scholarly journals Challenges in Strategy and Management of Multinational R&D Centers in Emerging Markets: Perspective from a German Headquarters in the Chemical Sector

2013 ◽  
Vol 12 (1) ◽  
pp. 54-83
Author(s):  
Osmar Mitsuo Saito ◽  
Roberto Carlos Bernardes ◽  
Flávia Luciane Consoni ◽  
Bruno Rondani
Keyword(s):  
Emerging Markets ◽  
Exploratory Study ◽  
Organizational Management ◽  
Organizational Structures ◽  
Emerging Countries ◽  
Multinational Company ◽  
Developed Markets ◽  
China And India ◽  
Multiple Case ◽  
Management Capabilities

The expansion of multinational company (MNCs) operations abroad represents an observed trend for decades. The news is that in recent years the research and development (RD) activities also have become internationalized, including more intensified focus on emerging countries. Among the implications is the challenge for the MNCs to implement effective organizational structures with the intention to facilitate the articulated coordination of strategies and RD management between the headquarters and their global RD centers. The purpose of this study is to evaluate the strategy from the perspective of the corporate headquarters of a multinational company and the challenges in the formulation of the global RD strategy and management of each center located inemerging and developed markets. For this reason, we developed an empirical research based on qualitative multiple case exploratory study in a German chemical MNC company in its five global RD centers located in Germany (headquarters), USA, Brazil, China and India. The results suggested the needs to creation of organizational management capabilities for constant re-evaluation of its RD strategy in order to capture the demands and the temporary windows of opportunities from these markets. These capabilities lead to reducing the strong observed centralization level and assigning more responsibilities to the subsidiaries with global RD center status.

scholarly journals An Analysis and Comparison of Multi-Factor Asset Pricing Model Performance during Pandemic Situations in Developed and Emerging Markets

Mathematics ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 142
Author(s):  
Konstantin B. Kostin ◽  
Philippe Runge ◽  
Michel Charifzadeh
Keyword(s):  
Emerging Markets ◽  
Factor Model ◽  
Five Factor Model ◽  
Emerging Market ◽  
Model Performance ◽  
Research Area ◽  
Emerging Countries ◽  
Developed Markets ◽  
The Cost ◽  
Three Factor

This study empirically analyzes and compares return data from developed and emerging market data based on the Fama French five-factor model and compares it to previous results from the Fama French three-factor model by Kostin, Runge and Adams (2021). It researches whether the addition of the profitability and investment pattern factors show superior results in the assessment of emerging markets during the COVID-19 pandemic compared to developed markets. We use panel data covering eight indices of developed and emerging countries as well as a selection of eight companies from these markets, covering a period from 2000 to 2020. Our findings suggest that emerging markets do not generally outperform developed markets. The results underscore the need to reconsider the assumption that adding more factors to regression models automatically yields results that are more reliable. Our study contributes to the extant literature by broadening this research area. It is the first study to compare the performance of the Fama French three-factor model and the Fama French five-factor model in the cost of equity calculation for developed and emerging countries during the COVID-19 pandemic and other crisis events of the past two decades.

Loyalty cards, credit options and economic market development

2020 ◽  
Vol 48 (6) ◽  
pp. 591-607
Author(s):  
Stephan Zielke ◽  
Marcin Komor
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Credit Cards ◽  
Emerging Countries ◽  
High Price ◽  
Private Debt ◽  
Content Type ◽  
Product Categories ◽  
Developed Markets

PurposeThis paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of loyalty cards, (2) usage of credit cards and (3) usage of long-term credits.Design/methodology/approachMall intercept surveys conducted in Poland (emerging market) and Germany (developed market) provide data for testing a set of hypotheses using ANOVAs.FindingsResults show that customers in emerging markets show no differences in the usage of loyalty cards for product categories with high shopping frequency (groceries) compared to developed markets, while in all other product categories loyalty card usage is stronger. Results show further that in low price categories, customers in emerging markets use credit card payments more often compared to customers in developed markets. In high price categories, they use credit cards less often, but long-term credits more often.Research limitations/implicationsResults have implications for the design of loyalty programs and payment options in different markets. Results have also implications for public policy regarding concerns about increasing private debt in emerging countries.Originality/valueThis paper suggests a cost-benefit framework where customers in emerging countries perceive benefits of loyalty cards and credit options higher, while they are willing to bear higher costs. As a result, effects of product category characteristics on usage that are observable in developed markets do not exist in emerging markets.

scholarly journals The Approach of Major Players in Retail in Expanding Their Operations into Developing Markets – Taking Walmart as an Example

2021 ◽  
Vol 5 (9) ◽  
pp. 55-60
Author(s):  
Wenyan Zhang
Keyword(s):  
Emerging Markets ◽  
Business Performance ◽  
Mode Choice ◽  
Entry Mode ◽  
Emerging Countries ◽  
Entry Mode Choice ◽  
Developed Markets ◽  
Developing Markets ◽  
Specific Focus ◽  
Expansion Behavior

This research investigates the expansion behavior of international (giant) retailers, with a specific focus on the determinants of the entry mode choice in emerging markets based on the performance of Walmart in its venture into less developed markets. This research investigates the approach in which major players in retail are expanding their operations into other developing markets, specifically focusing on how the entry mode decisions of giant retailers moderate the risks and difficulties in making business in emerging countries. The objective of this study is to analyze and evaluate the potential causes and antecedents of large merchants’ entry mode (EM) choices by assessing Walmart’s business performance in less advanced nations in recent years.

EXPLORATORY STUDY OF EMPLOYEE ENGAGEMENT

2020 ◽  
Vol 4 (2) ◽  
pp. 102-106
Author(s):  
Tita Miawati ◽  
Widodo Sunaryo ◽  
Nancy Yusnita
Keyword(s):  
Employee Engagement ◽  
Exploratory Study ◽  
Research Method ◽  
Turnover Rate ◽  
Group Discussion ◽  
Multinational Company ◽  
Optimal Conditions ◽  
Implementation Program ◽  
Employee Groups ◽  
Company Growth

Employee engagement is now recognized as an important topic in the company because it relates with turnover rate, productivity of employee and finally to the company growth. A study conducted to describe the finding of an effort to increase the effectiveness of engagement implementation by company in order to increase level of employee engagement. The study used qualitative research method through exploratory study in a multinational company in Jakarta. Data obtained through interviews with key leaders of the company to find out how the implementation of engagement conducted by the company, and a Focus Group Discussion of employee groups to determine the condition of employee engagement. The researchers analyzed the data from both of company and employees to see if there is a gap between engagement implementation by the company and the conditions of employee engagement. To obtain the validity of the data, researchers used triangulation techniques carried out by experts in the HR field. The study found that the company's efforts to implement employee engagement had not been carried out optimally and equally on all engagement indicators. Likewise, the condition of employee engagement has not yet reached optimal conditions. The conclusion described that there is a gap between company’s engagement implementation program and the engagement conditions felt by employees. Thus, it is necessary to make efforts to improve the effectiveness of engagement implementation so that increasing the employee engagement bring contributes to the company's growth

Consumer Behavior in Emerging Markets

2018 ◽  
pp. 218-240 ◽  
Author(s):  
Raquel Castaño ◽  
David Flores
Keyword(s):  
Consumer Behavior ◽  
Emerging Markets ◽  
Emerging Market ◽  
High Income ◽  
Future Research ◽  
Psychological Processes ◽  
Developed Markets ◽  
Contextual Characteristics ◽  
Initial Framework

Emerging markets are substantially different from markets in high-income, industrialized societies. While many aspects of consumer behavior are the result of inherent psychological processes and are, thus, generalizable across countries and cultures, the specific contextual characteristics of emerging markets can significantly influence other aspects of consumer behavior. In this chapter, we explore the behavior of emerging market consumers. This chapter reviews the existing literature and proposes an initial framework delineating the main differences between emerging markets and developed markets consumers that describe how consumers in these societies recognize a need for, select, evaluate, buy, and use products. The chapter discusses the issues and contributions of the research on emerging consumers and presents implications of extant research for international managers. Finally, the chapter elaborates on an agenda for future research in this area.

Hierarchical Inconsistency: A Monitoring Mechanism to Reduce Securities Fraud in Emerging Markets

2021 ◽  
Author(s):  
Yidi Guo ◽  
Xiaowei Rose Luo ◽  
Danyang Li
Keyword(s):  
Emerging Markets ◽  
Organizational Structures ◽  
Securities Fraud ◽  
Social Hierarchies ◽  
Checks And Balances ◽  
Corporate Elite ◽  
Governance Effectiveness ◽  
Corporate Securities ◽  
Monitoring Mechanism ◽  
Weak Rule

Research has indicated limited effects of formal governance measures on securities fraud prevention in emerging markets due to the weak rule of law. We propose that hierarchical inconsistency, misaligned rank ordering in formal organizational and informal social hierarchies of the corporate elite, can provide a novel monitoring mechanism to reduce securities fraud. Leaders at the top of the two inconsistent hierarchies can feel distressed and motivated to engage in contestation and challenge each other’s authority, thus providing checks and balances and preventing groupthink. This monitoring effect is likely to be stronger when either of the two heads has dominant and unequivocal superiority in their respective hierarchy, making them particularly distressed by the hierarchical inconsistency and prone to contest. We test our argument in the context of publicly listed family-controlled firms in China, where business and family hierarchies may confer superiority to different individuals. Our study contributes to the corporate securities fraud literature by understanding how formal organizational structures and informal social relationships interact and jointly influence governance effectiveness in emerging markets.

scholarly journals Reach for Yield and Fickle Capital Flows

2018 ◽  
Vol 108 ◽  
pp. 493-498 ◽  
Author(s):  
Ricardo J. Caballero ◽  
Alp Simsek
Keyword(s):  
Emerging Markets ◽  
Capital Flows ◽  
Developed Markets ◽  
Global Liquidity

In Caballero and Simsek (2017), we develop a model of fickle capital flows and show that, when countries are similar, international flows create global liquidity and mitigate crises despite their fickleness. In this paper, we focus on the asymmetric situation of Emerging Markets (EM) exchanging flows with Developed Markets (DM) that feature lower returns but less frequent crises. Relatively high DM returns help to mitigate EM crises by reducing fickle inflows and by providing greater liquidity. The situation dramatically changes as the DM returns fall, as this increases the fickle inflows driven by reach for yield and exacerbates EM crises.

scholarly journals Do Investors Pay Yield Premiums On Green Bonds?

2020 ◽  
Vol 14 (2) ◽  
pp. 7-21
Author(s):  
Anna Mikhaylova ◽  
Irina Ivashkovskaya
Keyword(s):  
Emerging Markets ◽  
Large Scale ◽  
High Growth ◽  
Bond Market ◽  
Environmental Concerns ◽  
Public Authorities ◽  
Developed Markets ◽  
Financial Research ◽  
New Evidence ◽  
Bid Ask Spreads

Global shifts in perspectives on environmental concerns and the growing significance of large-scale sustainabilityprograms have brought the issue of green financing to the fore of financial research. In terms of volume, this area hasdemonstrated high growth rates in various types of capital markets.Unfortunately, few studies exist which explore the yields on green bonds in emerging markets in comparison todeveloped ones. As such, in this paper, we contribute new evidence to the field of green financing and outline severalmajor differences between green issues in these types of capital markets.We study yield premiums of green bonds on a sample of 2,450 green issues and comparable traditional bonds over theperiod from 2008 to March 2020. We contribute to the literature by new empirical evidence on green financing.Our results provide evidence of small but statistically significant negative premiums on green bonds of 23,4%1 comparedto the expected yields for standard issues. We also show that the negative premium on green bonds is more pronouncedin developed markets (- 27%2) than in emerging ones (18%3). Moreover, we provide new evidence on the negativepremium-liquidity relationship. Our research concludes that negative premiums are related to a higher level of liquidity:green bonds have lower bid-ask spreads and a higher level of liquidity than traditional ones.These conclusions can assist investors, potential issuing companies, and public authorities in achieving a betterunderstanding of the current situation of the green bond market in global terms.

Usefulness of Accounting Estimates

2016 ◽  
Vol 32 (1) ◽  
pp. 123-135 ◽  
Author(s):  
Li Li Eng ◽  
Thanyaluk Vichitsarawong
Keyword(s):  
Cash Flow ◽  
Exploratory Study ◽  
Abnormal Returns ◽  
Cash Flows ◽  
Recent Period ◽  
Future Earnings ◽  
China And India ◽  
Accounting Estimates ◽  
Out Of Sample ◽  
Over Time

This is an exploratory study to examine the quality or usefulness of accounting estimates of companies in China and India over time. Specifically, we examine how well the accounting estimates are able to predict future earnings and cash flows during the period 2003-2013. The results for India indicate that the out-of-sample earnings and cash flow predictions derived are more accurate and more efficient in the more recent period (2010-2013) than the earlier period (2003-2006). In contrast, the out-of-sample earnings and cash flow predictions for China are generally more biased, less accurate, and less efficient. The results indicate abnormal returns earned on hedge portfolios formed on earnings (cash flow) predictions for India in the recent period. In contrast, none of the portfolios for China earn positive returns. The results suggest that the accounting estimates in India in recent years have become better predictors of future earnings and cash flow than accounting estimates in the earlier period. However, the accounting estimates in China are not relevant for predicting earnings and cash flows over the years in the sample period.

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