bluuebunny/crossref_metadata_2025 huggingface dataset:
A Causal Analysis between Construction Flows and Economic Growth: Evidence from India
Authors: Kumar Tiwari Aviral
Published: January 2021

The study examined the causal relationship between construction flows and economic growth under a static and dynamic framework by employing the Engel-Granger and IRFs approach with incorporation of endogenously determined structural breaks. The static causality test result provided the evidence of bidirectional Granger-causality between construction flows and economic growth in India. The dynamic causality analysis indicated that for the first ten years, a standard deviation innovation in construction had positive impact on the GDP, while the long-run impact was negative. However, a standard deviation shock/innovation in GDP had a negative impact on the construction flows of the economy for the first 10 years of the period under shock analysis, while for the long-run, the impact was in the positive direction.
Organizational Effectiveness: American Subsidiaries in Romania
Authors: Banto Andrea , Chandan Harish
Published: January 2021

Romania is becoming increasingly attractive for foreign companies. As the number of U.S. firms is increasing in Romania, their subsidiaries need a better understanding of the local characteristics. This study examined the effect of four organizational culture traits - Involvement, Mission, Adaptability, and Consistency - on seven measures of firm effectiveness for 51 U.S. subsidiaries. This study expands the current research in emerging markets, highlighting the importance of organizational culture for the effectiveness of firms. The study found that all four organizational culture traits have a positive influence on effectiveness.
An Examination of Social Regulation in the Context of the Restructuring of State-Owned Companies
Authors: Goujon Belghit Anne
Published: January 2021

As a result of new internal regulations, public bodies are currently changing their structures, their strategies and the ways in which they function. We are going to analyze these transformations using the theory of social regulation and the theory of change. We have carried out two case studies (France T챕l챕com and the SNCB) in two different countries (France and Belgium). We performed semi-directive interviews of management-level and non-management level employees. Taking as our context a public body in the process of restructuring: What is the nature of the relationship between the public body, its employees and rules and regulations?
Rupee-Dollar Exchange Rate and Macroeconomic Fundamentals: An Empirical Analysis Using Flexible-Price Monetary Model
Authors: Shylajan C S , S Sreejesh , K G Suresh
Published: January 2021

This paper empirically investigates the link between Indian rupee-US dollar exchange rates and a set of macroeconomic fundamentals using flexible-price monetary model (FPMM) for the period 1996 M1 to 2010 M12. The Johanson-Juselius cointegration test result indicates the existence of long run relationship between exchange rate and the macroeconomic variables, implying the validity of FPMM model in Indian context even though there is no short run casual relationship exist in the VECM analysis.
Characteristics of Low-autonomy Foreign Subsidiaries: Value Chains, Staffing, and Intra-organizational Relationships
Authors: Gammelgaard Jens , McDonald Frank , Stephan Andreas , Tüselmann Heinz , Dörrenbächer Christoph
Published: January 2021

This paper examines several characteristics of foreign subsidiaries with low autonomy. Data derived from a survey of 381 MNC subsidiaries located in Denmark, Germany and the UK demonstrate that lowautonomy subsidiaries are highly embedded in their respective MNC networks and that they establish a high number of intra-organizational relationships. Furthermore, such subsidiaries are typically managed by nationals of the MNC’s headquarters home country. Despite the fact that such subsidiaries have low autonomy, they employ a high proportion of professional staff members. We find a negative relationship between lower autonomy and the production activities carried out by the subsidiary. In fact, low-autonomy subsidiaries appear to be specialized in that they focus on a few value-chain activities and they typically serve as marketing outlets.
Features and Effects of Intellectual Property Rights in Internationalization
Authors: Hurmelinna-Laukkanen Pia
Published: January 2021

Intangible assets facilitate successful international growth and, likewise, new value can be created through internationalization as it supports creating and utilizing such assets. Independent of whether the innovative creations are input or output, in order to preserve the benefits, awareness of the threat of imitation is needed. Departing from prior studies concentrating on patenting and copy-prevention, or taking the relationship between intellectual property right (IPR) protection and internationalization as given premises, this study addresses the features and effects of IPRs in internationalization from a more strategic perspective. Analysis of data from 299 companies provides empirical evidence.
Fiscal Deficit and Inflation: What Causes What? The Case of India
Authors: Kumar Tiwari Aviral , Tiwari A. P. , Pandey Bharti
Published: January 2021

This study has made an attempt to examine the direction of causality among the fiscal deficit, government expenditure, money supply, and inflation. In the present study we have employed Dolado and L체tkepohl (DL) (1996) and standard Granger-causality approach to examine the direction of the causality among the test variables. However, we have found conflicting results for India. Causality analysis based on DL approach suggests that both government expenditure and money supply Granger-cause fiscal deficit while standard Granger-causality test indicates that only government expenditure Granger-cause fiscal deficit. And money supply Granger-cause government expenditure and fiscal deficit Granger-cause money supply.
Uncertainty and Learning in International Joint Ventures
Authors: Song Sangcheol
Published: January 2021

This study deals with the potential interplays between two uncertainty types (endogenous vs. exogenous uncertainty) and the role of learning in joint ventures (JVs) from the real options perspective. Regarding the role of learning under different types of uncertainty in JVs, one stream of real options research argues that learning has nothing to do with investment decision, while the other stream of research argues that investment decision is endogenous to learning. Considering that investment decisions embedded in JVs are affected by endogenous uncertainty (e.g., partner uncertainty) and exogenous uncertainty (e.g., demand uncertainty), this study suggests a conceptual model which takes into account the impact of endogenous uncertainty and firm’s learning of JV partners and market demand on real options value and exercise. Since almost all real options research focuses on exogenous uncertainty and less study learning under the real options framework, we add to this literature by touching upon possible roles of endogenous uncertainty and learning in driving firm’s strategic choices.
Successful In-between? Analyzing the Internationalization of Medium-sized World Market Leaders
Authors: Rygl David
Published: January 2021

Successful internationalization has become an inevitable challenge for most small and medium-sized companies. In this explorative study, based on interviews with 84 owners and CEOs of German small and medium-sized world market leaders (WMLs), specific success factors, typical internationalization patterns, existing challenges and potential risks are identified. Four types of those WMLs could be classified leading to the taxonomy of Visionaries, Conquerors, Companions and Globalizers. Their internationalization scheme could be assigned to three internationalization stages. When matched with the learning theory of internationalization (Johanson and Vahlne, 1977, 1990) this study contributes to the ongoing discussion regarding the applicability of traditional IB-theories.
Examining Industrial Clusters from an Ecological Perspective: Evidences from North-East China
Authors: Li Ge , Bhanugopan Ramudu , Fish Alan
Published: January 2021

Industrial clusters are increasingly seen as essential in effectively combining, developing and enhancing like-minded businesses. Industrial clusters irrespective of their location are providing positive outcomes for ecological derivatives in supporting effective industrial developments. This perspective is addressed within this paper via employing the ‘Logistic Model of Ecology’; through the application of differential equations. This paper explains key interspecies relationships; competition, predation and symbiosis, operating within a regional cluster in the Jilin Province in the north-east of The Peoples’ Republic of China. The paper draws the conclusion that ‘intense competition’ is the key factor contributing to the successful existence of the cluster.
The Impact of Competitiveness on Firm Growth in Special Economic Zone: A Study of Electronics Cluster in Batam, Indonesia
Authors: Wahyuni Sari , Ekaputra Irwan , Tjong William
Published: January 2021

Special Economic Zones (SEZ) have proven to be a powerful engine in fostering regional economy but also excel the capability of a country. This research aims to investigate some major determinants of electronics firms??growth operating in Batam Island which is considered as the first SEZ in Indonesia. By employing qualitative and quantitative approach, the result of this study shows that there are some macro and micro variables that influence the growth of electronic firms. The macro factors consist of good governance, institutional, human resources, labour, and corruption. The micro factors are size of the firm, efficiency in value chain activities, and innovation.
Highly Attractive Models in Advertising: What Causes Negative Affect?
Authors: Sinh Nguyen Hoang
Published: January 2021

Highly attractive models (HAMs) have been popularly used in advertising to impact psychologically on the message receiver in the hopes of increasing the advertisement’s effectiveness. The marketing literature is replete with evidence of the positive effects of using HAMs. However, support for their effectiveness is somewhat conflicted. The research attempts to add to the body of knowledge, specifically through exploring individual difference variables (model characteristics, product types, comparison motives, and culture) impact on negative affect. This study also investigates whether advertising skepticism determined by culture has an impact on negative affect as a result of a HAM comparison. The methodology uses a 3 (beauty types) x 2 (product types) x 2 (comparison motives) between-subjects experimental design. Respondents for the main study are female students across cultures from international programs and universities in Vietnam. The results supported all hypotheses; except product types shown having no impact on negative affect. The research also confirmed there are interrelationships between culture and skepticism. These findings have implications regarding the potentially negative influence of advertising including HAMs for practitioners, academics and public policy makers.
Trade Facilitation and Performance of Manufacturing Exports from Cameroon
Authors: Djemmo Arnaud
Published: January 2021

Cameroon’s “Vision 2035” considers the increase of manufacturing exports as the key factor of its “emergence” in 2035. In this context, measures to reduce manufacturing production and export costs should be taken with primary attention to reforms in trade facilitation. We use an augmented gravity model to evaluate the impact of five trade facilitation measures - port efficiency, customs efficiency, regulatory environment, use of ICT and quality of roads - on the performance of the manufacturing exports from Cameroon. Our results confirm the positive role of physical infrastructures on African exports. Using the Poisson Pseudo Maximum Likelihood to deal with the presence of “zero” in our bilateral trade matrix, we find that port efficiency and quality of roads are the main drivers of trade facilitation in Cameroon.
Uncertainty, Absorptive Capacity, and Real Option Value of International Investment: An Examination of Prior Experience
Authors: Song Sangcheol
Published: January 2021

Considering that experience develops a firm’s absorptive capacity, this paper examines the moderating effects of firms’ prior experience with high uncertainty and international investments on the real options value of subsequent and similar investments under uncertainty. In addition to the firm’s real option investments, we propose that consideration for a firm’s capability to perceive and respond to exogenous uncertainty and future opportunities would lead to a better understanding of the value of real options under uncertainty. Differential absorptive capacity based on prior experience with similar type of uncertainty and investment leads to heterogeneous value of subsequent uncertainty and investment.
Banking System Resilience and Financial Stability - An Evidence from Indian Banking
Authors: Swamy Vighneswara
Published: January 2021

This paper while emphasising the importance of the concept of financial stability in wake of recent global financial crisis in particular and other (banking and financial) crises in general attempts to highlight the significance of the soundness of banking sector in emerging economies where banking sector constitutes a lion’s share in the financial system. This study examines banking sector stability by constructing a micro vector auto regressive (VAR) model and establishes the significance of the interrelatedness of the bank-specific variables such as; Liquidity, Asset Quality, Capital Adequacy and Profitability. Further, the paper offers a substantive review of literature on the concept of financial stability in backdrop of the ongoing definition debate for financial stability. A significant contribution of this study is that, by employing the most appropriate key determinants of banking sector soundness, the paper constructs a recursive micro VAR model to explain the interdependence and comovement of the banking stability covariates in a bank-dominated financial system that aids in understanding the dynamics of financial stability of emerging economies
Does The Perceived Enjoyment of Social Network Sites Influence the Development of Social Capital? A Comparative Study of Japan and Brazil
Authors: Yokoyama Marcos
Published: January 2021

This study examines the relationship between the use of Social Network Sites and the formation of social capital. Using data from a web survey of employees in Japan (n = 244) and Brazil (n = 251), positive associations between SNS use and social capital development were found in both countries. Cultural differences seem to influence this process; in Brazil, intensity of SNS use has a stronger association with bridging and bonding social capital when perceived enjoyment is high; in Japan, employees use SNS for usefulness and enjoyment reasons, but perceived enjoyment does not interfere with social capital gains. Implications and future research are discussed.
Moving beyond FDI and Clusters: Platform Perspective towards Mutual Value Creation
Authors: Yim So Hyun
Published: January 2021

This paper integrates two independent studies of foreign direct investment and cluster through platform perspective. In order to sustain and maximize rent creation for both the investing firm and the host country, this paper suggests a shift in our perspective from exploiting advantages unilaterally to creating values mutually. Four factors, compatibility, complementarity, connectivity and commerciality, are presented to have positive impacts on sustaining value co-creation and maximizing spillover effects. The four factors, carefully chosen through rigorous studies from the platform perspective as well as other relevant studies, give meaningful implications for carrying out effective and sustainable ODA and CSR activities as well.
Forecasting Stock Market Volatility: Evidence from Six Emerging Markets
Authors: Tripathy Naliniprava , Garg Ashish
Published: January 2021

This paper forecasts the stock market volatility of six emerging countries by using daily observations of indices over the period of January 1999 to May 2010 by using ARCH, GARCH, GARCH-M, EGARCH and TGARCH models. The study reveals the positive relationship between stock return and risk only in Brazilian stock market. The analysis exhibits that the volatility shocks are quite persistent in all country’s stock market. Further the asymmetric GARCH models find a significant evidence of asymmetry in stock returns in all six country’s stock markets. This study confirms the presence of leverage effect in the returns series and indicates that bad news generate more impact on the volatility of the stock price in the market. The study concludes that volatility increases disproportionately with negative shocks in stock returns. Hence investors are advised to use investment strategies by analyzing recent and historical news and forecast the future market movement while selecting portfolio for efficient management of financial risks to reap benefits in the stock markets.
Export-led Growth Hypothesis: Econometric Evidence from Malaysia
Authors: Mohd Thas Thaker Hassanudin , Siew Ee Tan , Vaidik Sushant
Published: January 2021

The objective of this paper is to test the validity of the Export-led Growth Hypothesis (ELGH) in the Malaysian economy. Malaysia has always been considered to have attained its growth primarily through exports (Okposin, Bassey, Hamid, Halim, and Boon, 1999; Mun, 2008; Mahathir, 1990). In the past, several studies on this topic have been conducted but their analyses were limited to relationships using Bound-testing, Autoregressive –Distributed Lag (ARDL) and the Toda Yamamoto analysis. Empirical data and analysis in our paper cover a 21 – year span and quarterly time-series data (1991:Q1 – 2012:Q4) are used to test this ELG hypothesis. Also, many dynamic econometric measures including the Augmented Dickey Fuller (ADF) and Phillip – Perron (PP) unit root tests, Cointegration test as well as the Vector Error Correction model (VEC) for the long run have been applied. Based on these generic models, both real exports and capital stock (productivity) are found to have stimulated positive adjustments to economic growth in the long run whereas real exchange rate is found to have influenced economic growth negatively. Overall, our conclusion is that the ELG hypothesis seems applicable to Malaysia in the long run.
The Interaction between Consumer Preference and Product Ethics: Implications on Coffee Trade in China
Authors: Qing Ping , Hu Wuyang , Liu Yun
Published: January 2021

This study examines consumers??ethics concerns on their product choices in the context of coffee in China. Using an in-person survey, an interval regression technique was used to elicit willingness to pay. Respondents were randomly assigned to one of three different information scenarios including product ethics: basic definition, impact on sustainability and the environment, and information including both environmental and social implications. Results indicated that information played an important role in determining what types of consumers were responsive to ethical production. Furthermore, the amount of information provided and consumer willingness to pay did not follow a linear relationship.
How Chinese "Snake" Swallows Western "Elephant": A Case Study of Lenovo’s Acquisition of IBM PC Division
Authors: Zhou Shijia , Huang Xueli
Published: January 2021

Chinese Cross-Border Mergers & Acquisitions (CBMA) have accounted for a majority of Chinese outward direct investment (OFDI) and thus received much academic attention in recent years. Along with China’s integration with global economies, hundreds of Chinese companies have become multinational corporations (MNCs). Equipped with little internationalisation experiences and resources, Chinese MNCs not only struggle to survive intense competition, but also hunt for new opportunities in the global market. As late comers, Chinese MNCs have faced various problems and challenges, particularly in acquiring Western enterprises. Taking the deal of China’s Lenovo acquisition of IBM PC department (PCD) as a case, this paper offers insights into the specific features and characteristics behind Chinese CBMA. The study reveals Lenovo’s unique integration process and thus contributes to the theoretical development of CBMA literature. This study also evaluates the overall performance of Lenovo before and after acquisition of IBM PCD by using both subjective and objective measures.
The Impacts of Information Sharing and Lower-tier Supplier Selection Process on Three Key Elements of Lower-tier Supplier Visibility Objectives
Authors: Olorunniwo Festus , Jolayemi Joel , Fan Chunxing , Li Xiaoming
Published: January 2021

The purpose of this research is to investigate the impacts of information sharing and lower-tier supplier selection processes on three key elements of lower-tier supplier visibility objectives. Data was collected from a survey of 74 companies and through interviews with 19 industry executives from 15 companies. The analyses of the data show that both the information sharing and lower-tier supplier selection process/approaches are correlated with three key elements of lower-tier supplier visibility objectives, namely: relationships with lower-tiers, lower-tier risks, and lower-tier performance. The analyses also show that most of the information sharing processes/activities and lower-tier supplier-selection approaches are considered to be important by company executives surveyed and interviewed.
The Time-varying Cash Flow Sensitivity of Cash
Authors: Aung Kyaw NyoNyo , Zong Sijing
Published: January 2021

By using data of US manufacturing companies, we revisit the cash flow sensitivity to cash in two sub-samples of 1993-2000 and 2000-2011 to investigate the time-varying features of the cash flow sensitivity of cash. Our results show a weakening coefficient of US manufacturing firms from 1990s to 2000s. The sensitivity in the later time period is only a half of its original scale. Financially unconstrained firms seem to converge with the constrained firms in the later period, leading to the conclusion that macroeconomic conditions impact more on the cash flow sensitivity of cash than the external financial constraint does. Further, our research identifies that the overall decreasing sensitivity is driven by firms with negative cash flows.
Culture and its Effect on Management Myopia and Financial Performance: A Comparison of Firms from Short-term and Long-term Oriented Cultures
Authors: Shah Abhay
Published: January 2021

Myopic management has been defined as making decisions based on short-term profitability as opposed to the long-term value. Myopic firms typically cut expenditures in advertising and R&D which result in the destruction of the long-term value of the firm. This paper reports the findings of a study that investigated the impact of culture on myopic management, i.e., do firms from cultures that are short-term oriented behave more myopically than firms from cultures that are long-term oriented? The findings support the hypotheses that firms from long-term oriented cultures spend more on R&D and advertising than firms from short-term cultures which then translates to higher profitability for firms from long-term oriented cultures in comparison to firms from short-term oriented cultures.
The Effect of Screen Quotas and Subsidy Regime on Cultural Industry: A Case Study of French and Korean Film Industries
Authors: Messerlin Patrick , Parc Jimmyn
Published: January 2021

There are voices in France advocating for a Korean-type screen quota system, seen as a key ingredient in the success of the Korean film industry. At the same time, there are calls in Korea for a French-type subsidy regime to be implented as a way to achieve a further take-off. This paper shows that the Korean screen quota has little correlation with Korea’s success. For the French case, its huge subsidies have had no impact on improving the attractiveness of French movies domestically. The paper concludes by suggesting that an in-depth analysis of the policies pursued by the two countries is crucial toward avoiding a too costly trial-and-error process when designing policies related to cultural industries and culture.
High Regulation and Low Certainty: Marketing Strategy Challenges for the Pharmaceutical Industry in China
Authors: Thach Sharon
Published: January 2021

The opening of China to foreign pharmaceutical companies created essentially a new market where the “rules of the game” were not previously established for the particular industrial setting. The regulations governing access to prescription drugs, the role of pharmaceuticals in providing funding for hospitals and clinics, and the low oversight of company practices resulted in a system of mutual corruption, high competition, and shifting regulatory and legal formalities. As the movement to open access to pharmaceuticals to non-hospital purveyors and the attention of Chinese authorities to certain industry practices has proceeded, the industry environment has changed significantly. Four possible new competitive models for pharmaceutical companies are evaluated.
Differences in Behavioral Biases in Investment Decision Making: Gender and Occupation Perspective
Authors: Rastogi Shailesh
Published: January 2021

Investments and Investment decision making come a long way in last few decades. The practical deviation from the established norms of conventional finance made the people know that the investors??buying behavior cannot be understood only by conventional finance theories. Studies strongly support the presence of behavioral aspects in the investment decision making process and behavioral finance provides solution to many-a-problems hitherto not answered appropriately by the conventional finance theory. Moreover, it was also propounded that the behavioral biases vary across gender and occupation of the investors. This study provides evidences for the existence of biases and also provides with the evidences that behavioral biases are not affected by the combined categories of gender and occupation.
Assessment of Citrus Key Lime Production Supply, Exports and Domestic Demand in Mexico before and through the Threat of Citrus Greening (HLB)
Authors: Elena Vera Villagran Maria , Myriam Sagarnaga Villegas L. , Salas Gonzalez Jose , Leos Rodriguez Juan
Published: January 2021

This project looks for the relationship among variables influencing Mexican key lime supply and demand in the domestic and US market under the scenario of using a higher quantity of fertilizers as a strategy for responding against the threat of citrus greening (HLB). With the help of domestic and international databases from 2000 to 2012, a simultaneous equations model was built capturing behavioral and technical variables influencing supply and demand. The most important relationships among variables were price of the product and disposable income for the demand and use of fertilizers and exchange rate for the supply. This work gives the insight, from the economic point of view, that building a model including the right key variables will give a sense of the general structure of a market and the changes in stability due to a sanitary threat
Cognitive Bias and Capital Structure in Emerging Markets: Evidence from Chinese Listed Companies
Authors: Chen Kejing , Li Yanxi , Marco Kung'unde , Sun Wenzhang
Published: January 2021

We study the influence of managerial cognitive bias on corporate debt policy in China. We develop a theoretical model of capital structure that incorporates tax benefits of debt and predicts how managerial cognitive bias can lead to suboptimal capital structure choices. We find that when managerial cognitive bias is severe, the firm tends to choose overly-conservative or overly-aggressive debt levels, and the debt level is unrelated to the tax rate. In contrast, when managerial cognitive bias is mild, the firm responds to the tax benefit of debt and tends to choose a debt level that is positively related to the tax rate. We contribute to the literature by introducing managerial cognitive bias into the decision making process. We study how cognitive bias can affect capital structure decisions by incorporating the prospect theory in developing a capital structure model.
Motivations of Chinese Outward Foreign Direct Investment: An Organizing Framework and Empirical Investigation
Authors: Yin Wenyan
Published: January 2021

This article examines the recent motivations of Chinese outward foreign direct investment (FDI) by introducing a more comprehensive organizing framework. Theoretically, this paper extends Moon and Roehl’s (2001) imbalance theory from the imbalance of firm ownership to locational perspective as an important motivation of MNCs, and finds that such extension can better explain Chinese FDI. This paper also introduces a more comprehensive framework of Chinese FDI motivations, which includes four types of conventional FDI based on ownership or locational advantages and other six types of unconventional FDI. Empirically, this article provides some important proxy variables for FDI motivations and tests hypotheses. The results show that Chinese FDI is driven by conventional types and unconventional types at its early stage of Chinese FDI, which provides important implications for FDI decisions of firms from China and other countries at similar stage of development. This paper also distinguishes the asset-seeking FDI of scientific and commercial technology, and it finds different patterns of spatial distribution regarding the two motivations.
Causal Links between Supply Chain Capability and FDI: A Panel Granger Causal Analysis
Authors: Alam Arshad , Vemuri Vijay , Bagchi Prabir
Published: January 2021

Foreign Direct Investment (FDI) has grown significantly over the last few decades and it is seen as an engine for economic growth, especially for developing and transition economies, which account for more than 60% of global FDI flows. Location characteristics and supply-side factors are increasingly important in determining FDI flows. We borrow the concept of supply chain capability (SCC) of countries, developed by Alam and Bagchi (2011), to analyze the relationship between FDI and SCC for a panel of 64 countries for the period 1990 to 2013. We examine for causal rather than associative links between these factors using the Granger-causality methodology. Our results indicate that FDI Granger-causes SCC, but the causal relationship is not bidirectional. The paper contributes to the understanding of the link between FDI and SCC and has policy implications, especially for developing countries seeking to benefit from global investment flows.
Impact of Exchange Rate Volatility on the Export Performance of Developing Country: Evidence from Bilateral Trade between Bangladesh and the US
Authors: Hasan Jahid , Muktadir-Al-Mukit Dewan , Islam Farjana
Published: January 2021

The paper investigates the effects of exchange rate volatility on export volume from Bangladesh to the US market by using monthly time series data over the period of 1991 to 2012. A wide range of econometric techniques have been employed to analyze the relationship between the study variables. The study reveals a stable and significant long run relationship between the variables. By employing Cointegration technique, it is observed that in the long run, a 1% increase in exchange rate that is depreciation of Taka against US dollar causes 2.32% increase in export volume. The estimated error correction coefficient indicates that 36%deviation of export data is corrected in the short run. Impulse response function of the study also affirms the positive relationship between the variables. Finally, Granger causality analysis suggests the existence of a unidirectional causality running from exchange rate to export.
Board Structure, Board Activity and Firm Performance: The Case of Korea
Authors: Kim Jootae , Kang Jai S.
Published: January 2021

In agency theory, it is asserted that boards with a high ratio of outside directors can monitor management effectively, but empirical results from past studies are not consistent. We suggest the “process perspective” as an alternative approach, arguing that the board activity, rather than the board structure, impacts the firm’s financial performance; and apply this perspective to Korean companies. We test the impact of board structure on both board activity and profitability, and then the impact of board activity on firm profitability. The test results were: the board structure [measured by the ratio of outside directors in the board membership] does not have positive influence on either board activity or profitability [measured by ROA] in Korean firms; however, the board activity, measured by the rate of outside directors’ participation in board meetings, has a positive relationship with a firm’s profitability. We explain this as a decoupling, based on institution theory, which occurred in the process of forced Korean governance reform of 1998.
Competitiveness of Industrial Clusters: A Comparative Study of Pithampur and Indore Clusters, India
Authors: Bhawsar Pragya , Chattopadhyay Utpal
Published: January 2021

Industry clusters have proved critical for a region’s economic prosperity and a nation’s overall competitiveness. This study aims to evaluate and compare competitiveness performance of two select industry clusters from India viz. Pithampur Auto Cluster and Indore Pharma Cluster. For this purpose, the study has developed a comprehensive framework and a simplified methodology that incorporate both quantitative as well as qualitative data on various aspects of cluster competitiveness. It can be used as a foundation for future works related to assessing competitiveness of the clusters.
Motivations for Social Partnership and Cluster by MNCs: Conceptual Model Using the Diamond Approach
Authors: Lee Yeon W.
Published: January 2021

The corporate social responsibility (CSR) is no longer a choice and now firms are increasingly engaging in social initiatives by approaching it strategically. There have been many attempts to foster competitiveness for firms’ social engagement and focusing on social partnership and social cluster has been one of the important areas where firms can increase the efficiency in creating shared value. The purpose of this paper is to discuss the multi-sector partnership and cluster. Then, it introduces a new conceptual model for multinational corporations’ motivations and benefits in engaging in multi-sector collaboration by incorporating the diamond model. This paper shows that social partnership or cluster can be more synergized and facilitated when understood with the four purposes: efficiencyseeking, solution-seeking, network-seeking, and strategic allianceseeking.
An Econometric Investigation of the Determinants of Sustainable Wellbeing of Countries
Authors: Suresh K. G. , Banerjee Pratyush
Published: January 2021

In this study, we intended to analyze the socioeconomic, political and environment factors affecting the sustainable wellbeing of nations (measured by the Happy Planet Index), for a sample of 108 countries for the year 2009.The empirical evidence showed that Human Development Index (HDI), Carbon emission, political freedom and colonial background of nations are significant predictors of the sustainable wellbeing of nations. HDI has a direct effect on HPI of nations, while the level of carbon emission is negatively related with HPI. The HPI levels among different political regimes are different, while the countries without colonial background are better off in terms of achieving sustainable wellbeing than countries with colonial background. .
Which Indian Industry Benefits from FDI? A Panel Co-Integration Approach
Authors: Mahalakshmi S. , Thiyagarajan S. , Naresh G.
Published: January 2021

Economic liberalization or market reforms have become the buzz word in economics all over the world in the recent years. Among various aspects of economic liberalization, foreign capital, particularly inflow of foreign direct investment (FDI) has been viewed as a main engine for economic development in the world economy. Thus this paper attempts to analyze the impact of FDI inflows on the performance of various Indian industries. Using Panel Co-integration tests namely Pedroni Residual Co-integration, Kao Residual Co-integration test and Johanson Fisher panel co-intergration tests, the presence of co-integration between FDI inflows and the performance variables of selected industries have been tested. The results of the paper reveals that there is a long run relationship between industry performance indicators and FDI only in case of services, telecom, computer software and hardware, real estate and automobile industries and in case of majority of other industries, there is no long run relationship between industry performance indicators and FDI inflow.
Cross-Border Funding and Microfinance Mission Drift: Evidence from Sub-Saharan Africa
Authors: Forkusam Akem
Published: January 2021

Sub-Saharan Africa (SSA) has become the top priority for international funders and they are now increasing their cross-border funding to microfinance institutions (MFIs) in the region. This foreign funding is considered an additional source of capital for MFIs in the region who are facing difficulties in meeting the demand of the poor. However, these funds are provided by public and private funders who each have different motives. The paper examines the impact of these different sources of funding on microfinance performance and mission drift in SSA, which is the world’s poorest region. The study utilizes data from 212 MFIs in 30 SSA countries accessed over a three-year period (i.e. 2007, 2009, and 2011). The findings show that cross-border funding does not affect either the social or financial performance of MFIs when time and country effects are accounted for.
The Antecedents and Consequences of Customer Engagement: An Exploratory Study on the Mobile Business in Thailand
Authors: Theingi  , Phoorithewet Suchira , Wang Yunmei , Panthongprasert Sikankaew
Published: January 2021

This study explores the antecedents and consequences of customer engagement behaviors in the Thai mobile network business. This study found that the approach to switching behavior and cross-buying behavior is connected to customer loyalty behaviors. However, the spending behaviors of customers may not be a good indicator of customer loyalty in the mobile network business because those who do not have the intention to switch to another brand do not necessarily increase their spending. In addition, most respondents are concerned with competitive promotional packages, which influence customer engagement behaviors. Hence, it was proposed that service quality and competitive promotional packages are antecedents to customer engagement behaviors and all these factors are important in explaining customer loyalty toward mobile network providers in Thailand.
Danone in the Latin American Bottled Water Market: A Case Study
Authors: Robles Fernando , Wiese Nila
Published: January 2021

This case is an example of regional strategy and branding by a multinational. The case discusses Danone’s success in achieving market leadership in the bottled-water market of key Latin American countries. Danone’s success in the region is based on country-specific strategies for national brands. As Latin American markets become more integrated there is a growing opportunity to shift gears and develop regional strategies. One example is Danone’s successful replication of its Mexico strategy in Brazil. Should Danone replicate this strategy in other Latin American markets? Should it adapt its current strategies to better respond to local trends in the regional market? The case contributes to the understanding of the integration of global, regional, and local strategy formulation by multinational companies.
The Intra and Inter Industry Trade of Cuba (2000-2014)
Authors: Alberto Lopez-Arevalo Jorge , Garcia-Fernandez Francisco , Alejandro Vaquera-Salazar Rafael
Published: January 2021

The aim of this study is to analyze Cuba’s foreign trade with three main partners during the so-called Special Period, a result from the dissolution of the Soviet Union in 1991. With the absence of the Mutual Economic Assistance Council (MEAC), Cuba had to make structural changes in its economy and foreign trade. A center-periphery model of doing business between Cuba and its trade partners was implemented. Under this model, China became Cuba’s main supplier of manufactured goods and Cuba supplied raw materials. Foreign trade in Cuba was limited due to the economic embargo from the United States. Nowadays, the relation between these two countries has become more of a trading collaboration. The United States has turned into one of Cuba’s main food suppliers, while Cuba exports art pieces and antiquities to that country. Russia also became a main exporter of manufactured goods and machinery to Cuba, just as China. In return, Cuba is sending raw materials to both of those countries.
The Impact of Family Adjustment in Expatriate Success
Authors: Erogul Murat , Rahman Afzalur
Published: January 2021

Family adjustment to a new country plays a significant role in expatriate success. This paper investigates the reasons behind expatriate failure relative to personal characteristics of partner, family characteristics, and cultural distance. The authors discuss family related issues and contribute to the better understanding on the problems that cause expatriate failure through identity theory and investigate how organizations could support the expatriate experience by taking into consideration the role of the spouse and family, along with cultural distance to the expatriate destination. There are only a few studies that link experiences of expatriate family and partner to international assignment success. We add to this research by examining the spouse and family adjustment process through the use of identity theory. We provide guidelines on the impact of family adjustment in expatriation literature to help organizations better equip both the expatriate employee and their family with sufficient cross-cultural training and social learning opportunities. Our contribution provides a level of analysis on determining expatriation success factors and guiding organizations in facilitating the cultural adjustment of expatriates and their families. The paper provides implications to industry and practice on key success factors needed to reduce failure.
Incorporating Inter-Firm Social Capital into International Business Theory
Authors: Cheah Shaun
Published: January 2021

This paper explores and provides an understanding of how B-to-B relationships can be better understood by incorporating a social capital (SC) framework. It argues that SC dimensions (i.e., relational, cognitive and structural), underpin alliances that are salient to international business (IB). A synthesis of the literature on B-to-B SC and loyalty into a single, process-based framework is established, together with institutional texture insights for firms to harness and develop for success. The central argument is that investments in relationship building not only enhance B-to-B loyalty but over time fashion the nature and depth of the alliance for the international firm. The paper adds to the literature on international B-to-B collaborations whilst having the potential in providing managerially relevant ("actionable") results in ‘how’ and in ‘what way’ B-to-B SC can be harnessed in the 21st century IB system.
Does Brownian Risk Matter in Debt or Equity Issuance and Repurchase Decision in Indian Non-Financial Companies?
Authors: Sinha Pankaj , Agnihotri Shalini
Published: January 2021

External commercial borrowings (ECBs) of Indian non-financial firms have grown by 107 % in past few years. Looking at the high reliance of firms on external debt, this paper investigates the effect of foreign exchange, interest rate and firm specific risk on the debt issuance and retirement decision. It also investigates the factors affecting equity issuance and retirement decision of the firms. Foreign exchange risk and interest rate risk is estimated using stochastic volatility and GARCH (1,1) methods. Firm specific risk is calculated using Black-Scholes Merton model for company valuation. The results highlight that interest rate risk negatively affects the debt issuance and positively affects debt retirement decision of the firms. However, the foreign exchange risk does not affect debt issuance and retirement decision. Firm-specific risk negatively affects propensity of debt issuance of firms but plays no role in debt retirement. Foreign exchange risk, firm-specific risk, and profitability negatively affect propensity of issuance of debt to issuance of equity. This result supports the view that risky firms are more likely to finance their capital needs via new equity issues rather than by new debt issues to avoid the high-risk premium and to limit the likelihood of bankruptcy.
China FDI Booms but Problems Persist for FIEs
Authors: Foster M. , Tseng Choo Shin
Published: January 2021

China has become one of the major recipients of foreign direct investment since Chairman Deng determined in 1978 that China’s economic door should be opened, for both trade and investment. Despite the fact that there is now over thirty years of accumulated knowledge and experience of this new, open China market on which to draw, there are cases where it has proved difficult to deal with China as partners due to legal and regulatory frameworks operating in China. This is true not only for western-based, non-Chinese firms but also for firms from the Chinese diaspora. We examine a number of such problematic cases, seeking to understand the roots of the problems experienced by the foreign entities and what may be the solutions. All of the case firms experienced difficulties to some degree with the Chinese legal system, the regulatory system, or what might be called tacit regulation, where investing firms have difficulty with other firms such as suppliers who are not part of the legal, or quasi legal system, but have effects on the investors which seem to have the tacit support or approval of government. The experience of these case firms confirms the picture that it is hard for foreign directed entities to win legal or regulatory battles in China.
Firm Performance and Employee Downsizing: The Moderating Role of National Culture
Authors: Honoree Andre , Krenn Mario
Published: January 2021

A limitation in the downsizing literature is its lack of attention on how firms’ institutional context interacts with firm’s internal drivers of employee downsizing. This study examines the firm performance - employee downsizing relationship in 1,747 firms across 35 countries over three years and demonstrates that while this relationship is similar among firms across countries, its magnitude varies across countries, and that the cultural dimensions of in-group collectivism, power distance, uncertainty avoidance help explain this variance. Implications from these findings and future directions for employee downsizing research and practice are discussed.