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1 – 10 of over 13000Anastasiia Redkina, Mariia Molodchik and Carlos Jardon
The paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is…
Abstract
Purpose
The paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.
Design/methodology/approach
The discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.
Findings
The study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.
Originality/value
The paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.
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Andrew Gerard, Maria Claudia Lopez, John Kerr and Alfred R. Bizoza
In developing countries, local buyers often rely on relational contracting based on reciprocity and trust. This paper analyzes relational contracting and global value chain (GVC…
Abstract
Purpose
In developing countries, local buyers often rely on relational contracting based on reciprocity and trust. This paper analyzes relational contracting and global value chain (GVC) governance by focusing on how domestic and foreign coffee exporters in Rwanda confront challenges.
Design/methodology/approach
Semi-structured interviews were conducted with 25 representatives of Rwandan private, Rwandan cooperative-owned and foreign exporters, and four coffee sector stakeholders.
Findings
Foreign firms export most Rwandan coffee, and local exporters express concerns about their ability to compete. Rwandan exporters face challenges accessing capital, competing with foreign firms and managing high transaction costs. They use relational contracts to reduce transaction costs, and they benefit from a monopsony zoning regulation that reduces competition. Foreign exporters face regulatory challenges: a government-set coffee price and the zoning regulation. They vertically integrate to reduce costs and lock in suppliers through prefinancing.
Research limitations/implications
Future research should analyze differences between local and foreign exporters in other contexts to advance understanding of the different challenges faced and contracting approaches used.
Originality/value
Few GVC governance studies address the role of relational contracts in contexts where enforcement is costly. Considering relational contracts within GVCs can improve value chain analysis, specifically in the developing countries where many GVCs start.
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Peter Doyle and Charles B. Weinberg
Looks at the problem of segmentation in terms of the British car market. Identifies the distinctive needs. Media and characteristics of both British car buyers and buyers of…
Abstract
Looks at the problem of segmentation in terms of the British car market. Identifies the distinctive needs. Media and characteristics of both British car buyers and buyers of imported makes. Gives a valid method for testing the existence of distinguishable market segments. Presents the implications of segmentation for marketing strategy.
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The purpose of this paper is to examine various methods of payment and foreign‐exchange risk management among firms involved in either export or import trade only, or both in…
Abstract
Purpose
The purpose of this paper is to examine various methods of payment and foreign‐exchange risk management among firms involved in either export or import trade only, or both in Brunei Darussalam. The paper also seeks to delineate the relationship(s) between various characteristics of firms such as number of years in business, size, and frequency of imports, and various methods of payment and foreign‐exchange risk management by the firms.
Design/methodology/approach
Judgment and snowball sampling methods are employed to collect data from the companies. The results are analyzed from a total sample of 42 responding firms. Descriptive statistics is used to present and analyze the data.
Findings
The paper highlights the various important methods currently used for both payment, and foreign‐exchange risk management in foreign trade by firms. It also mentions the methods that are used to lesser extent by importers and exporters in the country. Furthermore, various relationship(s) between either number of years in business, or size, or frequency of imports with various methods of payment, and foreign‐exchange risk management among firms are also highlighted in the paper.
Research limitations/implications
The results are basically from the various trading companies involved in foreign trade in Brunei Darussalam.
Originality/value
This paper contributes to the existing literature of international business and finance. It fills the gap in the existing literature about current practices prevalent in the country. Furthermore, recommendations are made to enhance the methods of payment and foreign‐exchange risk management practices among firms. The findings may also be useful for financial institutions interested in providing hedging products and services to the firms.
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In the past more than three years, Wal-Mart has been embroiled in incidents of public scandals. In part, they pertain to Wal-Mart’s global strategy of growth and expansion, where…
Abstract
Purpose
In the past more than three years, Wal-Mart has been embroiled in incidents of public scandals. In part, they pertain to Wal-Mart’s global strategy of growth and expansion, where the company’s senior managers have been implicated in using illegal bribery and corruption to secure business and to conceal this information from regulatory authorities. Another issue, albeit longer running, has been the incidents of fire and resulting deaths and injuries of hundreds of people, most notably in Bangladesh, but also in other countries where low-skill, low-wage manufacturing predominates, and where foreign multinationals have been accused of condoning and profiting from sweatshop-like exploitation of workers.
Design/methodology/approach
The authors use Wal-Mart as a microcosm of corporate conduct which provides a prism through which to examine the exploitation of negative externalities, i.e. engaging in illegal and unethical behavior by using their bargaining power and market control these companies, pressure host countries to condone environmental degradation, violation of country laws in terms of wages, working conditions and operating in sweatshop-like conditions to maximize their profits at the expense of other factors of production, i.e. labor and resources.
Findings
The authors contend that Wal-Mart’s unique business model, which focuses on everyday low price, absolute growth and market share expansion by any means possible and everyday low cost, has led to the company’s enormous success since its founding and has made it one of the world’s largest corporations by revenue. At the same time, this model seriously impedes the company’s ability to improve unit-based profit margins and thus forces it to take short cuts in achieving lateral growth and low-cost production.
Social implications
The authors also examine in some detail the large gap that exists between Wal-Mart’s pronouncements of the company’s commitment to ethical and socially responsible conduct and its actual business practices. They demonstrate that the company’s communications and claims for ethical conduct are mostly aspirational and fail the test of accuracy, specificity, materiality and verifiability through independent, externally provided integrity assurance.
Originality/value
Finally, the authors outline a number of measures that would need to be taken by Wal-Mart, industry groups that depend heavily on outsourcing from low-skill, low-wage countries for their products and host country governments and the governments of Western industrialized nations whose corporations and consumers are the primary beneficiaries of the exploitative sweatshops that fatten their companies’ bottom lines and enrich their denizens with ample amounts of inexpensive goods.
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Desalegn Abraha and Akmal S. Hyder
In this chapter, each case is analyzed in phases to reflect on the development of the business process between Swedish firms and local partners from the transitional emerging…
Abstract
In this chapter, each case is analyzed in phases to reflect on the development of the business process between Swedish firms and local partners from the transitional emerging economies. Initially 20 cases were studied but the final number was 10 cases as other alliances or their continuation in some other forms cannot be traced. Transformation of the alliances shows how the partners have gained experience and grown over the years. Out of the 10 cases, three phases in eight of the cases can be identified. Only two phases are found in the remaining two cases. The analysis is done in such a way that cases can be compared in terms of the variables of the conceptual framework, which includes motives, resources, learning, network, performance, and business environment prevailing in the case countries. The analysis is in two steps: first, each case is discussed in different phases and second, all cases are compared together, also in separate phases. The result of the analysis is the starting point of the next chapter where general findings are discussed and related to the relevant literature.
Md Abu Saleh, M. Yunus Ali, Ali Quazi and Deborah Blackman
The purpose of this paper is to explore international buyer–supplier relationships in an emerging developing country context. The study examines a number of factors derived from…
Abstract
Purpose
The purpose of this paper is to explore international buyer–supplier relationships in an emerging developing country context. The study examines a number of factors derived from internationalization process (IP) theory and their impacts in a novel research setting. The relational variables of trust and commitment, and their drivers, are integrated into a model examining importers’ perspectives of their supplier relationships.
Design/methodology/approach
This study applied a sequential methodological approach. Initially, a conceptual framework was developed from qualitative research and then quantitatively validated using structural equation modeling (SEM). The data for this study were collected conducting in-depth interviews and survey questionnaires. For empirical validation, the SEM technique was applied to assess the proposed model.
Findings
Importing firm managers perceived that the commitment of their suppliers bolstered their trust in the relationship, this contrasts with the conventional contention of a reverse relationship. The findings confirm cultural similarity facilitates communication, leading to increased knowledge and experience of importers, thereby contributing to an enhanced commitment to build trust in the relationship.
Practical implications
The conceptual framework developed in this study provides a direction to manage and enhance understanding of IP and relationship outcome. The findings have strategic implications for practicing managers in developing and supporting their importer–foreign supplier relationships.
Originality/value
This study is unique in assessing as well as validating key constructs of IP theory in an international exchange (importer–supplier) relationship. The study offers completely a new insight in relation to applying IP theory’s relational perspectives.
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Steven Devaney and David Scofield
Commercial real estate is a highly specific asset: heterogeneous, indivisible and with less information transparency than most other commonly held investment assets. These…
Abstract
Purpose
Commercial real estate is a highly specific asset: heterogeneous, indivisible and with less information transparency than most other commonly held investment assets. These attributes encourage the use of intermediaries during asset acquisition and disposal. However, there are few attempts to explain the use of different brokerage models (with differing costs) in different markets. This study aims to address this gap.
Design/methodology/approach
The study analyses 9,338 real estate transactions in London and New York City from 2001 to 2011. Data are provided by Real Capital Analytics and cover over $450 billion of investments in this period. Brokerage trends in the two cities are compared and probit regressions are used to test whether the decision to transact with broker representation varies with investor or asset characteristics.
Findings
Results indicate greater use of brokerage in London, especially by purchasers. This persists when data are disaggregated by sector, time or investor type, pointing to the role of local market culture and institutions in shaping brokerage models and transaction costs. Within each city, the nature of the investors involved seems to be a more significant influence on broker use than the characteristics of the assets being traded.
Originality/value
Brokerage costs are the single largest non-tax charge to an investor when trading commercial real estate, yet there is little research in this area. This study examines the role of brokers and provides empirical evidence on factors that influence the use and mode of brokerage in two major investment destinations.
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Frederic B. Kraft and Kae H. Chung
US firms must improve their ability to respond to Japanesecompetition when marketing in Asian markets such as Korea. Previousstudies of import purchasing have focused primarily on…
Abstract
US firms must improve their ability to respond to Japanese competition when marketing in Asian markets such as Korea. Previous studies of import purchasing have focused primarily on foreign buyers′ perceptions of exporting countries′ products and associated marketing mix components. Examines the relative importance of these product offer variables in conjunction with a set of non‐marketing‐mix‐related exporter characteristic variables in import purchasing decisions. An examination of the perceptions and purchasing activities of 190 members of the Korean Foreign Trade Association demonstrated the importance of exporter characteristic variables in explaining import purchasing decisions. US exporters′ weaknesses in cultural awareness, negotiation style and reputation, indicate possible directions for efforts in improving marketing relationships.
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Headwinds in Vietnam's real estate sector.