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1 – 10 of over 32000Thang V. Nguyen, Garry D. Bruton and Binh T. Nguyen
The purpose of this paper is to examine whether competitor concentration relates to better customer acceptance of the firm’s offerings and better networking of the firm with…
Abstract
Purpose
The purpose of this paper is to examine whether competitor concentration relates to better customer acceptance of the firm’s offerings and better networking of the firm with competitors and government officials.
Design/methodology/approach
The research is conducted in the context of the transition economy of Vietnam, using a combination of methods. Qualitative interviews are followed by a survey of 199 small firms in Hanoi, Vietnam. Since competitor concentration is count data, Poisson regression is used to test the relationship between networking, customer acceptance, and competitor concentration.
Findings
The results show that locating in a competitor concentration area improves customer acceptance of the firm’s offerings and increases networking with competitors, while decreasing networking with government officials. Competitor concentration does not help improve firm performance.
Research limitations/implications
A sample of 199 businesses in the food, furniture, and jewelry sectors in Hanoi may not be representative of all private businesses in Vietnam. The use of cross-sectional data could not establish causational relationships among variables.
Practical implications
Small firms in transition economies should be aware of the trade-offs between initial customer acceptance and negative consequences of being in a competitor concentrated area. Thus, once the firm’s offerings are generally accepted by customers, the firm may consider moving out of competitor concentration areas to expand and differentiate.
Originality/value
This paper points out that in the absence of effective market institutions, businesses want to be located near a concentration of similar firms as a means of gaining initial customer acceptance. This initial acceptance does not necessarily help firms improve business performance beyond the firm’s survival.
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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.
Ulf Elg, Pervez N. Ghauri and Veronika Tarnovskaya
The purpose is to investigate how a retailer identifies critical network actors and gains their support when entering an emerging market. and to examine the role of a firm's…
Abstract
Purpose
The purpose is to investigate how a retailer identifies critical network actors and gains their support when entering an emerging market. and to examine the role of a firm's relationships with different types of actors on the new market.
Design/methodology/approach
The study is of an exploratory nature, and based on an inductive and qualitative research method. A case study of IKEA's entry into Russia and China was conducted.
Findings
It is argued that IKEA's entry into China and Russia was successful because of its dynamic utilization of matching and networking capabilities. The study explains how the support of relationships with, for example, political actors, interest groups and media supported the entry and the development of a positive consumer image.
Research limitations/implications
This is a qualitative, in depth study and future research is needed in order to test the generalizability of the proposed framework and models.
Practical implications
The paper shows how retail managers can generate the support of different types of actors and relationships when entering new markets.
Originality/value
Traditionally consumer product firms' entry to new markets is regarded as a function of dealing with environmental, cultural and legal differences, and adapting products and strategies accordingly. This paper extends understanding by showing that matching and networking capabilities to mobilize resources, actors and activities on global, macro and micro levels are also critical components. It also relates the firm's business relationships with relationships to socio‐political actors on the new market.
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Guanhua Wang, Yaqin Wang, Xiaowei Ju and Xueqin Rui
This study examines the effect of political networking capability (PNC) and strategic capability on exploratory innovation/exploitative innovation through the mediation of…
Abstract
Purpose
This study examines the effect of political networking capability (PNC) and strategic capability on exploratory innovation/exploitative innovation through the mediation of absorptive capability (AC).
Design/methodology/approach
Using empirical survey data collected from 153 traditional manufacturing firms (TMFs) in China, the authors apply partial least squares structural equation modeling (PLS-SEM) combined with mediation analyses to test hypotheses.
Findings
PNC has a higher impact on exploratory innovation than exploitative innovation through AC. The authors thus provide novel empirical insights into independent variables of firms' ambidextrous innovation and their implementation mechanisms.
Research limitations/implications
The authors highlight a unique situation of China and contribute to the literature on PNC and AC. The findings demonstrate that AC plays an important role in configuring government-obtained external resources into new products, thus influencing ambidextrous innovation strategic decisions.
Practical implications
TMFs' executives should enhance PNC to obtain more resources to conduct exploratory and exploitative innovation. Government officials and policymakers should strengthen the supervision of TMFs' innovation activities and adopt effective measures to ensure that TMFs could conduct more exploratory innovation as governments expected.
Originality/value
This study provides new insights by bridging research gaps in the literature and advances the insights of how TMFs' PNC/strategic capability directly and indirectly fosters exploratory and exploitative innovation via the mediating role of AC in China.
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Xinming He and Yingqi Wei
Drawing on the resource-based view and network theory, the purpose of this paper is to investigate the role of external networks (ENs) and absorptive capacity (AC) in export…
Abstract
Purpose
Drawing on the resource-based view and network theory, the purpose of this paper is to investigate the role of external networks (ENs) and absorptive capacity (AC) in export market location decision of emerging economy firms (EEFs) and the performance implication of this decision.
Design/methodology/approach
This study employs structural equation modeling to test three hypotheses: first, ENs influence an EEF manager's propensity to enter culturally/psychically distant markets for exports. Distant markets are more likely to be chosen by managers of firms with abundant ENs. Second, AC moderates this network-market location relationship. Third, superior performance results from the fit between managers’ propensity to enter a market and firms’ levels of ENs and AC.
Findings
An analysis of 196 Chinese exporting firms supports the hypotheses.
Research limitations/implications
Though the theoretical discussion is general, the empirical context is specific to Chinese export manufacturers. Replicating the study is necessary in different contexts.
Practical implications
The study identifies to managers the importance of external (i.e. ENs) and internal resources and capabilities (i.e. AC) and linkages between resources and capabilities, strategy and performance.
Originality/value
The study is novel in conceptually addressing the role of ENs and AC in firms’ decision making and performance and in testing hypotheses with robust methodology and data.
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Husam Ananzeh, Malek Hamed Alshirah, Ahmad Farhan Alshira'h and Huthaifa Al-Hazaima
A key goal of this research is to examine empirically whether politically connected board members are likely to impact corporate philanthropy. A further goal of this study is to…
Abstract
Purpose
A key goal of this research is to examine empirically whether politically connected board members are likely to impact corporate philanthropy. A further goal of this study is to contribute to the existing literature by examining the moderating role of political connections on the relationship between family ownership and corporate donations.
Design/methodology/approach
Based on the content analysis approach, the authors determined the level of cash and in-kind donations made by a group of 94 non-financial Jordanian companies listed on the Amman Stock Exchange. This study examined 658 annual reports spanning over seven years from 2010 to 2016. Ordinary least squares regression (OLS) is used to test the study hypotheses. In addition, this study used the probit regression to validate those results reported by the OLS regression.
Findings
Compared to unconnected companies, politically connected companies in Jordan are more likely to donate to philanthropic causes. Moreover, the results revealed that the presence of significant family ownership shareholding in a firm can weaken the firm tendency to donate. Despite this, the regression analysis results indicate that family-controlled firms with political connections are more likely to engage in charitable giving activities compared to those without political nexuses.
Research limitations/implications
The study contributes to the conversation surrounding corporate giving and sheds light on the role political connections and ownership structure (particularly family-owned firms) play in affecting donations by firms.
Practical implications
Managers of Jordanian firms listed on the stock exchange can use the study's findings to make better decisions about their donations and other philanthropic activities.
Originality/value
This study is the first to examine the relationship between firm donations and political connections in Jordan, and how political nexuses can moderate the relationship between family ownership and corporate donations. Hence, it extends prior research significantly.
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Noa Willys, Wenyuan Li, Otu Larbi-Siaw and Ettien Fulgence Brou
As the backbone of the social open innovation (SOI) system, social enterprises (SEs) are the key drivers of social value creation (SVC). However, at the micro-level, research in…
Abstract
Purpose
As the backbone of the social open innovation (SOI) system, social enterprises (SEs) are the key drivers of social value creation (SVC). However, at the micro-level, research in this area is lacking, as attention is scantly paid on the comprehensive capabilities of renewable energy enterprises, their industrial heterogeneity and heterogeneous social connections, including bricolage and utility innovation. Drawing from the social resource-based view theory and institutional theory, the research investigates SOI effect on SVC, the moderating role of social ties (ST) and entrepreneurial bricolage (EB) mediation.
Design/methodology/approach
The research methodology encompassed several key steps. Initially, a research framework was constructed based on a comprehensive literature review. Subsequently, data were collected by surveying 133 middle to senior-level managers. To assess the proposed hypotheses, a structured equation modeling analysis was conducted using a two-stage approach, which involved partial least squares and hierarchical regression techniques.
Findings
The study reveals that SOI affects SVC significantly, and SOI positively impacts EB. Furthermore, political ties strengthen the positive impact of SOI on EB. Moreover, EB positively impacts SVC. Additionally, EB mediates the relationship between SOI and SVC.
Research limitations/implications
Firstly, the measurement of variables relies on a subjective approach. Future research could employ a quantitative comprehensive index evaluation method of assessment, thereby providing additional validation for the authors' findings. Secondly, although cross-sectional data can be utilized to explore the relationships between variables, there may be inherent biases in the results. Therefore, longitudinal data collection in future research would enable the observation of the long-term effects of SOI and EB on SVC and ST. Thirdly, it would be beneficial to examine other potential factors that could contribute to a more comprehensive understanding of the mechanisms linking SOI to SVC.
Practical implications
First, the study underscores the significance of EB in the interplay between SOI and SVC. By embracing innovative approaches and fostering collaborations, SEs can harness EB as a powerful tool for achieving their social missions while overcoming resource constraints. Second, it is imperative for managers to foster a conducive environment for SVC within their organizations, characterized by network ties and partnerships. Simultaneously, they should proactively drive ST initiatives and remain attuned to evolving changes in external environmental laws and regulations. Third, the Malagasy government is actively advocating for social interventions and the establishment of social milieus reminiscent of corporate social responsibility.
Social implications
This study emphasizes the importance of ST and recognizes the pivotal role of EB in generating social value within an ecosystem that supports SOI. SEs can create lasting positive impacts on society (e.g. improving access to electricity) by embracing these principles and collaborating with stakeholders.
Originality/value
These findings serve to enhance the underlying theoretical context of social entrepreneurship, propose nuanced insight into the methodologies for implementing SVC within the context of renewable energy enterprises and make significant contributions to the ongoing progress of research in the domains of open innovation and social entrepreneurship.
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Gaston Fornes, Guillermo Cardoza and Maria Altamira
This study aims to understand whether business and political relations help emerging markets' SMEs to overcome the challenges posed by low institutionalization in their national…
Abstract
Purpose
This study aims to understand whether business and political relations help emerging markets' SMEs to overcome the challenges posed by low institutionalization in their national and international expansion. It focuses on the role that these relations play in determining access to government funding and contracts and to market information and business-related knowledge.
Design/methodology/approach
The data were collected from 828 SMEs in Brazil and China. The data analysis was developed in two stages: the first stage was based on multivariate regression analyses using the ratio of sales outside the companies' region of origin divided by total sales as a dependent variable and the survey's answers as independent variables; outward sales were taken at two different levels – national and international – to consider: (1) the different stages in the national and international expansion process, and (2) the fragmented nature of domestic markets in both Brazil and China. The second stage was based on a stepwise multiple regression as the relative importance of the variables was not known beforehand and the objective was to rank them according to the managers' perceptions.
Findings
Informal institutions, in particular business and political relations, can help to reduce uncertainty and overcome some disadvantages associated with weak institutionalization. They do this by providing access to trusted distribution channels, improving the familiarity with different institutional environments and strengthening the management of supply chains and commercial strategies to serve markets outside their region. Also, SMEs in emerging markets getting access to private sources of funding, market knowledge and government contracts through business and political relations are in a better position to expand nationally and internationally.
Originality/value
The research shows that the domestic environment, in particular one with low levels of institutionalization, impacts negatively the national and international expansion of SMEs and, more importantly, how firms can use business and political relations to overcome the obstacles posed by this environment. The findings also have implications for theory, practice and policymaking.
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Policymakers, academics and practitioners have recognised the potential of returnee entrepreneurs for the transfer of advanced knowledge to emerging and developing countries. Yet…
Abstract
Purpose
Policymakers, academics and practitioners have recognised the potential of returnee entrepreneurs for the transfer of advanced knowledge to emerging and developing countries. Yet what factors determine the decisions to start a business – and what type of business – upon returning to the home country is relatively unclear. This paper aims to reveal to what extent different contextual factors influence the intention to return home to start a venture. In addition to overall intentions to start a returnee business, this study covers intentions towards starting businesses with different orientations.
Design/methodology/approach
This study builds upon a sample of 273 individuals originating from emerging economies who are on track to complete their overseas tertiary education in an advanced economy. Using primary survey data obtained from the participants, a structural equation model (SEM) based on our theoretical model was defined for hypothesis testing.
Findings
Findings suggest that the perception of a stable institutional environment stimulates returnee entrepreneurship, and that the perception of estrangement negatively affects the intention to start a new venture in the home country. The results further show that the availability of support may reduce perceived estrangement, thereby exerting an indirect, positive effect on returnee entrepreneurship. Importantly, the findings confirm that these effects vary across intentions to start ventures with different orientations.
Originality/value
This study extends previous literature on the phenomenon of returnee entrepreneurs which has primarily investigated returnee-owned ventures that are already in operation. In particular, the authors provide theoretical links between institutions and other contextual factors affecting returnee entrepreneurial intentions, and this study highlights that it is meaningful to consider not only the strength but also different types of intentions. Thereby, this paper provides refined perspectives on the assumed beneficial impact of returnee entrepreneurs on the economic and societal development of emerging economies.
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Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford