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1 – 10 of over 202000Rohail Ashraf, Noel Albert, Dwight Merunka and Muhammad Asif Khan
Increasing consumer skepticism of corporate behavior has led companies to actively manage and advertise their corporate brands. However, it remains unclear how receptive consumers…
Abstract
Purpose
Increasing consumer skepticism of corporate behavior has led companies to actively manage and advertise their corporate brands. However, it remains unclear how receptive consumers across different markets are to such efforts. The purpose of this paper is to demonstrate differences and similarities between corporate and product advertising by examining consumer ad involvement (AI) levels (a motivational state activated by the personal relevance of stimuli) and its antecedents and consequences for these ad types across two markets with varying degrees of economic development.
Design/methodology/approach
Using a 2 (ad type: corporate vs product) × 2 (market type: developed vs emerging) between-subject experimental design, the study was conducted in two markets with varying degrees of economic development, specifically, the USA (n=285) and Pakistan (n=311).
Findings
Results show that consumer involvement with corporate ads varies for developed (USA: high) and emerging (Pakistan: low) markets but that it remains the same for product ads across markets. Developed market consumers tend to be as involved with corporate ads as they are with product ads, whereas emerging market consumers are more involved with product ads than with corporate ads. Aside from differences in involvement levels, the findings demonstrate substantial similarities in the antecedents and consequences of consumer involvement for both ad (corporate vs product) and market (developed vs emerging) types.
Practical implications
With advertising and communication campaigns increasingly being standardized across different markets, this study demonstrates that corporate messages do not function similar as product messages across markets. For effective corporate campaigns, ad designs should fit with the motivation levels of the target consumers across markets.
Originality/value
This study demonstrates the differences and similarities between corporate and product AI across a developed and an emerging market.
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Jae-Eun Chung, Byoungho Jin, So Won Jeong and Heesoon Yang
The purpose of this study is to examine the branding strategies of SMEs from NIEs, juxtaposing the different strategies used to specifically target developed and developing…
Abstract
Purpose
The purpose of this study is to examine the branding strategies of SMEs from NIEs, juxtaposing the different strategies used to specifically target developed and developing countries with regard to brand-building approach, type and number of brands and degree of standardization.
Design/methodology/approach
A case-study approach is used. In-depth interviews are conducted with 10 Korean consumer-goods SMEs exporting their own in-house brands.
Findings
Clear differences emerge between the strategies of SMEs entering developed countries and those entering developing countries, particularly regarding brand identity development, use of foreign sales subsidiaries and number and types of brands used. The authors find an interaction effect between product characteristics and host market levels of economic development, both of which influenced the degree of product standardization.
Originality/value
This study is the first attempt to uncover the branding strategies of NIE consumer-goods SMEs. The findings contribute to the field by extending our understanding of branding strategies used by consumer-goods SMEs from NIEs, thereby providing useful insight for other NIE enterprises when establishing branding strategies aimed at foreign markets.
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The purpose of this paper is to investigate the time‐varying risk return relationship and the persistence of shocks to volatility within GARCH framework both in developed and…
Abstract
Purpose
The purpose of this paper is to investigate the time‐varying risk return relationship and the persistence of shocks to volatility within GARCH framework both in developed and emerging markets.
Design/methodology/approach
This paper uses nonlinear ARCH and GARCH‐family models for testing the volatility both in developed and emerging markets.
Findings
The findings of the paper suggest that there is a long‐term persistence shock in emerging markets compared to developed markets.
Research limitations/implications
The data set used for the developed and emerging markets is not consistent in terms of sample period. However, this paper explores the venues for further research on the global diversification.
Practical implications
The implication of volatility measurement is vital in determining the cost of capital for investment and portfolio management, option pricing and for market regulations.
Originality/value
The unique features of the paper include large sample size with updated data set that reveals the nature of world economy and empirical evidence on volatility testing that reports the risk return characteristics of both developed and emerging markets.
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Lia Zarantonello, Silvia Grappi, Marcello Formisano and Josko Brakus
The purpose of this paper is to investigate the relationship between consumer-based brand equity (CBBE) – conceptualized as consisting of brand awareness, perceived quality, brand…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between consumer-based brand equity (CBBE) – conceptualized as consisting of brand awareness, perceived quality, brand associations, perceived value and brand loyalty – and market share for different brand types (global versus local) in different country groups (developed versus emerging).
Design/methodology/approach
This paper combines consumer–survey-based data, experts' coding and retail panel data of fast-moving consumer goods (FMCG) brands in 29 countries.
Findings
In developed countries, the relationship between each CBBE component (except for brand associations) with market share is stronger for local than global brands. In emerging countries, the relationship between each CBBE component with market share is stronger for global than local brands.
Research limitations/implications
This paper contributes to better understanding the relationships between CBBE and market share by showing how CBBE components relate to market share for different brand types (global and local) in different country groups (developed and emerging). Limitations arise from constraints related to existing datasets (e.g. limited number of variables and type of product categories considered).
Practical implications
This paper offers insights to managers working in multinational FMCG companies, as it suggests which CBBE components relate more strongly to the global or local brands' market shares in different countries.
Originality/value
This paper analyzes the relationship between CBBE and market share by focusing on different brand types (global versus local) in different country groups (developed versus emerging). It does so by using a company dataset and showing correspondence with conceptualizations and measures of brand equity from the academic literature. It also considers a large set of 29 countries, extending research beyond national boundaries.
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Oli Ahad Thakur, Matemilola Bolaji Tunde, Bany-Ariffin Amin Noordin, Md. Kausar Alam and Muhammad Agung Prabowo
This study empirically investigates the relationship between goodwill assets and capital structure (i.e. debt ratio) of firms and the moderating effect of financial market…
Abstract
Purpose
This study empirically investigates the relationship between goodwill assets and capital structure (i.e. debt ratio) of firms and the moderating effect of financial market development on the relationship between goodwill assets and capital structure.
Design/methodology/approach
This research applied a quantitative method. The article collects large samples of listed firms from 23 developing and nine developed countries and applied the panel data techniques. This research used firm-level data from the DataStream database for both developed and developing countries. The study uses 4,912 firm-level data from 23 developing countries and 4,303 firm-level data from nine developed countries.
Findings
The findings reveal a significant positive relationship between goodwill assets and capital structure in developing countries, but goodwill assets have a significant negative relationship with capital structure in developed countries. Moreover, financial market development positively moderates the relationship between goodwill assets and the capital structure of firms in developing countries. The results inform firm managers that goodwill assets serve as additional collateral to secure debt financing. Moreover, policymakers should formulate a debt market policy that recognizes goodwill assets as additional collateral for the purpose of obtaining debt capital.
Research limitations/implications
The study has several implications. First, goodwill assets are identified as a factor of capital structure in this study. Fixed assets have been identified as one of the drivers of capital structure in previous research, although goodwill assets are seldom included. Second, this article shows that along with demand-side determinants, supply-side determinants also play an important role in terms of the firms' choice about the capital structure. Therefore, firms should take both the demand-side and supply-side factors into consideration when sourcing for external financing (i.e. debt capital).
Originality/value
The study considered goodwill as a component of capital structure. The study analysis includes a large sample of enterprises, including 4,912 big firms from 23 developing countries and 4,303 large firms from nine industrialized or developed countries, which adds to the current capital structure information. Furthermore, a large sample size increases the results' robustness and generalizability.
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Faisal Mohammad Ahsan and Ashutosh Kumar Sinha
Recent empirical findings on the relationship between internationalization and firm performance (I–P) suggest a significant role of firm's context. Extending this line of…
Abstract
Purpose
Recent empirical findings on the relationship between internationalization and firm performance (I–P) suggest a significant role of firm's context. Extending this line of argument, the authors study the effect of internationalization on firm's performance for emerging market firms from knowledge-intensive industries, taking into account the firm's motive of internationalization and host country’s location-based advantages.
Design/methodology/approach
The authors link host country-specific advantages (CSAs) with firm-specific advantages (FSAs) to identify three distinct settings of internationalization for emerging economy firms – (1) asset-exploitative internationalization in developing or least developed countries, (2) asset-exploitative internationalization in developed countries and (3) strategic asset-seeking internationalization. The authors test this study’s hypotheses on a sample of 415 Indian firms from knowledge-intensive industries.
Findings
The authors find that firm's performance upon internationalization is non-linear in each of the three different settings. The nature of the non-linear relationship depends upon location-based advantages of the host country and the motive of internationalization.
Originality/value
The motive of internationalization and the location-based advantages sought during internationalization are unique for emerging economy firms. Hence, the study extends understanding of the I–P linkage in an emerging economy context.
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Tao (Tony) Gao and Talin E. Sarraf
This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging…
Abstract
This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging markets. Favorable changes in the host government policies, market demand, firm strategy, and infrastructural conditions are hypothesized to influence the MNCs’ decision to increase resource commitments during a crisis. The hypotheses are tested with data collected in a survey of 82 MNCs during the recent Argentine financial crisis (late 2002). While all the above variables are considered by the respondents as generally important reasons for increasing resource commitments during a crisis, only favorable changes in government policies significantly influence MNCs’ decisions to change the level of resource commitments during the Argentine financial crisis. The research, managerial implications, and policy‐making implications are discussed.
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Fernando Angulo-Ruiz, Albena Pergelova and William X. Wei
This research aims to assess variations of motivations when studying international location decisions. In particular, this study aims to assess the influence of diverse…
Abstract
Purpose
This research aims to assess variations of motivations when studying international location decisions. In particular, this study aims to assess the influence of diverse motivations – seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints – as determinants of the international location choice of emerging market multinational enterprises (EM MNEs) entering least developed, emerging, and developed countries.
Design/methodology/approach
The authors develop a set of hypotheses based on the ownership–location–internalization framework and complement it with an institutional perspective. The conceptual model posits that the different internationalization motivations (seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints) will impact the location choice of EM MNEs in developed economies, emerging markets or least developed countries. This study uses the 2013 survey data collected by the China Council for the Promotion of International Trade and the Asia Pacific Foundation of Canada. The final sample of analysis of this research includes 693 observations.
Findings
After controlling for several variables, two-stage Heckman regressions show there is a variation of motivations when EM MNEs enter least developed countries, emerging markets and developed economies. EM MNEs are motivated to enter least developed countries to seek markets and resources. Conversely, those firms enter developed countries in their search for technological assets and to escape institutional constraints at home. While the present study findings show a clear difference in the motivations that lead to location choice in least developed vs developed countries, the results are not as clear for location in other emerging countries.
Research limitations/implications
The paper offers empirical support for the importance of motivations as crucial determinants of location choice.
Originality/value
This paper provides a detailed quantitative study on the internationalization location choice of EM MNEs based on their motivations. Though theoretical models underscore the importance of motivations, we know very little about how, in practice, motivations drive location choice. This study contributes to the international location choice literature a deeper understanding of how diverse motivations drive choices of expansion into developed economies, emerging markets or least developed countries.
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Morungwa Lumka Phala, Yaeesh Yasseen, Nirupa Padia and Waheeda Mohamed
This study aims to compare the extent of voluntary strategy disclosure in the annual/integrated reports of listed companies in an emerging market with the extent of strategy…
Abstract
Purpose
This study aims to compare the extent of voluntary strategy disclosure in the annual/integrated reports of listed companies in an emerging market with the extent of strategy disclosure in the annual/integrated reports of listed companies in a developed market.
Design/methodology/approach
A developed market sample that was made up of the top 50 companies on the New York Stock Exchange and the Australian Stock Exchange was compared to an emerging market sample that was made up of the top 50 companies on the Johannesburg Stock Exchange and the Bombay Stock Exchange. The comparison was conducted by scoring the amount of strategy disclosure reported in the annual/integrated reports of the companies for the years 2011, 2012 and 2013.
Findings
The emerging market companies had average to good strategy disclosures in their annual reports, whereas the annual reports of companies in the developed market showed low strategy disclosure.
Originality/value
This study expanded upon the limited research available on strategy disclosure by comparing the extent of strategy disclosures in two developmental markets (the developed and emerging market).
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Maretno Agus Harjoto and Fabrizio Rossi
This study examines the market reaction to the World Health Organization (WHO) announcement of the novel coronavirus disease 2019 (COVID-19) as a global pandemic on the emerging…
Abstract
Purpose
This study examines the market reaction to the World Health Organization (WHO) announcement of the novel coronavirus disease 2019 (COVID-19) as a global pandemic on the emerging equity markets and compares the reaction with developed markets. This study also compares the market reactions to the COVID-19 pandemic with the market reactions to the 2008 global financial crisis.
Design/methodology/approach
Using the Morgan Stanley Capital International daily stock indices data and the Carhart and the GARCH(1,1) models for an event study, the authors examine the cumulative abnormal returns during 30 and 10 trading days and the extended 60 days before and after the WHO pandemic announcement. It also compares the market reactions during the COVID-19 pandemic with the reactions to the Lehman Brothers' bankruptcy announcement during the 2008 global financial crisis.
Findings
This study finds that the COVID-19 pandemic had a significantly greater negative impact to the stock markets in emerging countries than in the developed countries. The negative impact on the emerging markets is more pronounced for firms with small market capitalizations and for growth stocks. The negative impact of the COVID-19 pandemic is stronger in the energy and financial sectors in both emerging and developed markets. The positive impact of the COVID-19 pandemic occurred in healthcare and telecommunications for the emerging markets and information technology for the developed markets. This study also finds that the equity markets in both emerging and developed countries recovered faster from the COVID-19 pandemic relative to the 2008 global financial crisis.
Social implications
Investors' desire to diversify their risks across different countries and sectors in the emerging markets could bring superior returns. The diversification strategies bring critical financial supports to forestall the contagion of COVID-19, to protect lives, and to save the emerging economies, especially for those financially constrained countries that are facing twin health and economic shocks by channeling their investments to countries with weak healthcare systems.
Originality/value
This study extends the literature that examines market reactions to stock market shocks by examining the market reactions to the COVID-19 outbreak on the emerging and developed equity markets across different market capitalizations, valuation and sectors. This study also finds that the markets recovered quicker from the COVID-19 pandemic announcement than during the 2008 global financial crisis.
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