Foreign firms face risks in India's e-commerce space

2021 ◽  
Keyword(s):  
Market Share ◽  
Consumer Protection ◽  
Regulatory Framework ◽  
Foreign Firms ◽  
Government Agencies ◽  
User Privacy ◽  
Content Type ◽  
Foreign Companies ◽  
Domestic Companies

Significance The ruling offers relief to Amazon, which not only faces stiff competition but is also grappling with changes in India’s e-commerce regulatory framework. On June 21, the Ministry of Consumer Affairs proposed revisions to the Consumer Protection (E-Commerce) Rules, 2020. Impacts Reliance will call for a dilution of consumer protection rules if its efforts to capture market share are impeded. User privacy may suffer, despite official claims, if government agencies gain unfettered access to people’s e-commerce transactions. Foreign companies will strongly resist government efforts to make their data available to domestic companies. The rivalry between Amazon and Reliance is likely to be especially bitter and may trigger further legal battles. Beijing will criticise Delhi’s new efforts to curtail Chinese imports to India.

India's business and corporate climate blunts FDI plan

2016 ◽  
Keyword(s):  
Corporate Culture ◽  
Joint Ventures ◽  
Prime Minister ◽  
Business Environment ◽  
Foreign Firms ◽  
Land Acquisition ◽  
Due Diligence ◽  
Indian Market ◽  
Content Type ◽  
Foreign Companies

Subject India's corporate culture and its impact on government plans to attract foreign investment. Significance Prime Minister Narendra Modi's government has made attracting foreign direct investment (FDI) a key plank of its economic policy. Yet the record of foreign companies investing in India, whether through joint ventures or wholly owned subsidiaries, is mixed. Impacts Malfeasance and corruption are an ever-growing risk to joint ventures, underlining the need for foreign firms to invest in due diligence. Modi's pro-business rhetoric will far exceed actual government efforts to curb corporate corruption until his term ends in mid-2019. This will not help reduce foreign companies' potential exposure to long and expensive legal battles. Business environment constraints will impede efforts to attract foreign greenfield and brownfield investment, rather than portfolio capital. This will compound other difficulties of operating in the Indian market, such as land acquisition problems.

India’s new e-commerce rules hit foreign oligopolies

2019 ◽  
Keyword(s):  
Market Share ◽  
Foreign Firms ◽  
Content Type ◽  
Domestic Firms ◽  
Policy Review ◽  
Investment Treaty ◽  
Limited Success ◽  
Competitive Behaviour ◽  
New Challenges ◽  
Loyal Customers

Subject E-commerce policy. Significance Large foreign e-commerce players have captured market share by sacrificing immediate profits and pumping in capital to improve services and offer large discounts that attract loyal customers. Following a policy review on December 26, India has made it harder to continue this strategy, creating new challenges for firms such as Amazon and Walmart. Impacts India’s investment treaty model will uphold protections for domestic firms. Foreign firms such as Amazon will lobby Delhi for change, but likely with limited success. Anti-competitive behaviour by large domestic firms will become politically controversial.

Chinese e-commerce to grow despite internet crackdown

2016 ◽  
Keyword(s):  
Social Media ◽  
Market Access ◽  
The State ◽  
Foreign Firms ◽  
State Council ◽  
Online Publishing ◽  
Chinese Market ◽  
Content Type ◽  
Foreign Companies ◽  
Cross Border

Subject Foreign involvement in China's e-commerce sector. Significance Even as it cracks down on social media and moves to ban online publishing by foreign firms, China is easing restrictions on cross-border e-commerce. In January, the State Council announced the establishment of twelve new cross-border e-commerce pilot zones, which will make market access easier for foreign companies and lower the price of imported goods bought through cross-border e-commerce platforms operating in the zones. Impacts The cross-border e-commerce zones will help more foreign SMEs enter the Chinese market. Expansion of cross-border e-commerce zones will reduce the relative benefits to foreign retailers of a bricks-and-mortar presence in China. Further changes in tax policy affecting both bricks-and-mortar retailers and 'e-tailers' are likely this year.

Indonesian local polls are unlikely to deliver reforms

2017 ◽  
Keyword(s):  
Rent Seeking ◽  
Regulatory Framework ◽  
Regulatory Change ◽  
Business Climate ◽  
Local Authorities ◽  
Content Type ◽  
Foreign Companies ◽  
Regional Elections

Subject Regional elections outside Jakarta. Significance Regional head elections were held in seven provinces (including Jakarta), 76 districts and 18 cities across the archipelago on February 15. This was the second time that such elections were held simultaneously after a regulatory change was adopted in 2015 with the aim of reducing the logistics and costs associated with these elections. These polls hold the key to improving the regional business climate in the country. Impacts Competition in local polls and the national regulatory framework will curb political dynasties in Indonesia. Reforms to local judiciaries and bureaucracies are not forthcoming. This exposes foreign companies working with local authorities to rent-seeking and corrupt practices.

Russian internet will be subject to multiple controls

2016 ◽  
Keyword(s):  
Service Providers ◽  
Personal Information ◽  
Foreign Firms ◽  
The Internet ◽  
Web Traffic ◽  
Russian Government ◽  
Content Type ◽  
Foreign Service ◽  
Foreign Companies ◽  
Technical Ability

Subject Control of the internet in Russia. Significance Aware of the opportunities the internet offers political activists as well as criminals and terrorists, the Russian government is developing technologies and regulations to monitor and control the web. Intrusive measures introduced this year give security agencies access to personal information and web traffic within the country. As a warning to foreign service providers, the social media platform LinkedIn has been subject to a blocking order since November 17. Impacts Foreign companies operating in Russia will be pressured or persuaded to comply with restrictive regulations. Where compliance lays users open to scrutiny, it will entail reputational costs for foreign firms. Security agencies will acquire greater powers and technical ability to monitor and intercept internet traffic.

Social credit will affect foreign firms in China

2019 ◽  
Keyword(s):  
Credit Scoring ◽  
Regulatory Compliance ◽  
Foreign Firms ◽  
Credit System ◽  
Content Type ◽  
Playing Field ◽  
Foreign Companies ◽  
Social Credit ◽  
Corporate Social ◽  
The Cost

Subject China's corporate social credit system. Significance The corporate social credit system (CSCS) is now at a decisive stage as the authorities ramp up implementation and expansion nationwide. All companies, including foreign enterprises, will have to participate. Impacts Foreign companies operating in China will have to provide more data for credit scoring. The information made publicly available on CSCS platforms will be useful in evaluating the trustworthiness of business partners in China. The CSCS may level the playing field for foreign firms, because it is based on objective regulatory compliance measures. The CSCS will increase the cost of non-compliance with laws and regulations.

Foreign firms’ strategic positioning and performance in a host market

2018 ◽  
Vol 26 (2) ◽  
pp. 173-192 ◽  
Author(s):  
Henry Yu Xie ◽  
Qian (Jane) Xie ◽  
Hongxin Zhao
Keyword(s):  
Resource Partitioning ◽  
Foreign Firms ◽  
Local Market ◽  
Strategic Positioning ◽  
Market Knowledge ◽  
Content Type ◽  
Foreign Companies ◽  
Positioning Strategy ◽  
The Us ◽  
And Performance

Purpose Strategic positioning of foreign firms in a host market is vital for their success. By integrating the resource partitioning theory and the resource-based view, this study aims to investigate foreign firms’ strategic positioning (i.e. their choice of generalist or specialist positioning strategy) and its performance implications in the US market. Design/methodology/approach The final sample includes 212 foreign companies from 28 countries operating in the US market. Multiple data sources were used to collect data of these foreign companies’ subsidiaries in the USA This study used logistic regression to test its major hypotheses. Findings The results of this study suggest that a generalist positioning strategy is positively related to performance in a host market. It is also found that market concentration and local market knowledge moderate this strategic positioning – performance relationship. Research limitations/implications For a foreign firm that enters a host market, market concentration (an industry-level factor) in the host market and the firm’s local market knowledge (a firm-specific factor) play prominent roles in the strategic positioning – performance relationship. Originality/value This study offers a novel perspective of international business strategy by applying the lens of resource partitioning theory to study the relationships between multinational enterprises’ strategic positioning and performance. This study contributes to the strategy literature in that it examines the performance implications of firms’ strategic positioning (i.e. generalist or specialist positioning).

The gender wage gap and the presence of foreign firms in Vietnam: evidence from unconditional quantile regression decomposition

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dao Dinh Nguyen ◽  
Xinran Zhang ◽  
Trang Huyen Nguyen
Keyword(s):  
Quantile Regression ◽  
Gender Discrimination ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Wage Distribution ◽  
Foreign Firms ◽  
Content Type ◽  
Foreign Companies ◽  
Unconditional Quantile Regression ◽  
Quantile Regression Decomposition

PurposeThe objective of this study is to estimate the gender wage gap in Vietnam and its rural and urban areas, especially with the presence of foreign firms.Design/methodology/approachThe authors use cross-sectional data from three rounds of the Vietnam Household Living Standards Survey (VHLSS 2008, 2012, and 2016) to investigate this issue. The unconditional quantile regression and Oaxaca–Blinder (OB) decomposition are used in this article.FindingsThe article finds the gender wage gap favouring men, especially in higher quantiles of the wage distribution. The gap in urban Vietnam was higher than in rural areas. The OB decomposition indicates that gender wage gap is mainly driven by gender discrimination. The differences in return to participation in foreign companies only contributed significantly and positively to such a gap in some models. It suggests that the gap in those models is affected by gender discrimination in employment opportunities in foreign companies. Regarding the endowment effect, some models provide the significantly negative impacts of foreign firms on gender wage inequality.Originality/valueThe study suggests that policies to reduce the gender wage gap should pay more attention to foreign firms, especially at higher wage classes.

New product and emerging business growth in Kwara State

2016 ◽  
Vol 12 (3) ◽  
pp. 207-227 ◽  
Author(s):  
Seun Oladele ◽  
Femi Oladele
Keyword(s):  
Market Share ◽  
Manufacturing Industry ◽  
Service Industry ◽  
New Product ◽  
Sales Volume ◽  
Test Results ◽  
Business Growth ◽  
Content Type ◽  
Product Service ◽  
Service Portfolio

Purpose – The purpose of this paper is to examine the effect of new product on growth of emerging businesses (EBs) through sales volume and market share. Design/methodology/approach – The study surveyed 137 EBs in Kwara State. Two hypotheses were formulated and tested using correlation and regression analyses. Findings – Results show that service industry is dominant among EBs while the manufacturing industry trails. Many EBs are aware of the complexities of new product, its development and contribution to increasing sales volume, market share and ensuring competitive advantage with apparent infrastructural deficiencies. Test results show that there is a significant positive relationship and effect on sales volume and market share. Originality/value – Encouraging EBs to step up and focus on improving product/service portfolio to transform their fortune is explored giving focus to the benefits of increasing sales volume and market share.

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