Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited
Article Type: Editorial From: International Journal of Emerging Markets, Volume 4, Issue 2
Welcome to Volume 4, Issue 2 of International Journal of Emerging Markets (IJoEM)!
There are some important changes to the editorial structure and strategy of IJoEM in the months ahead and our first announcement is that of January 1, 2009, Dr Kate Hutchings will be stepping down as Asia-Pacific Editor of the journal. First and foremost, I would like to thank Kate for her extensive efforts in managing the busy Asia-Pacific portfolio. She has done a fantastic job and all of us will sorely miss her contributions. The good news is that she has graciously agreed to stay on as a member of the Editorial Advisory Board of the journal and thus although we will lose her day-to-day expertise on the editorial side, we will still be able to benefit from her advice on the way forward for the journal. Now to this issue’s papers.
Our first paper – by Nicolas Mirabaud of Mirabaud et Cie is a fascinating analysis of the solutions provided by mobile money transfer technology to facilitate migrants’ remittances to their home country. In 2006, more than $300 billion was remitted by migrant workers back home. The paper identifies the main difficulties faced by migrants when sending money home and how mobile money technology addresses this. It also seeks to understand how some telecom companies have managed to be successful in their implementation of mobile money transfer services in emerging markets. The paper presents two successful cases of mobile money service in the Philippines and in Kenya and analyses the Mobile Money Transfer Initiative, a lobbying group in which telecom companies gather to secure their position on the market. Mirabaud suggests that while similarities in lack of infrastructure of emerging markets provides the basis for a generalized market entry strategy for the mobile money service providers, international expansion will only be made possible by the implementation of real transnational strategy adapted to local needs.
Next up are Lee and Tai who examine the importance of product standardization and marketing communications in an emerging market. Their empirical tableau is the Kazakh automotive sector. Relationships between the product attributes of characteristic-, benefit-, image- and perceived-product quality were hypothesized and tested using empirical data collected via a consumer survey in Almaty, Kazakhstan. A structural equation modeling method was used to test the hypotheses. The key empirical contribution in the paper is for products with higher symbolic meanings such as the automobile in Central Asia, consumers are more sensitive to the benefit attribute of the product rather than the product characteristic attribute. The study implies that, beyond product standardisation, multinational firms must develop strategic marketing communications by adapting the differences of values, expectations, needs of consumers towards global products, in particular, in emerging markets.
Our third paper is a unique study of India’s agri-food chain by Sageer et al. The paper is an analysis of the competitiveness of India’s agrifood chain. This analysis and its components are identified on the basis of extant literature in other countries because as the authors note, there is a lack of Indian literature on the topic. Each component leads to at least one proposition. The framework is dependent on two major streams of strategy and management literature – value chain analysis and strategic competitiveness. Porter’s Diamond at the industry level and Momaya’s Asset-Process-Performance model at the firm level provide the base for competitiveness discussions. The framework comprises of “human” and “non-human” components. They are more like members of a network where action of each has an impact on the other. By examining the roles of human components like national government, producers, processors, etc. and non-human components like food quality, regulatory scenario, etc. side-by-side, this study breaks new grounds in exploring The paper reveals that unlike during the pre-crisis period, the long-run diversification benefits that can be earned by investors across the Association of Southeast Asian Nations (ASEAN) markets in the post-crisis period tend to diminish. There are a number of research and policy implications that flow from this work. The paper can serve as a reference point for researchers interested in the Indian food and retail industry. The framework also has policy implications for developing countries similar to India that are exploring opportunities in global retail. It is also of use to researchers from developing economies where the role of “national government” can be significant in the development of an industry. The framework is built as a flexible and adaptable tool, which can suit other industry sectors with minor modifications. The authors have the distinction of being the first India-based scholars to be published in IJoEM. Our congratulations go to them for this achievement.
Our fourth paper is a more traditional finance paper by Majid et al. It examines market integration among five selected ASEAN emerging markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore) during the pre- and post-1997 financial crisis periods. Employing a two-step estimation, cointegration and generalized method of moments (GMM) methodology. The study finds that the stock markets in the ASEAN region are cointegrated both during the pre- and post-1997 financial crisis. However, the markets are moving towards a greater integration, particularly during the post-1997 financial crisis. Finally, as measured by the error correction terms, except the emerging market of Indonesia, all other ASEAN markets appear to be the important bearers of short-run adjustment to a shock in the long-run equilibrium relationships in the region both during the pre- and post-crisis periods. The paper reveals that unlike during the pre-crisis period, the long-run diversification benefits that can be earned by investors across the ASEAN markets in the post-crisis period tend to diminish. The paper makes an important contribution in that the study is among the first to use two-step estimation, co-integration and GMM methods to re-examine market integration either in the emerging or developed markets.
Our final paper by Saffu and Scott examines quality perceptions of developing country consumers in Malaysia and Papua New Guinea (PNG), on a high- and a low-involvement product (personal computer and shoes) produced by the manufacturing countries of origin of the USA, Australia, Italy and Brazil. The findings from this study were firstly, that consumers in PNG evaluated their homemade products less favourably than foreign-made products. Secondly, that country-of-origin effects influence consumers’ preferences differently in the case of high- and low-involvement products and thirdly that analyses using overall mean values instead of interaction effects can lead to incorrect interpretations. The results also supported the widely held view that consumers hold stereotypical views of products made in different foreign countries but disagreed about the nature of such stereotypical views. Of note is the implication that in the case of high- and low-involvement products, marketing managers should take special care to examine the impact of country-of-origin effects.
Yusaf H. Akbar