COVID-19 impact will extend recession in Argentina

2020 ◽  
Keyword(s):  
Foreign Investment ◽  
Leadership Role ◽  
Domestic Consumption ◽  
Global Crisis ◽  
Debt Restructuring ◽  
Content Type ◽  
Fiscal Balance ◽  
Investment And Financing ◽  
The Government ◽  
The Impact

Subject The impact of COVID-19. Significance The first COVID-19 coronavirus case in Argentina was reported on March 3, a 43-year-old man who had returned from Italy. Thirteen days later, the number of cases climbed to 68, including two deaths. Though there are no domestic (non-traceable) cases yet, the government has hurried to implement social distancing measures, attempting to contain the spread and prevent a crisis such as that of Italy. Impacts The outbreak will hit the Argentine economy through trade, foreign investment and financing, tourism and domestic consumption. Politically, Fernandez may benefit from being seen to play a decisive leadership role. Given the impact of the global crisis, any economic rebound will be postponed, as well as the convergence to fiscal balance. Debt restructuring is likely to face delays and increased obstacles given international and domestic volatility.

Understanding firm survival in a global crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Uday Salunkhe ◽  
Bharath Rajan ◽  
V. Kumar
Keyword(s):  
Marketing Research ◽  
Firm Survival ◽  
Consumer Response ◽  
Future Research ◽  
Term Survival ◽  
Global Crisis ◽  
Content Type ◽  
Customer Churn ◽  
The Government ◽  
The Impact

PurposeGlobal crises create an environment that is characterized by a fight for survival by countries, companies and citizens. While firms have adopted business initiatives to ensure survival in a global crisis, many measures are geared toward preventing customer churn, declining revenues and eroding market share. Such short-term focus raises an important question regarding long-term survival – how can firms survive a global crisis? The purpose of this study is to investigate how firms can survive a global crisis.Design/methodology/approachThis study considers pandemics as the study context and uses a triangulation methodology (past research, managerial insights and popular press articles) to advance the organizing framework. Using the process study approach, the proposed framework recognizes the onset characteristics of a global crisis with a focus on pandemics and the government actions that reflect the pandemic onset. The framework also identifies a logical order of three marketplace reactions to the pandemic – management response, consumer response and critical business transformations that ultimately lead to firm survival – and advances related research propositions of such reactions.FindingsBy deploying critical business transformations, firms can ensure firm survival in a pandemic by fostering engagement with customers, employees and resources. Additionally, the moderators that influence the relationships between (1) management response and critical business transformations, (2) consumer response and critical business transformations, and (3) critical business transformations and firm survival are identified. Finally, this study presents an agenda for future research.Research limitations/implicationsTo the authors' best knowledge, this is the first study to adopt an interdisciplinary approach to study firm survival in a global crisis such as a pandemic. This study answers the call for more research to the growing field of pandemic research in the areas of marketing research and marketing strategy.Practical implicationsThe learnings from this study can help firms on what to anticipate and how to respond in a crisis such as a pandemic.Social implicationsSocietal welfare is accounted for as firms plan to deal with a crisis.Originality/valueThis is the first study to propose a strategic framework to deal with a crisis that is largely unanticipated where the duration and the impact is not predictable.

Assessing sustainability marketing from macromarketing perspective: a multistakeholder approach

2020 ◽  
Vol 16 (4) ◽  
pp. 287-305 ◽  
Author(s):  
Soha Abutaleb ◽  
Noha El-Bassiouny
Keyword(s):  
Theory Of Planned Behavior ◽  
Planned Behavior ◽  
Purchase Intentions ◽  
Marketing Strategies ◽  
Content Type ◽  
Quantitative Research Methods ◽  
Sustainable Products ◽  
Government Role ◽  
The Government ◽  
The Impact

PurposeThe paper examines three main stakeholders in the market and their roles toward achieving sustainability marketing. Those stakeholders are consumers, companies and policymakers. The current study is examining consumers’ attitudes toward sustainability marketing and their purchase intentions of sustainable products through the use of theory of planned behavior. The paper is also examining the role of companies and policymakers in encouraging consumers to consider sustainability in their purchasing decisions.Design/methodology/approachConcurrent research study is applied, where qualitative and quantitative research methods are conducted at the same time for different purposes with equal weights. Qualitative interviews were applied with fast-moving consumer goods companies and policymakers, while quantitative surveys were applied with Egyptian consumers.FindingsThe results showed that companies are taking serious and effective steps in transforming their marketing strategies into sustainable marketing ones. The government role is still limited as there are no strict laws and regulations that force companies and factories in Egypt to develop sustainability marketing strategies. Consumers’ attitudes were highly affected by firms' sustainable practices as well as subjective norms that led to influencing their intentions toward purchasing sustainable products.Originality/valueAlthough the topic of sustainability marketing is considered by a plenty of researchers in the academic discipline, there are no studies that have combined the main three stakeholders' roles in achieving sustainability marketing in one study. The study highlights the impact of government role and firms' role on consumers' attitudes and purchase intentions toward sustainable products, especially convenient products. This was done through the adoption of the theory of planned behavior.

The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa

2016 ◽  
Vol 34 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Omokolade Akinsomi ◽  
Katlego Kola ◽  
Thembelihle Ndlovu ◽  
Millicent Motloung
Keyword(s):  
Stock Returns ◽  
Factor Model ◽  
Stock Exchange ◽  
Sharpe Ratio ◽  
Economic Empowerment ◽  
Content Type ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of Broad-Based Black Economic Empowerment (BBBEE) on the risk and returns of listed and delisted property firms on the Johannesburg Stock Exchange (JSE). The study was investigated to understand the impact of Black Economic Empowerment (BEE) property sector charter and effect of government intervention on property listed markets. Design/methodology/approach – The study examines the performance trends of the listed and delisted property firms on the JSE from January 2006 to January 2012. The data were obtained from McGregor BFA database to compute the risk and return measures of the listed and delisted property firms. The study employs a capital asset pricing model (CAPM) to derive the alpha (outperformance) and beta (risk) to examine the trend amongst the BEE and non-BEE firms, Sharpe ratio was also employed as a measurement of performance. A comparative study is employed to analyse the risks and returns between listed property firms that are BEE compliant and BEE non-compliant. Findings – Results show that there exists differences in returns and risk between BEE-compliant firms and non-BEE-compliant firms. The study shows that BEE-compliant firms have higher returns than non-BEE firms and are less risky than non-BEE firms. By establishing this relationship, this possibly affects the investor’s decision to invest in BEE firms rather than non-BBBEE firms. This study can also assist the government in strategically adjusting the policy. Research limitations/implications – This study employs a CAPM which is a single-factor model. Further study could employ a multi-factor model. Practical implications – The results of this investigation, with the effects of BEE on returns, using annualized returns, the Sharpe ratio and alpha (outperformance), results show that BEE firms perform better than non-BEE firms. These results pose several implications for investors particularly when structuring their portfolios, further study would need to examine the role of BEE on stock returns in line with other factors that affect stock returns. The results in this study have several implications for government agencies, there may be the need to monitor the effect of the BEE policies on firm returns and re-calibrate policies accordingly. Originality/value – This study investigates the performance of listed property firms on the JSE which are BEE compliant. This is the first study to investigate listed property firms which are BEE compliant.

South African government’s GBV plans may disappoint

2021 ◽  
Keyword(s):  
Civil Society ◽  
Private Sector ◽  
South African ◽  
Foreign Investment ◽  
Gender Based Violence ◽  
Content Type ◽  
Management Structure ◽  
National Strategic Plan ◽  
The Government ◽  
Gender Based

Significance Although President Cyril Ramaphosa has publicly committed to increase funding to combat what he calls South Africa’s “second pandemic”, there is a lack of transparency in how the government disburses funds linked to its National Strategic Plan (NSP) on Gender-based Violence and Femicide. Impacts Civil society groups will increase pressure on the government to make expenditure on GBV programmes more transparent. A new private-sector fund to contribute to the NSP has received strong early support, but its management structure is opaque. High levels of GBV will not only have significant humanitarian and social costs but may deter much-needed foreign investment.

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pawan Taneja ◽  
Ameeta Jain ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mandatory Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Reporting Requirements ◽  
Expectation Gap ◽  
The Government ◽  
Corporate Social ◽  
The Impact

Purpose Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. Design/methodology/approach An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Findings Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. Originality/value The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Ha ◽  
Mark J. Holmes ◽  
Gazi Hassan
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Probit Model ◽  
Innovation Activity ◽  
Heckman Selection Model ◽  
Content Type ◽  
Domestic Firms ◽  
The Impact ◽  
Local Firms

PurposeThis study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.Design/methodology/approachThe Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.FindingsWhile there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.Practical implicationsIn order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.Originality/valueGiven that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.

Indonesia’s new investment ministry faces headwinds

2021 ◽  
Keyword(s):  
Central Bank ◽  
Foreign Investment ◽  
Short Term ◽  
Sovereign Wealth Fund ◽  
Content Type ◽  
Speed Up ◽  
The Government ◽  
Roll Out

Significance The government hopes greater domestic and foreign investment can help turn around the pandemic-hit economy. The governor of Bank Indonesia (BI), the central bank, last week said GDP should grow by 4.6% in 2021, compared with last year’s 2.1% contraction. Impacts Indonesia will count on private vaccination, whereby companies buy state-procured jabs for their staff, to help speed up its roll-out. The Indonesia Investment Authority, a new sovereign wealth fund, will prioritise attracting more investment into the infrastructure sector. Singapore will continue to be Indonesia’s largest source of FDI in the short term.

To be more philanthropic when joining the government-controlled business association? Evidence from Chinese private firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Youliang Yan ◽  
Xixiong Xu
Keyword(s):  
Communist Party ◽  
Corporate Philanthropy ◽  
Emerging Market ◽  
Private Firms ◽  
Theoretical Understanding ◽  
Business World ◽  
Content Type ◽  
Business Association ◽  
The Government ◽  
The Impact

Purpose The purpose of this paper is to investigate whether and how affiliation with the government-controlled business association, namely, China Federation of Industry and Commerce (CFIC), affects corporate philanthropy in an emerging market. Design/methodology/approach Through an analysis of survey data gathered from Chinese private firms, this paper conducts multiple regressions to examine the impact of the CFIC membership on corporate philanthropy. Findings Empirical results show that the CFIC membership of private entrepreneurs is significantly positively associated with corporate philanthropy. Moreover, this study finds that the provincial marketization level and the firm Communist Party branch attenuate the positive association between CFIC membership and corporate philanthropy, indicating that the effect of CFIC on corporate philanthropy is more pronounced in regions with lower marketization level and firms without Communist Party branch. The findings are robust to various alternate measures of corporate philanthropy and remain valid after controlling for potential endogeneity. Practical implications Firms will be more active in corporate philanthropy to respond to the government’s governance appeal when they join the CFIC. This highlights the implications of political connections and in particular on the value of government-controlled business associations in the Chinese business world. Originality/value This study extends the literature on the determinants of corporate philanthropy and deepens the theoretical understanding of the governance role of business association with Chinese characteristics.

Critical criteria for enhancing consumption intention in restaurants during COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheng-Fang Chou ◽  
Chih-Hsing Sam Liu ◽  
Jun-You Lin
Keyword(s):  
Structural Equation ◽  
Consumer Behaviour ◽  
Mediating Effect ◽  
Sufficient Information ◽  
Content Type ◽  
Consumption Intentions ◽  
The Government ◽  
Media Channels ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is to illustrate the different systems controlling coronavirus disease 2019 (COVID-19) and curbing the impact of the virus on the hospitality economy. The author’s clarified the critical attributes of the government, organization management system and consumer behaviour using mediation-moderation models and demonstrated how those critical attributes influenced customer consumption intention during COVID-19 in Taiwan.Design/methodology/approachDue to the impact of the COVID-19 pandemic, this research is mainly distributed through online questionnaires through Facebook and other social media channels to recruit volunteers. Second, the pre-test survey used 100 questionnaires collected from juniors and seniors from a university in northern Taiwan to make predictions. Third, this study also conducted a questionnaire validity analysis, which identified 9 criteria and 34 items. Fourth, the questionnaire collected samples for a total of three months. Structural equation modelling was used to test the hypotheses in a sample of 1,098 consumers in Taiwan.FindingsThis study considers government, enterprise and consumer levels and conducts relevant factor analysis from consumers’ perspectives to understand the changes in consumer behaviour under COVID-19 influence. Regarding mediation, this study finds that information and communication mediate the relationships between crisis management and COVID-19 impact. Regarding moderation, this study exposes the critical moderating part of human resources, that hygiene and safety strengthen the relationships between COVID-19 impact and attitude towards life and that perceived anxiety strengthens the relationship between attitude towards life and consumption intention.Practical implicationsDuring COVID-19, restaurants should cooperate with the government to reduce the risk of community infection. Therefore, the government also needs to cooperate with restaurant companies to enhance the industrial economy, actively communicate with consumers and provide correct and sufficient information. At the same time, restaurant enterprises also need to have sufficient human resource arrangements, hygiene and safety planning to eliminate consumers’ doubts.Originality/valueThese findings indicate that consumers’ consumption intention to eat out is affected by the COVID-19 impact and attitude towards life. This research also confirms that perceived anxiety has a mediating effect on the relationship between consumer attitudes towards life and consumption intentions. To improve the restaurant economic process, they should consider solutions to reduce consumers’ perception of the COVID-19 impact and fear of eating out.

Impact of COVID-19 pandemic on indigenous contractors in a developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel Ayinde Olatunde ◽  
Imoleayo Abraham Awodele ◽  
Bosede Olajumoke Adebayo
Keyword(s):  
Developing Economies ◽  
Sampling Technique ◽  
Structured Interview ◽  
Additional Cost ◽  
Developing Economy ◽  
Content Type ◽  
Construction Contracts ◽  
The Government ◽  
And Performance ◽  
The Impact

Purpose The purpose of this study is to examine the impact of coronavirus disease 2019 (COVID-19) on indigenous contractors in a developing economy with a view to enhancing their performance. Design/methodology/approach The study used a purposive sampling technique to select 37 indigenous contractors with ongoing construction contracts in Osun State, Nigeria who provided data for the study. A structured interview protocol was used to elicit the required information from the interviewees and frequency, percentage and content analysis were used for data analysis. Findings The results showed that the critical impact of COVID-19 on indigenous contractors in a developing economy is: time overrun, loss of profit and creation of dispute. Further results showed that other impacts are a disruption in supply of labour, locally sourced materials are with additional cost, the additional cost of implementing COVID-19 protocols, difficulty in sourcing imported materials and absence of new jobs with the corresponding retrenchment of workers. Practical implications The study recommended special palliatives for the indigenous contractors from the government so as to cushion the impact of the pandemic on them, thereby enhance their survival and performance. A special arbitration panel is set up in each state of the federation to look at disputes arising from the aftermath of the pandemic, this is with a view to adequately compensate indigenous contractors with genuine and properly compiled claims. inferring from the findings of the study, it suffices to say that the severity of the impact of the pandemic is very high on indigenous contractors in developing economies, as such a better preparedness strategy could lessen the impact of such pandemic in the future. Originality/value The study is an attempt to unearth the impact of COVID-19 on indigenous contractors with ongoing construction contracts in a developing economy. The study will be of value to construction stakeholders in providing the information needed to devise strategies to minimise the impact of a pandemic on indigenous contractors in future projects thereby enhance their performance.

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