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Article
Publication date: 29 March 2022

Mumin Dayan, Frank Yat Cheong Leung and Muammer Ozer

Drawing on the resource dependence theory (RDT), this paper investigates ownership composition, export intensity, and industry class as moderating factors to investigate the role…

Abstract

Purpose

Drawing on the resource dependence theory (RDT), this paper investigates ownership composition, export intensity, and industry class as moderating factors to investigate the role of imported raw materials in performance of inward foreign direct investment (IFDI) in Ethiopia.

Design/methodology/approach

The hypotheses were tested using secondary data obtained from the 2016 Central Statistical Agency (CSA) on Large- and Medium-Scale Manufacturing and Electricity Industries Survey. The data included basic quantitative information on the country's manufacturing industry. The data items for the 2016 manufacturing and electricity industries surveyed are the numbers of proprietors or establishments involved in various sectors. The report did not record small firms that employed fewer than 10 people and did not use power-driven machinery. Two-Stage least squares (2SLS) regression analysis was performed to test the proposed hypotheses.

Findings

The results of this study indicate that three moderators (ownership composition, export intensity, and industry classification) interact with the hypothetical relationships between imported raw materials and performance. These findings enrich the knowledge of IFDI firms' operations in Ethiopia and in other least-developed countries (LDCs). The findings could provide information for IFDI firms that are looking to invest in LDCs.

Research limitations/implications

Like all social science research, this study has some limitations. First, the research was conducted with the data found in the Report on Large- and Medium-Scale Manufacturing and Electricity Industries Survey In 2016. This was the first year of the second five-year Growth and Transformation Plan (GTP II), a national development plan for the 2016–2020 period. Continual research on IFDI in Ethiopia in the following years will be needed to get a full picture of the effects of the determinants on IFDIs.

Practical implications

To IFDI investors, the result of this thesis demonstrates several alternatives to overcoming hurdles in manufacturing operation. The results find that J.V. firms make better use of imported raw materials than W.O. subsidiaries in order to achieve better performance. Concerning the choice between focusing on export or domestic markets, the study suggests that domestic market—oriented companies require less imported raw materials to achieve better performance. Concerning the comparative advantage on different industries, this study found the performance of firms in Industry 12 depended on imported raw materials. These findings highlight the challenges and opportunities for potential foreign investors. Ownership composition, market factors, and industry factors should be well considered in making investment decisions.

Originality/value

This is one of few studies on IFDI in Ethiopia, the most populous LDC. Ownership composition, export intensity, and industry class are used as moderating variables to investigate the difference between imported raw materials and the level of expatriate deployment to IFDI performance. For IFDI investors, the results of this study demonstrate several alternatives to overcoming hurdles in manufacturing operation.

Details

International Journal of Emerging Markets, vol. 18 no. 12
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 28 February 2023

Md. Kausar Alam, Oli Ahad Thakur and Fakir Tajul Islam

Inventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The…

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Abstract

Purpose

Inventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The study aims to examine the IM practices of small and medium enterprises (SMEs) in Bangladesh.

Design/methodology/approach

The study applied a qualitative case study design. Data were collected from ten SME owners in Bangladesh. The study employed a purposive sampling technique to collect data. This study used semi-structured interviews to generate data. The NVivo software was used to analyze the data.

Findings

The findings show that most SME business owners collect raw materials from the local market. Along with the local sources, they collect raw materials from international markets. Some SME entrepreneurs collect raw materials throughout the country as they dealt with recycled products. Frequently, they used digital technologies and online media to manage raw materials. SME owners could not buy many raw materials due to financial crisis, wastage, and damage, leading to a ratio of 10–15% losses.

Research limitations/implications

This research contributes greatly to the government, SME Foundation, and trade associations concerning the SME IM system. The study recommends the government should reduce the tax rate on importing SME raw materials and inventories and exporting SME products.

Originality/value

This is the first study that focuses on the IM systems of SMEs in Bangladesh.

Details

Rajagiri Management Journal, vol. 18 no. 1
Type: Research Article
ISSN: 0972-9968

Keywords

Article
Publication date: 25 October 2011

Pichawadee Kittipanya‐ngam, Yongjiang Shi and Mike J. Gregory

The purpose of this paper is to explore the key influential factors and their implications on food supply chain (FSC) location decisions from a Thailand‐based manufacturer's view.

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Abstract

Purpose

The purpose of this paper is to explore the key influential factors and their implications on food supply chain (FSC) location decisions from a Thailand‐based manufacturer's view.

Design/methodology/approach

In total, 21 case studies were conducted with eight Thailand‐based food manufacturers. In each case, key influential factors were observed along with their implications on upstream and downstream FSC location decisions. Data were collected through semi‐structured interviews and documentations. Data reduction and data display in tables were used to help data analysis of the case studies.

Findings

This exploratory research found that, in the food industry, FSC geographical dispersion pattern could be determined by four factors: perishability, value density, economic‐political forces, and technological forces. Technological forces were found as an enabler for FSC geographical dispersion whereas the other three factors could be both barriers and enablers. The implications of these four influential factors drive FSC towards four key patterns of FSC geographical dispersion: local supply chain (SC), supply‐proximity SC, market‐proximity SC, and international SC. Additionally, the strategy of the firm was found to also be an influential factor in determining FSC geographical dispersion.

Research limitations/implications

Despite conducting 21 cases, the findings in this research are based on a relatively small sample, given the large size of the industry. More case evidence from a broader range of food product market and supply items, particularly ones that have significantly different patterns of FSC geographical dispersions would have been insightful. The consideration of additional influential factors such as labour movement between developing countries, currency fluctuations and labour costs, would also enrich the framework as well as improve the quality and validity of the research findings. The different strategies employed by the case companies and their implications on FSC location decisions should also be further investigated along with cases outside Thailand, to provide a more comprehensive view of FSC geographical location decisions.

Practical implications

This paper provides insights how FSC is geographically located in both supply‐side and demand‐side from a manufacturing firm's view. The findings can also provide SC managers and researchers a better understanding of their FSCs.

Originality/value

This research bridges the existing gap in the literature, explaining the geographical dispersion of SC particularly in the food industry where the characteristics are very specific, by exploring the internationalization ability of Thailand‐based FSC and generalizing the key influential factors – perishability (lead time), value density, economic‐political forces, market opportunities, and technological advancements. Four key patterns of FSC internationalization emerged from the case studies.

Details

Benchmarking: An International Journal, vol. 18 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 3 September 2019

Vincenzo Alfeo, Aldo Todaro, Giuseppina Migliore, Valeria Borsellino and Emanuele Schimmenti

This paper aims to illustrate the organisational and managing models characterising the craft beer producers in Sicily (Southern Italy) and the main issues of the provision of raw

Abstract

Purpose

This paper aims to illustrate the organisational and managing models characterising the craft beer producers in Sicily (Southern Italy) and the main issues of the provision of raw materials.

Design/methodology/approach

A direct survey involving the overall population of 41 craft breweries operating in Sicily in 2016 was carried out. Then 29 questionnaires were collected for exploratory analysis. A hierarchical cluster analysis was also performed out to group companies by similar structural, productive and economic features.

Findings

The findings of the survey showed a Sicilian craft beer industry characterised by a substantial dependence on the import of malts hops and yeasts and the limited use of local raw materials among brewers. Furthermore, the characteristics of the processing plants and the sales channels appear to influence the diversification of the products and the turnover levels of the Sicilian craft beer producers.

Originality/value

This is the first study describing the craft brewing industry in Sicily. The findings contribute to enrich the knowledge on the organisational models applied in the craft beer industry. In particular, the findings could contribute to shed light on some critical issues about the provision of raw materials, suggesting possible paths for the successful development of the craft beer industry in the region.

Details

International Journal of Wine Business Research, vol. 32 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 March 2006

Fernando Martirena and Andrés Olivera

Cuba has recently endured the impact of hurricanes Lili (1996), George (1998), Irene (1999), Michelle (2001), Isidore (2002), Lili (2002), Charlie and Ivan (2004). The provinces…

Abstract

Cuba has recently endured the impact of hurricanes Lili (1996), George (1998), Irene (1999), Michelle (2001), Isidore (2002), Lili (2002), Charlie and Ivan (2004). The provinces of Villa Clara, Matanzas and Pinar del Río have suffered the major damage, basically in coastal towns where thousands of houses have been destroyed, and families displaced from their homes.

Tackling this problem proves to be complicated. Decision-makers face two choices: (a) to concentrate the scarce resources - including post disaster aid - on emergency actions to reduce only the damages caused by the hurricane, or (b) to improve in a sustainable way existing houses through better and more efficient material supply. In both cases, the possibility of local production of building materials becomes a crucial factor.

The Centre for Investigation and Development of Structures and Materials (CIDEM) has been involved in disaster-response projects in the area since 1996. The thrust has been the manufacture of ecomaterials such as micro concrete roofing (MCR) tiles, pozzolanic cement CP-40 and hollow concrete blocks, which provide the means to build affordable and hurricane safe houses. These materials are produced on the basis of local raw materials and labour in small workshops based directly in the communities.

The widespread use of ecomaterials on the northern coast of Villa Clara province has been a key aspect in decreasing the vulnerability of the houses against hurricanes. The fact that these materials have withstood the impact of various hurricanes without significant damage has drawn the attention of local governments, communities and donors. The presentation of case studies in this paper will illustrate this experience.

Details

Open House International, vol. 31 no. 1
Type: Research Article
ISSN: 0168-2601

Keywords

Book part
Publication date: 25 January 2021

Desalegn Abraha and Akmal S. Hyder

In this chapter, six cases are presented, four from Poland and two from Hungary. The Polish cases are Partec Rockwool, PLM, Bulten Tools, and Vattenfall, while Svedala and Getinge…

Abstract

In this chapter, six cases are presented, four from Poland and two from Hungary. The Polish cases are Partec Rockwool, PLM, Bulten Tools, and Vattenfall, while Svedala and Getinge belong to Hungary.

The cases have been described in different phases following the conceptual framework, developed in chapter six. All cases we present in three phases except Svedala where there are two phases. In the later case, neither the alliance nor the partners could be traced. Among the cases, level of performance varied. Getinge is the only case where the partners continued with the same alliance and the ownership structure remained unchanged. In Partec, the foreign partner acquired the local shares to establish a wholly owned subsidiary, and in Bulten Tool, the foreign partner became the major owner to have control over the company. Partec Rockwool and Vattenfall had been sold to other companies after amicable settlement between the partners.

Details

Transformation of Strategic Alliances in Emerging Markets, Volume II
Type: Book
ISBN: 978-1-80043-748-7

Case study
Publication date: 1 September 2021

Mokhalles Mohammad Mehdi, Sandip Rakshit and Jelena Zivkovic

• Identify challenges of operating a start-up business. • Understand the social enterprise and role of gender (women entrepreneurship). • Assess the responsibility of unskilled…

Abstract

Learning outcomes

• Identify challenges of operating a start-up business. • Understand the social enterprise and role of gender (women entrepreneurship). • Assess the responsibility of unskilled women entrepreneurs and the challenges faced by them. • Describe business and marketing strategies adopted in market segmentation and product promotion. • Discuss strategies adopted to sustain a small business.

Case overview/synopsis

Yola EcoSentials (YES) was a social enterprise originated from the American University of Nigeria, Yola, capital city of Adamawa, Nigeria. It was established in September, 2012. It started with the mission to improve the environment, reduce waste and empower women. It engaged in production of hand bags, wallets, table mats and iPad bags from the recycled waste items such as nylons. YES was founded and spearheaded by Charles Reith (Chief Executive Officer). YES faced certain major challenges in expanding its business, namely, maintenance of quality products and accountability of business operations including personal income savings plan and source of new customers. Moreover, YES was having a serious concern of project sustainability because of the availability and division of insufficient raw materials to operate their business. To overcome these challenges, in December 2016, YES planned to devise its growth strategy to operate their business run by local women in Yola, Nigeria.

Complexity academic level

Undergraduate and graduate early stage programme.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 3: Entrepreneurship.

Details

Emerald Emerging Markets Case Studies, vol. 11 no. 2
Type: Case Study
ISSN: 2045-0621

Keywords

Book part
Publication date: 8 April 2005

Magnar Forbord

In every industry there are resources. Some are moving, others more fixed; some are technical, others social. People working with the resources, for example, as buyers or sellers…

Abstract

In every industry there are resources. Some are moving, others more fixed; some are technical, others social. People working with the resources, for example, as buyers or sellers, or users or producers, may not make much notice of them. A product sells. A facility functions. The business relationship in which we make our money has “always” been there. However, some times this picture of order is disturbed. A user having purchased a product for decades may “suddenly” say to the producer that s/he does not appreciate the product. And a producer having received an order of a product that s/he thought was well known, may find it impossible to sell it. Such disturbances may be ignored. Or they can be used as a platform for development. In this study we investigate the latter option, theoretically and through real world data. Concerning theory we draw on the industrial network approach. We see industrial actors as part of (industrial) networks. In their activities actors use and produce resources. Moreover, the actors interact − bilaterally and multilaterally. This leads to development of resources and networks. Through “thick” descriptions of two cases we illustrate and try to understand the interactive character of resource development and how actors do business on features of resources. The cases are about a certain type of resource, a product − goat milk. The main message to industrial actors is that they should pay attention to that products can be co-created. Successful co-creation of products, moreover, may require development also of business relationships and their connections (“networking”).

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

Book part
Publication date: 12 July 2016

Veronica Broomes

Demands from key stakeholder groups, some triggered by concerns about human rights and breaches of international guidance on safe and healthy workplaces, have led to an increase…

Abstract

Demands from key stakeholder groups, some triggered by concerns about human rights and breaches of international guidance on safe and healthy workplaces, have led to an increase in the calls for transnational businesses to be held accountable. The raised expectations that companies will govern transparently and company officials will be held accountable for deviations has seen a steady increase in the number of transnational businesses taking action to improve their processes, create greater accountability in decision making that affects procurement and make informed choices to ensure value for money from companies at the end of the procurement process. This has led to the rethinking of how large global companies make decisions about procurement and the role played by local suppliers to benefit from the engagement of local companies.

In a steadily increasing number of countries, changes have been made also through amendments to companies legislation which require companies to go beyond reporting financial performance only, but to include also updates about social as well as environmental performance indicators. In the case of supply chains for natural resources such as oil and gas and agriculture, there is evidence of some companies taking action to expand and diversify their supply chain.

In a review of supply chain activities of transnational businesses operating in developing countries and emerging economies, this chapter identifies strategies used to shift to more innovative and socially conscious approaches to strengthening local supply chains. The author suggests approaches that can be taken by transnational businesses in creating a greater shareholder value, foster goodwill among key stakeholders as well as strengthen organisational governance and promote sustainable procurement.

Details

Accountability and Social Responsibility: International Perspectives
Type: Book
ISBN: 978-1-78635-384-9

Keywords

Article
Publication date: 1 March 1999

Hans Voordijk

A supply chain can be analysed as a network made up of the total set of raw materials supply, and several manufacturing and distribution activities. In the case of the East…

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Abstract

A supply chain can be analysed as a network made up of the total set of raw materials supply, and several manufacturing and distribution activities. In the case of the East African country of Eritrea, each element of this network causes problems. Decades of war in this region have deprived Eritrea of the necessary infusion of new investments, technology and skills. In order to solve their supply, production and distribution problems, firms have to improve their logistics locally and seek co‐operation with foreign companies. While the government has to reduce its own role by giving public firms more autonomy, it should strengthen its role in the national economy by increasing investments in education and the transport and communication infrastructure. These actions by government and the business community are necessary not only for Eritrea, but also for a lot of other African countries.

Details

International Journal of Operations & Production Management, vol. 19 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

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