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Article
Publication date: 14 September 2020

Cláudia Beatriz Batschauer da Cruz, Dinorá Eliete Floriani and Mohamed Amal

This study aims to advance a sub-national perspective within the OLI Paradigm by analyzing how and to what extent the Eclectic Paradigm can serve as a general model to capture…

3044

Abstract

Purpose

This study aims to advance a sub-national perspective within the OLI Paradigm by analyzing how and to what extent the Eclectic Paradigm can serve as a general model to capture region-specific aspects of the location determinants of FDI, encompassing institutional effects that extend beyond the quality of institutions.

Design/methodology/approach

The authors conducted a systematic literature review of 41 selected papers published between 1990 and 2019. Using inductive content analysis, they investigated the theoretical choices used to support analyses of the effects of institutional factors on MNEs' location decisions at the sub-national level.

Findings

It was found that, when changing from the national to the sub-national level of analysis, there is no need to change the main assumptions used in the literature, although a different perspective must be adopted. The Eclectic Paradigm permeates most of the studies revised and can serve as a general model to capture the sub-national perspective. It offers a foundation for new perspectives on the dynamics of institutional and political factors and their effects on location strategies and determinants at the sub-national level. Adopting the OLI Paradigm with a sub-national approach could widen the IB literature's prevailing focus on traditional economic factors and institutional quality.

Research limitations/implications

The authors contribute to extant International Business literature Their paper enhances the literature on FDI location determinants by providing a more specific approach to development of a sub-national perspective within the OLI Paradigm, extending the institutional effects to capture more region-specific factors influencing the location of FDI. Study limitations are related to our analytical focus on the location dimension, excluding motives for FDI or firm-level location strategies. Rather than limiting analysis to quantitative studies, future research that includes qualitative studies and also covers the other dimensions of the OLI Paradigm could open additional new research avenues for advancing the sub-national perspective within the field of IB.

Practical implications

The authors’ main findings suggest that MNEs' location strategies should include a sub-national perspective, which means that firms need to assess different levels of the location and understand their interaction with nationwide constraints and limitations, as it may affect firms' ability to effectively conduct their value-adding activities. They also contribute elements that can support sub-national governments' actions and policies aiming to enhance locational advantages to attract and retain FDI.

Originality/value

This review specifically analyzes the location determinants of FDI at the sub-national level, in studies published in a broad set of journals, from a variety of fields, prioritizing articles that investigate sub-national institutional determinants. The authors derive implications for the International Business literature and propose that the sub-national dimension should be incorporated into the Eclectic paradigm in order to better understand the influence of institutional sub-national determinants.

Details

International Journal of Emerging Markets, vol. 17 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 2 May 2017

Farzad H. Alvi and Jorge Alberto Mendoza

The need for a firm’s business strategy to be responsive to the institutional contexts of emerging markets is well-established in the literature. Often, however, strategic…

Abstract

Purpose

The need for a firm’s business strategy to be responsive to the institutional contexts of emerging markets is well-established in the literature. Often, however, strategic responsiveness is impeded by defining institutional contexts as country-level aggregations (macro-level) and glossing over sub-national variations (micro-level). The purpose of this paper is to investigate micro-level contexts that can defy macro-level assumptions of economic rationality.

Design/methodology/approach

As a research site, the motivations of street vendors in Mexico City are analyzed in terms staying in one sub-national context, the informal sector, as opposed movement to another, the formal sector. Unanticipated reluctance to move from one context to another is defined as stickiness.

Findings

Sub-national institutional contexts are found to be sticky, with less movement between informal and formal sectors than would have been anticipated. Unexpectedly, it is found that a significant number of street vendors prefer the hardship of the informal sector to the relative security of the formal sector.

Research implications

International business research makes assumptions about the growth narrative of emerging markets, often characterizing a growing middle class as a rising tide that lifts all boats. In terms of further research on adapting strategy, however, assumptions of rational expectations ought to be tempered, as demonstrated by the stickiness of the informal sector.

Originality/value

A contribution is made to the international business literature by showing that macro-level assumptions about institutional context based on rational expectations of wealth-maximizing behavior in emerging markets may result in an incomplete view of institutional context. Ultimately, adaptation of strategy could be impaired as a result.

Details

critical perspectives on international business, vol. 13 no. 2
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 9 February 2018

Xin Pan, Xuanjin Chen and Lutao Ning

Firms’ corporate social responsibility (CSR) behaviour is embedded in the institutional context. Under this logic, the purpose of this paper is to investigate the institutional…

2060

Abstract

Purpose

Firms’ corporate social responsibility (CSR) behaviour is embedded in the institutional context. Under this logic, the purpose of this paper is to investigate the institutional antecedents of CSR, especially how two sub-national institutions – regional institutional development and industry dynamism – and their interactions affect firms’ CSR.

Design/methodology/approach

The sample consists of 608 Chinese listed firms, with 2,694 observations made from 2009 to 2014. The data were collected from two sources. The CSR information was acquired from the CSR rating agency Rankins CSR Ratings, and the financial data from the China Stock Market and Accounting Research database. Panel ordinary least squares regression was used to test the hypotheses.

Findings

The empirical results indicate that firms located in advanced regional institutions and more dynamic industries are more likely to engage in CSR. Moreover, macro institution, termed as regional institutional development, positively moderates the relationship between micro institution in terms of industry dynamism and CSR.

Originality/value

Overlooking how the institutional environment influences CSR decisions limits understanding of firms’ CSR activities. This paper offers an institutional explanation of CSR and, in particular, investigates different levels of sub-national institutions and their interaction.

Details

Management Decision, vol. 56 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 11 January 2022

Nirmalkumar Singh Moirangthem and Barnali Nag

The objective of this study is threefold–first, to develop a Regional Competitiveness Index (RCI) for measuring competitiveness of sub-national regions for India; second, to test…

Abstract

Purpose

The objective of this study is threefold–first, to develop a Regional Competitiveness Index (RCI) for measuring competitiveness of sub-national regions for India; second, to test this index for its ability to explain regional growth, which validates usage and applicability of this index; and third, to further investigate if the competitiveness of states is in turn caused by economic growth, i.e. it is tested if there is a bidirectional causality between competitiveness and regional growth.

Design/methodology/approach

The data of indicators used in the index are from sources available freely in public domain. The competitiveness index is constructed using equal weightage supported by principal component analysis (PCA) technique. The causal relationship analysis is done using panel data of 10 years from 2008 to 2017 for 32 Indian states/union territories. The generalized method of moments (GMMs) is used for this dynamic regression estimation.

Findings

Based on RCI score, states have been ranked and through rank analysis, the authors observe the performance status of these sub-national regions and are able to categorize them as improving, no change or deteriorating in regional competitiveness. Using the GMM estimation, the association between RCI and economic growth is found to be significant at 10% level. This shows that regional competitiveness as captured through the RCI score is able to explain regional economic growth and economic disparity among the sub-national units. Further, that RCI score is found to Granger-cause growth, while growth does not lead to better RCI scores. This establishes the usefulness of RCI as an important policy variable to compare states and provide direction for sectoral reforms.

Research limitations/implications

The limitations of the study include (1) broad assumption that these sub-national regions belong to a uniform macro-economic and technology environment, and (2) data constraints as it is a longitudinal study. The study implies that the composite index could capture differences in regional competitiveness explaining regional economic disparity and that competitiveness causes higher economic growth and not vice versa.

Practical implications

The RCI score can prove to be a useful indicator of economic performance of different states and can be used by national and state policymakers to compare and assess regional disparity among different states. The pillar-wise scores will be useful for in-depth study of weakness and strength of the sub-national territories.

Originality/value

Construction of an RCI for sub-national territories and analysis of panel data for longitudinal study of ten years is unique in the regional competitiveness literature.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 5 March 2018

Susan Crabtree and Hilary Clare Tolley

The purpose of this paper is to report on a postdoctoral research study examining the importance of multi-level leadership and health governance for ensuring the implementation of…

Abstract

Purpose

The purpose of this paper is to report on a postdoctoral research study examining the importance of multi-level leadership and health governance for ensuring the implementation of national and provincial health sector strategies that aim to improve maternal and neonatal health (MNH) in low- and middle-income countries (LMICs).

Design/methodology/approach

A descriptive-interpretive qualitative, institutional approach was undertaken to explore the impact of provincial and district governance mechanisms on the delivery of MNH services in two districts in East New Britain Province (ENBP), Papua New Guinea (PNG). Data were collected from 12 key informants. Informants were selected on the basis of their direct involvement in health system management and deployment of health at provincial and district health governance levels.

Findings

The analysis revealed alignment between global strategies and national and provincial policy, suboptimal provincial government support related to implementation of policy, divergent data between districts and a disconnect between the local governance mechanisms and a donor-funded initiative for raising midwifery education.

Research limitations/implications

This qualitative study was limited by the small sample size and does not claim to be representative of ENBP or other provinces in PNG.

Originality/value

This paper contributes empirical evidence to the literature on health policy, leadership and governance for MNH, by recognising and exploring the formal and informal rules at play in a given context, and examining how they are made, changed, monitored and enforced. These insights are critical to understanding how the system actually functions (or not) to implement MNH strategies in LMICs.

Details

International Journal of Health Governance, vol. 23 no. 1
Type: Research Article
ISSN: 2059-4631

Keywords

Article
Publication date: 8 February 2021

Nirmalkumar Singh Moirangthem and Barnali Nag

Developing composite index-regional entrepreneurship, technological readiness and institution quality index (RETRIQ) of regional entrepreneurship, technology readiness and quality…

Abstract

Purpose

Developing composite index-regional entrepreneurship, technological readiness and institution quality index (RETRIQ) of regional entrepreneurship, technology readiness and quality of institution to measure regional competitiveness. This study, also, aims to test econometrically the effectiveness of the index in capturing the economic performance of the sub-national regions.

Design/methodology/approach

The data of eight indicators used in the index are from sources available freely in the public domain. The causal relationship analysis is done using panel data of 10 years from 2008 to 2017 for 32 Indian states/union territories. The generalized method of moments (GMM) is used for this dynamic regression estimation.

Findings

Based on RETRIQ, 32 states and union territories of India have ranked. The estimation using GMM shows a significant association between the composite index and economic growth.

Research limitations/implications

The limitations of the study include the broad assumption that these sub-national regions belong to a uniform macro-economic and technology environment and data constraints as it is a longitudinal study. Then, the implication of the study is that the composite index-RETRIQ could capture differences in regional competitiveness explaining regional economic disparity.

Practical implications

The index will be useful for policy implications in the assessment of competitiveness disparity.

Originality/value

It is a composite index of regional entrepreneurship, technological readiness and quality of the institution. The panel data across states along 10 years series is novel.

Details

Competitiveness Review: An International Business Journal , vol. 32 no. 1
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 1 June 1997

Maurice B. Line

Library co‐operation has always been assumed to be a good thing, but much thinking has focused on the means of co‐operation rather than on the ends that co‐operation is intended…

1587

Abstract

Library co‐operation has always been assumed to be a good thing, but much thinking has focused on the means of co‐operation rather than on the ends that co‐operation is intended to serve, neglecting to fully explore other means of attaining those ends. Co‐operative schemes have rarely been subjected to rigorous cost‐effectiveness analysis; most have been national or sub‐national rather than international; and some areas where co‐operation could be useful have received little attention. Co‐operation on a goodwill basis is already giving way to commercial arrangements between libraries as well as with private suppliers. The growth in the number of private providers of various services, together with the ability of information technology to transcend geographical boundaries, are among factors that make a radical reappraisal of co‐operation desirable.

Details

Interlending & Document Supply, vol. 25 no. 2
Type: Research Article
ISSN: 0264-1615

Keywords

Article
Publication date: 21 February 2022

Alcides Padilla and Jorge David Quintero Otero

This article offers a review of the literature on regional business cycles (BCs) in emerging economies. The objective is synthesizing the existing studies based on theoretical…

Abstract

Purpose

This article offers a review of the literature on regional business cycles (BCs) in emerging economies. The objective is synthesizing the existing studies based on theoretical, empirical and methodological approaches.

Design/methodology/approach

The methodological framework includes the following stages: research questions, bibliography location, the selection of articles and the evaluation of the literature, analysis and synthesis, and the reporting and use of results.

Findings

The evidence suggests that expansionary phases last longer than recessions'; public expenditure shows a pro-cyclical behavior; and factors such as productive structure and international trade explain the synchronization of regional BCs.

Originality/value

Up until now, there is no research that performs a review of regional BCs in emerging economics.

Details

International Journal of Emerging Markets, vol. 18 no. 11
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 1 August 2016

David Oliver Kasdan

The purpose of this paper is to explore the relationship between factors of socio-cultural contexts and disaster risk. Recent efforts by international organizations and research…

1700

Abstract

Purpose

The purpose of this paper is to explore the relationship between factors of socio-cultural contexts and disaster risk. Recent efforts by international organizations and research scholarship have emphasized that applying contextual understandings of human behavior can improve the effectiveness of disaster risk management (DRM).

Design/methodology/approach

The research employs multiple correlation analysis to find significant relationships between two sources of socio-cultural data and the World Risk Index scores.

Findings

There are interesting relationships between various measures of socio-cultural context and disaster risk, such as correlations with levels of individualism, self-expression, and secular-rational values.

Research limitations/implications

While using the broadest sample available with the data sources, generalizations about the relationships must be tempered as inherently anecdotal and needing greater depth of study. The national level of analysis is controversial.

Practical implications

Emergency managers can extend the knowledge about socio-cultural influences on disaster risk to tailor policy for effective practices.

Social implications

Societies may recognize their behaviors as being conducive or obstructive to DRM based on their socio-cultural characteristics; governments may operationalize the findings into policy responses for more nuanced mitigation efforts.

Originality/value

This research adds to the momentum for considering non-technical approaches to DRM and expands the potential for social science derived variables in DRM.

Details

Disaster Prevention and Management, vol. 25 no. 4
Type: Research Article
ISSN: 0965-3562

Keywords

Article
Publication date: 17 August 2017

Michael Zisuh Ngoasong

The purpose of this paper is to critically explore how context as an antecedent to entrepreneurial digital competencies (EDCs) influences digital entrepreneurship in a…

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Abstract

Purpose

The purpose of this paper is to critically explore how context as an antecedent to entrepreneurial digital competencies (EDCs) influences digital entrepreneurship in a resource-scarce environment.

Design/methodology/approach

The data comprises semi-structured interviews with 16 digital entrepreneurs, as owner-managers of small digital businesses in Cameroon.

Findings

The results reveal the ways in which EDCs shape the entry (or start-up) choices and post-entry strategic decisions of digital entrepreneurs in response to context-specific opportunities and challenges associated with digital entrepreneurship.

Research limitations/implications

The data comes from one African country and 16 digital businesses thus the research setting limits the generalisability of the results.

Practical implications

This paper highlights important implications for encouraging digital entrepreneurship by focussing on institutional, technology and local dimensions of context and measures to develop the entrepreneurial and digital competencies. This includes policy interventions to develop the information and communication technology (ICT) infrastructure, transport and local distribution infrastructure, and training opportunities to develop the EDCs of digital entrepreneurs.

Originality/value

Whereas the capabilities to adopt and use ICTs and the internet by small businesses have been examined, this is among the first theoretically sensitised study linking context, EDCs and digital entrepreneurship.

Details

Journal of Small Business and Enterprise Development, vol. 25 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

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