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The purpose of this study is to investigate the effects of emerging market professional service small and medium-sized enterprises’ (PSF SME) internal competencies and capabilities on their ability to establish relationship value among clients and achieve superior financial performance. This study addresses the paucity of research on emerging market PSF SMEs and their ability to build value for their clients.

Data were collected from 251 senior managers or owners of PSF SMEs who were from an emerging market economy but had operations in various foreign markets. The two-step structural equation modeling procedure was used to analyze the data and investigate the hypothesized relationships.

The results show the positive impacts of the PSF SME’s human capital on innovativeness, service capabilities and relationship value. Human capital also had indirect positive impacts on relationship value and financial performance. Service capabilities were found to have a positive impact on relationship value and financial performance. In addition, innovativeness was found to have a positive impact on financial performance.

Emerging market PSF SMEs can gain competitive advantages and build solid long-term relationships with clients in the global marketplace when they focus on strengthening their human capital resources and successfully leveraging their innovativeness and service capabilities.

The study fills a gap in international business and management literature by offering guidance on how emerging market PSF SMEs can effectively use their internal resources and capabilities to build solid relationships with clients, deliver superior services and achieve global marketplace success.

Discusses various aspects of market research in Eastern Europe, with special emphasis on the Hungarian experience under the New Economic Mechanism. Attempts to show how the manner in which various sources of information can and should be utilized. Highlights differences and similarities between methodology of marketing employed in the East and the West. Presents a cross‐section of case studies to illustrate market research carried out. Suggests that marketing research is an important function in Eastern Europe.

Describes how pollution control spending around the world is set to increase from $70 billion (1979) to $115 billion in 1990 in real terms. Expands on the theory that cleaning up ‐ or preventing mistakes ‐ in the environment makes for financial and healthwise good sense. Posits that cleaner air leads to fewer respiratory problems and cleaner water in most areas of manufacturing results in lower fuel use. Focuses on trade, end use competitive modes and marketing patterns regarding water pollution control equipment (WPCE). States that WPCE shipments world wide are projected to rise from $3.3 billion in 1979 to $5.4 billion in 1990, and that this is a dynamic market worthy of investigation. Reports on the methodology, international trade, types of equipment structure and competition and expresses these with the aid of explicit tables. Finishes by estimating size of national, regional and global markets but acknowledges that there are gaps. Concludes that competition is keen but strong market opportunities remain for procedures around the globe in upcoming years.

This article focuses on one key aspect of industrial buying behaviour, namely the buying process itself. Using a common questionnaire, a large sample of respondents in Australia, Canada, the UK and the US were interviewed by mail from two sectors, the paper and pulp and chemical and allied products industries. The similarity of results between the different industries and the countries — as well as similarities between this and previous surveys in the UK and US — allows generalisations to be made about the respective involvement of corporate departments in the purchase process for equipment, materials and components.

We investigate the interaction of debt covenants and tax accounting on the adoption of Financial Interpretation No. 48 (FIN 48). We examine how firms respond to the potential tightening of covenant slack upon FIN 48 adoption and whether these actions are penalized by creditors and anticipated by equity markets. We find that upon FIN 48 adoption, the majority of sample corporate borrowers increase their tax reserves and reduce equity. Firms close to debt covenant violation were even more likely to increase tax reserves upon FIN 48 adoption; however, the size of the adjustment was relatively smaller, suggesting that the FIN 48 standards limited, but did not eliminate, firms use of discretion in reporting uncertain tax positions to avoid costly covenant violations. For firms near net worth debt covenant violation, the act of decreasing equity upon FIN 48 adoption imposes real economic costs, as the average cost of debt increased by 43 basis points. Finally, we extend prior research on the market response to FIN 48 by showing how the market response to FIN 48 adoption is a function of debt covenant slack and tax aggressiveness. Specifically, the cumulative abnormal return at the FIN 48 exposure draft release date is negative only for tax aggressive firms that are close to debt covenant violation.

Offshore outsourcing offers competitive advantages when goods and services are produced economically and with acceptable or superior quality by suppliers located outside a firm's home country. The purpose of this paper is to focus on India as a destination for offshore outsourcing of services and the challenges it faces in maintaining its leadership in this area. The paper discusses the growth of services outsourcing and the economic and environmental forces that have contributed to the outsourcing of high‐end services, also known as knowledge process outsourcing (KPO).

This article surveys the literature of offshore outsourcing and identifies strategic drivers and options that can help India to grow and consolidate its position as an exporter of services and build long‐term competitive advantages in its relationships with global partners. To understand why nations gain competitive advantage in certain industries, Porter's “diamond” model is utilized as a broad framework for examining policies and national strategies that can sustain India's competitive advantage in outsourcing of knowledge‐based services. The paper discusses India's current and prospective assets and liabilities that correspond to the model's four components.

The article discusses India's competitive edge as a leading supplier of knowledge‐based services and proposes a model for sustaining this edge. The model proposes key policy steps to move from the current position (e.g. supplier of business process outsourcing services) to a role of knowledge leader by providing advanced value added services to global clients. This model suggests ways in which a supplier nation can gain leverage in the value chain.

The article is conceptual, not empirical. Public and corporate policy implications are presented to strengthen India's competitive advantages in outsourced services.

The article presents a strategic roadmap with policy implications that can help move India up the value chain from being primarily a destination for low‐end business process outsourcing (BPO) to that of a co‐equal, high value‐adding partner or principal who offers knowledge leadership in the design and delivery of services for global markets.

The article discusses a nation's technical strengths, as well as cultural and infrastructure weaknesses, that can contribute to volatility as a global outsourcing leader. The article also presents strategies that can reduce a nation's vulnerabilities to competitive actions.

Although information exchange among trading partners is consistently mentioned as a key requirement of successful supply chain management implementation, research on information exchange is scarce. This lack of research provides little guidance and support for those managers interested in improving their logistics operations through increased information exchange. The main goal of this paper is to identify potential antecedents of information exchange. Questionnaires were sent to logistics managers at manufacturing firms in several industries. The results of this exploratory study are detailed and the implications for logistics managers discussed.

The dramatic growth and international scope of knowledge‐intensive business services (KIBS) are evident in emerging markets such as China and India. Nations, like firms, seek to capitalize on their available resources and capabilities (e.g. people, technology, skills) in order to build and maintain core competencies in certain industry sectors. This paper has the following objectives: to discuss the classification of KIBS, to marshal conceptual and statistical evidence on KIBS in major emerging markets, to compare and contrast selected major emerging markets in regard to their KIBS activities, and to discuss policy implications.

In this conceptual paper, extant literature is reviewed and discussed pertaining to the KIBS sectors. Several existing data sources are used to assess the comparative performance of major emerging markets in the KIBS sectors.

The emphasis is on finding comparative longitudinal statistics that are useful for comparison and contrast among major emerging markets. The analysis indicates that while the major emerging markets are building competitive advantage by focusing on knowledge‐intensive business services, their progress differs sharply. For example, China shows the lead, followed by India, Brazil, Russia, Mexico, Turkey, and Indonesia. Smaller nations lag behind these in most indicators. It is evident that leading major emerging nations have not reached parity with highly industrialized countries.

The results show ranking and contribution of various major nations in the global knowledge economy, but additional time series and analysis are needed to assess comparative rankings. However, the classification and the indicators illustrated here offer a panoramic, comparative picture over the past decade. Using international business theories, research can develop statistical models to explain foreign market entry strategies of knowledge‐intensive service firms.

The paper is of value to managers considering entry and/or expansion into major emerging markets in various sub‐sectors of knowledge‐intensive sectors. The specific industry and function pursued by a firm need to be identified and matched up with host nation characteristics (e.g. more software design and pharmaceutical research in India v. more manufacturing design and R&D facility in China). The paper also provides guidelines to policy makers to sustain their country's competitive advantage in the KIBS sectors.

The paper looks at knowledge‐intensive business services in major emerging markets. It offers both conceptual contributions and statistical evidence that key nations differ in their activities in regard to such high‐level and complex service offerings.

This is a very special issue of the International Marketing Review. It is, in effect, a sampler of the symposium on comparative research held under the auspices of Division 23, Consumer Psychology, of the American Psychological Association and the College of Business Administration of the University of Hawaii in Honolulu December 1984. The purpose of the issue is to emphasize five points, namely that: