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This study aims to investigate how the social identity theory and emotional attachment theory influence the willingness of consumers to buy foreign cosmetic products. Specifically, this study examines the relationship between consumer ethnocentrism, foreign product judgment and willingness to buy foreign products. Furthermore, the interaction effect of consumer affinity and patriotism are tested in the model.

An online survey of 208 millennial Muslim women consumers was used to collect the data. The structural equation modeling test was used to assess the six hypotheses. Moreover, the two-step estimation approach was used to test the interaction moderation of consumer affinity and patriotism.

The results indicate that consumer ethnocentrism has a positive and significant relationship with foreign product judgment. Foreign product judgment was also found to have a positive and significant relationship with willingness to buy. In addition, this study concludes that affinity was found to moderate the relationship between consumer ethnocentrism and foreign product judgment and strengthen the positive and significant effect of foreign product judgment on the willingness to buy. Finally, patriotism did not moderate the relationship between consumer ethnocentrism and foreign product judgment. However, patriotism moderated the relationship between foreign product judgment and willingness to buy.

This study only focused on one category (i.e. low involvement product), and the authors recommend future studies to examine a high involvement product. Other individual orientation constructs, such as xenocentrism, need to be examined in future studies. Moreover, only intentional measures were investigated. Thus, further research could correlate intentional measures with product ownership. Finally, future research could examine how consumers behave differently across nations. Thus, the present model would require cross-cultural research.

Marketers focusing on global branding and international marketing can benefit from the findings of this paper by understanding the antecedents of consumers’ willingness to buy in the foreign cosmetic products setting. Additionally, foreign cosmetic marketers could focus on consumer affinity to strengthen the communication with and arouse the affinity of Muslim millennials women consumers in Indonesia. Finally, marketers can incorporate messages and signals of patriotism in their marketing communications to increase Muslim millennial women consumers’ love and pride.

The growing obsession with beauty among women has led to the immense growth of the cosmetics industry. This phenomenon has spawned an abundance of cosmetic products on the market. The advancement of information technology has further increased competition for cosmetic products as more products can be quickly brought to market. Muslim millennials consumers must be aware and careful about raw materials, impacts on long-term health, impacts on the national economy, environmental impacts and halal certification when using various kinds of cosmetics.

This study contributes to the literature on international marketing research by incorporating the interactive effect of consumer affinity and patriotism in the acceptance of foreign cosmetic products.

Little is known about Indonesian consumers' acceptance of global brands despite their huge retail market potential. Drawing from Festinger’s (1957) cognitive dissonance theory and Schwartz’s (1992) value system, this study aims to examine the effect of Indonesian consumers' religiosity, cosmopolitanism and ethnocentrism on their preference for and purchase intention towards global brands.

Data were collected from 316 female consumers aged 20 years or older living in Indonesia via a professional online survey firm. The firm sent prospective participants an email invitation with a survey URL. Confirmatory factor analysis and structural equation modelling were conducted using AMOS 24.0 to test hypotheses.

The analyses revealed that Indonesian consumers' religiosity increased their ethnocentrism but not cosmopolitanism. Further, ethnocentrism decreased global brand preference without affecting purchase intention towards Korean cosmetics, whereas cosmopolitanism increased both global brand preference and purchase intention towards Korean cosmetics.

The findings show that cosmopolitanism has a stronger influence on global brand preference than ethnocentrism, suggesting ethnocentrism’s diminishing relevance in predicting purchase intention for foreign products. Additionally, religiosity’s effect on ethnocentrism was confirmed.

The literature on the influence of audit committees (AC) and cosmetic accounting (CA) is scarce. AC plays a unique and vital role in boosting earnings reliability in countries with weaker application of accounting standards or weaker legal protection for investors. AC, therefore, are considered to be one of the essential tools available to directors in supervising management decisions regarding financial reporting. This paper aims to examine the influence of AC characteristics (ACC) on CA and how this relationship is moderated by the audit fee.

This study used probit regression to analyze 1,218 firm-year observations of listed companies in Tehran Stock Exchange from 2014 to 2020.

The results show that AC financial accounting expertise, AC independence, female AC membership and AC tenure were negatively related to CA. The negative relationship is highly pronounced when a firm incurs higher audit fees, and audit fees moderate the relationship between ACC and CA. Results for the robustness checks show that only AC independence was significant, and the results of other characteristics were not significant.

This research was conducted in an Iranian setting where the formation of ACs is on the verge of regulation; therefore, the data used for the study only contains the seven-year period of ACs’ statutory activity. In addition, a lack of consensus on the precise measures of an AC’s effectiveness could be considered as a restrictive factor.

The findings provide an initial insight into the effect AC on CA and moderating effect of audit fee on the relationship between ACC and CA.

This study aims to explore how and when learning from others promotes creative performance over the contributor’s tenure in the context of open innovation communities.

The authors analyze a publicly available data set that includes 25,923 innovative items developed by 2,194 contributors from an open innovation community of an online game spanning eight years. Logistic regression model is used for analyzing the data.

The results show that multicultural experiences are negatively related to contributor’s creative performance, and this negative relationship weakens as contributor’s tenure increases. While diverse skills are positively related to contributor’s creative performance, and this positive relationship strengthens as contributor’s tenure increases.

This research highlights the importance of online team collaboration in knowledge transfer through learning from others in open innovation communities. By identifying two outcomes of learning from others through online team collaboration, the authors demonstrate the double-edged role of learning from others and advance the understanding on how the effect of learning from others varies over the contributor’s tenure. These results expand the understanding of online team collaboration and provide a new perspective for research on learning from others.

The purpose of this study is to explore the acculturation caused by the Korean wave among Indonesian Muslim consumers, especially in the food and cosmetic sectors, based on religious grounds.

Data were collected through focus group interviews with 20 Muslim respondents in Indonesia.

The findings specifically highlighted that Muslim consumers’ acceptance of Korean products varied. Muslim consumers’ acceptance was influenced by similarities and differences in values between Islamic and Korean cultures. Consumers categorised into each acculturation mode (assimilation, separation, integration and marginalisation) showed different behavioural patterns in Korean product acceptance. This study proposes that global products can be optimised through specific and targeted marketing campaigns for different types of Muslim consumers with products that comply with their religious values.

Few studies have explored the importance of religious values (e.g. righteousness, compassion and respect for others) with respect to the acceptance of foreign products in the acculturation context. Additionally, how values from other cultures reconcile with the Indonesian Muslims’ affinity for Korean culture has been limitedly studied. This study aims to fill these gaps by identifying the role of religious factors in the acceptance of global products by taking the example of Indonesian Muslim consumers and Korean products.

Drawing on the resource-based view and contingency theory, this study aims to investigate the effects of organizational capabilities – technology capability and marketing capability – on small- and medium-sized enterprises’ (SMEs’) export performance and the moderating roles of contingent factors in this relationship in the context of a highly competitive export-oriented economy.

The research framework was tested using a three-way stepwise hierarchical multiple regression analysis with data gathered from 531 Korean international SMEs.

In addition to the direct effects of two types of organizational capabilities on export performance, the results show that both capabilities were critical when the export market was competitive, and marketing capability was more important when exporting with a brand name and targeting a developing country.

This study further extends the literature on SMEs’ internationalization in the context of highly competitive export-driven markets and highlights the importance of strategically allocating SMEs’ capabilities to reap optimal export performance by considering dynamic contingencies.

Disruptive external forces can bring businesses to a standstill and make their strategic plans obsolete overnight. COVID-19 exemplifies such a disruptive force, which has caused worldwide havoc and ongoing disruption in many sectors of the economy, while concurrently providing great opportunities for others. The goal in this study is to examine the experiences of firms that have been impacted by a prior disruptive force, offer five theoretical lenses for framing and examining such events, and provide a set of axioms based on the research findings.

The authors used a qualitative approach involving five short international marketing case studies of firms based in South Korea and Taiwan. These nations and firms were selected on the bases of their overall judicious navigation of the conditions presented by the COVID-19 pandemic. The authors gathered information about these firms through primary sources of information (personal and remote interviews as well as other communications), which the authors augmented with information from secondary sources.

The results indicate that external forces can bring both opportunities and threats to firms' international marketing strategies. The authors found that two strategies help firms cope with managerial issues associated with both the demand and the supply sides in successful firms in these nations: (1) leveraging opportunities presented by the pandemic through the successive introductions of new product and (2) the expansion of both the domestic and international markets.

The research provides five theoretical lenses to articulate the impact of disruptive external forces on international marketing strategies.

The research offers thirteen demand and supply side axioms for marketing managers involved in international business (e.g. exporters, importers, MNCs) to cope with disruptive external forces, like COVID-19.

Disruptive external forces, such as the pandemic, have enormous impact on firms and consumers alike. This research aims to limit the negative impact of future disruptions by engaging in contingency planning and added resilience, through which firms may continue to function and, to a large extent, consumers are able to acquire the necessary goods and services to maintain their quality of life.

The authors attribute the quicker response of these firms to their agility in managing the market impacts related to COVID-19 and to their prior conditioning in their respective geopolitical spheres. The authors summarize the findings in a set of nine supply side and a set of four demand side axioms.

Contemporary frameworks in the resource-based view (RBV) of the firm observe that the proprietary firm-specific assets of multinational companies (MNCs) from developed economies give them competitive advantage in international markets. However, the question “how do emerging market firms (EMFs) achieve accelerated internationalisation in knowledge based industries – despite not possessing proprietary assets and lacking critical elements of innovation eco-systems, institutions and infrastructure” has yet to be addressed. This paper aims to adopt a knowledge-based view (KBV) of the firm, identifying knowledge, both inside and outside of the firm, as a critical element for the internationalization of EMFs.

This research entailed deductive econometric analyses using panel data analysis from 925 firm-year observations, which tested our predictions on capabilities that contribute to the internationalization of EMFs from the IT industry in India.

The findings of the authors’ panel data analysis reveal that the capacity to internationalize is predicated by knowledge leverage in three principal domains: absorptive capacity, tacit knowledge and knowledge-codification. This study shows internationalization is driven by higher-order capabilities of EMFs that draw on the absorptive capacity of individuals and collectives as a dynamic capability to serve international clients worldwide.

This study highlights that the process by which EMFs gain competence is different to the Western MNCs insofar as the extent to which EMFs have to stretch their efforts of learning from clients.

For practitioners, the findings of this research are a useful guide to understand that EMFs need to make strategic investments to understand the idiosyncrasies of a variety of clients’ needs and operating environments to dynamically adapt, document the learning and leverage the tacit knowledge.

This study captures the innate ability of entrepreneurs in emerging economies to unlock their potential in human capital for globalizing operations and targeting new market segments in the industry. This can directly benefit in uplifting the income level of millions in relatively underdeveloped countries and bringing about much-needed equity in the level of income in the society.

The value of this study lies in its novel and contemporary insight on how EMFs leapfrog in a fast-changing technology space. What distinguishes the work from the static framework in literature is that EMFs learning is dynamic, and happens in an interactive mode, alongside clients in close proximity. This study captures the innate ability of entrepreneurs to unlock the potential of human capital in emerging economies for globalizing operations.

The purpose of this paper is to explore international market development for mature products and practices used in a novel business context.

Taking a qualitative approach, the case study method was chosen to investigate how firms develop markets in relation to a new international business context. Critical international decisions are analysed using a managerial perspective.

The success of international ventures depends on managerial learning and effectiveness. In this paper, the authors argue that decisions about international market development can add significantly to the understanding of how business firms enter and develop markets in novel business contexts. Two case studies show different approaches for meeting challenges in distant markets. Four propositions are developed.

A theoretical contribution of this study is the importance of factors that explain international market development decisions in novel business contexts. The balance between incomplete knowledge and making resource commitments is of central concern to international managers. Some of this is tacit knowledge that a firm achieves and learns during the process of market development and other knowledge can only become available after an actual market entry. A second theoretical contribution of this study is the significance of contextual market knowledge in a novel business context.

By working through the case and assignment questions, students will be able to conduct a marketing environmental analysis to aid strategic decisions; analyse the first-mover advantages of a retail firm and how these can be sustained; comprehend online retail business models and the challenges therein; understand the trade-offs of online/offline retail experiences specific to an emerging market’s beauty and personal care sector; conceptualize and formulate actionable growth strategies that balance the individual and collective requirements of brick and mortar and retail e-commerce environments.

The case is set in 2022, right after Nykaa – the pioneer of beauty and wellness e-commerce platforms in India makes a blockbuster stock market debut in 2021. Starting in 2012 with a disruptive online model for selling beauty and wellness products online in India, Nykaa had come a long way with expansions in physical retail and other segments such as fashion. The firm, which initially aimed to be a virtual store, is now thinking of aggressively expanding in the brick-and-mortar retail space as it opens its 85th retail outlet.

Falguni S. Nayar, founder and CEO of Nykaa, wanted to roll out 300 physical stores targeting 100 cities in India in the next couple of years. She aspired to establish Nykaa as a category leader as the “Indian Sephora” in the beauty and personal care market. Nykaa’s first-mover advantage in the online beauty and personal care marketplace worked well to establish it as a brand with positive endorsements by digital shoppers that enhanced the investment potential with potential financiers. However, the pandemic had brought every physical retailer to the online platform. Most e-commerce platforms dealing in grocery to lifestyle had added personal care products to their existing merchandise.

Additionally, several start-ups had ventured into the online marketplace. Online was a cluttered marketplace with little to no differentiation. In this bloodbath, would the first-mover advantage for Nykaa in the online space still count as a competitive advantage? Nayar was all set to expand Nykaa’s physical presence aggressively. The concern was that the beauty and personal care segment had also moved online as a function of long stay-at-home periods. In the post-pandemic times, would the customer indeed revert to brick and mortar once again? Nykaa was also into product formulations, but so was every big and small player in the space. What was the differentiated winning formula for the consumer’s heart and mind?

The case can be effectively used in foundation courses in marketing and a wide range of specialized courses on marketing management (core/foundation course), retail marketing and e-commerce/digital marketing and e-commerce for B-school learners. The complex decision points faced by an innovative e-commerce start-up firm on its road to market expansion make the case suitable for niche courses such as Marketing for Start-ups. Moreover, learners in executive MBA programs with considerable experience can benefit from the case analysis that balances a growing retail company’s long- and short-run objectives.

Teaching notes are available for educators only.

CSS 8: Marketing.