Search results
1 – 10 of 147Jaison Caetano da Silva, Rosilene Marcon, Ronaldo Parente and Cinara Gambirage
The purpose of this study is to investigate the effect of international expansion of emerging markets multinationals (EMNEs) on the home country nonmarket political strategy and…
Abstract
Purpose
The purpose of this study is to investigate the effect of international expansion of emerging markets multinationals (EMNEs) on the home country nonmarket political strategy and why some EMNEs intensify this political tie more than others.
Design/methodology/approach
We test our theoretical framework using longitudinal data, with 16 years of observations, in Multilatinas and state loans from Brazil, one of the main outward foreign direct investment (OFDI) players in the world and the OFDI leader in Latin America.
Findings
Theoretically grounded on the institution-based view of strategy, it can be postulated that international expansion is a driver of home country nonmarket political strategy. It can also be hypothesized that political tie intensity is affected by the capacity of EMNEs to deal with international expansion issues without having to depend on relationship with homes country nonmarket political actors. The results provide support for the hypotheses presented.
Originality/value
This paper contributes to the EMNE internationalization literature by extending the understanding of the underlying motivations and forces shaping the home country nonmarket political strategy of multinationals from emerging markets and, thus, helping understand why some EMNEs tend to be more politically active than others. Likewise, the study contributes to advancing understanding regarding the home country strategic responses adopted by Multilatinas and the forces behind the nonmarket political strategies they employ in their international expansions, especially during turbulent times.
Details
Keywords
Swechchha Subedi and Marketa Kubickova
The study has two objectives, first, to examine the effect of COVID-19 deaths and corruption on the government's policy responses, and second, to investigate the effect of…
Abstract
Purpose
The study has two objectives, first, to examine the effect of COVID-19 deaths and corruption on the government's policy responses, and second, to investigate the effect of COVID-19, corruption and government response on hotel performance, using the developmental system's framework of resilience theory.
Design/methodology/approach
The study utilizes hotel data from ten countries collected from 1st March 2020 to 28th February 2021. The data are analyzed using the panel regression analysis in E-views.
Findings
The study confirms that government policies direct impact the hotel performance. Specifically, economic support policies have a positive effect on hotel performance, while COVID-19 deaths and restrictions have a negative impact on hotels. The study also found a strong association between corruption and the level of restrictions that governments choose to implement. Therefore, for effective recovery, governments must be mindful of the context in which businesses operate and the effect of their policies on the hotel industry.
Practical implications
The strong correlation between COVID-19 deaths and RevPAR highlights the significance of understanding and addressing customers' risk perception to enhance the resilience of the hotel industry. The findings emphasize the importance of collaboration between the hotel industry and the government for effective crisis management and policymaking.
Originality/value
This study empirically examines how various policy responses and crisis levels impact hotel performance. It sheds light on why countries respond to crises differently and the effects of different policy responses on the hotel industry. The study has many implications for the industry stakeholders and policymakers.
Details
Keywords
Yanyan Li, Shanxing Gao and Ron Chi-Wai Kwok
The purpose of this study is to explore the relationship between nonmarket strategy and innovation performance, as well as the boundary factors that influence this relationship in…
Abstract
Purpose
The purpose of this study is to explore the relationship between nonmarket strategy and innovation performance, as well as the boundary factors that influence this relationship in the context of the pharmaceutical industry in emerging markets.
Design/methodology/approach
This study analyzed matched data of 227 Chinese pharmaceutical firms and two secondary databases with SPSS to examine the hypotheses.
Findings
Nonmarket strategy promotes the innovation performance. High level of firm internal knowledge utilization ability and strategic flexibility strengthens the effect of nonmarket strategy in promoting innovation performance, while information technology (IT) environment weakens the effect of nonmarket strategy in promoting innovation performance.
Originality/value
The research studies the positive impact of nonmarket strategy on innovation performance in the specific context of Chinese pharmaceutical industry, and it introduces the internal capabilities and external IT environment of the firm as moderators of the relationship between nonmarket strategy and innovation performance. More importantly, this research echoes the call for research on moderator of nonmarket strategy and identifies important boundary conditions. To the best of the authors’ knowledge, it also explores the impact of the IT environment on the implementation of nonmarket strategy for the first time, which deepens the research on nonmarket strategy’s effect on innovation.
Details
Keywords
Maria Daniela Giammanco, Lara Gitto and Ferdinando Ofria
Non-performing loans (NPLs) may determine an overall weakness of the banking system within a country. The purpose of the present study is to analyze the impact of government…
Abstract
Purpose
Non-performing loans (NPLs) may determine an overall weakness of the banking system within a country. The purpose of the present study is to analyze the impact of government failures on NPLs in Asian countries in the time span 2000–2020. The variables employed as proxies of government failures are public debt as % of gross domestic product (GDP) and a government ineffectiveness index proposed by the World Bank.
Design/methodology/approach
The econometric approach employed is a panel generalised time series (GLS) model with heteroskedasticity and autocorrelation specific to each panel.
Findings
The results confirm that public debt as % of GDP and governmental ineffectiveness impacted significantly on NPLs for Asian countries in the observed period.
Originality/value
The literature offers similar results only for some individual Asian countries, while a wider analysis is lacking for Asian macroareas. The present paper considers 31 Asian countries, and supports the idea that a healthy financial sector is correlated to institutional quality and political regime. Hence, policy makers are advised to monitor governance indicators to reduce NPLs.
Details
Keywords
Helen L. Bruce, Ewa Krolikowska and Tara Rooney
This editorial introduces a special issue of the Journal of Services Marketing, dedicated to papers discussing the effect of the physical context on customer experience. This…
Abstract
Purpose
This editorial introduces a special issue of the Journal of Services Marketing, dedicated to papers discussing the effect of the physical context on customer experience. This study aims to identify diverse areas of extant knowledge, upon which researchers might draw when investigating the effect of the physical context on customer experience, to inform future research agendas.
Design/methodology/approach
Drawing on available literature, the authors argue that, as prior studies in diverse scholarly fields have explored the physical context, these bodies of knowledge may offer theories and constructs that meaningfully inform explorations of the effect of the physical context on customer experience.
Findings
The authors identify five marketing subdisciplines and six nonmarketing disciplines, each offering theories, constructs and perspectives which researchers might draw upon in future studies of the effects of the physical context on customer experience.
Originality/value
The authors develop a novel map which depicts the field of study of the effects of the physical context on customer experience, which scholars might use to inform future research design. In addition, the authors suggest several directions for future research.
Details
Keywords
Chenchen Weng, Martin J. Liu, Dandan Ye, Jimmy Huang and Paul C.Y. Liu
This paper explores how platforms reconfigure versatile digital resources to achieve marketing agility in international markets.
Abstract
Purpose
This paper explores how platforms reconfigure versatile digital resources to achieve marketing agility in international markets.
Design/methodology/approach
We draw on a case study of a Chinese digital platform to explore the processes and mechanisms of reconfiguring during marketing agility development. Data from different sources are collected, including interviews, informal dialogue and archival data.
Findings
Versatile digital resources create productive applications for previously less amendable marketing and nonmarketing resources to be malleable, editable and reconfigurable in marketing agility development. This study identifies and clarifies three versatile digital resource-enabled reconfiguration activities in marketing agility building: recombining digital artifacts, repurposing human capital and cross-pollinating markets.
Research limitations/implications
Since our study adopts a case study method, future research can extend our insights by using quantitative methods to test and verify our theoretical framework.
Practical implications
First, we provide insights into how organizations can reconfigure versatile digital resources to achieve the benefits of marketing agility in international markets. Second, while recruiting new employees during internationalization is vital, we suggest that assisted by digital artifacts, firms can repurpose the existing workforce, such as via multitasking, swift task-switching and flexible job redirecting to satisfy dynamic international business requirements with lower adjustment costs. Third, we offer two localization approaches in which firms can use digital artifacts as the enabler to remix sociocultural elements with local adaptations to develop glocal content and decentralize content production to generate inclusive local content.
Originality/value
We provide a process model that specifies how platforms reconfigure versatile digital resources to achieve marketing agility in international markets. Furthermore, we provide novel insights into the literature on marketing agility in international markets and localization.
Details
Keywords
Raul Beal Partyka, Marina Gama, Jeferson Lana and Rosilene Marcon
By the end of the case study discussion, it is expected that students will have learned to assess what makes it likely that firms will respond to episodes of stakeholder activism;…
Abstract
Learning outcomes
By the end of the case study discussion, it is expected that students will have learned to assess what makes it likely that firms will respond to episodes of stakeholder activism; establish the interplay between nonmarket strategies and corporate governance mechanisms in assessing shareholder activism; explain about the board of directors as a corporate governance mechanism; evaluate the threats of nonmarket dimensions as a strategic response from the board; and understand the impact and increasing power of shareholders over board decisions.
Case overview/synopsis
In April 2019, to pressure Rumo S.A. regarding the duplication of the Itirapina–Cubatão railroad, indigenous peoples from 12 São Paulo villages bought six Rumo shares, which were quoted on Tuesday, April 23, 2019, at around BRL17 each. Duplication of the railroad started in 2011 and affected the lives of the Indians. The company promised to implement more than 100 improvements to the villages, but as of 2019, half of the improvements were at a standstill. After buying enough shares to entitle them to participate in the annual general meeting (AGM) of shareholders, the Indians went to Rumo’s AGM to voice their concerns and show how the villages had been affected. It was the audit committee that needed to discuss and solve the case of the indigenous peoples. What steps would Rumo take next? What was the best thing to do with regard to the claims of the Indians? This case shows the start of corporate activism in Brazil. This case reports the dilemma that Rumo faced with the indigenous activism at the beginning of 2019 because of the expansion of their railroad network across indigenous lands.
Complexity academic level
This case is suited for a class in which the students are exposed to a corporate governance framework and internal and external governance mechanisms. The case can be applied at the graduate and executive levels in relevant courses such as corporate governance, corporate responsibility, strategic management, and the stock market.
Supplementary material
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
Details
Keywords
Liena Kano and Luciano Ciravegna
Alain Verbeke is one of the world’s leading thinkers on international business (IB) and globalization, a renowned scholar and educator who contributes to creating a better global…
Abstract
Alain Verbeke is one of the world’s leading thinkers on international business (IB) and globalization, a renowned scholar and educator who contributes to creating a better global business environment by addressing some of today’s most critical challenges. He was one of the first scholars to advance a theoretically rigorous and practically significant perspective on international corporate social responsibility (CSR). Verbeke’s work on international CSR is particularly impactful because it is rooted in IB theory and based on a realistic set of assumptions about the behavior of managers, policymakers, and other market and nonmarket stakeholders. In this chapter, the authors apply theoretical principles central to Verbeke’s research – most notably behavioral assumptions of bounded rationality and bounded reliability – to analyze businesses’ and societies’ pace of progress in relation to stated environmental, social, and governance (ESG) goals. The authors argue that bounded rationality and reliability challenges create misalignment between stated/imposed commitments toward ESG performance, and economic actors’ ability to deliver on these commitments. The authors discuss examples of such misalignment, focusing on tensions among stakeholders, between stakeholder organizations and firms, and within firms. The authors propose that to be relevant for policy and practice, the sustainability research should be based on realistic microfoundational assumptions.
Details
Keywords
Kelly R. Hall and Ram Subramanian
This secondary source case is based mainly on legislative documents (that tracked the initiation and progress of the Parental Rights in Education bill that later became an Act)…
Abstract
Research methodology
This secondary source case is based mainly on legislative documents (that tracked the initiation and progress of the Parental Rights in Education bill that later became an Act), corporate documents (published by The Walt Disney Company) and news articles from publications such as The New York Times and Bloomberg. All sources are cited in the case narrative and as end notes.
Case overview/synopsis
In April 2022, The Walt Disney Company and its CEO, Robert Chapek, were at the center of a controversy over the company’s opposition to the State of Florida’s Parental Rights in Education bill. The bill, dubbed “Don’t Say Gay” by its critics, prohibited instruction on sexual identity and gender orientation in the state’s elementary schools. The controversy stemmed from Disney’s initial non-reaction to the bill and its later strident opposition and call for its repeal. Chapek was pressured by negative media publicity and employee disgruntlement on the one hand and adverse economic consequences for opposing the bill by the state’s Governor, Ron DeSantis. Chapek and the Board had to respond to the political threats to Disney’s economic well-being while appeasing its employees and other stakeholders who wanted the company to be a corporate champion in diversity, equity and inclusion.
Complexity academic level
The case is best suited for advanced undergraduate or graduate leadership, strategic management and marketing courses. From a leadership and strategic management perspective, the case is well-suited for demonstrating the evolving expectations of leaders and corporate social responsibility, as well as the concepts of issue framing and nonmarket management. Instructors may also leverage the case in marketing courses (e.g. brand management), as CEO activism (i.e. messaging and practice) is one characteristic of brand activism (Animation Guild, 2022).
Details
Keywords
Raul Beal Partyka, Jeferson Lana and Rosilene Marcon
This study aims to contribute to the corporate political activities (CPAs) field by suggesting the effect of campaign contributions on the time that firms wait for regulators’…
Abstract
Purpose
This study aims to contribute to the corporate political activities (CPAs) field by suggesting the effect of campaign contributions on the time that firms wait for regulators’ decisions.
Design/methodology/approach
This paper analyzes 358 mergers and acquisitions (M&A) from 2008 to 2017 in Brazil through ordinary least squares regression with robustness control and causal operationalization in a small vote margins treatment.
Findings
Campaign contributions speed up the M&A regulator’s decisions. Campaign contributions amounts proved to be effective in decreasing the waiting time for judgments of M&A deals. Besides, National Development Bank disbursements to companies in M&A deals, served as a moderator to help reduce the waiting time.
Research limitations/implications
The main implication of this paper to the antecedents of CPA research is the estimation of time as an output of the political efforts of firms. Previous research focuses on what firms could get. Here, the authors focus on when. As a limitation, this study analyzes CPA through campaign contributions, as the only reliable source of CPA publicly available. Firms use multiple mechanisms of CPA. It would be expected for new papers to test different CPA mechanisms, such as political connections and lobbying.
Practical implications
This study provides evidence of the use of CPA as a relevant mechanism for firms to avoid institutional risks by getting regulators’ decisions faster. This evidence is useful for firms to grant their competitive advantage in a highly volatile environment, such as an emerging market.
Social implications
What happens in the nonmarket environment interferes within markets. Businesses seek to finance political projects with which they are more aligned, and governments provide capital to businesses in exchange for political support. Whether to expand successfully may also depend on early entrants, who will have acquired enough leadership to dominate the market.
Originality/value
While most of the research on nonmarket strategy focuses on what firms can get as an output for CPA efforts, this study provides here evidence on when firms can get it. As one can cite, in business, time is money.
Details