory study of sticky costs behaviour determinants in Argentina, a country with periodic political and economic turbulence. The purpose of this paper is to test the effect of GDP, asset intensity, industry and cost type in an inflationary context. Design/methodology/approach Anderson et al. (2003) empirical regression (ABJ model) is replicated in Argentina with 667 observations from 96 firms between the years 2004 and 2012. It uses panel data and variables are defined as change rates between two periods. The sample excludes financial and insurance firms. It tests if sticky cost behaviour changes in periods of macroeconomic deceleration, or in firms belonging to industries with different asset intensity levels, or among different cost types. Findings The analysis shows that costs are sticky in Argentina, where a superb economic outlook is required to delay cutting resources or increasing costs. Cost behaviour is affected by social and cultural factors, such as labour inflexibility driven by powerful unions and not by protective employment laws, asset intensity (industry) and macroeconomic environment. Results suggest that costs are sticky for aggregate samples, but not for all subsamples. Practical implications Administrative costs are sticky when GDP grows; but when growth declines, managers or firms do not delay cost cutting actions. Some subsamples are extreme cases of stickiness while others are anti-sticky, casting some doubt on the usefulness of sticky costs empirical tests applied to country-wide samples. Careful selection of observations for sticky costs studies in emerging economies is critical. Originality/value Evidence from previous studies show that on average costs are remarkably sticky in Argentina; this study shows that cost reduction activities occur faster but are not persistent enough to change the aggregated long-term results of cost stickiness in the presence of moderate to high inflation. The study contributes to the literature by suggesting that observations used in sticky costs studies from emerging economies might be mainly from positive macroeconomic environments, might have skewed results due to extreme cases of stickiness or might be distorted by inflation.

Extent of incorporation of green features in office properties in Lagos, Nigeria

2016 ◽  
Vol 5 (3) ◽  
pp. 232-260 ◽  
Author(s):  
Markson Opeyemi Komolafe ◽  
Matthew Oluwole Oyewole ◽  
John Temitope Kolawole
Keyword(s):  
Emerging Economies ◽  
Green Building ◽  
Property Market ◽  
Implementation Framework ◽  
Content Type ◽  
Existing Building ◽  
Developed Economies ◽  
Architectural Styles ◽  
Availability Index ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the extent to which green building features are evident in office properties in Lagos, Nigeria; and consequently determine the degree of compliance with green standards in the country. Design/methodology/approach The study purposively sampled two (2) office properties from the management portfolio of 88 registered Estate firms in Lagos. Data were collected using physical observation on the properties and interview with two users purposively selected from each of the properties. The data were analysed with the use of frequency distribution, percentages and measures of green features availability index. Findings The result revealed a low extent of green features incorporation in existing office properties with the value of availability indices on most features falling below 2.5 on a five-point scale. Feature relating to material use and conservation is the most incorporated green feature (mean score of 2.62) while those relating to owner and occupant education were least in incorporation (mean score of 1.895). Practical implications From the findings, it is apparent that green retrofitting may be necessary in Nigeria due to the low extent of green practices in existing office properties. Also, reinforcement of existing government policies and increased sensitisation of stakeholders on impact of current building practices are pertinent to green building success in Nigeria. Originality/value Most existing studies of similar focus are based in the developed economies where stronger implementation framework exists for green building. Besides, they are mostly based on evaluation of green certified buildings using few criteria. This study differs in that it presents the existing building sustainability practices in a less pronounced green property market, with varying architectural styles using more robust criteria. Information provided is applicable in Nigeria and other emerging economies.

Inorganic growth of technology sector firms in emerging markets

2015 ◽  
Vol 10 (1) ◽  
pp. 52-72 ◽  
Author(s):  
Arindam Das ◽  
Sheeba Kapil
Keyword(s):  
Emerging Economies ◽  
Emerging Market ◽  
Content Type ◽  
Developed Economies ◽  
Technology Sector ◽  
Technology Firms ◽  
Specific Factors ◽  
Opening Up ◽  
Serial Acquirer

Purpose – Emerging economies and technology firms in these economies have witnessed significant increase in mergers and acquisitions (M&A) activities in recent years. The purpose of this paper is to conduct an empirical research on Indian technology firms and analyze the influence of firm-specific factors on firms’ M&A decisions. Design/methodology/approach – A set of 372 Indian firms in the technology sector have been studied for the period 2001-2011, a decade when this sector has seen maximum number of M&A transactions. Findings – The results show that financially strong, low-debt firms with high market capitalization are the typical acquirers in this segment and they tend to be serial acquirer too. Originality/value – Contrary to established findings in developed economies, the authors find that Indian technology firms’ acquisition decisions are not associated with their R&D activities, opening up scope for investigations on role of technology assets in emerging market firms’ acquisition decisions.

Exploring Deal of the Day: an e-commerce strategy

2020 ◽  
Vol 27 (10) ◽  
pp. 2807-2830
Author(s):  
Achint Nigam ◽  
Prem Prakash Dewani ◽  
Abhishek Behl
Keyword(s):  
United States ◽  
Emerging Economies ◽  
Content Type ◽  
Product Categories ◽  
Developed Economies ◽  
Electronic Product ◽  
Significant Difference ◽  
Data Points ◽  
Deal Of The Day ◽  
Festive Season

PurposeThis paper examines differences in the discounts offered during Deal of the Day (DOD) promotion schemes by online retailers based on product category, festival season and the economic status of a country.Design/methodology/approachIn study 1, the authors conducted three focus group studies and 20 in-depth personal interviews (PIs) to explore consumers' perspectives on DOD. To validate the hypotheses based on the findings of study 1 and collected 515 data points from Amazon.com (313 data points from the United States) and Amazon.in (202 data points from India) in study two. The authors used multinomial linear regression to analyze the data.FindingsA significant difference in savings for buyers on the purchase of electronic product categories as compared to savings made by them on the purchase of non-electronic product categories during DOD promotional schemes. Electronic products get deeper discounts in the US during festival seasons as compared to non-festival seasons during DOD promotional schemes. In emerging economies discounts offered by e-commerce retailers during DOD offers on electronic items are lesser as compared to those offered during DOD offers made in developed economies like United States.Practical implicationsManagers should avoid offering the same products under DOD during the festive season and non-festive season at similar prices in emerging economies as during festivals customers expect more savings over and above the regular savings.Originality/valueDOD is offered every day irrespective of the other promotions on e-commerce platforms to boost sales. This study analyses any significant difference in saving for DOD offered during special sales days in emerging and developed economies.

scholarly journals Multimedia Super Corridor, Malaysia

VINE ◽  
2015 ◽  
Vol 45 (1) ◽  
pp. 126-147 ◽  
Author(s):  
Tan Yigitcanlar ◽  
Muna Sarimin
Keyword(s):  
Emerging Economies ◽  
Design Methodology ◽  
Effective Strategy ◽  
Content Type ◽  
Developed Economies ◽  
Knowledge Based ◽  
Catching Up ◽  
Multimedia Super Corridor ◽  
Planning Development ◽  
Development And Management

Purpose – This paper aims to investigate and provide insights on knowledge-based urban development (KBUD) in the context of emerging economies. KBUD has been an effective strategy and an opportunity for emerging economies for catching up with the developed economies. Design/methodology/approach – The paper scrutinizes the Multimedia Super Corridor (MSC) of Malaysia by focusing on the planning, development and orchestration of the knowledge corridor. Findings – The paper reveals a number of lessons and insights drawn from the development of MSC as the largest manifestation of the KBUD initiative in Malaysia. Originality/value – The paper provides lessons and recommendations on the planning, development and management of KBUD for emerging economies that are seeking a prosperous development.

Experience the “ambience”

2016 ◽  
Vol 11 (2) ◽  
pp. 148-174 ◽  
Author(s):  
Jun Wu ◽  
Anshu Saxena Arora ◽  
Amit Arora
Keyword(s):  
Emerging Economies ◽  
Purchase Intentions ◽  
Customer Engagement ◽  
Content Type ◽  
Relationship Strength ◽  
Developed Economies ◽  
World Markets ◽  
The World ◽  
The Usa ◽  
Huge Challenge

Purpose – Ambient advertising is a unique, intimate and non-traditional form of communication between the product and the consumer; and uses all physical and environmental elements leading to stronger customer engagement. The purpose of this paper is to explore the innovations in ambient advertising including flash mob dancing, use of structures, posters, props, bus tickets, supermarket floors, shopping carts, bank receipts, animals, and other strange and unusual venues in developed economies (e.g. the USA) vs emerging economies (e.g. India). Design/methodology/approach – The research proposes relationship strength (R)-inherent drama (I)-prodigious execution (P) or R-I-P conceptual framework to measure ambient advertising and delves into the R-I-P constructs of ambient advertising. Findings – The results of Study 1 demonstrate that consumers’ global consumption orientation positively influences their attitudes toward ambient advertising. Results from Studies 2 and 3 exhibit interesting comparisons of innovations in ambient advertising between the USA and India; which improves understanding of globalization of ambient advertising in both developed and emerging economies. Relationship strength (R) between the product and the customer strengthens ad believability in both developed and emerging economies; while inherent dramatic surprise (I) displays contrasting results for developed and emerging economies. Prodigious execution (P) results in ad irritation for developed economies while it has no impact for emerging economies. Research limitations/implications – Overall R-I-P constructs of ambient advertising strengthen brand and ad attitudes and purchase intentions. The research has strong implications for advertising innovations in the USA vis-à-vis India, and demonstrates stronger implications of advertising internationalization across developed and emerging economies. Originality/value – The research is valuable in the context of emerging and developed economies of the world with respect to ambient advertising. The research explores the trends in ambient advertising and develops measures for testing perceptions of consumers in various world markets toward ambient advertising. The world economies exhibit varying levels of acceptance and appreciation to the global emerging advertising trends, and this presents a huge challenge to the companies worldwide.

Stock market, banking sector and economic growth

2019 ◽  
Vol 36 (3) ◽  
pp. 348-364
Author(s):  
Soumya Guha Deb ◽  
Sibanjan Mishra ◽  
Pradip Banerjee
Keyword(s):  
Stock Market ◽  
Causal Relationship ◽  
Emerging Economies ◽  
Banking Sector ◽  
Financial Sector ◽  
Real Sector ◽  
Content Type ◽  
Developed Economies ◽  
Financial Sector Development ◽  
Economic Boom

Purpose The purpose of this paper is to examine the causal relationship between economic development and financial sector development for 28 countries at different stages of their development. The authors specifically focus on the nature of causality during economic boom and tranquil cycles. Design/methodology/approach The study uses quarterly time series panels of 17 developed and 11 emerging countries, during 1993Q1-2014Q4 with each having three sub-panels – full sample, a period of the economic uptrend (UP), and period of the economic downtrend. The authors use a univariate analysis for initial screening followed by panel unit root test, panel co-integration and causality test proposed by Toda–Yamamoto to examine the causal relationship. Findings The principal results suggest that for developed economies, there is a causal flow from financial sector to real sector in line with the “supply-leading” hypothesis, whereas for emerging economies, it is from real sector to financial sector, in line with the “demand-following” hypothesis. This overall relationship is strong for both emerging and developed economies during economic boom or UP cycles, but becomes weak during economic downturns or tranquil periods. Originality/value This study is different from previous studies on this issue and contributes to the existing literature in a number of ways. First, the focus of this paper revolves around identification of differential patterns in causal flows between real and financial sectors for different economies, across different economic cycles. Second, to present a robust representation of financial sector, the authors consider both banking sector and stock market parameters as the proxy for financial sector development. Third, the authors address the “stock-flow problem” in the measurement of financial variables a typical criticism of some of the previous studies. Finally, the authors use a rich sample size comprising of about 2,500 quarterly observations for each variable, with about 1,500 observations from developed and 1,000 from emerging economies.

Institutional distance as a determinant of outward FDI from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rishika Nayyar ◽  
Jaydeep Mukherjee ◽  
Sumati Varma
Keyword(s):  
Emerging Economies ◽  
Fixed Effects ◽  
Business Environment ◽  
Institutional Distance ◽  
Theoretical Frameworks ◽  
Data Set ◽  
Content Type ◽  
Corporate Managers ◽  
Developed Economies ◽  
Isomorphic Pressures

PurposeThe purpose of the paper is to examine the role of institutional distance as a determinant of outward foreign direct investment (OFDI) from India. The study combines a nuanced view of institutional distance, with traditional location factors to analyze Indian OFDI flows to developed and emerging economies (EEs) during the period 2009 to 2017.Design/methodology/approachThe paper employs fixed effects panel regression model on an unbalanced panel data set.FindingsThe findings suggest that India's OFDI is undeterred by the isomorphic pressures caused by regulatory and normative institutional distance, but cognitive institutional distance acts as a deterrent in developed economies. Indian MNEs engage in institutional arbitrage as they simultaneously engage in strategies of institutional escapism and institutional exploitation. The study also finds that emerging economies have emerged as an important destination for strategic asset seeking FDI, in addition to developed economies.Practical implicationsThe findings of the study present important implications for policymakers and corporate managers. For policymakers, the study points toward the need for improving the general business environment at home to prevent escapist OFDI and trade enhancement as a tool to overcome cognitive barriers and behavioristic stereotypes. For corporate managers, the study's findings underline the importance of adopting different strategies for dealing with different isomorphic pressures in developed and emerging economies.Originality/valueThe study adds value to the sparse literature using the IBV in the emerging markets context, to supplement and enrich existing theoretical frameworks. It is a pioneering study in its use of institutional distance as an explanatory factor for Indian OFDI and provides evidence of institutional arbitrage.

Drivers and barriers of new product development success: evidence from an emerging economy setting country-Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Halit Duran ◽  
Serdal Temel ◽  
Victor Scholten
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Emerging Economies ◽  
Assessment Tool ◽  
New Product ◽  
Emerging Economy ◽  
Innovation Activity ◽  
Content Type ◽  
Developed Economies ◽  
Context Characteristics

Purpose Context characteristics of emerging economies differ significantly from those in developed economies. Considering this substantial difference, this study aims to identify the drivers and barriers for new product development (NPD) success in the context of an emerging economy by drawing on the resource-based view. Design/methodology/approach Data was collected from firms in different sectors in the Aegean Region of Turkey using the Wageningen Innovation Assessment Tool. Of 189 responses, 94 fit the criteria and used for statistical analysis. The data is analyzed using a two-step procedure, namely, a confirmatory factor analysis followed by a binary logistic regression that is used to model the probability in the study of the success of NPD. Findings The results reveal that along with the context characteristics of an emerging economy setting, internal capabilities matter for NPD success. Based on interviews with NPD managers, it was found that, among other factors, the close relationship with local customers is key for new product success, while introducing high innovative products to the market of an emerging economy may not be appropriate due to the specific conditions of such economies. Practical implications This study will be useful to the managers to understand the extent to which the degree of newness of a product affects NPD success in an emerging economy setting. It also highlights the importance of securing firm resources before starting an innovation activity in this setting where resources such as financial resources, knowledge and physical resources are limited. From a policy perspective, this study provides certain insights as well. That is, government officials in emerging economies should be very careful about their informal actions that might disrupt the investment and innovation environment. Originality/value Emerging economies are important for large firms seeking growth. They initiate manufacturing activities and increasingly perform innovation activities in those countries. However, the conditions to innovate are different from those in developed economies. Research into the factors that drive innovation is largely in an embryonic state. This study offers NPD researchers a deeper understanding of the drivers and barriers to innovation, particularly internal ones that may affect the NPD success in an emerging economy setting, in this case, that of Turkey. The results provide suggestions for policymakers to consider during the development of new innovation policies. For practitioners, this study outlines novel combinations of internal factors that lead to NPD success.

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