An Integrated Framework of Market and Nonmarket Strategies for Demoralized Transition Economies

2020 ◽  
Vol 25 (1) ◽  
pp. 84-104
Author(s):  
John H. Humphreys ◽  
Dragan Loncar ◽  
Guclu Atinc ◽  
Mario Hayek ◽  
Milorad M. Novicevic
Keyword(s):  
Transition Economies ◽  
Emerging Economies ◽  
Transition Economy ◽  
Nonmarket Strategy ◽  
Integrated Framework ◽  
Extant Literature ◽  
Nonmarket Strategies ◽  
Alignment Model ◽  
Market Strategies ◽  
Rapid Transformation

In the extant literature, transition economies are sporadically addressed under the moniker of emerging economies and often only through calls for more contextualized research. Moreover, not all transition economies are emerging, as attempts at rapid transformation have resulted in economic deterioration as well. Yet, we lack models that approach the coordination of market and nonmarket strategies in contexts experiencing ongoing economic malaise. Accordingly, we examined the institutional and market strategies of Frikom, a regional ice cream producer profiting in the demoralized transition economy of Serbia, to identify antecedents to socio-cultural demoralization, elaborate a reconstructed view of nonmarket strategy in a demoralized transition economy, and conceptualize an integrated alignment model for firms competing in demoralized transitional economic environments.

scholarly journals Integrated market and nonmarket strategies: Empirical evidence from the S&P 500 firms’ climate strategies

2022 ◽  
pp. 1-22
Author(s):  
Younsung Kim
Keyword(s):  
Climate Change ◽  
Climate Policy ◽  
Market Strategy ◽  
Nonmarket Strategy ◽  
Nonmarket Strategies ◽  
Business Opportunities ◽  
Resources And Capabilities ◽  
Market Strategies ◽  
Do So ◽  
Unique Dataset

Abstract Firms with well-formulated competitive market strategies could still fail due to their lack of effective nonmarket strategy. Climate change poses significant threats to firms and presents firms’ need to develop nonmarket strategy integrated with market strategy. Relying on the unique dataset of US S&P 500 firms’ responses to climate change, this study seeks to ask why some firms attempt to engage in climate policy making, while others do not do so. The results found that firms with organizational resources and capabilities underlying their carbon market strategy are more likely to support mandatory climate policy. It sheds light on the significance of integrated market and nonmarket strategies, particularly when business opportunities are controlled more by governments than by markets.

Principles of Evolutionary Modernization of Transition Economies

2009 ◽  
pp. 85-96 ◽  
Author(s):  
E. Rustamov
Keyword(s):  
National Culture ◽  
Transition Economies ◽  
Transition Economy ◽  
World Economic Forum ◽  
Governance Mechanisms ◽  
Beneficial Use ◽  
Strategic Issues ◽  
The World ◽  
Comparative Advantages ◽  
World Economic

The article considers strategic issues of modernization of the transition economy. The analysis is based on the methodology of the World Economic Forum where special attention is paid to the sequence of the transformation stages. The main conclusion is that modernization should combine implementation of the governance mechanisms with the beneficial use of comparative advantages of the national culture. In fact, modernization of the transition economy should be evolutionary. It is precisely this course of development that is relevant for Azerbaijan which has successfully upgraded its economy in the recent years.

scholarly journals PITFALLS OF TAXATION POLICY IN TRANSITION ECONOMIES

2001 ◽  
Vol 51 (1) ◽  
pp. 3-15
Author(s):  
R. P. Vranceanu ◽  
D. Daianu
Keyword(s):  
Fiscal Policy ◽  
Transition Economies ◽  
Transition Economy ◽  
Public Services ◽  
Optimal Level ◽  
The State ◽  
Policy Reforms ◽  
Taxation Policy ◽  
Cooperative Equilibrium ◽  
Global Performance

This paper develops two stylised models of the transition economy that challenge, to some extent, the conventional approach to policy reforms. In the first model, the absence of market-oriented institutions is responsible for the occurrence of a non-cooperative equilibrium, where the amount of public services provided by the state is too low, which, in turn, adversely affects the global performance of the economy. In the second model, a benevolent government will choose a taxation level that pushes too many firms out of the market; hence global supply falls below its optimal level. In both models, disruptions specific to transitional systems lead to abnormal responses to standard fiscal policy.

scholarly journals The new political macroeconomics in modern macroeconomics and its appliance to transition processes in Serbia

2011 ◽  
Vol 58 (4) ◽  
pp. 545-557
Author(s):  
Miomir Jaksic ◽  
Aleksandra Prascevic
Keyword(s):  
Economic Policy ◽  
Political Parties ◽  
Economic System ◽  
Transition Economies ◽  
Transition Economy ◽  
Policy Instruments ◽  
The Political ◽  
Political Uncertainty ◽  
European Parties ◽  
New Democracy

This study deals with important issues related to the new political macroeconomics and its appliance to the economic movements in Serbia, which is a country of ?new democracy? as well as with transition economy. In political macroeconomics, it is a known fact that the economic policy instruments can be used for political purposes - simulated improvement of economic indicators to win the elections. These options assume specific features in transition economies, such as the Serbian economy. The political instability in Serbia, reflected in frequent elections, as well as in the diversity in political and economic goals of the key political parties leading to increasing political uncertainty in both the pre-election and post-election periods, weakened the economic system. Simultaneously, using the economic policy for political purposes to support the ?pro-democratic? and ?pro-European? parties proved to be paradoxically justified.

The emergence of family entrepreneurship in the transition economy of Cuba

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eli Gimmon ◽  
Christian Felzensztein
Keyword(s):  
Transition Economies ◽  
Transition Economy ◽  
Small Scale ◽  
Entrepreneurial Firms ◽  
Content Type ◽  
Private Data ◽  
Set Up ◽  
Available Information ◽  
Depth Interviews ◽  
Family Entrepreneurship

PurposeTo better understand the emergence of small-scale entrepreneurial firms in the under-researched transition economy of Cuba.Design/methodology/approachGiven the scarcity of reliable publicly available information and restrictions on private data collection in Cuba, in-depth interviews were conducted with a panel of small-scale entrepreneurs at three different points in time. Evolutions are analyzed over this period.FindingsFamily can overcome institutional constraints by helping the entrepreneur deal with market and social obstacles. Despite the absence of a supportive entrepreneurial ecosystem, these new entrepreneurs and their families have been able to transform longstanding passive attitudes into positive steps to set up new small-scale ventures in a country facing unprecedented internal and external challenges.Originality/valueA new conceptual model of family support for entrepreneurship in transition economies is presented. The findings lend weight to institutional theory on overcoming constraints in emerging markets and extend the theory of family entrepreneurship to new transition economies.

Does farmers' trust towards buyers drive their entrepreneurial orientation?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Orjon Xhoxhi ◽  
Domenico Dentoni ◽  
Drini Imami ◽  
Engjell Skreli ◽  
Olta Sokoli
Keyword(s):  
Transition Economies ◽  
Entrepreneurial Orientation ◽  
Latent Variables ◽  
Transition Economy ◽  
Measurement Model ◽  
Informal Institutions ◽  
Entrepreneurial Activity ◽  
Cross Sectional ◽  
Content Type ◽  
Rural Context

PurposeIn contexts of transition economies generally characterized by weak formal institutions, a rich literature remarks the important role of informal institutions in fostering entrepreneurial ecosystems. Nevertheless, in the agricultural context, little is known yet about how and why institutions shape farmer entrepreneurship. To better understand how informal institutions shape farmer entrepreneurship, this paper investigates how farmers' trust towards their buyers influence their entrepreneurial orientation (EO) in the rural context of a transition economy.Design/methodology/approachA structured survey was conducted in June–July 2017 with Albanian dairy farmers. In total, 238 milk producers were interviewed. Confirmatory factor analysis (CFA) is employed to develop measures for the latent variables of the study (e.g. farmers' trust, EO), and an instrumental variable (IV) approach is employed to estimate the effect of farmers' trust towards the buyer on their EO, by using farmers' reciprocity as a suitable IV.FindingsEmpirical findings reveal that innovativeness, risk-taking and proactivity represent effective dimensions of farmers' EO also in the rural context of a transition economy. Furthermore, farmers' trust towards their buyers shapes their EO, and, at the same time, younger and wealthier farmers are more likely to have higher levels of EO.Research limitations/implicationsThe results show that there is an association between farmers’ wealth and their EO. This relationship can go both ways. However, cross-sectional studies are not appropriate to investigate feedback loops.Originality/valueThis study addresses a knowledge gap in the institution–entrepreneurship literature in transition economies, by making two contributions. First, it tests the measurement model for farmers' EO, an established psychological antecedent of farmers' entrepreneurial activity. Second, it tests the hypothesis that farmers' trust towards their buyers may influence their EO.

Company performance and optimal capital structure: evidence of transition economy (Russia)

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vladislav Spitsin ◽  
Darko Vukovic ◽  
Sergey Anokhin ◽  
Lubov Spitsina
Keyword(s):  
Capital Structure ◽  
Interest Rates ◽  
Transition Economies ◽  
Transition Economy ◽  
High Tech ◽  
Company Performance ◽  
Return On Assets ◽  
Content Type ◽  
Optimal Capital Structure ◽  
Optimal Capital

PurposeThe paper analyzes the effects of the capital structure on company performance (return on assets). The analysis is conducted in a large sample of high-tech manufacturing and service companies in the transition economy (Russian Federation). In addition to the aggregated analysis, separate investigations are conducted to scrutinize the impact of company age, size and location factors (the effects of agglomerations). This research postulates the existence and variability of the optimal capital structure and its dependence on economic crisis.Design/methodology/approachWe utilized a large sample that includes 1,826 enterprises over the period from 2013 to 2017. The estimation was performed using the panel-corrected standard error estimation technique (Prais–Winsten regression) to account for the panel nature and distributional properties of our data. The existence of the optimal capital structure was assessed based on a curvilinear (quadratic) function.FindingsThe results are consistent with the Static Trade-off Theory and show that this theory is applicable to countries with transition economy. They demonstrate that effective management of the capital structure can increase return on assets by 16–22%. The optimal share of borrowed capital is higher for small businesses compared to larger ones and for enterprises located in agglomerations compared to those located in other regions. A greater increase in profitability can be achieved by larger firm companies compared to smaller ones. High share of borrowed capital leads to negative profitability, i.e. to losses by enterprises. No significant differences in profitability growth were identified between young and mature enterprises. The optimal share of borrowed capital that maximizes return on assets is in the range of 0–21%.Research limitations/implicationsDue to the SPARK policies, our access to the data has been limited to a five-year window, which imposed certain limitations on the choice of econometric methods we could have employed and somewhat limited our ability to contrast the effect of the crisis period with the period of stability. In this sense, although our results pertaining to the effect of the crisis could be treated as conservative, future research should consider extending the panel to include more years into consideration.Practical implicationsWe identified significant differences between optimal capital structures and actual capital structures for high-tech enterprises. The contribution of this study is that the calculations were made for a country with a transition economy under crisis conditions. Countries with transition economies and developing countries tend to be characterized by a high level of interest rates on loans and a high proportion of borrowed capital in total assets. This poses difficulties for companies relying on borrowed capital to finance their operations. At the same time, our results demonstrate that in transition economies, enterprises in high-tech industries do have an optimal capital structure that allows maximizing firm performance. That is, Static Trade-off Theory is applicable to transition economies characterized by high interest rates on loans.Originality/valueThe novelty of this study lies in the detailed analysis of high-tech industries in Russian Federation. This analysis makes use of sophisticated econometric techniques for the first time in this context.

scholarly journals Managers and Leaders in Organizations of a Post-transition Economy

Organizacija ◽  
2009 ◽  
Vol 42 (3) ◽  
pp. 87-94
Author(s):  
Mojca Prevodnik ◽  
Roberto Biloslavo
Keyword(s):  
Transition Economies ◽  
Transition Economy ◽  
Management Development ◽  
Organizational Life ◽  
Organizational Life Cycle ◽  
Non Profit ◽  
Upper Management ◽  
Challenges And Opportunities ◽  
Management Positions ◽  
New Challenges

Managers and Leaders in Organizations of a Post-transition EconomyManagers and leaders are different figures within an organization but are also alike. During different stages of the organizational life cycle we sometimes need more manager-oriented people and at other times more leader-oriented people. However most of the time we need them both in order to achieve a balance within the organization. Slovenia is a post-transition economy, facing new challenges and opportunities therefore the need for leader-oriented people is expected to be huge. Nevertheless our research showed that in Slovenian profit and non-profit organizations, upper management positions have been occupied by manager-oriented people but at the same time a balance exists between the two roles. We also found out that managers and leaders perceive the success of their organisations in quite a similar way. An adapted Hickman's questionnaire together with a content analysis of subordinates' comments about how they perceive their organization was used to ascertain the differences between them and their superiors. By knowing how employees perceive their managers and how the latter perceive themselves and their organizations we can develop better approaches to management development in post-transition economies.

scholarly journals The Role of Non-market Strategies in Establishing Legitimacy: The Case of Service MNEs in Emerging Economies

2019 ◽  
Vol 59 (4) ◽  
pp. 515-540 ◽  
Author(s):  
Peter Rodgers ◽  
Peter Stokes ◽  
Shlomo Tarba ◽  
Zaheer Khan
Keyword(s):  
Emerging Economies ◽  
Market Strategies
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