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1 – 10 of over 181000
Book part
Publication date: 24 May 2007

Frederic Carluer

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise

Abstract

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

Details

Managing Conflict in Economic Convergence of Regions in Greater Europe
Type: Book
ISBN: 978-1-84950-451-5

Article
Publication date: 14 December 2020

Ebes Esho and Grietjie Verhoef

The purpose of this paper is to present a review of variance decomposition studies of firm performance and the theoretical foundations that served as the antecedents and…

Abstract

Purpose

The purpose of this paper is to present a review of variance decomposition studies of firm performance and the theoretical foundations that served as the antecedents and promptings for this stream of research. Known collectively as “variance decomposition literature,” these studies use variance decomposition techniques to partition firm performance into various classes of effects in a bid to unveil the relative importance of factors responsible for firm performance variance.

Design/methodology/approach

A review of papers published in SCOPUS and institute for scientific information indexed journals was conducted.

Findings

The study found that firm, industry, corporate, business group and country effects are the major effects included in most extant studies. However, of all effects, firm effects remain the dominant and most important impact on firm performance. The effects that affect firm performance are also interdependent.

Practical implications

Consequently, the decisions of managers in firms are still the most important element in helping the firm to navigate industry and contextual factors, especially during periods of recession.

Originality/value

From the review, research gaps were identified and suggestions for future research provided. There is still much to learn from variance decomposition literature in an age of new business models, unprecedented start-up firms and from developing and emerging market countries.

Details

Management Research Review, vol. 44 no. 6
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 29 June 2012

Francisco Diaz Hermelo and Roberto Vassolo

The purpose of this paper is to examine the magnitude of country, industry and firm‐specific effects for firms competing in emerging economies and also explore differences between…

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Abstract

Purpose

The purpose of this paper is to examine the magnitude of country, industry and firm‐specific effects for firms competing in emerging economies and also explore differences between high and low performers.

Design/methodology/approach

The authors use ANOVA methodologies on samples from firms competing in Latin America between 1990‐2006.

Findings

It was found that the firm‐specific effect is the most important one, and relatively equivalent in magnitude to the firm‐specific effects found in developed countries. Country and industry effects are less important than the firm‐specific effect. Contrary to previous studies that indicate that the country effect is relatively more important in emerging economies, the authors found that it is even less important than the industry effect, a result that has important implications for strategic management and international business theory. The source behind the strong firm‐specific effects might stem from their resources and capabilities to manage and take advantage of the institutional and macroeconomic environments. Further analysis indicates that the firm‐specific effect is relatively more important for firms showing high performance than for those firms showing low performance.

Research limitations/implications

Through these findings the authors feel that further research is needed so as to arm future managers with a more clear and comprehensive strategy when doing business in a Latin American country. The paper's findings are specific for large public corporations in Latin America.

Practical implications

The paper allows managers to think about sources of competitive advantages in emerging economies.

Originality/value

The paper shows that, despite weak institutional contexts and highly volatile macroeconomic environments, managers in the region should be able to obtain substantial differences in economic performances within the region. Activities needed for such differentiation might differ from those carried out in developed countries, with more emphasis on managing institutional voids and periods of economic and political cycles but the result should be the same.

Details

International Journal of Emerging Markets, vol. 7 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 20 August 2012

Patricia M. Danzon and Andrew J. Epstein

Purpose – This study examines the effect of price regulation and competition on launch timing and pricing of new drugs.Methods – Our data cover launch experience in 15 countries

Abstract

Purpose – This study examines the effect of price regulation and competition on launch timing and pricing of new drugs.

Methods – Our data cover launch experience in 15 countries from 1992 to 2003 for drugs in 12 major therapeutic classes. We estimate a two-equation model of launch hazard and launch price of new drugs.

Findings – We find that launch timing and prices of new drugs are related to a country's average prices of established products in a class. Thus to the extent that price regulation reduces price levels, such regulation directly contributes to launch delay in the regulating country. Regulation by external referencing, whereby high-price countries reference low-price countries, also has indirect or spillover effects, contributing to launch delay and higher launch prices in low-price referenced countries.

Implications – Referencing policies adopted in high-price countries indirectly impose welfare loss on low-price countries. These findings have implications for US proposals to constrain pharmaceutical prices through external referencing and drug importation.

Details

The Economics of Medical Technology
Type: Book
ISBN: 978-1-78190-129-8

Keywords

Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Article
Publication date: 6 July 2015

Andrés Artal-Tur, Ahmed Farouk Ghoneim and Nicolas Peridy

The purpose of this paper is to study how proximity affects the trade-migration link. By focusing on two case studies, France and Egypt, the authors explore if migrants promote…

Abstract

Purpose

The purpose of this paper is to study how proximity affects the trade-migration link. By focusing on two case studies, France and Egypt, the authors explore if migrants promote and help to deal with market heterogeneity in international markets. Using an ethnic network approach the authors also test for interactions between the characteristics of migrants and proximity issues.

Design/methodology/approach

The paper builds on two case studies to illustrate the main working hypotheses. The main framework is that of ethnic networks, proximity ties, and market heterogeneity. Static and dynamic panel data methods are employed when estimating extended gravity trade equations. The authors account for country-pair fixed effects and instrument by lagged stocks of migrants, in order to deal with bilateral commonalities and endogeneity issues in the estimation procedure.

Findings

The paper provides evidence on how proximity enhances trade. Additional trade effects are found for countries sharing closer ties. Networks of migrants appear to help firms to deal with fixed trade costs, also generating some market heterogeneity that at the end influences the trade-migration linkage. Characteristics of migrants also seem to matter, interacting with proximity issues, and resulting in specific trade effects.

Practical implications

Proximity issues seem to matter in the trade creation effects of networks of migrants. In this way integration processes between countries would be showing some positive externalities in the side of trade flows. Characteristics of emigrants should be taken into account when defining migratory policies, mainly for the education and assimilation issues.

Originality/value

The paper get deeper insights in some emerging issues in the trade-migration literature by focusing in two relevant case studies.

Details

International Journal of Manpower, vol. 36 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 12 August 2014

Francisco Diaz Hermelo, Hernan Hetiennot and Roberto S. Vassolo

The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country

Abstract

Purpose

The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects.

Design/methodology/approach

The authors utilize a novel methodological approach: an autoregressive, cross-classified, mixed-effect linear regression model that allows them to simultaneously estimate a permanent (long-run) component, a transitory (short-run) component and the speed of decay of the transitory (autoregressive) component.

Findings

The authors find that the firm-specific effect is most important in explaining permanent and transitory differences. The country–industry interaction is the second most important effect, confirming that industries are not completely global and are still subject to country conditions. Broader views of the country–business context and industry conditions taken independently would be incomplete unless the country–industry interactions are considered. In other words, country matters because industry matters and vice versa. Country effects are also significant, but only transitory emphasizing the dynamic nature of emerging economies and the shortcomings that may result from considering the country business context static. Finally, the authors find that the chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.

Originality/value

To the authors' knowledge, this is the first to simultaneously estimate country, industry, country–industry and firm effects on the permanent and transitory components of abnormal returns in a sample of emerging economies. The study generates important evidence regarding the sources of sustainable differentiation for firms competing in emerging economies. Finally, the authors find that chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.

Details

Management Research: The Journal of the Iberoamerican Academy of Management, vol. 12 no. 2
Type: Research Article
ISSN: 1536-5433

Keywords

Book part
Publication date: 6 August 2018

Yann Algan and Nicole M. Fortin

Using the Program for International Student Assessment (PISA) surveys (2003–2015), this chapter explores the relationship between the gender gap in math test scores and computer…

Abstract

Using the Program for International Student Assessment (PISA) surveys (2003–2015), this chapter explores the relationship between the gender gap in math test scores and computer (digital devices) gaming, as a potential “swimming upstream” factor in the quest to close that gap. Using a decomposition based on a pooled hybrid specification, we attribute two to three points (from 13% to 29%) of the gender math gap to gender differences in the incidence and returns to intense gaming. The comparison of the negative versus positive girl-specific effects found for collaborative games versus single-player games suggest a potential role for gaming network effects.

Article
Publication date: 30 September 2020

Carmen Lopez and George Balabanis

Extant research has largely treated country image (CI) as an exogenous variable, focusing mostly on its consequences for consumers’ evaluations and purchases of products or brands…

1204

Abstract

Purpose

Extant research has largely treated country image (CI) as an exogenous variable, focusing mostly on its consequences for consumers’ evaluations and purchases of products or brands originating from a country. Scant research has examined the instrumental role of a country’s brands and products in the evaluations of CI. This study aims to investigate how the brands of a country contribute to CI ratings and the conditions underlying their effect on CI.

Design/methodology/approach

Three experimental studies test the hypotheses, one pertaining to the effect of brands on CI (N = 227), the second to the effect of products on CI (N = 116) and the third to the effect of brands and products on industry image (N = 215). The experimental approach overcomes the limitations of cross-sectional surveys commonly used in CI studies to detect the direction of the observed effects. Furthermore, respondents (British consumers) were allowed to determine the brands and products associated with a country.

Findings

Drawing on memory schema theory, across three studies, the authors identify two types of reverse inferences: from brand to CI and from product category to CI. The reverse inference from a brand to a superordinate image is stronger for industry image than for CI.

Research limitations/implications

This research focuses on consumers’ evaluations from only one country (the UK). Further research could replicate the studies across different countries and with different countries of origin (COOs). Researchers could also examine the influence of brands misidentified with the wrong COO and mistakenly stored as such in consumers’ memories.

Practical implications

The results are relevant for managers and consultants working with country- (place-) branding campaigns. Brands and industries can help strengthen the evaluations of the economic dimension of different countries; however, these assets are underdeveloped in country-branding campaigns. Linking countries with brands and industries in campaigns could result in positive associations, which, in turn, could enhance the reputational rating of the countries.

Originality/value

This research extends previous studies on the effects of a country’s products and brands on CI by incorporating the mediating role of industry image between brands/products and CI, separating the effects of brand and product category on CI, allowing consumers to determine, which brands and products are associated with a country and adopting an experimental methodology to ascertain the causal direction of the effects.

Details

European Journal of Marketing, vol. 55 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 13 August 2018

Deeparghya Mukherjee

The purpose of this paper is to investigate and assess the trends of bilateral services trade in the world segmented by trade for final consumption and intermediate usage across…

Abstract

Purpose

The purpose of this paper is to investigate and assess the trends of bilateral services trade in the world segmented by trade for final consumption and intermediate usage across several service sectors. The differential trends, if any, are studied while examining the role of free trade agreements which have a chapter on services trade as well as the role of services trade restrictions. The study unravels differences across service sectors in this respect.

Design/methodology/approach

The author uses an augmented gravity model to address the above using OECD- World Trade Organization (WTO) TiVA data for bilateral trade in intermediates and final products (October 2015 release) and World Bank Services Trade Restrictions Index (STRI). The poisson pseudo maximum likelihood estimation technique is used in light of the structure of the data. Trade creating and diverting effects are identified controlling for time and country-time specific effects. The following sectors are specifically looked at: total business sector services, computer and related services, financial intermediation, post and telecommunication, transport and storage, R&D and other business services, hotels and restaurants, construction, and wholesale and retail trade.

Findings

First, services free trade agreements (FTAs) have had a trade creating impact with no trade diverting impact for services trade in aggregate with stronger effects on services traded for intermediate usage. Second, financial intermediation and post and telecommunication have been left unaffected by services FTAs. While no trade diversion is concluded for any sector, R&D and other business services, transport and storage and wholesale retail trade show maximum trade creation effects in response to FTAs. Third, trade restrictions of mainly OECD countries are responsible for lowering exports for most sectors. Finally, in terms of policy implications, at a general level, the author does not find a significant difference in the author’s results for services traded for intermediate usage or final consumption except for a stronger effect of FTAs on intermediate services trade. Hence, the policies to foster services trade on both counts are concluded to be the same and deal with behind-the-border policies of domestic industrial policy reforms like national treatment of foreign firms, licensing requirements, FDI policies, etc.

Research limitations/implications

Statistics for services trade are limited. The data are only available for the years 1995, 2000, 2005, 2008, 2009, 2010 and 2011. Additionally, the conclusions on services trade restrictions are based on statistics for 2011 alone, since this is the only year for which the statistics are available. A complete time series for the entire sample period would increase robustness of the study with a better time variant version of the trade restrictiveness variable. Finally, in the construction of the OECD-WTO-TiVA database of a world IO table, there may have been approximations in constructing statistics for services traded for intermediate usage and final consumption. The results remain sensitive to the same but this is the best possible statistics available for the purposes.

Originality/value

This is the first study which looks at services trade segmented by trade for final consumption and intermediate usage taking advantage of the available data for a number of service sectors. The role of restrictions is also studied for the first time segmented by trade in intermediates and final consumption. The stronger effects of FTAs on intermediate services trade as well as financial intermediation and post and telecommunication services being insulated from effects of FTAs are important findings, especially since services are mainly thought to be traded for final consumption. Similar trends of results for services traded for intermediate usage and final consumption and restrictions affecting exports from exporter countries and imports by importer countries highlight the importance of behind-the-border domestic policies in facilitating or inhibiting services trade on both counts and more importantly for intermediate usage which, in turn, would improve goods tradability.

Details

Journal of Economic Studies, vol. 45 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

1 – 10 of over 181000