EXPRESS: The Antecedents and Consequences of Local Product-Ethnicity Perception—A Study of an Asian Advanced Emerging Market

2021 ◽  
pp. 1069031X2110092
Author(s):  
Cher-Min Fong ◽  
Hsing-Hua Stella Chang ◽  
Hui-Wen Wang
Keyword(s):  
Emerging Market ◽  
Product Category ◽  
Developed Countries ◽  
Developed Country ◽  
Consumer Evaluations ◽  
Local Product ◽  
Key Factor ◽  
Local Embeddedness ◽  
Non Local ◽  
Antecedents And Consequences

While local product ethnicity (local PE, i.e., consumers’ perception of their own country as the stereotypical origin of a particular category) can serve as a key factor in explaining home-country biases in local product superiority, this construct has been ignored since it was introduced. To address this limitation, this article proposes a four-phase research model (consumer characteristics – construction of product category schema – categorization of local PE – evaluation of local vs. foreign products) to examine the antecedents and consequences of local PE in an Asian advanced emerging market, which is argued to be a more appropriate context (e.g., more evenly distributed local PE and non-local PE categories and coexistence of local and Western product superiority), as opposed to developed countries or less-developed emerging markets, for this study. For the antecedents, factors related to consumers’ experiences, information searching, and cognitive bases that can affect consumers’ construction of structured knowledge (schemas) about local products within particular categories are identified. Specifically, local embeddedness of product categories is introduced to capture consumer knowledge about strong connotations stereotypically linking the local country to particular categories. As for the consequences, consumer evaluations of local versus developed-country products/services between local-PE and non-local-PE categories are compared. Four surveys were conducted to empirically examine the model of local PE. The results support the hypotheses.

scholarly journals Firm-specific advantages: a comprehensive review with a focus on emerging markets

2020 ◽  
Author(s):  
Gilbert Kofi Adarkwah ◽  
Tine Petersen Malonæs
Keyword(s):  
Multinational Enterprises ◽  
Emerging Market ◽  
Empirical Studies ◽  
Developed Countries ◽  
Easy Access ◽  
Future Research ◽  
Management Competencies ◽  
Developed Country ◽  
Developed Economies ◽  
Research Areas

Abstract We consolidate and comprehensively review the international business (IB) literature on the firm-specific advantages (FSAs) of emerging market multinational enterprises (EM MNEs). We do so through a systematic examination of 88 empirical and conceptual articles published in top-ranked IB journals between 2011 and 2018. The results reveal that in the past decades, EM MNEs have acquired several of the same FSAs as their counterparts in developed countries (developed country enterprises or DC MNEs) - financial resources, technologies, marketing capabilities, brand equity, R&D intensity, and management competencies. However, more recently, EM MNEs have developed additional unique FSAs in the form of managerial capabilities - to cope with competition in uncertain and constantly changing environments; easy access to cheaper capital; a stronger commitment to networks, such as those with diaspora communities; and, political connections. These additional FSAs have catalyzed the internationalization of EM MNEs. Our study also shows that some hurdles remain in the IB literature on FSAs. For instance, while IB scholars agree that EM MNEs have different investment motives depending on whether they invest in other emerging economies or developed economies, scholars are silent on the exact FSAs necessary to make EM MNEs investments in the respective economies successful. To advance the IB literature, we present some promising future research areas and challenge scholars to pursue further empirical studies on the FSAs of EM MNEs.

Postacquisition asset redeployment and marketing adaptation: a consumer perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cher-Min Fong ◽  
Hsing-Hua Stella Chang
Keyword(s):  
Emerging Market ◽  
Brand Value ◽  
Brand Positioning ◽  
Brand Name ◽  
Moderating Effects ◽  
Developed Country ◽  
Consumer Evaluations ◽  
Content Type ◽  
Consumer Perspective ◽  
Consumer Assessments

PurposeThis research examines consumer assessments of brand value derived from the redeployment of brand-related assets following a crossborder acquisition (CBA). The current study synthesizes research on international marketing standardization/adaptation to the context of crossborder horizontal acquisitions as the market entry strategy to investigate consumer evaluations of the postacquisition choice of brand name and brand positioning.Design/methodology/approachA pretest and two studies were conducted in Taiwan to empirically examine effects from the theory-driven model of product legitimacy (PL) on an entity's postacquisition brand value, as well as any moderating effects of consumer localism.FindingsPostacquisition brands were evaluated more positively when positioned in a manner that was in accordance with perceived PL. Consumer localism as another contingency factor reflected consumers' favorable attitude toward marketing adaptation following CBAs.Originality/valueThis article is a pioneering work to draw on the consumer perspective to investigate asset redeployments between the acquirer and target following a crossborder horizontal acquisition. Specifically, this research introduces PL as a contingency factor to examine consumers' evaluation of brand value, which is derived from the redeployment of brand name and brand positioning in the context of a developed-country firm's acquisition of an advanced emerging-market firm for entry into the market.

Mean reversion in corporate leverage: evidence from India

2019 ◽  
Vol 45 (9) ◽  
pp. 1183-1198
Author(s):  
Gaurav S. Chauhan ◽  
Pradip Banerjee
Keyword(s):  
Capital Structure ◽  
Emerging Market ◽  
Simulated Data ◽  
Mean Reversion ◽  
Developed Countries ◽  
Data Sets ◽  
Debt Ratio ◽  
Testing Strategy ◽  
Content Type ◽  
Financing Behavior

Purpose Recent papers on target capital structure show that debt ratio seems to vary widely in space and time, implying that the functional specifications of target debt ratios are of little empirical use. Further, target behavior cannot be adjudged correctly using debt ratios, as they could revert due to mechanical reasons. The purpose of this paper is to develop an alternative testing strategy to test the target capital structure. Design/methodology/approach The authors make use of a major “shock” to the debt ratios as an event and think of a subsequent reversion as a movement toward a mean or target debt ratio. By doing this, the authors no longer need to identify target debt ratios as a function of firm-specific variables or any other rigid functional form. Findings Similar to the broad empirical evidence in developed economies, there is no perceptible and systematic mean reversion by Indian firms. However, unlike developed countries, proportionate usage of debt to finance firms’ marginal financing deficits is extensive; equity is used rather sparingly. Research limitations/implications The trade-off theory could be convincingly refuted at least for the emerging market of India. The paper here stimulated further research on finding reasons for specific financing behavior of emerging market firms. Practical implications The results show that the firms’ financing choices are not only depending on their own firm’s specific variables but also on the financial markets in which they operate. Originality/value This study attempts to assess mean reversion in debt ratios in a unique but reassuring manner. The results are confirmed by extensive calibration of the testing strategy using simulated data sets.

scholarly journals Globalization Impact on Multinational Enterprises

World ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 216-230
Author(s):  
Justine Kyove ◽  
Katerina Streltsova ◽  
Ufuoma Odibo ◽  
Giuseppe T. Cirella
Keyword(s):  
Developing Country ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Global Market ◽  
Data Availability ◽  
Negative Effects ◽  
Developed Country ◽  
Excellent Starting Point ◽  
Starting Point ◽  
The Impact

The impact of globalization on multinational enterprises was examined from the years 1980 to 2020. A scoping literature review was conducted for a total of 141 articles. Qualitative, quantitative, and mixed typologies were categorized and conclusions were drawn regarding the influence and performance (i.e., positive or negative effects) of globalization. Developed countries show more saturated markets than developing countries that favor developing country multinational enterprises to rely heavily on foreign sales for revenue growth. Developed country multinationals are likely to use more advanced factors of production to create revenue, whereas developing country multinationals are more likely to use less advanced forms. A number of common trends and issues showed corporate social responsibility, emerging markets, political issues, and economic matters as key to global market production. Recommendations signal a strong need for more research that addresses contributive effects in the different economies, starting with the emerging to the developed. Limitations of data availability and inconsistency posed a challenge for this review, yet the use of operationalization, techniques, and analyses from the business literature enabled this study to be an excellent starting point for additional work in the field.

Comparing entrepreneurial communities

2015 ◽  
Vol 9 (3) ◽  
pp. 206-220 ◽  
Author(s):  
Justin Paul ◽  
Archana Shrivastava
Keyword(s):  
Information Technology ◽  
Developed Countries ◽  
Personality Factors ◽  
Asian Countries ◽  
Cross Sectional ◽  
Developed Country ◽  
Content Type ◽  
Mba Students ◽  
Emerging Country ◽  
Survey Responses

Purpose – The purpose of this paper is to compare entrepreneurial attributes of MBA students, the next generation business people, from two important Asian countries, India from South Asia and Japan from East Asia (India, being an emerging country and Japan, a developed country). Design/methodology/approach – Survey responses from MBA students in India and Japan were measured on an entrepreneurial personality index. Bateman and Crant’s scale consisting of 17 traits is used to identify if entrepreneurial traits are a learned cultural behaviour or intrinsic personality factors. Findings – Although the findings indicate that India has benefitted from entrepreneurship in the information technology and information technology-enabled service ventures during the past two decades, the country still has a long way to go when compared to developed countries like Japan, where entrepreneurship is widespread. Research limitations/implications – The results are based on a single survey, using cross-sectional data. Originality/value – The level of entrepreneurship differs considerably across countries and periods. The authors put forward a theoretical framework to denote the linkage between entrepreneurial attitude, pro-active personality and culture, besides highlighting the three pillars of entrepreneurship.

Consumer ethnocentrism and consumer animosity: antecedents and consequences

2015 ◽  
Vol 10 (1) ◽  
pp. 73-88 ◽  
Author(s):  
Pilar Fernández-Ferrín ◽  
Belén Bande-Vilela ◽  
Jill Gabrielle Klein ◽  
M. Luisa del Río-Araújo
Keyword(s):  
Structural Equation ◽  
Product Category ◽  
Equation Modeling ◽  
Single Model ◽  
Specific Product ◽  
Content Type ◽  
Consumer Ethnocentrism ◽  
Consumer Animosity ◽  
The Us ◽  
Antecedents And Consequences

Purpose – Consumer ethnocentrism and consumer animosity provide marketing management with two useful concepts to understand the reasons behind consumers’ purchase decisions concerning domestic vs imported products. The purpose of this paper is to investigate the antecedents and consequences of animosity and ethnocentrism within a single model, and respondents’ evaluations of a specific product category are solicited. Design/methodology/approach – The study is conducted within an ideal context for the study of consumer animosity: data were collected in Belgrade shortly after the US-led NATO bombings of 1999. The surveys were carried out in person at the interviewees’ home. The sample was part of a regular omnibus panel composed of 270 adult respondents, of which 92.2 percent agreed to participate. Findings – The findings indicate that animosity and consumer ethnocentrism are distinct constructs. Also consistent with previous research, results obtained confirm that each construct has unique antecedents and consequences. Practical implications – Once consumer animosity and ethnocentrism levels have been measured, managers can then make decisions about whether to promote their country of origin or, alternatively, create more powerful local connections for their products. Thus, the consideration of animosity and ethnocentrism can be part of a firm’s international strategies. Originality/value – Previous studies on consumer animosity have demonstrated through structural equation modeling that the two constructs are distinct and have distinct antecedents, but research has not examined both the antecedents and the consequences of animosity and ethnocentrism in the same study. Thus, this study investigates the antecedents and consequences of animosity and ethnocentrism within a single model.

Lethal Toxic Encephalopathy Due to Childhood Shigellosis in a Developed Country

PEDIATRICS ◽  
1992 ◽  
Vol 89 (6) ◽  
pp. 1189-1193
Author(s):  
Avner Goren ◽  
Serem Freier ◽  
Justen H. Passwell
Keyword(s):  
Cause Of Death ◽  
Clinical Signs ◽  
Antibiotic Sensitivity ◽  
Developed Countries ◽  
Toxic Encephalopathy ◽  
Control Group ◽  
Healthy Children ◽  
Developed Country ◽  
Patients Âgés ◽  
Shigella Species

Shigellosis results in considerable morbidity in endemic areas, but mortality is rare in developed countries. All pediatric deaths (n = 15) in Israel following shigellosis in the past 10 years were reviewed. The patients' ages ranged from 5 months to 11 years; there were eight boys and seven girls. Three were institutionalized mentally retarded patients, 11 were healthy children. Twelve had definite clinical signs of brain death within 48 hours of onset of disease. Cause of death in all patients was consistent with toxic encephalopathy. No other systemic complication was implicated as the cause of death except for one case consistent with a "Reye-like" syndrome. Shigella species were as follows: 8 flexneri, 4 sonnei, 1 dysenteriae, and 2 were not identified. Case-control study of these patients vs surviving, hospitalized patients with shigellosis showed similar severity of fever, diarrhea, vomiting, and dehydration and similar incidence of convulsions. Headache was a prominent feature of patients who died; 5 of 7 verbal patients complained of this symptom as opposed to 2 of 20 in the control group (P < .01). There were no significant differences in the hematological and biochemical profile (except for an increased incidence of hyponatremia in the study group), pattern of shigella species, or antibiotic sensitivity. These findings indicate that mortality from shigellosis in a developed country is due primarily to the toxic encephalopathy syndrome.

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

2021 ◽  
Vol 13 (2) ◽  
pp. 233-248
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra
Keyword(s):  
Firm Performance ◽  
Manufacturing Industry ◽  
Emerging Market ◽  
Developed Countries ◽  
Emerging Economy ◽  
Content Type ◽  
Agricultural Industry ◽  
Indian Food ◽  
The Impact ◽  
The Relationship

Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.

Determinants of liquidity in Malaysian SMEs: a quantile regression approach

2018 ◽  
Vol 67 (9) ◽  
pp. 1566-1584 ◽  
Author(s):  
Shaista Wasiuzzaman
Keyword(s):  
Regression Analysis ◽  
Quantile Regression ◽  
Emerging Market ◽  
Developed Countries ◽  
Data Availability ◽  
Firm Level ◽  
Liquidity Management ◽  
Ols Regression ◽  
Content Type ◽  
Quantile Regression Analysis

PurposeThe management of liquidity has always been seen as a critical but often ignored issue in finance. Despite the abundance of studies on liquidity management, these studies mainly focus on developed countries and on large firms. Liquidity is critical for the small firm but studies on liquidity management in small and medium enterprises (SMEs) are lacking. The purpose of this paper is to examine the firm-level determinants of liquidity of SMEs in Malaysia.Design/methodology/approachData are collected for a total of 986 small firms in Malaysia from 2011 to 2014, resulting in a total of 2,683 observations. Firm-specific variables and the effect of the economy are considered as the possible determinants of liquidity. Ordinary least squares (OLS) regression analysis with standard errors adjusted for firm-level clustering and quantile regression analysis are used for this purpose.FindingsAnalysis using OLS regression technique indicates that a firm’s profitability, its growth, asset tangibility, size, age and firm status are significant factors in influencing its liquidity decision. Leverage and economic condition are not found to have any significant influence on liquidity. However, quantile regression analysis provides a different picture especially for SMEs with liquidity at the quantile levels ofθ=0.10 and 0.90. Atθ=0.10, only profitability, tangibility and firm status are significant, while atθ=0.90, tangibility, size, firm status and, to some extent, age are significant in influencing liquidity levels.Originality/valueTo the author’s knowledge, this is the first study analyzing the liquidity decision of SMEs in an emerging market such as Malaysia. Most studies on liquidity management of SMEs are focused on developed countries due to data availability but these studies are also only a handful. Additionally, this study uses quantile regression analysis which highlights the need to analyze financial decisions at different levels rather than at the aggregate level as done in OLS regression analysis.

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