scholarly journals Country of Origin as a Constraint to Internationalization

2019 ◽  
Vol 4 (2) ◽  
pp. 105-113
Author(s):  
Raquel Meneses ◽  
Sara Santos

Objective – Globalization has enabled the increase of competitiveness and opportunities for companies to sell their goods to worldwide consumers. Due to the wider range of products offered and increasing similarity of those products, the country of origin becomes an important variable when studying the evaluation process of foreign products. The origin of a product acts as a mark of quality, which ultimately influences the purchase intentions of consumers. When negative, this may act as a constraint on internationalization, making it difficult to accept a product from a certain origin. There is, therefore, a gap in how companies can mitigate and overcome a negative country of origin effect (COE). This study seeks to fill this gap and suggest strategies to overcome this issue. Methodology/Technique –The methodology applied in this study is the Grounded Theory. The data was collected from interviews with Portuguese entities, so different cases can be compared and discussed. Although Portugal’s image has changed over time, there remains a stigma associated with it. The most recent financial and political crisis has damaged the perception of Portugal in the international sphere, hence, it has been selected for the formation of a negative COE. Findings and Novelty – Some firms currently have existing strategies to resist the negative effect of country of origin, such as improvement of brand awareness, credibility and international visibility. To achieve that, companies must adopt a wide set of strategies which involve both defensive and offensive approaches. Type of Paper: Empirical Keywords: Country of Origin; Country of Origin Effect; Internationalization; Constraints; Grounded theory. Reference to this paper should be made as follows: Meneses, R.; Santos, S. 2019. Country of Origin as a Constraint to Internationalization, J. Bus. Econ. Review 4 (2): 105 – 113 https://doi.org/10.35609/jber.2019.4.2(5) JEL Classification: F6, F60, F69.

1994 ◽  
Vol 2 (2) ◽  
pp. 49-62 ◽  
Author(s):  
Gregory R. Elliott ◽  
Ross C. Cameron

Consumer attitudes to local and foreign products and the likely “country-of-origin” effect in “Buy Local” and “Made In …” campaigns are surveyed. First, the importance of country of origin in relation to other product attributes is considered. Second, country of origin is assessed as a surrogate indicator of product quality. Third, the likely effect of country of origin on consumer choice across a range of product categories is studied with brand name and price held constant. Across the product categories studied, respondents rated country of origin as significantly less important as a choice determinant than product quality and price. In addition, clear country-of-origin effects are identified. Consumers rate products as being of significantly different quality when the only variation between products is stated country of origin. Further, consumers express a marked preference for locally made products when price, technical features, and brand name are invariant, and where the locally made product is perceived to be superior or, at least, not significantly inferior to an overseas-made product. Where the locally made product is perceived to be of inferior quality to the imported product, consumers generally prefer an imported product. Thus, while consumers rate country of origin after product quality and price, when these other factors are equivalent, the fact that the product is promoted as locally made is a positive influence on product choice.


2015 ◽  
Vol 18 (1) ◽  
pp. 48-68 ◽  
Author(s):  
Mourad Touzani ◽  
Smaoui Fatma ◽  
Labidi Mouna Meriem

Purpose – The purpose of the current study is to attempt to contribute to the understanding of some socio-cultural factors likely to explain the preference for international products in emerging countries, and more specifically those characterising former colonised countries in the Middle East and North Africa. Design/methodology/approach – The chosen approach is exploratory and of a qualitative inductive nature. It was based on a series of semi-structured and unstructured in-depth interviews with Tunisian consumers about their relationship to local and foreign products. Findings – A set of complex and inter-related explanatory factors of the country-of-origin phenomenon emerged through the analysis, notably the complex of the decolonised, acculturation in situ, frustration towards the West and sensitivity to the Western fashion system. Research limitations/implications – The main limitation of this research is that the interviews were carried out among people living in the three main cities of Tunisia, which are urban settings. Practical implications – This research proposes a general framework and a set of new constructs that may be used by leaders of businesses, communications agencies or distribution companies. These elements may help them for segmentation, assortment and range decisions, and brand names. Social implications – Given the failure of “buy local” campaigns, this research shows the importance to revive Tunisian consumers’ feeling of identification with their local culture and to reconcile them with their own identity. Suggestions are given to reach these objectives. Originality/value – This research proposes a framework explaining how the country-of-origin effect in emerging countries operates in a different manner from what has been suggested in the studies conducted in Western contexts.


2018 ◽  
Vol 15 (4) ◽  
pp. 348-362 ◽  
Author(s):  
Maria Montanari ◽  
Jonny Rodrigues ◽  
Janaina Giraldi ◽  
Marcos Neves

2017 ◽  
Vol 11 (2) ◽  
pp. 143-166
Author(s):  
Niranjan R.

The nexus between international financial integration and economic growth continues to be one of the most debated issues among macroeconomists, and these debates often raise several issues from the theoretical and policy perspectives. Financial integration can catalyse financial development, improve governance and impose discipline on macro-policies. However, in the absence of a basic pre-existing level of supporting conditions, financial integration can aggravate instability (Khadraoui, 2010). In addition, economic theory suggests that increased financial openness intensifies macroeconomic instability. This article investigates the financial integrational effects on macroeconomic instability in terms of output, consumption and investment volatility by employing the vector error correction model (VECM) with empirically reasonably parameters for an emerging economy, India, for the period 1989–2014. From the results, it is evident that financial openness has had a significant effect on output, consumption and investment volatility. Financial development has had a statistically significant negative effect on output, consumption and investment volatility. Similarly, trade openness and terms of trade significantly influence output, consumption and investment volatility. JEL Classification: F36, F41, F43, E32


Author(s):  
Romat Saragih ◽  
Arif Partono Prasetio ◽  
Bachruddin Saleh Luturlean

Objective – This study investigates the mediation role of job satisfaction in the relationship between work stress and turnover intention. A study about turnover intention in the textile company is still rarely done in Indonesia. This study can fill the gap regarding the topic. Methodology/Technique – A nonprobability sampling method with an accidental sampling technique was used, and we get 110 usable responses from a textile company in West Java, Indonesia. Macro Process with SPSS was used to measure the regression and the mediation. Findings – The study found that work stress has a negative effect on job satisfaction. Work stress significantly related to turnover intention in a positive direction. Job satisfaction did not have a significant relation with turnover intention. Thus, in this study, we found no mediation role in job satisfaction. Novelty – Evidently, work stress solely took part in shaping the turnover intention. Type of Paper: Empirical. Keywords: Work stress, Job satisfaction, Turnover intention, Textile Company, Mediation Reference to this paper should be made as follows: Saragih, R; Prasetio, A.P; Luturlean, B.S. 2020. Examining the Mediation of Job Satisfaction in the Relationship between Work Stress and Turnover Intention in Textile Company, J. Mgt. Mkt. Review 5(2) 113 – 121. https://doi.org/10.35609/jmmr.2020.5.2(4) JEL Classification: J28, J29, M19.


2016 ◽  
Author(s):  
Patricia Prado ◽  
Carles Alcaraz ◽  
Lluis Jornet ◽  
Nuno Alberto Caiola ◽  
Carles Ibáñez

The hydrological connectivity between the salt marsh and the sea was partially restored in a Mediterranean wetland containing isolated ponds resulting from former salt extraction and aquaculture activities. A preliminary assessment provided evidence that ponds farther from the sea hosted very large numbers of the endangered Spanish toothcarp, Aphanius iberus, suggesting that individuals had been trapped and consequently reach unnaturally high densities. In order to achieve both habitat rehabilitation and toothcarp conservation, efforts were made to create a gradient of hydrologically connected areas, including isolated fish reservoirs, semi-isolated, and connected salt marsh–sea areas that could allow migratory movements of fish and provide some protection for A. iberus. The fish community was monitored prior to, and for three years after rehabilitation. Results showed an increase in the number of fish species within semi-isolated areas (Zone A), relative to connected areas (Zone B), while at the assemblage level, structural differences between zones were higher than interannual variability. GLMs evidenced that distance to the sea was the most important variable explaining the local diversity of the fish community after restoration, with occasional influence of other factors such as temperature, and depth. The abundance of A. iberus was consistently higher in semi-isolated areas at greater distances from the sea, but a decline occurred in both zones and in isolated reservoir ponds after restoration efforts, which may be attributable to dispersal to adjacent habitats, and to interannual differences in recruitment success. A negative effect of restoration works on fish population cannot be excluded, but the final outcome of the intervention likely needs a longer period .


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