Search results

1 – 10 of over 86000
Article
Publication date: 26 August 2014

Abbas Ali

The purpose of this paper is to address the future role of emerging economies in the global marketplace. The paper highlights current trends in the global market and the changing…

3721

Abstract

Purpose

The purpose of this paper is to address the future role of emerging economies in the global marketplace. The paper highlights current trends in the global market and the changing role of emerging economies.

Design/methodology/approach

The paper discusses various perspectives on the role of emerging economies in a globalized world. The paper relies on recent debates on the state of the global economy and the changing positions of emerging economies in the world market.

Findings

The paper devises six categories for today’s emerging economies: advancing player, reluctant player, repositioning player, the defender, the chained player and the retreating player. These classifications set the stage for a thoughtful discussion on the potential roles of emerging economies in a world that is characterized by constant changes and alternating positions of major players.

Originality/value

The paper provides unique perspectives on emerging economies, while refuting those who attempt to marginalize their roles in today’s marketplace. It makes a powerful argument that in the era of globalization, neither the developed world nor the emerging economies can lead without the other.

Details

International Journal of Commerce and Management, vol. 24 no. 3
Type: Research Article
ISSN: 1056-9219

Keywords

Open Access
Article
Publication date: 28 July 2023

Jeremias De Klerk and Bernard Swart

Background: Amid increasing leadership failures in the global business context, the mining industry is one of the industries with many adverse incidents, affecting employee…

Abstract

Background: Amid increasing leadership failures in the global business context, the mining industry is one of the industries with many adverse incidents, affecting employee safety, the environment, and surrounding communities. Emerging economies tend to have unique socio-economic challenges and greater relative economic dependence on mining, presenting unique challenges to leaders. The purpose of this research was to study the realities of responsible leadership in the mining industry in an emerging economy.

Methods: A qualitative research study, consisting of semi-structured interviews was conducted. Nine senior mine managers were selected to represent perspectives from different operations and mining houses. Data was gathered from August to October 2020 in South Africa, an emerging economy with significant mining operations. A thematic analysis of interview transcripts was conducted through the use of software, rendering five themes, with 12 sub-themes.

Results: The research found that requirements on mining leaders in emerging economies demand consistent balancing of a complex set of competing risks, whilst attending to paradoxical requirements among operations, and internal and external stakeholders. Leaders face several competing requirements from stakeholders, the environment, mining practices, and time frames. Responsible leaders must navigate a paradoxical maze of needs and time horizons, with several conflicting forces and dilemmas, and dichotomous relationships. Responsible leadership in the mining industry of an emerging economy is a proverbial minefield of paradoxes and dilemmas between responsible intentions and practical realities. These paradoxes and dilemmas are specifically acute in the context of emerging economies due to the dire socio-economic situations. A total of 10 competencies emerged as essential responsible leadership requirements in this context.

Conclusions: The study provides an in-depth understanding of the intricacies of responsible leadership in the mining industry of an emerging economy. This understanding will contribute to capacitating leaders in the mining industries of emerging economies to act responsibly.

Details

Emerald Open Research, vol. 1 no. 11
Type: Research Article
ISSN: 2631-3952

Keywords

Open Access
Article
Publication date: 5 December 2022

Jing Lu and Shahid Khan

This paper investigates whether sustainability performance (SP) protects financial performance (FP) for firms in both developed and emerging economies during the COVID-19-induced…

1124

Abstract

Purpose

This paper investigates whether sustainability performance (SP) protects financial performance (FP) for firms in both developed and emerging economies during the COVID-19-induced economic downturn.

Design/methodology/approach

Using a recent sample of firms in 34 countries between 2003 and 2021, the authors employ ordinary least squares regressions, moderations and the Heckman two-step method to test the hypotheses.

Findings

Firms with strong SP have higher FP in developed and emerging economies in the upcoming year. During the COVID-19 crisis in 2020–2021, the impact of sustainability on FP is pronounced in developed but not in emerging economies. Furthermore, cross-listings expose firms in emerging economies to high-standard institutional mechanisms in developed economies. Thus, sustainable firms in emerging economies cross-listed on European stock exchanges are more profitable.

Practical implications

For regulators and standard setters, the global-level comparative analysis helps them find solutions that may assist firms in improving SP globally (e.g. mandatory reporting) and enduring crises resiliently. For institutional investors, the study reveals the relatively different impact of sustainability risk for firms in developed and emerging economies. For practitioners and private sector firms, this study contributes to the dialogue on what makes firms more resilient in COVID-19. Although COVID-19 might be temporary, the lessons learned could protect firms from future crises.

Originality/value

The authors contribute to the contingency perspective between sustainability and financial performance by providing recent empirical evidence in a global setting during the COVID-19 pandemic. The authors demonstrate how different external institutional mechanisms (rule-based governance and relation-based governance) and cross-listing affect the SP-FP relationship during a crisis. The authors extend the knowledge in crisis management literature with a comparative study and fill the research gap on how SP affects FP for firms in emerging economies compared to developed economies.

Details

Asian Review of Accounting, vol. 31 no. 1
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 20 June 2022

Cengiz Tunc and Ali Gunes

This study aims to focus on two-way interaction between monetary policy and house prices in emerging economies.

Abstract

Purpose

This study aims to focus on two-way interaction between monetary policy and house prices in emerging economies.

Design/methodology/approach

This study uses panel structural vector autoregressive model.

Findings

The results show that real house prices decrease in response to a contractionary monetary policy shock. However, relative to advanced economies, the reaction of the prices is limited in emerging economies, pointing out the structural differences in emerging economies including the small size of the mortgage market and the lack of a well-functioning secondary market in housing finance. This study further finds that monetary policy is tightened in response to a positive shock to house prices. However, this response is also weak when compared to that response in advanced economies.

Research limitations/implications

These findings suggest that house price developments should not be prior target for monetary policies in emerging economies unless they become problem for financial stability or inflationary concerns.

Originality/value

Using a sample of inflation targeting emerging countries, this study contributes to the literature by conducting both panel setting and single-country analysis to explore the two-way dynamic relationships between the monetary policy and housing market in emerging economies.

Details

International Journal of Housing Markets and Analysis, vol. 16 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 7 August 2017

Charles Funk and Len J. Treviño

The purpose of this paper is to describe co-devolutionary processes of multinational enterprise (MNE)/emerging economy institutional relationships utilizing concepts from “old”…

Abstract

Purpose

The purpose of this paper is to describe co-devolutionary processes of multinational enterprise (MNE)/emerging economy institutional relationships utilizing concepts from “old” institutional theory as well as the institutional aspects of socially constructed realities.

Design/methodology/approach

The authors develop a set of propositions that explore the new concept of a co-devolutionary relationship between MNEs and emerging economy institutions. Guided by prior research, the paper investigates MNE/emerging economy institutional co-devolution at the macro-(MNE home and host countries), meso-(MNE industry/host country regulative and normative institutions) and micro-(MNE and host country institutional actors) levels.

Findings

MNE/emerging economy institutional co-devolution occurs at the macro-level via negative public communications in the MNE’s home and host countries, at the meso-level via host country corruption and MNE adaptation, and at the micro-level via pressures for individual actors to cognitively “take for granted” emerging economy corruption, leading to MNE divestment and a reduction in new MNE investment.

Research limitations/implications

By characterizing co-devolutionary processes within MNE/emerging economy institutional relationships, the research augments co-evolutionary theory. It also assists in developing more accurate specification and measurement methods for the organizational co-evolution construct by using institutional theory’s foundational processes to discuss MNE/emerging economy institutional co-devolution.

Practical implications

The research suggests the use of enhanced regulation, bilateral investment treaties and MNE/local institution partnerships to stabilize MNE/emerging economy institutional relationships, leading to more robust progress in building emerging economy institutions.

Originality/value

The research posits that using the concepts of institutional theory as a foundation provides useful insights into the “stickiness” of institutional instability and corruption in emerging economies and into the resulting co-devolutionary MNE/emerging economy institutional relationships.

Details

Cross Cultural & Strategic Management, vol. 24 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 1 January 2005

Tony Kang and Yang Hoong Pang

Extending prior studies which suggest that the disclosure practice of developed economy entities tends to be more transparent than that of emerging economy entities, this study…

Abstract

Extending prior studies which suggest that the disclosure practice of developed economy entities tends to be more transparent than that of emerging economy entities, this study investigates whether such differences in the degree of disclosure transparency translate into different levels of value‐relevance of their accounting summary measures (i.e., book values and earnings). Consistent with theories that link disclosure quality with the impact of disclosure on investors' decisions, the evidence indicates that the accounting summary measures of developed economy entities are more value‐relevant than those of emerging economy entities in the U.S. stock market. This finding has some implications for the current policy debate in IASB regarding accounting for emerging economy entities.

Details

Review of Accounting and Finance, vol. 4 no. 1
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 5 August 2021

Halit Duran, Serdal Temel and Victor Scholten

Context characteristics of emerging economies differ significantly from those in developed economies. Considering this substantial difference, this study aims to identify the…

Abstract

Purpose

Context characteristics of emerging economies differ significantly from those in developed economies. Considering this substantial difference, this study aims to identify the drivers and barriers for new product development (NPD) success in the context of an emerging economy by drawing on the resource-based view.

Design/methodology/approach

Data was collected from firms in different sectors in the Aegean Region of Turkey using the Wageningen Innovation Assessment Tool. Of 189 responses, 94 fit the criteria and used for statistical analysis. The data is analyzed using a two-step procedure, namely, a confirmatory factor analysis followed by a binary logistic regression that is used to model the probability in the study of the success of NPD.

Findings

The results reveal that along with the context characteristics of an emerging economy setting, internal capabilities matter for NPD success. Based on interviews with NPD managers, it was found that, among other factors, the close relationship with local customers is key for new product success, while introducing high innovative products to the market of an emerging economy may not be appropriate due to the specific conditions of such economies.

Practical implications

This study will be useful to the managers to understand the extent to which the degree of newness of a product affects NPD success in an emerging economy setting. It also highlights the importance of securing firm resources before starting an innovation activity in this setting where resources such as financial resources, knowledge and physical resources are limited. From a policy perspective, this study provides certain insights as well. That is, government officials in emerging economies should be very careful about their informal actions that might disrupt the investment and innovation environment.

Originality/value

Emerging economies are important for large firms seeking growth. They initiate manufacturing activities and increasingly perform innovation activities in those countries. However, the conditions to innovate are different from those in developed economies. Research into the factors that drive innovation is largely in an embryonic state. This study offers NPD researchers a deeper understanding of the drivers and barriers to innovation, particularly internal ones that may affect the NPD success in an emerging economy setting, in this case, that of Turkey. The results provide suggestions for policymakers to consider during the development of new innovation policies. For practitioners, this study outlines novel combinations of internal factors that lead to NPD success.

Details

International Journal of Innovation Science, vol. 14 no. 1
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 29 June 2012

Francisco Diaz Hermelo and Roberto Vassolo

The purpose of this paper is to examine the magnitude of country, industry and firm‐specific effects for firms competing in emerging economies and also explore differences between…

1046

Abstract

Purpose

The purpose of this paper is to examine the magnitude of country, industry and firm‐specific effects for firms competing in emerging economies and also explore differences between high and low performers.

Design/methodology/approach

The authors use ANOVA methodologies on samples from firms competing in Latin America between 1990‐2006.

Findings

It was found that the firm‐specific effect is the most important one, and relatively equivalent in magnitude to the firm‐specific effects found in developed countries. Country and industry effects are less important than the firm‐specific effect. Contrary to previous studies that indicate that the country effect is relatively more important in emerging economies, the authors found that it is even less important than the industry effect, a result that has important implications for strategic management and international business theory. The source behind the strong firm‐specific effects might stem from their resources and capabilities to manage and take advantage of the institutional and macroeconomic environments. Further analysis indicates that the firm‐specific effect is relatively more important for firms showing high performance than for those firms showing low performance.

Research limitations/implications

Through these findings the authors feel that further research is needed so as to arm future managers with a more clear and comprehensive strategy when doing business in a Latin American country. The paper's findings are specific for large public corporations in Latin America.

Practical implications

The paper allows managers to think about sources of competitive advantages in emerging economies.

Originality/value

The paper shows that, despite weak institutional contexts and highly volatile macroeconomic environments, managers in the region should be able to obtain substantial differences in economic performances within the region. Activities needed for such differentiation might differ from those carried out in developed countries, with more emphasis on managing institutional voids and periods of economic and political cycles but the result should be the same.

Details

International Journal of Emerging Markets, vol. 7 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 27 February 2020

Suranjan Bhattacheryay

The purpose of the study is to heighten intrinsic advantages, dis-advantages, being enjoyed by emerging country firms and the motivational factors that influence multinational…

Abstract

Purpose

The purpose of the study is to heighten intrinsic advantages, dis-advantages, being enjoyed by emerging country firms and the motivational factors that influence multinational enterprises (MNEs) to establish long-lasting relationship with emerging economies. The study also highlights the steps initiated by India by executing reform friendly foreign direct investment policy to attract foreign investments.

Design/methodology/approach

The study is descriptive in nature, based on secondary data, sourced from various reports of India Government and the Central Bank of India.

Findings

The Indian economy has undergone profound and substantial liberalization and made sweeping reforms in most of its sectors besides adopting internationalization policy agendas to upkeep their domestic firms in “going global”. However, India needs to amend the existing restrictive labour and land laws besides providing efficient employable workforce. India further needs a less cash economy, which ultimately marches into digitized credit system to build India as one of the best attractive countries in the eyes of global investors.

Research limitations/implications

As the study is based on secondary data, it may be general, in explicit and may not be perfect in concluding decision.

Social implications

MNEs play a major force in driving globalization of the world economy. However, MNEs face a variety of complex and multiple challenges in establishing strategic control over emerging economies. In spite of all odds, MNEs generate and capture value to host country firms by applying unique business models besides combining with or buying a foreign business.

Originality/value

Investment flows to India for the past 15 years (2005-2019) are critically analysed to justify research questions. Further, in the literature “Preparedness of India”, a lot of new interesting insights, incorporated.

Details

Journal of Financial Economic Policy, vol. 12 no. 4
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 6 June 2023

Ru-Shiun Liou, Pi-Hui Ting and Ying-Yu Chen

Many emerging economy firms are under foreign owners' pressure to embrace the challenges of addressing corporate social responsibility (CSR) and consider adopting sustainability…

Abstract

Purpose

Many emerging economy firms are under foreign owners' pressure to embrace the challenges of addressing corporate social responsibility (CSR) and consider adopting sustainability initiatives. However, it is not clear how foreign ownership plays a role to enable or inhibit these emerging economy firms from translating sustainability initiatives into improved financial performance. Utilizing neo-institutional theory, the authors argue that emerging economy firms that voluntarily report sustainability gain legitimacy in the eyes of shareholders and improve stock market performance. However, emerging economy firms may not have the resources to reconcile the internal stakeholders' various legitimacy requirements to promote sustainability practices, resulting in a negative association with accounting performance. Foreign ownership attenuates the relationship between sustainability reporting and firm performance due to the different legitimacy requirements in foreign markets.

Design/methodology/approach

To test the study’s hypotheses, the authors collected and analyzed a large sample of publicly listed firms between 2010 and 2016 in Taiwan where the types of foreign ownership include foreign trust funds, foreign financial institutions and other foreign legal entities. Regression analyses were conducted to investigate whether the firms that report their sustainable practices have better financial performance, including stock market performance and accounting performance. Additionally, a three-step procedure was employed to address the endogeneity issue with a binary explanatory variable.

Findings

The positive stock market reaction to the emerging economy firms' voluntary sustainability reporting supports legitimacy gained among investors. By contrast, sustainability reporting has a negative association with accounting performance due to the difficulty of reconciling different legitimacy requirements among various stakeholders in emerging economies. Further, foreign ownership, particularly the trust fund, exhibits a negative moderating effect on the relationship between sustainability reporting in aligning corporate practices with sustainable development goals (SDGs) and the company's stock market performance.

Originality/value

By examining the less tested contingent role played by foreign ownership in the emerging economy firms' sustainability reporting, the authors provide insights into the influence exerted by different types of foreign ownership on firms' financial performances beyond previous studies that focus on family ownership, state ownership, or managerial ownership in emerging economies. The findings shed light on corporate sustainability strategy and foreign direct investment policies for an emerging economy.

Details

Cross Cultural & Strategic Management, vol. 30 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

1 – 10 of over 86000