scholarly journals Integrating general and local context-dependent factors into a framework for analysing business sectors in Bottom-of-the-Pyramid emerging markets

2021 ◽  
Vol 5 (2) ◽  
pp. 85-118
Author(s):  
Maaike Broeksma ◽  
Bart Jan Willem (Bartjan) PENNINK
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Design Research ◽  
Developed Countries ◽  
Growth Potential ◽  
Local Context ◽  
Bottom Of The Pyramid ◽  
Country Differences ◽  
Context Dependent ◽  
Business Sectors

Abstract: Aim: This paper investigates how a framework for analysing business sectors in emerging markets looks like when taking into account the local context-dependent and general factors of The Bottom-of-the-Pyramid (BoP). The BoP segment in emerging markets represents a major growth potential for firms, including multinational enterprises (MNEs) from developed countries. However, the continued lack of success of MNEs in these markets has shown that generic one-size-fits-all strategies for the BoP are not appropriate as BoP contexts differ between countries. Design / Research methods: The sample that was selected for the research includes two non-governmental organizations (NGOs) related to the BoP and eight managers at MNEs with activities in the BoP have been interviewed in a semi-structured manner to collect rich data. Conclusion / findings: By interviewing eight managers at MNEs with activities in the BoP and two NGOs related to the BoP, an additional analysis, BoP-orientation, and further extensions to the original analyses are being presented. This results in an advanced framework for analysing business sectors in emerging markets. Originality / value of the article: Current frameworks for analysing business sectors in emerging markets do take into account inter-country differences but fail to recognize intra-country differences, which causes them to fall short on their applicability to the BoP. This paper fills the gap how frameworks for analysing business sectors in emerging markets can be made applicable for the BoP by taking into account both the local context-dependent and general factors of a BoP-market to analyse it for opportunities, threats, and eventually and strategic entry mode.

The influence of motivations on international location choice in least developed, emerging and developed countries: evidence from Chinese MNEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Angulo-Ruiz ◽  
Albena Pergelova ◽  
William X. Wei
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Location Choice ◽  
Emerging Market ◽  
Developed Countries ◽  
Asia Pacific ◽  
Institutional Constraints ◽  
Least Developed Countries ◽  
Content Type ◽  
Developed Economies

Purpose This research aims to assess variations of motivations when studying international location decisions. In particular, this study aims to assess the influence of diverse motivations – seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints – as determinants of the international location choice of emerging market multinational enterprises (EM MNEs) entering least developed, emerging, and developed countries. Design/methodology/approach The authors develop a set of hypotheses based on the ownership–location–internalization framework and complement it with an institutional perspective. The conceptual model posits that the different internationalization motivations (seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints) will impact the location choice of EM MNEs in developed economies, emerging markets or least developed countries. This study uses the 2013 survey data collected by the China Council for the Promotion of International Trade and the Asia Pacific Foundation of Canada. The final sample of analysis of this research includes 693 observations. Findings After controlling for several variables, two-stage Heckman regressions show there is a variation of motivations when EM MNEs enter least developed countries, emerging markets and developed economies. EM MNEs are motivated to enter least developed countries to seek markets and resources. Conversely, those firms enter developed countries in their search for technological assets and to escape institutional constraints at home. While the present study findings show a clear difference in the motivations that lead to location choice in least developed vs developed countries, the results are not as clear for location in other emerging countries. Research limitations/implications The paper offers empirical support for the importance of motivations as crucial determinants of location choice. Originality/value This paper provides a detailed quantitative study on the internationalization location choice of EM MNEs based on their motivations. Though theoretical models underscore the importance of motivations, we know very little about how, in practice, motivations drive location choice. This study contributes to the international location choice literature a deeper understanding of how diverse motivations drive choices of expansion into developed economies, emerging markets or least developed countries.

scholarly journals Determinants of Repayment among Male and Female Microcredit Clients in the USA. An Approach Based on Managers’ Perceptions

2020 ◽  
Vol 12 (5) ◽  
pp. 1701 ◽  
Author(s):  
Emilio M. Santandreu ◽  
Joaquín López Pascual ◽  
Salvador Cruz Rambaud
Keyword(s):  
Emerging Markets ◽  
Marital Status ◽  
Developed Countries ◽  
Growth Potential ◽  
Microfinance Institutions ◽  
Male And Female ◽  
Academic Level ◽  
External Pressures ◽  
The Usa ◽  
Better Than

Research on microfinance institutions (MFIs) has normally been focused on developing and emerging markets. However, an analysis of developed countries is also important for foreign MFIs wishing to take advantage of the growth potential of those markets. Therefore, the aim of this article is to determine whether MFIs working in the USA’s market should change or adapt their microcredit policies with respect to women. In effect, there are no studies in the USA supporting the argument that women are a better risk of microcredit than men, or that there are differences in microcredit repayment behavior between women and men. Additionally, it was investigated if the payment behavior of women and men is related to variables such as their age, ethnicity, academic level, marital status, or the characteristics of the microcredits, like purposes, amounts, and payment terms. In the USA, there are not—as in other countries—strong incentives, motivations, or external pressures, other than those that men also have, which influence women to pay their microloans better than men. Then, domestic and international MFIs attracted to enter the USA’s market should review their microcredit policies in relation to women. More research is needed about the microfinance market in the USA.

Reverse Innovation and the Bottom of the Pyramid Proposition

2014 ◽  
pp. 32-52
Author(s):  
Nebojša Radojević ◽  
Jahan Ara Peerally
Keyword(s):  
Multinational Enterprises ◽  
Large Scale ◽  
Social Impact ◽  
Developed Countries ◽  
Social Needs ◽  
Future Research ◽  
Bottom Of The Pyramid ◽  
Reverse Innovation ◽  
Developed Country ◽  
The Social

Analysing cases from India, this chapter reveals flaws in recent claims that reverse innovation can resolve some of the world's most urgent social problems. Reverse innovation implies the diffusion of innovations from developing to developed countries, and is therefore, per se, irrelevant for the social needs of the former. If understood more broadly, as a strategic approach, reverse innovation may reduce some dimensions of inequality. However, as an instrument of poverty reduction, reverse innovation equals the known and compelling but doubtful proposition that developed country multinational enterprises may induce large-scale prosperity simply by doing business with the world's poorest. In this chapter, the authors assess the social impact of reverse innovations and contrast previous wholesale claims on those impacts with an in-depth analysis. The authors’ analysis reveals that these social impacts are not as significant as currently believed. The chapter concludes by suggesting future research avenues on the bottom of the pyramid, which will be of key relevance to academics and managers alike.

Reverse Innovation and the Bottom of the Pyramid Proposition

2016 ◽  
pp. 1143-1164
Author(s):  
Nebojša Radojević ◽  
Jahan Ara Peerally
Keyword(s):  
Multinational Enterprises ◽  
Large Scale ◽  
Social Impact ◽  
Developed Countries ◽  
Social Needs ◽  
Future Research ◽  
Bottom Of The Pyramid ◽  
Reverse Innovation ◽  
Developed Country ◽  
The Social

Analysing cases from India, this chapter reveals flaws in recent claims that reverse innovation can resolve some of the world's most urgent social problems. Reverse innovation implies the diffusion of innovations from developing to developed countries, and is therefore, per se, irrelevant for the social needs of the former. If understood more broadly, as a strategic approach, reverse innovation may reduce some dimensions of inequality. However, as an instrument of poverty reduction, reverse innovation equals the known and compelling but doubtful proposition that developed country multinational enterprises may induce large-scale prosperity simply by doing business with the world's poorest. In this chapter, the authors assess the social impact of reverse innovations and contrast previous wholesale claims on those impacts with an in-depth analysis. The authors' analysis reveals that these social impacts are not as significant as currently believed. The chapter concludes by suggesting future research avenues on the bottom of the pyramid, which will be of key relevance to academics and managers alike.

scholarly journals Reverse Innovation Reconceptualised: Much Geo-Economic Ado about Primary Market Shift

2018 ◽  
Vol 19 (4) ◽  
pp. 70-82 ◽  
Author(s):  
Nebojša Radojević
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Economic Environment ◽  
Specific Situation ◽  
Reverse Innovation ◽  
Host Countries ◽  
Specific Host ◽  
Present Concept ◽  
Managerial Response

Present concept of reverse innovation urges multinational enterprises from developed countries to innovate for emerging markets, and to subsequently diffuse the outcome back to their home countries. The concept hence appears exclusively reserved for enterprises of particular size or origin, and for specific host countries or levels of development. This paper repositions the concept relatively to any enterprise’s dominant innovation logic, rather than relatively to its geo-economic environment. Reverse innovation thus becomes a template that any enterprise innovating for a new primary market abroad may customise to its specific situation regarding exogenous distances, endogenous distances, and managerial response.

Role of The Halal Industry in Recovering the National Economy in Covid-19 Pandemic

2020 ◽  
Vol 8 (2) ◽  
pp. 202-214
Author(s):  
Cucu Susilawati
Keyword(s):  
National Economy ◽  
Banking Sector ◽  
Developed Countries ◽  
Online News ◽  
Financial Industry ◽  
National Economic ◽  
Halal Food ◽  
Vigorous Growth ◽  
Business Sectors

The outbreak of the Covid-19 pandemic in Indonesia is attacking not only public health but also the economy. The presence of Covid-19 has many important impacts on developed countries. There are at least four industries most impacted by this pandemic, including households, MSMEs, companies and the financial industry. However, the halal industry is believed to be more resilient to the Covid-19 pandemic. This durability is because of the principles attributed to the halal sector, namely the importance of fairness, balance and openness. The author’s goal is therefore to carry out more in-depth research on the role of the halal industry in supporting the national economy, which is under pressure because of the COVID-19 pandemic. This type of study is a literature review with a material analysis approach that explores the conditions of the halal industry in Indonesia in depth. The material received is as books, published information, and online news. The findings of this study reveal that there are three halal business sectors that are believed to be more vulnerable to the Covid-19 pandemic in order to facilitate national economic recovery. Halal finance, halal food and halal fashion industries are among them. Halal finance from both the banking sector and the Islamic stock market has proved to be more robust than the mainstream financial sector. Besides guaranteed halal food, its wellbeing is also guaranteed, and halal fashion is now on the rise as Muslim fashion is increasingly innovative and global. We believe the three of them to have experienced vigorous growth, and also to continue to draw customers. And also after the Covid-19 pandemic, these three sectors could survive. Thus the halal industry also contributes to Indonesian economy.

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.

scholarly journals CSR reporting by Chinese and Western MNEs: patterns combining formal homogenization and substantive differences

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Irina Ervits
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Qualitative Content Analysis ◽  
Developed Economies ◽  
Csr Reporting ◽  
Business Operations ◽  
Advanced Economies ◽  
Chinese Mnes ◽  
Complex Picture ◽  
Corporate Social

AbstractIn light of the growing economic might and intensification of global activities of Chinese multinational enterprises (MNE), this paper looks into the nature of their corporate social responsibility (CSR) reporting. CSR communications of the largest Chinese companies and their counterparts from advanced economies have been compared based on quantitative and qualitative content analysis of CSR reports. A mixed method approach has been rarely utilized in the analysis of CSR reporting. To analyze CSR reports the paper uses a two-dimensional conceptual framework based on Wood (Acad Manag Rev 16:691–717, 1991); Jamali and Mirshak (J Bus Ethics 72:243–262, 2007) and Lockett, Moon and Visser (J Manag Stud 43:115–136, 2006); Moon and Shen (J Bus Ethics 94:613–629, 2010). The findings indicate that quantitatively Chinese MNEs display patterns of CSR reporting comparable to major MNEs in developed economies. This paper argues that just like MNEs from developed economies Chinese MNEs use a global CSR reporting template as a convenient tool to align and harmonize various isomorphic pressures. However, qualitatively substantive discrepancies in content have been also identified due to national or other contextual characteristics. The analysis reveals a complex picture of national and international isomorphic forces at play. The paper addresses the lack of consensus concerning convergence/divergence of CSR reporting across the globe and, more specifically, between developed economies and emerging markets. In this respect this paper responds to the general call for research looking into various aspects of business operations, including CSR reporting, of MNEs from emerging markets.

Assessing algorithms for selecting countries to market new products to low-income consumers

2013 ◽  
Vol 3 (4) ◽  
pp. 1-12
Author(s):  
Michael D Metzger ◽  
Arch G. Woodside ◽  
John C. Ickis
Keyword(s):  
Emerging Markets ◽  
New Product Development ◽  
Low Income ◽  
Food Packaging ◽  
New Products ◽  
Subject Area ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Decision Tools ◽  
Low Income Consumers

Title – Assessing algorithms for selecting countries to market new products to low-income consumers. Subject area – A consulting team to an international food packaging company (SDYesBox) is attempting to decide which algorithm is the most useful for selecting two national markets in Central America and the Caribbean. SDYesBox wants to work closely with its immediate customers – manufacturers in the dairy and food industry and their customers (retailers) – to develop and market innovative products to low-income consumers in emerging markets; the “next big opportunity for the dairy industry” according to SDYesBox. Study level/applicability – New product development and market selection in emerging markets in Latin America. Case overview – Five algorithms are “on the table” for assessing 14 countries by 12 performance indicators: weighted-benchmarking each country by the country leader ' s indicator scores; tallying by ignoring indicator weights and selecting the countries having the greatest number of positive standardized scores; applying a conjunctive and lexicographic combination algorithm; and using a “fluency metric” of how quickly consumers can say each country aloud. At least one member of the consulting team is championing one of these five algorithms. Which algorithm do you recommend? Why? Expected learning outcomes – Learners gain skills, insights, and experience in alternative decision tools for evaluating and selecting choices among emerging markets to enter with new products for low-income (bottom of the pyramid) products ands services. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

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