Organizations and Markets in Emerging Economies 2020-02-12T09:02:32+02:00 Sigitas Urbonavicius Open Journal Systems <p>Founded in 2010. Publishes articles on new aspects of organizational and market studies in emerging economies.</p> Relationship Marketing Estimation Model in Emerging Economies: Dyadic Versus Non-dyadic Approach 2020-02-12T09:00:36+02:00 Anton Agus Setyawan Bernardinus M. Purwanto Basu Swastha Dharmmesta Sahid Susilo Nugroho <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>The purpose of this study is to analyze two estimation models related to relationship marketing in business-to-business interactions in the context of emerging economies. We compare two estimation models – one based on a dyadic approach and another based on a non-dyadic approach. We estimate these two models and compare their results to see which one is more suitable to be used as a theoretical relationship marketing model. We developed a survey comprising 204 dyadic observations of retailers and their suppliers and used a purposive sampling method. Three different observations correspond to three different estimation models. This study shows that the estimation model based on a dyadic approach has a better model fit than the model based on a non-dyadic approach regarding relationship marketing in a business-to-business context. The dyadic model also gives more accurate information to explain behaviour among companies involved in business relationships. Furthermore, this study explains how to examine estimation models in a relationship marketing context using dyadic and non- dyadic approaches. We also develop methods for examining dyadic perceptions of companies involved in business relationships. Our results contribute to the IMP school of thought in relationship marketing.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors It is Domestic, it Must Be Healthy: How Health Consciousness and Consumer Ethnocentrism Shape Healthiness Perception and Purchase Intentions of Domestic Food 2020-02-12T09:02:32+02:00 Elze Uzdavinyte Martin Aubel Justina Gineikienė <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>Consumer ethnocentrism (CET), healthiness perception and health consciousness have been extensively researched in regard to consumer food choices. Literature on domestic food choices provides evidence that CET positively affects consumer preferences toward domestic food. However, the effect of health consciousness on domestic food choices has not yet received a ention. Our online study (N=227, convenience sample from Lithuanian population) closes this gap by showing that health consciousness is an important individual trait in domestic food choices beyond consumer ethnocentrism and represents the first study to analyze CET in light of food healthiness perception. All constructs were measured using established self-report scales. Empirical results obtained through structural equation modelling show that (1) health consciousness increases healthiness perception and willingness to buy domestic food. Moreover, (2) health consciousness is an important individual trait in domestic food choices beyond CET; (3) healthiness perception of domestic food has an impact on consumer purchase decisions; (4) CET has a positive impact on domestic food healthiness perception. The study provides managerial implications for domestic and foreign producers.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors Influence of Religiosity on the Behavior of Buying Sports Apparel: A Study of the Muslim Market Segment in India 2020-02-12T09:00:41+02:00 Hasnan Baber <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>The paper is aimed to study the influence of religiosity on the behavior of buying sports apparel in the Muslim market segment of India. The data was collected from 1000 Muslim respondents from four states: Uttar Pradesh, Delhi, Uttarakhand, and Jammu &amp; Kashmir. The paper has found that religion plays no role when Muslims buy sports apparel. They shop as any other religious person does. No other factor, even fashion and religious obligation, is influenced by religion, except for shopping enjoyment responsiveness, which is influenced by intrapersonal Islamic religiosity. The paper’s perspective in studying the religious influences will assist sporting apparel manufacturers to design new products that will meet the requirements of the large Muslim segment in India, which is neglected so far. It will help marketers to save their effort and energy which would be utilized for Muslim Population.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors The Influence of Recommendations in Social Media on Purchase Intentions of Generations Y and Z 2020-02-12T09:00:40+02:00 Rasa Pauliene Karina Sedneva <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>The aim of this study is to explore how the impact of recommendations in social media on intention to purchase varies between generations Y and Z. The research focuses on two types of online recommendations, namely online reviews and opinion leaders’ recommendations, and e-WOM, which refers to recommendations made by followers. It also aims to examine which of the two types predominates among generations. Based on various studies, a theoretical research model was developed as well as quantitative and qualitative research was employed. The research findings supported the idea that social media recommendations have an influence on purchasing intentions of consumers, however, the main managerial applications of this study are connected with the differences among consumers. Online reviews had been an influential source of information for Generation Y; however, it is losing its influential power towards shaping purchasing intentions. E-WOM is still important, thus brands and retailers are advised to develop and maintain branded communities in social media, encourage their consumers to share feedback not only in social media, but also in rating websites, apps and services. Retailers are advised to segment their target audience very carefully, as differences in generations’ social media habits and information adoption exist.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors The Role of Trust in Mexican Companies in Relation to the Human Factor 2020-02-12T09:00:39+02:00 María Teresa de la Garza Carranza Jorge Armando López-Lemus Eugenio Guzmán Soria Delfino Vargas Chanes <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>The purpose of this study is to analyze the role of trust in Mexican companies in relation to organizational factors, the leadership and career satisfaction of employees. To achieve this objective, a quantitative method of structural model equations was used. The sample consisted of 181 individuals working in service businesses, manufacturing and public service mainly. The study was done in the central part of Mexico. The study results show a positive correlation of trust of employees towards their managers related with benevolence and integrity. With regard to the relation with organizational factors, a strong relationship was found between trust and leadership but not with the policies related to management of employees. Finally, a weak relationship between leadership and career satisfaction of employees was confirmed. Through the model analyzed, it can be stated that the culture plays an important role for the development of trust in organizations. Also, recommendations for policy makers, such as ways of increasing feedback through employees, are presented.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors Sectoral Analysis of the Determinants of Corporate Capital Structure in Malaysia 2020-02-12T09:00:39+02:00 Yee Peng Chow <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>This study investigates the determinants of corporate capital structure of various sectors in the Bursa Malaysia Main Market with the aim to establish whether the determinants of capital structure can be explained by either the trade-off or the pecking order theory. This study also examines whether there are any differences between the regressions for any two sectors or not. This study applies both the ordinary least squares (OLS) and the seemingly unrelated regression (SUR) estimators to estimate the leverage models, and subsequently determines the efficiency of each estimator. The results indicate that profitability, asset tangibility, growth opportunities, and firm size are important determinants of corporate capital structure. However, the signs of the regression coefficients suggest that the trade-o and pecking order theories are complementary. Moreover, the importance of some of these determinants differs across sectors. In most cases of the regression analyses between two sectors, the SUR estimator is found to be more efficient in explaining the determinants of capital structure among the various sectors. Hence, this study concludes that the SUR method could serve as a useful alternative methodology for capital structure research.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors Impact of Agency Costs on Firm Performance: Evidence from Vietnam 2020-02-12T09:00:38+02:00 Le Duc Hoang Tran Minh Tuan Pham Van Tue Nha Pham Van Tue Nha Ta Thu Phuong <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>An assumption in agency costs theory is that agency costs can exert a negative impact on firm performance. In this study, we examine the impact of agency costs on firm performance of Vietnamese listed companies. Our sample includes 736 companies in Vietnam during the period om 2010 to 2015. We find that agency costs exert a negative impact on firm performance. Our results are robust to alternative econometric models, including an instrumental variables technique and a system generalized method of moment model. In addition, we show that a debt instrument can be a useful tool to reduce the negative impact of agency costs on firm performance.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors Systematic Risk and Accounting Determinants: An Empirical Assessment in the Indian Stock Market 2020-02-12T09:00:37+02:00 Srikanth Parthasarathy <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>This study explores the contemporaneous association between market determined risk measures and accounting determined risk measures using the large liquid non-financial stocks in the Indian stock market in the recent 2012-2017 period. Two measures of systematic risk and seven accounting determined risk measures are chosen based on prior research. This study uses three regression techniques, namely Ordinary Least Squares (OLS), stepwise regression and robust regression, to identify the influential accounting variables for the systematic risk measured by market beta. The results evidence that there is a high degree of contemporaneous association between market determined and accounting determined risk measures, with nearly 30% of the cross sectional variance in systematic risk explained by accounting determined risk measures. The results suggest that the accounting variables can be used in the predictive models of future risk, leading to superior decision making at the level of individual decision maker.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors Size Effect in Market-wide Liquidity Commonality: Evidence from the Indian Stock Market 2020-02-12T09:00:36+02:00 Namitha K. Cheriyan Daniel Lazar <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>Liquidity commonality and the co-movements in trading costs related to such commonality have remarkable implications in market microstructure. Analyzing and identifying such commonality will enable the investor and policy maker to discover evidence regarding the inventory risks and asymmetric information in uencing individual securities’ liquidity. Thus, this study aims at documenting the liquidity commonality and measuring its extent in the Indian stock market. Employing fourteen liquidity measures a ributed to the cost, quantity, time, and multidimensional aspects of liquidity, it empirically proves the existence of co-movements among market-wide liquidity and the individual securities’ liquidity. The study also shows the presence of a size effect in liquidity commonality in Indian stock market. It is found that the slope coefficient indicating the interface between market-wide liquidity and individual securities’ liquidity generally increases with size.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors Foreign Ownership and Stock Return Volatility in Vietnam: the Destabilizing Role of Firm Size 2020-02-12T08:58:03+02:00 Anh Tho To Yoshihisa Suzuki Bao Ngoc Vuong Quoc Tuan Tran Khoa Do <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>This study aims to examine the relevance of foreign ownership to stock return volatility in the Vietnam stock market over ten years (2008 - 2017). After applying the fixed effects regressions and the extended instrumental variable regressions with fixed effects, we find that foreign ownership decreases the volatility of stock returns. However, the stabilizing impact of foreign ownership on stock return volatility becomes weaker in large firms since the coeffcient of the interaction term between firm size and foreign ownership turns out to be significantly positive. The estimated results remain robust when we use the future one-year volatility, other than the current one, as an alternative measure of the dependent variable.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors Economic Freedom, Globalization, and the Shadow Economy in the European Union Transition Economies: a Panel Cointegration Analysis 2020-02-12T08:58:02+02:00 Yılmaz Bayar Ömer Faruk Öztürk <div class="page" title="Page 1"> <div class="layoutArea"> <div class="column"> <p>The presence of the shadow economy differs considerably among the countries. Therefore, determination of factors behind the differences in the size of cross-country shadow economy becomes more of an issue for designing and implementing the right policies to combat the shadow economy. This study investigates the influence of economic freedom and globalization on the size of the shadow economy in the European Union transition economies employing panel data analysis for the period of 2000–2015. The empirical analysis indicates that economic freedom reduces the size of the shadow economy in the long term in the overall panel, but globalization also has a relatively smaller detractive effsect on the shadow economy in some countries.</p> </div> </div> </div> 2019-12-31T00:00:00+02:00 Copyright (c) 2019 Authors