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1 – 10 of over 155000Tazeen Arsalan, Bilal Ahmed Chishty, Shagufta Ghouri and Nayeem Ul Hassan Ansari
This research paper aims to analyze the stock exchanges of developed, emerging and developing countries to investigate the volatility in stock markets and to evaluate the rate of…
Abstract
Purpose
This research paper aims to analyze the stock exchanges of developed, emerging and developing countries to investigate the volatility in stock markets and to evaluate the rate of mean reversion.
Design/methodology/approach
The stock exchanges included in the research are NASDAQ, Tokyo stock exchange, Shanghai stock exchange, Bombay stock exchange, Karachi stock exchange and Jakarta stock exchange. Secondary daily data from Bloomberg are used to conduct the research for the period from January 2011 to December 2018. Generalized autoregressive conditional heteroskedasticity (GARCH) (1,1) model was applied to examine volatility and the half-life formula was used to calculate mean reversion in days.
Findings
The research concluded that all the stock exchanges included in the research satisfy the assumptions of mean reversion. Developing countries have the lowest volatility while emerging countries have the highest volatility which means that the rate of mean reversion is fastest in developing countries and slowest in emerging countries.
Research limitations/implications
Future studies can determine the reasons for fastest rate of mean reversion in developing countries and slowest rate of mean reversion in emerging countries.
Practical implications
Developing countries show the lowest mean reversion in days while the emerging countries show the highest mean reversion in days indicating that developing countries take less time to revert to their mean position.
Originality/value
The majority of previous studies on univariate volatility models are mostly on applications of the models. Only a few researchers have taken the robustness of the models into account when applying them in emerging countries and not in developed, developing and emerging countries in one place. This makes the current study unique and more rigorous.
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Ru-Shiun Liou, Alex S. Rose and Alan E. Ellstrand
We view emerging-market multinational corporations (EMNCs) as agents for global isomorphism. EMNCs seek to enter developed markets not only to expand their business operations but…
Abstract
We view emerging-market multinational corporations (EMNCs) as agents for global isomorphism. EMNCs seek to enter developed markets not only to expand their business operations but also to acquire advanced knowledge to enhance their core competencies. In entering these markets, EMNCs are subject to coercive, normative and cognitive pressures as they seek legitimacy. Once these firms gain legitimacy in advanced markets through the adoption of local business practices, they transfer these approaches to their headquarters in developing markets, establishing best practices in their home markets. Further, EMNCs may engage in efforts aimed at changing the institutional environment in the developing market to facilitate the transfer of learned practices from the developed market. Thus, we propose that these best practices lead to global isomorphism, but also note instances where symbolic adoption of developed market practices may slow the isomorphic process.
While an increasing number of global brands are of emerging country origin, research about emerging global brands remains scare. The purpose of this paper is to provide the first…
Abstract
Purpose
While an increasing number of global brands are of emerging country origin, research about emerging global brands remains scare. The purpose of this paper is to provide the first theoretical effort to understand how consumers in the developed regions evaluate global brands from emerging countries. Building on globalization and social identity theory, the paper aims to shed light on the effect of global identity on consumer attitude toward emerging global brands, the process of such effect, and the boundary condition for it as well.
Design/methodology/approach
The authors used two non-student surveys in the USA and UK in which respondents’ global identity was measured and two laboratory experiments in which respondents’ global identity was primed. The operationalization of dependent variables is also divergent, either directly measuring attitude toward the global brands from developing countries or measuring consumer relative evaluation. Convergent results were reported from four studies.
Findings
The results show that when consumers’ global (vs local) identity is accessible, those from developed regions will show more favorable evaluations of global brands from emerging countries. And this effect is mediated by the positive association between global identity and globalization. Further, this effect emerged when consumers view global and local cultures as compatible with each other but disappeared when consumers view global and local cultures as oppositional to each other.
Practical implications
The findings have practical implications for global brand marketers from emerging economies to enter developed country markets, and to make their brands real global. Specifically, global identity consumers should be targeted and the compatible view of global and local cultures should be pronounced.
Originality/value
Focusing on global brands from emerging countries, this paper examines the global identity effect in developed country markets for the first time. The finding add new knowledge to the literature of globalization, global branding, and assimilation effect of global identity, and help to reconcile the heated debate on whether country of origin is still relevant to the globalized world.
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The apparent success of emerging market multinational (EMNE) operations in the Global South has led some to launch a claim of competitive advantage in investing in markets with…
Abstract
Purpose
The apparent success of emerging market multinational (EMNE) operations in the Global South has led some to launch a claim of competitive advantage in investing in markets with higher institutional risk. However, there has not been sufficient econometric investigation into all the forces driving South-South foreign direct investment (FDI). The purpose of this paper is to investigate the claim of institutional advantage and to further our understanding of South-South FDI.
Design/methodology/approach
The paper employs a simple econometric model of FDI flows to investigate the differences between the factors driving FDI from developed country MNEs and EMNEs. The model is tested on a bilateral sample of FDI stock data of 21 developed and 22 emerging source economies and over 80 host countries.
Findings
Contrary to the contention of the previous literature, the empirical results find little support for the claim to EMNE institutional advantage. EMNEs are just as sensitive to institutional risk as MNEs. The relatively higher participation of EMNE FDI in the Global South may be explained by other shared similarity factors across developing markets and competitive disadvantages in entering developed markets.
Originality/value
The findings of this paper cast some doubts on the hope that EMNEs will improve the FDI demands of least developed countries (LDCs). Healthy institutions are an important prerequisite for attracting FDI, regardless of whether it originates from developed or emerging economies.
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Marzanna Katarzyna Witek-Hajduk and Anna Grudecka
This study aims to investigate how brand name (home-emerging-country vs foreign-developed-country brand name) applied by emerging market company in conjunction with revealing the…
Abstract
Purpose
This study aims to investigate how brand name (home-emerging-country vs foreign-developed-country brand name) applied by emerging market company in conjunction with revealing the actual country-of-brand-origin (COBO) (revealed vs non-revealed origin from developed vs emerging country) affects purchase intensions of durable goods.
Design/methodology/approach
An experimental conjoint analysis and multilevel linear models were applied.
Findings
Results demonstrate that brand name differentiates consumers’ purchase intentions. However, not every foreign-developed-country brand name may lead to the increase of purchase intentions. Revealing the actual emerging market’s COBO for brands with developed-country brand name may lead to lowering purchase intentions. Moreover, consumer ethnocentrism and materialism moderate the relationship between the brand type in terms of brand name and purchase intentions.
Originality/value
This study contributes to the international marketing literature by simultaneous examination of the impact of brand name type and revealing actual COBO on purchase intentions and the moderating effects of ethnocentrism and materialism, in emerging markets’ context. It also offers novel insights for brand managers regarding the influence of emerging markets’ companies branding strategies on consumer purchase intentions.
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The purpose of this paper is to identify major developments in corporate innovation. The author focuses on the behavioral differences between MNEs from developed and emerging…
Abstract
Purpose
The purpose of this paper is to identify major developments in corporate innovation. The author focuses on the behavioral differences between MNEs from developed and emerging markets in the way they locate their R&D activities.
Design/methodology/approach
With the help of descriptive statistics, the paper identifies major trends in the global distribution of innovative activity. The novel source of patent statistics, Patent Cooperation Treaty (PCT) applications, is used as a proxy for innovative effort by leading MNEs. This paper is among the first attempts to analyze the global geography of innovation based on PCT statistics.
Findings
The analysis underscores differences in the patenting activities of MNEs from emerging and advanced markets. It confirms that innovative activity by major MNEs remains largely home-based, which contradicts the premise of the global nature of corporate innovation. At the same time, the growing importance of China as a research center attracts MNEs from a variety of developed markets. Emerging MNEs also file patent applications domestically. Most Chinese R&D subsidiaries of MNEs from advanced economies in our sample do not pursue technological specialization, as they produce patents in the same technological areas as the corporate headquarters or other subsidiaries.
Originality/value
A number of assumptions about the innovation geography of major MNEs were empirically tested. An attempt was made to fill the gaps in our understanding of innovation strategies pursued by MNEs in emerging markets. The author uses the concept of MNEs as meta-integrators to explain the observed dynamics. Its explanatory power is more convincing as applied to our data than the concept of national systems of innovation.
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Marine Hadengue, Nathalie de Marcellis-Warin and Thierry Warin
Interest in reverse innovation (RI) is increasing. According to the authors’ review, more than 350 reliable sources (scientific publications, academic books and working papers…
Abstract
Purpose
Interest in reverse innovation (RI) is increasing. According to the authors’ review, more than 350 reliable sources (scientific publications, academic books and working papers) examine or at least discuss the concept. As RI gains popularity among academic authors, some discrepancies have started to appear. This wealth of publications could impact prior advancements related to understanding of the phenomenon. The purpose of this paper is to decrease fragmentation and focus on identifying and understanding RI.
Design/methodology/approach
A systematic review of RI was conducted. The review conformed to a rigorous set of core principles: it was systematic (organized according to a method designed to address the review questions), transparent (explicitly stated), reproducible and updatable, and synthesized (summarized the evidence relating to the review question).
Findings
This systematic review provides an improved theoretical and practical framework for the concept of RI. In terms of theory, the authors have demonstrated that the idea behind the concept is not entirely new. A consensus on the definition of RI is not reached in the literature, and descriptions in organizational theory contexts are sometimes misleading. The authors analyzed all the various definitions provided in the literature. From a practical point of view, the authors have explained the academic interest in RI in relation to organizational strategy, in particular the context in which strategies are adopted. The concept of RI has significant managerial implications, and the authors have proposed a conceptual framework to help managers understand and grasp the implications of RI. Finally, the authors have provided suggestions for future research on RI.
Originality/value
To the best of the authors’ knowledge, this is the first exhaustive literature review on RI.
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Roberto Mora Cortez and Wesley J. Johnston
The purpose of this study is to examine predicted business-to-business (B2B) marketing capabilities for the next three to five years by companies in advanced, emerging and…
Abstract
Purpose
The purpose of this study is to examine predicted business-to-business (B2B) marketing capabilities for the next three to five years by companies in advanced, emerging and developing economies.
Findings
The authors identify the prevalent marketing capabilities in industrial companies operating in an advanced economy (USA), two emerging economies (Chile and Peru) and one developing economy (Bolivia), consolidating the themes in firms’ orientations. The study offers a taxonomy of the marketing role in different stages as per country development.
Design/methodology/approach
Qualitative approach based on grounded theory.
Originality/value
This manuscript contributes to the understanding of B2B marketing across different levels of market development. The authors offer theoretical and practical implications regarding the paradigms reigning the role of marketing. The coding scheme emerging from the data illustrates how companies and markets evolve in a two-way interaction.
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Michael A. Sullivan and Krishnan Dandapani
This paper analyzes the special character of currency risks associated with equity investments in emerging capital markets. Such investments are an important and growing source of…
Abstract
This paper analyzes the special character of currency risks associated with equity investments in emerging capital markets. Such investments are an important and growing source of funds for financing projects which contribute to the rapid pace of growth in emerging markets. While investors in any foreign market face the consequences of possible changes in the value of foreign currency, uncertainty about the terms for currency conversion in emerging markets are aggravated by the interaction of capital flows and currency values, particularly for countries which rely heavily on external sources of financing. In such an environment, it is essential for investors to understand the characteristics of currency risk in order to incorporate them in their investment decisions. This paper analyzes equity market returns and currency fluctuations in a group of emerging markets by comparing them to a set of developed countries. By traditional measures of risk emerging markets appear to have low levels of currency risk. This paper demonstrates that there has also been substantial changes in currency risk in emerging markets which have not occurred in developed markets. This paper also discusses methods of hedging currency risk, taking into account the limitations on hedging strategies in emerging markets and the special characteristics of currency risks in those markets.