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1 – 10 of 417Sei Jeong and Munisamy Gopinath
This study aims to investigate the role of international price volatility and inventories on domestic market price dynamics in the case of agricultural commodities.
Abstract
Purpose
This study aims to investigate the role of international price volatility and inventories on domestic market price dynamics in the case of agricultural commodities.
Design/methodology/approach
A structural model is employed to uncover relationships among commodity price, price volatility, inventories and convenience yield. Monthly producer price data along with annual data on trade, consumption, inventories and tariffs for 71 countries and 13 commodities covering 2010–2019 are assembled to estimate the model. With a first-stage Least Absolute Shrinkage and Selection Operator (LASSO) estimator to identify the best instrument set, a nonlinear approach is used to estimate the model.
Findings
Results show that international market information plays a critical role in domestic market price dynamics. International price volatility has a stronger effect on domestic prices than that of international inventories.
Research limitations/implications
Current upheaval in commodity markets requires an understanding of how prices move together and inventories affect that movement. A country's internal price is not independent of the effects of global market events.
Originality/value
Although hypotheses exist that global market information (volatility and inventories) helps countries manage domestic commodity prices, there have been limited studies on this relationship, especially with a structured model and cross-country data.
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Sreejesh S., Minas Kastanakis and Justin Paul
This study aims to examine the influence of two significant product labelling strategies (geographical indication [GI] vs country-of-origin [COO]) on shaping customer product…
Abstract
Purpose
This study aims to examine the influence of two significant product labelling strategies (geographical indication [GI] vs country-of-origin [COO]) on shaping customer product attitude and purchase likelihood, considering consumers’ ethnocentric and cosmopolitan tendencies. The authors also investigate the boundary conditions and intervening mechanisms to manage the adverse consumer product evaluations and present mitigating procedures which reinstate favourable product evaluations and purchase likelihood.
Design/methodology/approach
The collected data from these all these studies were analysed using ANOVA and mediation anlaysis. The study tests the proposed hypotheses using three follow-up experimental investigations.
Findings
The study found that GI (vs COO) labels have a more significant impact on customers’ product evaluation and likelihood of purchase and supported the dispositional effect of ethnocentric and cosmopolitan inclinations. Further, the results indicated that self-product congruence can efficiently regulate consumer dispositions. Also, the results confirmed the significant impact of product identification on influencing consumer attitudes.
Practical implications
The above-said insights add practical insights, particularly concerning product labelling. Also, the insights on product attitudes and purchase likelihood intricacies in the context of product labelling enable companies to comprehend better the significance of GI labels, COO labels and self-product congruence.
Originality/value
To the best of the authors’ knowledge, this is the first time a study has compared the role of two significant product labelling strategies (GI vs COO) in shaping customer product evaluations, confirmed its boundary conditions and shown how to transform them into helpful customer product outcomes.
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Emir Malikov, Shunan Zhao and Jingfang Zhang
There is growing empirical evidence that firm heterogeneity is technologically non-neutral. This chapter extends the Gandhi, Navarro, and Rivers (2020) proxy variable framework…
Abstract
There is growing empirical evidence that firm heterogeneity is technologically non-neutral. This chapter extends the Gandhi, Navarro, and Rivers (2020) proxy variable framework for structurally identifying production functions to a more general case when latent firm productivity is multi-dimensional, with both factor-neutral and (biased) factor-augmenting components. Unlike alternative methodologies, the proposed model can be identified under weaker data requirements, notably, without relying on the typically unavailable cross-sectional variation in input prices for instrumentation. When markets are perfectly competitive, point identification is achieved by leveraging the information contained in static optimality conditions, effectively adopting a system-of-equations approach. It is also shown how one can partially identify the non-neutral production technology in the traditional proxy variable framework when firms have market power.
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Martin David Owens and Elizabeth Johnson
The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international…
Abstract
Purpose
The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international business (IB), most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms.
Design/methodology/approach
This is a conceptual paper.
Findings
Domestic terrorism is the most common form of terrorism in the world today and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures.
Originality/value
The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. The authors’ paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, this study shows how domestic state terrorism benefits and constrains foreign firms.
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Majid Mohammad Shafiee and Fatemeh Pourghanbary Zadeh
This study aims to identify the main factors affecting export competitiveness and its barriers, focusing on the minerals industry so that a scale is achieved for measuring export…
Abstract
Purpose
This study aims to identify the main factors affecting export competitiveness and its barriers, focusing on the minerals industry so that a scale is achieved for measuring export competitiveness in this industry.
Design/methodology/approach
The research was conducted with a mixed method approach in the minerals industry. Among the active companies involved in this industry, 34 export companies and export management companies were selected and evaluated. In the qualitative phase, 18 experts and managers of the industry were interviewed to identify the factors affecting the export competitiveness of these companies and the barriers ahead of them. In the quantitative phase, a questionnaire was distributed among 412 managers and experts in this industry to categorize the identified factors and to measure the relationships among them. For data analysis in the qualitative phase, theme analysis was used. For the quantitative phase, factor analysis and structural equation modeling were adopted.
Findings
In addition to identifying the main components affecting the competitiveness of companies in exporting minerals as well as the main barriers ahead of them, the findings of the current research categorized these components using factor analysis. These components were categorized into factors, such as manufacturing factors, demand conditions, related and supporting industries, structural factors, competitive strategy and governmental supports. Afterward, their impacts on export competitiveness were measured and supported.
Originality/value
Although some studies have been conducted to examine the competitiveness in different industries, no research has been found that has examined and identified the main factors affecting export competitiveness and their impacts in the minerals industry with a mixed quantitative and qualitative approach. The findings of this research may help managers and policymakers, at the industrial and national levels, to reach a scale for assessing the export companies involved in this industry by identifying the most essential factors of export competitiveness of minerals. Furthermore, the findings of this research can act as a model for future researchers to develop a scale for export competitiveness in other industries.
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Amandeep Dhir, Arun Madanaguli, Fauzia Jabeen, Dorra Yahiaoui and Roberto Quaglia
Drawing on the stimulus–organism–response framework, this study examined the environmental stimuli driving tourists' internal, or organismic, states. In addition, the authors…
Abstract
Purpose
Drawing on the stimulus–organism–response framework, this study examined the environmental stimuli driving tourists' internal, or organismic, states. In addition, the authors investigated the association of the identified organismic variables with the response variables during the COVID-19 pandemic. Specifically, the study examined how the associations between tourists' anticipation of recovery and the national government's smart governance, on one hand, and tourists' desire to travel domestically, their attitude toward domestic travel and their willingness to exhibit prosocial behaviors, on the other, further drive the satisfaction they derive from domestic travel.
Design/methodology/approach
The authors used an online questionnaire to collect self-report, single-wave data from individuals residing in India, an emerging market (N = 421).
Findings
The findings demonstrate (1) the association of anticipated recovery on the desire to travel and prosocial behavior; (2) the association of smart governance on attitude (although negative); (3) the association of desire, attitude and prosocial behavior on satisfaction; and (4) the lack of any moderation effect for perceived severity.
Originality/value
This study is the first empirical study to investigate the impact of tourists' perceptions and dispositions and the efficacy of the national government on tourists' desire to travel domestically and on their satisfaction with domestic travel. The findings can help emerging market multinationals and global brands engage better with domestic consumers in emerging markets within the context of the current pandemic. In addition, the findings can help to prepare these players to handle future disruptions caused by global health contingencies.
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Amonrat Thoumrungroje, Adamantios Diamantopoulos and Nathalie Caroline Scherer
Drawing on cue utilization theory and the theory of motivated reasoning, we investigate the impact of consumer xenocentrism on product preferences in a situation where domestic…
Abstract
Purpose
Drawing on cue utilization theory and the theory of motivated reasoning, we investigate the impact of consumer xenocentrism on product preferences in a situation where domestic products objectively outperform their foreign counterparts.
Design/methodology/approach
We develop and test a model linking xenocentrism to consumers’ preference towards domestic vs. foreign products by (1) examining the mediating role of consumers’ ability to identify the superior product and (2) assessing the role of product involvement in potentially moderating this relationship. An experimental design was employed, whereby respondents (Thai consumers, N = 579) were asked to compare two products in the same product category, one foreign and one domestic. In one condition, the foreign product outperformed the domestic one on a range of relevant product attributes, whereas in a second condition, the opposite was the case.
Findings
Our findings provide clear evidence that xenocentric consumers often cannot recognize the superiority of domestic products and, even if they do, they still exhibit preferences toward (inferior) foreign products. Thus, for xenocentric consumers, it seems that the country of origin (COO) overrides other cues and often results in suboptimal product choices.
Originality/value
Our study adds to our theoretical understanding of the functioning of the consumer xenocentrism construct and has important implications for foreign companies targeting xenocentric consumers as well as for local firms seeking to counteract xenocentric tendencies.
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Olumide O. Olaoye and Mulatu F. Zerihun
The study investigates the effectiveness of government policies to mitigate the impact of a pandemic. The study adopts the small open economy of Nigeria for the following reasons…
Abstract
Purpose
The study investigates the effectiveness of government policies to mitigate the impact of a pandemic. The study adopts the small open economy of Nigeria for the following reasons. First, Nigeria is the largest economy in SSA. Second, Nigeria was also significantly impacted by the COVID-19 pandemic.
Design/methodology/approach
The study employed the time-varying structural autoregressive (TVSVAR) model to control for the potential asymmetry in fiscal variables and to control for the shift in the structural shift, following a macroeconomic shock. As a form of robustness, the study also implements the time-varying Granger causality to formally assess the temporal instability of the variable of interest.
Findings
The results show that an oil price shock is an important source of macroeconomic instability in Nigeria. Importantly, the results indicate that the effects of fiscal policy are strongly time varying. Specifically, the results show that fiscal policy helps to stabilize the economy, (i.e. they help to reduce inflation and spur output growth) following macroeconomic shock. Further, the Granger test shows that fiscal policy helped to spur growth in Nigeria. The research and policy implications are discussed.
Originality/value
The study accounts for the time-varying effects of fiscal policy.
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Luis Orea, Inmaculada Álvarez-Ayuso and Luis Servén
This chapter provides an empirical assessment of the effects of infrastructure provision on structural change and aggregate productivity using industrylevel data for a set of…
Abstract
This chapter provides an empirical assessment of the effects of infrastructure provision on structural change and aggregate productivity using industrylevel data for a set of developed and developing countries over 1995–2010. A distinctive feature of the empirical strategy followed is that it allows the measurement of the resource reallocation directly attributable to infrastructure provision. To achieve this, a two-level top-down decomposition of aggregate productivity that combines and extends several strands of the literature is proposed. The empirical application reveals significant production losses attributable to misallocation of inputs across firms, especially among African countries. Also, the results show that infrastructure provision has stimulated aggregate total factor productivity growth through both within and between industry productivity gains.
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