SME export performance, capabilities and emerging markets: the impact of institutional voids

2017 ◽  
Vol 11 (2) ◽  
pp. 201 ◽  
Author(s):  
Yusaf H. Akbar ◽  
Bernardo Balboni ◽  
Guido Bortoluzzi ◽  
Andrea Tracogna
Keyword(s):  
Emerging Markets ◽  
Export Performance ◽  
Institutional Voids ◽  
The Impact

SME export performance, capabilities and emerging markets: the impact of institutional voids

2017 ◽  
Vol 11 (2) ◽  
pp. 201
Author(s):  
Guido Bortoluzzi ◽  
Andrea Tracogna ◽  
Bernardo Balboni ◽  
Yusaf H. Akbar
Keyword(s):  
Emerging Markets ◽  
Export Performance ◽  
Institutional Voids ◽  
The Impact

Export market orientation and export performance in emerging markets: insights from the Peruvian agri-export sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oscar Malca ◽  
Jean Pierre Bolaños ◽  
Jorge Luis Rubio Donet ◽  
Francisco Acedo
Keyword(s):  
Emerging Markets ◽  
Market Orientation ◽  
Export Performance ◽  
Export Market ◽  
Future Research ◽  
Content Type ◽  
Export Sector ◽  
Relational Norms ◽  
The Impact ◽  
The Relationship

PurposeThe objective of this research is to analyse the joint impact of export proactivity and coordination capacity as mediators on the relationship between export market orientation (EMO) and export performance and the relational norms and export continuity as EMO's antecedents.Design/methodology/approachThe study uses structural equation modelling for the analysis of 127 small and medium enterprises (SMEs) from the agri-export sector in Peru.FindingsThe research demonstrates the mediating role of export proactivity between EMO and export performance and the impact of relational norms as an antecedent of EMO as well as that of export continuity in export performance.Research limitations/implicationsThe cross-sectional study design has certain limitations; thus, longitudinal research is necessary to analyse the evolution of the impact of these variables. Future research should also consider new variables, such as absorptive capacity and institutional distance, in relation to EMO and export performance in emerging markets.Originality/valueThis research paper provides a perspective that is an alternative to the traditional literature related to EMO since coordination capacity and export proactivity have been used as EMO's antecedents. However, in emerging countries, such as Peru, exports are based on comparative advantages. Under this context, it is necessary to analyse export proactivity and coordination capacity as mediators of the relationship between EMO and export performance and the relational norms and export continuity as EMO's antecedents.

Online retailing: determinants of competition between multinationals and local firms in emerging markets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ilke Kardes ◽  
Leisa Reinecke Flynn ◽  
Michael Dugan
Keyword(s):  
Environmental Factors ◽  
Emerging Markets ◽  
Market Share ◽  
Future Research ◽  
Stepwise Logistic Regression ◽  
Institutional Voids ◽  
Online Retailing ◽  
Content Type ◽  
Online Retailers ◽  
The Impact

PurposeThe fundamental research question is which aspects of the external environment are most strongly associated with the differential market share between large multinational online retailers and smaller, local retailers in emerging markets. For the purposes of this study, the differential market share refers to the likelihood of having a higher market share for multinational online retailers than for local online retailers.Design/methodology/approachThe theoretical framework of the study is based on PESTLE analysis. This study uses longitudinal country-level archival data and conducts a stepwise logistic regression analysis to investigate the impact of environmental factors.FindingsThe results indicate that the effectiveness of law-making bodies and government involvement with information and communications technologies (ICTs) among other factors are significantly associated with a higher market share for multinational online retailers relative to local retailers.Research limitations/implicationsThe study examines the impact of certain external factors (i.e. socioeconomic variables and legal environment) on the differential market share between multinational online retailers and local ones. Future research should investigate additional factors such as cultural roles and internal operating dynamics of online retailers. The research emphasizes online retailing. A logical extension of the current study is to examine how the online retailing environment differs from the brick-in-store retailing environment relative to the competition. The current study investigates the differential market share between multinational and local online retailers only in the emerging markets setting. The results may differ if the developed market setting is also considered. We recommend that future research compares the developed markets and emerging markets settings relative to the differential market share between multinational and local online retailers.Practical implicationsNot all improvements in legal institutions are associated with improved market conditions for multinational online retailers. Managers of multinational online retailers must pursue some mitigation strategies to prevent institutional voids in emerging markets. Therefore, adapting the business model by collaborating and establishing relationships with local online retailers is an effective strategy to mitigate institutional voids (Doh et al., 2017; Yang et al., 2012). Moreover, multinational online retailers are recommended to collaborate with local governments to change unfavourable legal conditions (Doh et al., 2017; Boddewyn and Doh, 2011).Originality/valueThe extant literature on online retailing frequently addresses internal company characteristics and consumer behaviour. This study focuses exclusively on environmental factors associated with differential market share. We contribute to the literature on online retailing, retailing strategies and competition dynamics in emerging markets.

Institutional Voids als Problem internationaler Unternehmenstätigkeit in Emerging Markets

2019 ◽  
Vol 48 (10) ◽  
pp. 11-17
Author(s):  
Michael-Jörg Oesterle ◽  
Elena Weikum
Keyword(s):  
Emerging Markets ◽  
Institutional Voids

Bereits seit einigen Jahren ist eine steigende weltwirtschaftliche Bedeutung von Emerging Markets zu verzeichnen. Der Markteintritt westlicher Unternehmen in diese Länder kann dabei aber nicht nur mit Vor-, sondern auch mit Nachteilen verbunden sein. Der vorliegende Beitrag geht auf die besondere Bedeutung spezifischer institutioneller Rahmenbedingungen in Emerging Markets für den dortigen Markteintritt und die anschließende Marktbearbeitung durch westliche Unternehmen ein und gibt einen Überblick über mögliche Strategien zum Umgang mit diesen Rahmenbedingungen.

The Impact of Quantitative Easing on Emerging Markets – Literature Review

e-Finanse ◽  
2018 ◽  
Vol 14 (4) ◽  
pp. 67-76
Author(s):  
Piotr Bartkiewicz
Keyword(s):  
Emerging Markets ◽  
Large Scale ◽  
Empirical Literature ◽  
Quantitative Easing ◽  
Methodological Choices ◽  
The Subject ◽  
Methodological Approaches ◽  
The Impact ◽  
Sufficient Precision

AbstractThe article presents the results of the review of the empirical literature regarding the impact of quantitative easing (QE) on emerging markets (EMs). The subject is of interest to policymakers and researchers due to the increasingly larger role of EMs in the world economy and the large-scale capital flows occurring after 2009. The review is conducted in a systematic manner and takes into consideration different methodological choices, samples and measurement issues. The paper puts the summarized results in the context of transmission channels identified in the literature. There are few distinct methodological approaches present in the literature. While there is a consensus regarding the direction of the impact of QE on EMs, its size and durability have not yet been assessed with sufficient precision. In addition, there are clear gaps in the empirical findings, not least related to relative underrepresentation of the CEE region (in particular, Poland).

scholarly journals Rough diamonds in emerging markets: legacy, competitiveness, and sustained high performance

2019 ◽  
Vol 26 (3) ◽  
pp. 363-386
Author(s):  
Seung Ho Park ◽  
Gerardo R. Ungson
Keyword(s):  
Human Capital ◽  
Emerging Markets ◽  
High Performance ◽  
Core Competencies ◽  
Market Potential ◽  
Government Support ◽  
Screening Tests ◽  
Institutional Voids ◽  
Content Type ◽  
Over Time

Purpose The purpose of this paper is to uncover the underlying drivers of sustained high performing companies based on a field study of 127 companies in Brazilian, Russian, Indian and Chinese (BRIC) and Association of Southeast Asian Nations (ASEAN) emerging markets. Understanding these companies provides a complementary way of appraising the growth, development and transformation of emerging markets. The authors synthesize the findings in an overarching framework that covers six strategies for building and sustaining legacy that leads to the succession of intergenerational wealth over time: overcoming institutional voids, inclusive markets, deepening localization, nurturing government support, building core competencies and harnessing human capital. The authors relate these strategies to different levels of development using Prahalad and Hart’s BOP framework. Design/methodology/approach This study examines the underlying drivers of sustained high-performance companies based on field studies from an initial set of 105,260 BRIC companies and close to 500 companies in ASEAN. The methods employed four screening tests to arrive at a selection of the highest-performing firms: 70 firms in the BRIC nations and 58 firms from ASEAN. Following the selection, the authors constructed cases using primary interviews and secondary data, with the assistance of Ernst & Young and with academic colleagues in Manila. These studies were originally conducted in two separate time periods and reported accordingly. This paper synthesizes the findings of these two studies to arrive at an extended integrative framework. Findings From the cases, the authors examine six strategies for building and sustaining legacy that lead to high performance over time: overcoming institutional voids, creating inclusive markets, deepening localization, nurturing government support, building core competencies and harnessing human capital. To address the evolving state of institutional voids in these countries, the authors employ similar methods to hypothesize the placement of these strategies in the context of the world economic pyramid, initially formulated as the “bottom of the pyramid” framework. Originality/value This paper synthesizes and extends the authors’ previous works by proposing the concept of legacy to describe the emergence and succession of local exemplary firms in emerging markets. This study aims to complement extant measures of nation-growth based primarily on GDP. The paper also extends the literature on institutional voids in shifting the focus from the mix of voids to their evolving state. Altogether, the paper provides a complementary narrative on assessing the market potential of emerging markets by adopting several categories of performance.

Impact of sourcing from the informal economy on the export likelihood and performance of emerging economy firms

2021 ◽  
Author(s):  
Octavio Escobar ◽  
Olivier Lamotte ◽  
Ana Colovic ◽  
Pierre-Xavier Meschi
Keyword(s):  
Empirical Study ◽  
Competitive Advantage ◽  
Informal Economy ◽  
Institutional Economics ◽  
Export Performance ◽  
Emerging Economy ◽  
Institutional Voids ◽  
Manufacturing Plants ◽  
And Performance ◽  
Unique Dataset

Abstract Building on the institutional economics perspective, we study how local firms in an emerging economy exploit institutional voids by sourcing inputs from industries with a large informal economy. We argue that this allows them to build a cost-related competitive advantage and leverage it both to export and to enhance export performance. The empirical study uses a unique dataset compiled by the Mexican authorities covering manufacturing plants between 2005 and 2012. Our results indicate that firms operating in industries that procure from industries with an extensive informal economy are more likely to export and to have better export performance.

Mcdonald’s versus Vikram Bakshi

2021 ◽  
Vol 11 (4) ◽  
pp. 1-27
Author(s):  
Nitin Pangarkar ◽  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Service Industry ◽  
Executive Development ◽  
Content Type ◽  
Academic Level ◽  
Quick Service ◽  
Term Performance ◽  
The Impact

Learning outcomes The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges. Case overview/synopsis McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term. Complexity academic level MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

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