Antecedents and consequence of the consumer's psychic distance in cross-border e-commerce

PurposeThe psychic distance often hinders the interaction between cross-border e-commerce (CBEC) and consumers. This paper aims to discuss the issues of psychic distance of consumers in the CBEC. In addition, it attempts to explain the factors that affect psychic distance from three dimensions of culture, economy and politics and the two different shopping behaviors caused by psychic distance.Design/methodology/approachThis research incorporates both theoretical and empirical studies. In this study, 249 validated questionnaires were selected from 300 Chinese CBEC consumers by snowball sampling, and the relationship between variables was tested using structural equation model (SEM). This was done through online research, and it is ensured that the data obtained are first-hand information.FindingsThe paper suggests the theoretical model operationalizing CBEC psychic distance and the empirical analysis results show that all the six influencing factors have a positive impact on the psychic distance of consumers. Logistics infrastructure barriers in the economic dimension are confirmed as the major influencing factor, and the significance of the political dimension is relatively small. Based on consumers' uncertainty of various kinds of information, psychic distance subconsciously causes consumers to deviate in the cross-shopping process.Originality/valueCurrently, research on e-commerce mainly focuses on saving trade costs and improving consumer welfare, while research on the internal impact of CBEC on consumers is insufficient. Psychic distance is a new concept in the field of cultural and social research. The originality of this paper is that the concept of psychic distance has been extended from overseas invested enterprises to research with CBEC consumers as the selected object. The obstacles of CBEC have been widely studied, but few are related to the closeness of consumers, or the inner feelings of consumers are ignored. In the context of CBEC, this paper lists the actual external factors and potential threats that may affect consumers' consumption concerns of CBEC from three dimensions. The real emotions of consumers in the face of these difficulties indirectly affect the purchase satisfaction and reduce the purchase desire. Consumer psychic distance is a real phenomenon in cross-border shopping, and it is almost inevitable for these difficulties. On the premise of inevitability, high psychic distance will slow down cross-border shopping in the eyes of consumers.

Drivers of integration of green into supplier selections: a systematic literature review

PurposeThis paper aims to provide a systematic review of extant literature on supplier selection by identifying drivers of integration of Environmental Sustainability (ES) into supplier selection, with the aim of classifying them under broad categories for the development of a framework showing the interrelationships among them.Design/methodology/approachA search was ran for selected keyword themes using three powerful and rigorous search engines: Scopus, Google Scholar and Science Direct, to identify relevant articles from 12 peer-reviewed journals. These were desk reviewed through manual filtering to select drivers of integration of ES into supplier selection.FindingsThirty-one drivers identified from 41 relevant articles as propelling integration of ES into supplier selection were then classified into five categories: strong policy direction, high level of commitment, desire for high reputation, robust technology and availability of green products. This yielded a framework showing the interconnectedness among the drivers.Research limitations/implicationsThe study contributes to the body of knowledge by developing a classification of drivers of integration of ES into supplier selection. The interconnectedness brought to the fore a more subtle appreciation of the drivers of green integration, which could help expand current knowledge outside the narrow scope of isolated drivers. This study provides detailed analyses of drivers of green integration into supplier selection.Originality/valueThis paper provides a comprehensive review of drivers of integrating green into supplier selection, which is lacking in the body of knowledge on ES.

Information technology exports and India's macro-economic indicators

PurposeThe aim of this paper is to make a descriptive exploratory effort to discern the role of IT exports in India's macro-economic indicators, like national income, employment and balance of payment in the post-Liberalization, Privatization and Globalization strategy in the 1990s. The paper also explores the vital historical developments of various dimensions of IT, such as its export growth, major software and services exports destinations, compositions of IT exports and domestic growth in India.Design/methodology/approachThis study is based on secondary data, which were collected from Balance of Payment Statistics Reserve Bank of India (RBI) and Handbook of Statistics on Indian Economy, National Association of Software and Service Companies (NASSCOM),rtd and Department of Electronics and Information Technology (DEITY). This study has used descriptive analysis and growth models for studying the objectives. Major IT sector dimensions, such as total output, exports revenue, domestic revenue, gross domestic product, employment and exports of the software and service industry, have been examined for the period 1991–2016.FindingsThe findings suggest that over the last 26 years, the information technology industry's economic footprint has extended by more than seven times. Over the same period, direct employment in the information technology sector increased at an average growth rate of around 17%. Software and services exports earn, on average, about three times greater than the other three major services of India's current account of the balance of payment.Originality/valueThis study focuses on originality in examining the role of IT exports in India's macro-economic indicators economic reforms of the 1990s and also explores the historical developments of various dimensions of IT exports and domestic growth in India. All the work has been done in original by the authors, and the work used has been acknowledged properly.

Interactions between Japan's “weaponized interdependence” and Korea's responses: “decoupling from Japan” vs. “decoupling from Japanese firms”

PurposeThis paper aims at exploring the interactions between Japan's export curbs against Korea, dubbed as “weaponized interdependence,” and Korea's decoupling from Japan' phenomenon in response. Thereby, it sheds light on the characteristics of the semiconductor industry, where the two economies' effective division of labor takes place. In addition, it attempts to typology the “decoupling from Japan” into two types. Furthermore, it deals with the political-economic implications of bilateral trade disputes and projects in the future.Design/methodology/approachThis paper segregates the economic concept of “decoupling” into “decoupling from Japan” and “decoupling from Japanese firms” to better analyze the related phenomenon that occurred in Korea in response to the Japanese government's export restrictions in 2019. Along with it, the paper attempts to observe the trade dispute between Korea-Japan from a political-economic point of view.FindingsThe main findings are: First, Korea's decoupling from Japan' does not necessarily mean “decoupling from Japanese firms”. When Korean firms had to decouple from Japan due to non-economic factors, some has circumvented the decoupling to maintain economic ties with Japanese firms in the market, stemming from long-term transaction relationships in the semiconductor industry. Second, the two countries were confronted in a modest manner, even though they seemed to be fighting like a fierce tit-for-tat chicken game as those economies are interdependent with one another. Hence, both put effort to avoid sober damages or disruptive results on two economies and the global semiconductor supply chain.Originality/valueThe originality of this paper is to typologize the characteristics of “decoupling from Japan” in Korea by segregating it into two types of decoupling. On the other hand, other previous studies appeal to focus on the decoupling phenomenon per se and are interested in its potential for success.

Services export diversification and services export revenue stability: does trade openness matter?

PurposeThe international trade literature has established that export product diversification lowers export product revenue instability. The current analysis investigates whether this finding carries over services exports.Design/methodology/approachThe empirical analysis covers a sample of 152 countries over the period 1980–2014 and employs the two-step system generalized method of moments (GMM) approach.FindingsThe empirical findings indicate that services export diversification reduces services export revenue instability both over the full sample as well as over sub-samples of high-income countries (HICs), least developed countries (LDCs) as well as developing countries (i.e. non-HICs) that are not LDCs. HICs appear to experience a higher positive effect of services export diversification on services export revenue instability than in developing countries. The analysis also shows that countries that further open-up to international trade enjoy a greater reducing effect of services export diversification on the instability of services export revenue.Research limitations/implicationsThis analysis, therefore, adds to the existing studies on the relationship between export product diversification and the instability of revenue derived from goods exports by focusing on the services export side. An important message from the analysis is that countries that diversify their services export basket enjoy lower services export revenue instability when they further integrate into the world trade market.Practical implicationsThis study highlights the importance of services export diversification, including for stabilizing services export revenue to services traders. Diversifying services export items, including across traditional and modern services sectors involves the implementation of a wide range of policies and measures, of which the liberalization of the services sectors through reduction and eventually the elimination of services trade barriers; the improvement of the business environment and the development of domestic financial markets (see for example, Hoekman, 2017). It could be interesting that another study consider policies and measures that could promote services export diversification.Originality/valueTo the best of the authors’ knowledge, this is the first time this topic is being addressed, including empirically.

Economic development, population and civil war: a Bayesian changepoint model

PurposeThis study proposes a Bayesian approach to analyze structural breaks and examines whether structural changes have occurred, at the onset of civil war, with respect to economic development and population during the period from 1945 to 1999.Design/methodology/approachIn the Bayesian logit regression changepoint model, parameters of covariates are allowed to shift individually, regime transitions can move back and forth, and the model is applicable to cross-sectional, time-series data.FindingsContrary to popular belief that the causal process of civil war changed with the end of the Cold War, the empirical analysis shows that the regression relationships between civil war and economic development, as well as between civil war and population, remain quite stable during the study period.Originality/valueThis is the first to develop a Bayesian logit regression changepoint model and to apply it to studies of economic development and civil war.

Effect of exchange rate uncertainty on bilateral trade performance in SAARC countries: a gravity model analysis

PurposeExchange rate uncertainty leads to an indecisive environment for imports and exports that would condense international trade, foreign direct investment, trade earnings, trade volumes, economic growth and welfare. This study aims to examine, empirically, the effect of exchange rate uncertainty on bilateral trade performance, focusing on eight SAARC member economies using the popular modified gravity model of trade.Design/methodology/approachThe paper includes eight SAARC members – Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka panel data set over the period 2005–2018. The authors consider both standardized value (standard deviation) and conditional variance model to determine volatility of exchange rate. Primarily, ordinary least squares, random effects and fixed effects estimation techniques are employed to investigate the impact of exchange rate volatility. Endogeneity and robustness of the findings have been tested using the simultaneity-adjusted model and dynamic panel data two-step system GMM estimation techniques.FindingsEmpirical findings endorse the view that exchange rate volatility lowers trade flows in the SAARC regions. However, this adverse effect of exchange rate uncertainty on trade is pretty small. The negative correlation between exchange rate volatility and bilateral trade remains consistent and significant after controlling of simultaneous causality, autocorrelation, year effects, country-pair heterogeneity and endogeneity irrespective of panel data estimation techniques and different measures of volatility.Originality/valueThe present paper is original work.

Observations of deglobalization against globalization and impacts on global business

PurposeThis study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an empirical model to test whether deglobalization exists in the world economy. The consequences of deglobalization are discussed.Design/methodology/approachVarious measures for deglobalization are introduced for monitoring the deglobalization of a country, and statistical measures are reported. The research framework for deglobalization and empirical models are suggested. The relationship between deglobalization and globalization is being modeled using three KOF globalization indexes: economic, political and societal. This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.FindingsDeglobalization has been found empirically since the global financial crisis. Deglobalization is estimated by the decreasing trend of import share in a country's gross domestic product and is influenced by manufacturing imports, country's income divide and political globalization. Both economic and societal globalizations have negative influence on deglobalization. Deglobalization is more apparent in developed countries than in developing countries, and the deglobalization trend will continue in diverse formats.Research limitations/implicationsThis study limits the use of few variables to test the antecedents of deglobalization. Another study can be done to extend preceding variables and estimate the consequences of deglobalization, which may segregate the globalization effect. The international business executive should understand the complexity of deglobalization and consider business benefits and risks to be encountered.Originality/valueThis study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.

Environmental sustainability, trade and economic growth in India: implications for public policy

PurposeBased on the hypothesis of the environmental Kuznets curve (EKC), the purpose of this study is to investigate the relationship between environmental pollutants (as measured by CO2 emissions) and GDP for India, over the period 1980–2012. The presence of an inverted “U” shape relationship is examined while controlling for factors such as the degree of trade openness, foreign direct investment, oil prices, the legal system and industrialization.Design/methodology/approachTo verify whether the EKC follows a linear, quadratic or polynomial form, autoregressive distributed lag (ARDL) bounds testing approach for cointegration with structural breaks is adopted. The annual time series data for carbon emissions (CO2), economic growth (GDP), industrial development (industrialization), foreign direct investment and trade openness have been obtained from World Development Indicators online database. Crude oil price (international price index) for the period is collected from the International Monetary Fund. Data for total petroleum consumption are collected from the US Energy Information Agency. Data for economic freedom variables are from the Fraser Institute's Economic Freedom Index's online database.FindingsThe findings support the existence of inverted U-shaped EKC in the short-run, but not in the long-run. A linear monotonic relationship has also been estimated in select model specifications. Additionally, trade openness has been estimated to reduce emissions in models, which incorporate FDI. Else, where significant, its impact on carbon emissions is adverse. A rise in fuel price leads to reduction in carbon emissions across model specifications. Further, the lower size of government degrades the environment both in the long-run and short-run.Practical implicationsGiven the existence of the pollution haven hypothesis, wherein more trade and foreign direct investments cause environmental degradation, the paper proposes formulation of appropriate regulatory mechanisms that are environmentally friendly. Additionally, India's new economic policies, favoring liberalization, privatization and globalization, reinforces the need to strengthen environmental regulations.Originality/valueIncorporation of economic freedom as measured by the “Size of Government” in the EKC model is unique. “Size of Government” deserves a special mention. The rationale for including this explanatory variable is to understand whether countries with lower government size are more polluting. After all, theory does suggest that goods and services, which have higher social cost vis-à-vis private cost, shall be overproduced in economies that adopt more market-friendly policies, necessitating government intervention. In the study, size of government is measured as per the definition and methodology adopted by Fraser Institute's Economic Freedom of the World Index.

Challenges and Prospects of e-Government implementation in Afghanistan

PurposeThe aim of this study is to identify the challenges and barriers to e-Government set up in developing/conflict countries, related to Information Communication and Technology (ICT) and social obstacles – that are common in developing countries like Afghanistan. In today's world e-Government plays an important role of providing easy access to government services that enable citizens in general to communicate faster. This very research concentrates on the implementation of e-Government challenges in developing countries, particularly in Afghanistan. This paper is covering (1) method of study; (2) research strategy; (3) finding and policy recommendation; (4) limitation; (5) theoretical implication; (6) recommendation and conclusion. Additional data related to e-Government in Afghanistan, acquired via a quantitative survey and interviews can also help this analysis.Design/methodology/approachThis research incorporates both theoretical and empirical study; using both quantitative and qualitative method for data collection. Also, as already noted, the study reviews different literature and academic documents. The original work of the study is the collection of relevant first-hand information for empirical analysis from experts of both public and private institutions such as IT, CIO and management experts through the use of a survey tools. This was done using web-based surveying and delivery of hard and soft copies to the experts to obtain their notions about e-Government implementation obstacles. Finally, both quantitative and qualitative survey results are calculated and presented.FindingsEmpirical study has established that 5 obstacles out of 15 named by respondents, stakeholder involvement, with the highest mean, (4.1145), coordination (4.0038), information sharing (3.9962), ICT literacy (3.9822) and e-Government awareness (3.8830) are considered to be the major obstacles. This opinion was also expressed by the respondents to the in-depth interview which was explained in a paper with detail.Research limitations/implicationsMost research record numerous limitations, therefore, it is important to note that this study is no exception. Some of the limitations were recorded in the course of the study will be counted for the purpose of placing the finding in the right perspective. The limitations of this study were time constraints and difficult to generate enough participation in the survey. Because of that, I did a quantitative survey but could include very few members of top management. Second, the study is limited due to the lack of participation by respondents from various sectors such as citizens, university students, academia, banks, businesses and NGOs. The third limitation was lack of research materials for this study. Many difficulties were encountered with respect to find materials of previous research studies on the topic and in particularly in the context of Afghanistan.Practical implicationsThe studies conducted previously on e-Government and referenced herein highlighted implementation challenges in developing countries as a group. Applying this study in Afghanistan may contribute to our understanding of key challenges facing in implementing e-Government process specifically in Afghanistan. The current study contributes some significant findings to the academic field of studying e-Government implementation challenges. It adds the support and information from public and private sector's perspective regarding major challenges in e-Government implementation in Afghanistan.Social implicationsAs per looking to the experience of developed and developing countries, this study emphasizes the following key initiatives to be performed in parallel with the running projects by Ministry of communication and IT [18]. 1-Pilot projects, 2-Simplification of Business Processes, 3-A strong committed national leadership, 4-Involvement of Stakeholders, 6-To granting incentives for involvement of local ICT companies, 7-Exemption of basic ICT, 8-To develop a standard ICT infrastructureOriginality/valueGovernments around the world are under the pressure from rapid globalization, fiscal, social and technological changes to provide services that are citizen-centric, efficient, transparent, effective, one stop, any time and nonstop. Post-conflict countries are under even greater pressure to create such services because they replace the vacuum caused by the violence and will be the only services offered, rather than simply an upgrade of current government offerings that already meet citizen needs. The adoption of technology is the most efficient way to integrate the public and private sector and to provide services with accountability, transparency and efficiency, but this is not an easy task, especially for developing countries. This research looks at e-Government implementation challenges in developing countries and particularly in Afghanistan. A literature review shows many challenges common among developing countries: a lack of ICT literacy, incomplete infrastructure, a digital divide existing between the rural poor and the emerging urban middle class, an uncertainty about data privacy and data security, the absence of comprehensive ICT policies and legislation, lack of an ICT culture in government and the traditional components of the economy, questions regarding the government's ongoing financial commitment to the project, e-Government awareness, willingness of ministries to engage in information sharing, a void of ICT leadership outside the technologically oriented ministries, resistance to change, an historic lack of intergovernmental coordination and low stakeholder involvement are just some of the many challenges identified. The author belief that developing countries realize the importance of e-Government and consider the implementation of e-Government to be the critical tool for economic stability and growth as well as developing a more transparent, less corrupt government. The survey questionnaires were developed based on the challenges found in literature review. The survey questionnaire was translated into local languages (Pashto and Dari) and an English version served as control indicator by a professional local translator. At first a pilot version was sent to 10 officials from the Ministry of Communication and IT. After attesting period, the survey was circulated to 150 respondents who were experts in various fields such as CIO, Management and IT in Afghanistan. All respondents agreed that stakeholder involvement, coordination, information sharing, ICT literacy, awareness, resistance to change, ICT, finance issues, ICT policy, leadership, data privacy, legislation, ICT culture and digital divide are some of the major challenges for e-Government implementation in Afghanistan. Respondents (3.1412) on ICT security were impartial in their response on whether to include this indicator into challenges. Many projects are run by the Ministry of Communication and IT and within completion of these projects most of the challenges that identified in the analysis of the quantitative survey will be addressed, although the government is also vigorously pursuing legal and policy modifications. As per looking to the experience of developed and developing countries, this study emphasizes the following key initiatives to be performed in parallel with the running projects by Ministry of communication and IT [18]. Pilot projects should be implemented in two ministries as test beds prior to general roll out to ensure the efficient use of money needed for E-government projects. This will have two benefits from one side it will save money in terms of failing projects as argued by *19+ “E-government in developing countries fail, with 35% being classified as total failures (E-government was not implemented or was implemented but immediately abandoned), and 50% as partial failures (major goals were not attained and/or there were undesirable outcomes)”. On the other hand, in case.