Organizations and Markets in Emerging Economies <p>Founded in 2010. Publishes articles on new aspects of organizational and market studies in emerging economies.</p> Vilniaus universiteto leidykla / Vilnius University Press en-US Organizations and Markets in Emerging Economies 2029-4581 <p>Please read the Copyright Notice in&nbsp;<a href="">Journal Policy</a>.</p> Editorial Sigitas Urbonavicius ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 5 7 Acquisition Behavior of Emerging Versus Developed Market Multinationals <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>The purpose of this paper is to investigate how emerging and developed market multinationals (EMMs and DMMs) differ in their acquisition behavior (vis-à-vis the choice of partial versus full acquisitions) when entering a developed market economy, Japan. We hypothesize that EMMs prefer partial acquisitions, whereas DMMs prefer full acquisitions due to what we call the country-of-origin effect. Additionally, we hypothesize that this country-of-origin effect is more pronounced for smaller firms. The results, based upon 224 strategic cross-border acquisitions in Japan, support these two hypotheses. This study contributes to the literature on EMMs.</p> </div> </div> </div> Kashif Ahmed Ralf Bebenroth ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 9 30 10.15388/omee.2019.10.00001 Designing an Organization for Innovation in Emerging Economies: the Mediating Role of Readiness for Innovation <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>The study proposes an organizational design framework that impacts innovation in corporate firms. In an emerging economy like Oman, innovation helps to reduce the dependence on oil revenues and enhance its international competitiveness. However, the corporate organizations in emerging economies are unable to innovate effectively because they are not designed for innovation. Further, scarcity of resources undermines their readiness for innovation. This study empirically validates measures of an entrepreneurial organizational design framework in Omani corporate sector. In order to explain how a corporate organizational design promotes innovation and clarify the missing links between corporate entrepreneurial activity and innovation, the mediating role of readiness for innovation (RFI) is tested. Using a quantitative research approach, data is collected from 401 corporate firms in Oman and analysed using structural equation modelling. The findings support the proposition that entrepreneurial organizational design promotes both radical and incremental innovation degree and frequency, while RFI partially mediates the relationship between entrepreneurial inputs and innovation outputs. The study contributes to the understanding of innovation in emerging economies as it explains that RFI helps firms to enhance its innovation potential by optimizing its resources, capabilities and processes for innovation. These measures are essential for organizations, particularly in emerging economies focused on low cost innovation. The findings of the study will inform managerial decision-making in terms of designing organizations for innovation and implementation of measures related to readiness for innovation.<span class="Apple-converted-space">&nbsp;</span></p> </div> </div> </div> Tahseen Arshi Paul Burns ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 31 56 10.15388/omee.2019.10.00002 The Mediating Effect of Human Capital on the Relationship Between Strategic Innovation and the Performance of Manufacturing SMEs in Yemen <p>The purpose of this paper is to fill gaps in the human capital literature, first, by providing insights into the relationship between human capital and strategic innovation and the performance of Small and Medium Enterprises (SMEs), and second, by exploring the role of human capital as a mediating variable. Although SMEs perform a vital role in the economic development of countries worldwide, developing countries tend to lag behind developed countries in this sector; hence, there is a need to investigate the peculiar nature of SMEs and their performance in the context of developing countries. Additionally, understanding an organization’s human capital requires the articulation of a system of variables that helps to uncover and manage the visible wealth. The contribution of SMEs can be measured through performance. This study is a conceptual discussion of manufacturing SME performance in Yemen and the effect of human capital and strategic innovation. The performance is considered to be very low, and the country is ranked by the Global Innovation Index as one of the lowest in terms of innovation.<span class="s1">&nbsp;This paper describes the development of a framework which is a clear manifestation of the knowledge gap addressed by this study.</span></p> Nagwan AlQershi Zakaria Bin Abas Sany Sanuri Mohd Mokhtar ##submission.copyrightStatement## 2019-08-28 2019-08-28 10 1 57 77 10.15388/omee.2019.10.00003 Factors That Determine the Closure or Jeopardize the Continuity of a Micro and Small Enterprise <p>This paper explores the factors that determine the closure or jeopardize the continuity of micro and small enterprises (MSEs). We investigated the determinants of failure from the entrepreneur’s perspective using a qualitative approach, and five variables emerged. We discovered that there are internal and external variables that impact on an enterprise’s continuity, which are themselves correlated. We applied a formula to determine which variable had a higher weight, considering values ranging from 0 to 1, and the asymmetry is to the right. The instrument was applied to 35,571 MSEs, 26,720 of which were open and 8,851 were closed. 33,576 are Mexican and 1,995 Colombian enterprises.</p> Oscar Cuauhtémoc Aguilar Rascón Rafael Posada Velázquez ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 78 91 10.15388/omee.2019.10.00004 Understanding Social Entrepreneurial Intention Through Social Cognitive Career Theory: a Partial Least Squares Structural Equation Modelling Approach <p>This research attempted to find empirical evidence that examines the drivers of social entrepreneurial intentions (SEI) through the lens of social cognitive career theory (SCCT).<span class="Apple-converted-space">&nbsp;&nbsp;</span>Since the SCCT model of SEI is still in the early stages and needs to be further developed, experts recommend the use of partial least squares structural equation modelling (PLS-SEM) to analyze data collected from 294 business students from a Philippine university.<span class="Apple-converted-space">&nbsp;&nbsp;</span>To account for observed heterogeneity, differences among senior high school and college business students were explored via multigroup analysis (PLS-MGA).<span class="Apple-converted-space">&nbsp;&nbsp;</span>Across all respondents, perceived support and internal outcome expectations have the strongest total effects on SEI, while self-efficacy and agreeableness have marginally significant direct effects and significant indirect effects on SEI.<span class="Apple-converted-space">&nbsp;&nbsp;</span>This study contributed to the field of social entrepreneurship by looking at alternate and developing explanations to the formation of SEI apart from conceptual models based on the theory of planned behavior.</p> Patrick Adriel P. Aure Rayan P. Dui Shieradel V. Jimenez Denver D. Daradar Alvin Neil A. Gutierrez Alvin Neil A. Gutierrez Angelique C. Blasa Joseph Sy-Changco ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 92 110 10.15388/omee.2019.10.00005 Leadership Styles and Communication Skills at Indonesian Higher Education: Patterns, Influences, and Applications for Organization <p>The main purpose of this study is to examine the relationships among leadership styles, communication skills, and employee satisfaction and investigate the potential of women in positions of leadership to support the practice of equal employment opportunities in organizations. Data were collected from 200 self-administered surveys using questionnaires administered to employees at three private Islamic universities in Semarang, Indonesia. Regression analysis was used to test the hypotheses. The results show that leadership styles and communication skills have a significant effect on employee satisfaction. However, on the basis of employee perceptions, this study reveals no significant difference in leadership styles and communication skills between male and female leaders.</p> Udin Udin Sri Handayani Ahyar Yuniawan Edy Rahardja ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 111 131 10.15388/omee.2019.10.00006 Formulation of a Dynamic Portfolio With Stocks and Fixed-income Instruments in the Indonesian Capital Market <p>This research creates a crossed asset portfolio formulation dynamically with stocks and fixed-income instruments. This dynamic portfolio formulation did not require normally distributed data and accommodated the correlation among class assets which kept changing across time. This was based on the existing assumptions in the modern portfolio theory which were rarely found in the real world, for example, when stock return was normally distributed, the correlation among securities would be constant at all times. The data used in this research were LQ45 Index as a stock market proxy, S&amp;P Indonesia Corporate Bond Index (representing the corporate bond market) and S&amp;P Indonesia Government Bond Index data (representing the government bond market) during the period of June 4<sup>th</sup>, 2007 to April 11<sup>th</sup>, 2016. This research found that the dynamic portfolio of stock with either government or corporate bonds was able to reduce the level of risk significantly despite producing a lower rate of return, compared to the ones specifically invested in the stock market. Investors who believe in the principles of prudent investment may use this dynamic approach in shaping the portfolio with stocks and fixed-income instruments.</p> Robiyanto Robiyanto Rihfenti Ernayani Rendi Susiswo Ismail ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 132 146 10.15388/omee.2019.10.00007 The Relationship Between Leverage, Maturity, and Investment Decision: Evidence From Emerging Markets <p>In this paper, we examine simultaneous relationship between leverage, maturity and over(under)- investment in emerging markets. We divide leverage into short term and long term to investigate the relation between current and future simultaneous relationship between leverage and investment decision, between debt maturity and investment decision, and between leverage and debt maturity. This research used twenty emerging market data from 2006 – 2016. First of all, our results show that firms in emerging markets prefer to use short-term debt to long-term debt to minimize the underinvestment problem. Second, there is a simultaneous non-linear relation between long-term leverage and growth opportunities in emerging markets firms. Third, long-term debt has non-linear effects on investment decision in emerging markets firms. It can be concluded that firms in emerging markets have different characteristics with regard to their capabilities to manage the interaction between leverage, maturity and investment compared to developed markets.</p> Vina Christina Nugroho Kim Sung Suk ##submission.copyrightStatement## 2019-05-31 2019-05-31 10 1 147 164 10.15388/omee.2019.10.00008