Organizations and Markets in Emerging Economies <p>Founded in 2010. Publishes articles on new aspects of organizational and market studies in emerging economies.</p> en-US <p>Please read the Copyright Notice in&nbsp;<a href="">Journal Policy</a>.</p> (Sigitas Urbonavicius) (Vigintas Stancelis) Fri, 29 May 2020 05:31:10 +0000 OJS 60 Financial Development, Institutional Quality and Economic Growth: Evidence from ECOWAS Countries <p>Most of the literature that explored the relationship between financial development and economic growth taking into consideration the roles played by institutional quality in the ECOWAS region still debates on the roles of institutional quality on economic growth. This study used data from 1996-2017 for 15 emerging economies within the ECOWAS by applying two-step SYS GMM (SGMM) estimators. The following conclusions were developed: first, the study discovered that financial development has no significant and positive impact on economic growth in the ECOWAS region. Secondly, regulatory quality and control of corruption, which are considered as institutional quality variables, have opposing results with control of corruption reducing growth as well as regulatory quality variable increasing growth. Again, the results indicate that capital formation has a positive association with growth and labor force influencing growth negatively. Finally, due to a lack of proper corruption control systems in the region and poor financial sector development, growth cannot improve.</p> Michael Appiah | Doreen Idan Frowne Copyright (c) 2020 Michael Appiah | Doreen Idan Frowne Fri, 29 May 2020 03:34:59 +0000 Does Corruption Act as a Deterrent to Foreign Direct Investment in Developing Countries? <p>Developing countries institute policies to attract Foreign Direct Investment (FDI) that promotes growth and development. Corruption disrupts and complicates the implementation of policies that govern the inflows of FDI and the operations of foreign firms; such interference with policies is more than likely to disrupt and lower the inflows of FDI. This paper evaluates whether or not corruption reduces inflows of FDI into each and every developing country. Our study shows that developing countries with high growth rate (&gt; 6% annual GDP growth) attract more FDI than countries with low growth rates although they are both steeped in corruption. Multi-national Corporations (MNCs) seem willing to cope with corruption in countries with high growth rates.</p> Sanjib Guha | Niazur Rahim | Bhagaban Panigrahi | Anh D. Ngo Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 Chinese Cross-Border Acquisition Strategies in Japan – Changing from a Resource-Driven to a Market-Driven Approach <p>The aim of this research is the investigation of strategic behavior of Chinese investors in Japan when making cross-border acquisitions in recent times. While previous literature on acquisitions tended to show that Chinese acquirers were merely resource-driven, i.e. their main purpose was to acquire products, brands, and knowledge to be transferred back to the (Chinese) home market, our study suggests that the behavior of many Chinese firms has changed lately. In a pivotal study with 39 Chinese bidders taking over Japanese targets, we find that their strategy has become increasingly market-driven instead. As far as industry-wise acquisitions are concerned, Chinese firms are taking over Japanese hotels and recreation facilities in recent years for the purpose of providing services to Chinese tourists.</p> Fei Chen | Kashif Ahmed | Ralf Bebenroth Copyright (c) 2020 Fei Chen | Kashif Ahmed | Ralf Bebenroth Fri, 29 May 2020 03:56:57 +0000 Impact of High-Skilled Migration to the UK on the Source Countries (EU8) Economies <p>The majority of studies into the economic effects of high-skilled migration focus on aggregate impact on the economic output in the countries of destination. The economic impact of migration of the highly qualified on the economies of the countries of their origin has been examined less. This qualitative research aims to address that gap by identifying the economic effects of high-skilled migration on Central and Eastern Europe, the region which faces many long-term challenges to its economic development. We use the available data from the UK International Passenger Survey for the 2004-2016 period to test whether the outflow of highly qualified workers from the EU8 countries to the UK is detrimental or beneficial for the growth of sending economies in the short and long term. In order to test these hypotheses, econometric time series analysis methods of structural vector autoregression and cointegration were applied. Our results have shown a positive short-term effect of brain outflow on regions’ GDP and wage growth as well as unemployment; on the other hand, we presented empirical evidence in support of the hypothesis of the negative long-term effect of high-skilled migration on EU8 countries’ GDP and wage growth as well as unemployment. These results are fairly robust to imply that a negative view on high-skilled migration from EU8 is broadly consistent with the previous findings of “harmful brain drain” scholars.</p> Gindrute Kasnauskiene | Juste Palubinskaite Copyright (c) 2020 Gindrute Kasnauskiene | Juste Palubinskaite Fri, 29 May 2020 04:29:56 +0000 Poverty Effects of Remittances: Evidence in CEE Countries <p>The countries with a transition economy in the EU have experienced rapid growth of labour migration and remittance flows during the last two decades. Remittances are improving household economic welfare, so it is important to evaluate how these financial flows may affect the poverty situation, as CEE countries are facing levels of poverty and inequality way above the EU average. The paper examines the impact of remittances on poverty, using the panel of seven CEE countries considered as advanced transition economies over the period of 2006-2015. Pooled OLS, fixed effects, random effects, and 3-stage least squared estimators are used to estimate the poverty effects of remittances. The results show that remittances have a significant impact on three out of four poverty measures. Taking into consideration the endogeneity problem, it is estimated that a 10-per cent increase in remittances to GDP ratio will lead to a decline, on average, by 5.5 per cent in poverty headcount, and also by 3.7 per cent in poverty gap and 0.6 per cent in the risk of poverty. These results can be important for defining the policy measures on providing more efficient management of remittances.</p> Mindaugas Butkus | Kristina Matuzevičiūtė | Kotryna Raupytė Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 Impact of Organizational Characteristics, CEO Education, and Firm Ownership on the Adoption and Effectiveness of High Performance Work System in Vietnam <p>In spite of tremendous research on the relationship between HPWS and firm performance, a paucity of them has examined the antecedent of HPWS. Data were collected from CEOs and HRM managers from 311 firms including state-owned, private and foreign invested enterprises. Multiple regression analysis suggests that (1) firm characteristics (firm capital, firm age) and CEO’s education were positively associated with the adoption of Ability-Motivation-Opportunity bundles of HPWS, (2) HPWS were positively associated with firm performance, and (3) ownership style moderates the relationship between HPWS and firm performance in different manners. Theoretical and practical implications were discussed.</p> Tran Huy Phuong Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 Strategic Orientation of Mexican Family-owned Businesses and Its Influence on Corporate Social Responsibility Practices <p>The aim of this article was to determine whether the strategic orientation of family-owned businesses influences Corporate Social Responsibility (CSR) practices. For this purpose, a questionnaire was administered to a sample of 245 family-owned businesses in the southern part of the southeastern Mexican state of Quintana Roo. Variables attributed to CSR measurements were environment, society, employees, and customers, as well as business-level strategies of prospector, analyzer, defender, and reactor as defined by Miles and Snow. Results showed that family-owned businesses with a strategic orientation as prospector and analyzer have higher development levels of CSR practices, reactor businesses demonstrated lower development levels of CSR practices. Prospector and analyzer businesses tend to be product developers and innovators in their respective markets.</p> José Luis Esparza Aguilar | Argentina Soto Maciel | José Luis Zapata Sánchez | María de Jesús Pérez Hervert Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 Equilibrium and the Adjustment Process in the Number and Scope of Co-operatives in Morocco <p class="ISSN-abst-virsus" xml:lang="lt-LT">The paper discusses the government policy that encourages the emergence of co-operatives and analyzes the co-operatives in light of their growth in number. It establishes a static equilibrium and highlights the co-operatives’ adjustment process (dynamic equilibrium).<br>The methodology/approach consists of the development of a theoretical model, using the Nash equilibrium for the co-operative market, and the determination of a static equilibrium. It presents the data which includes variable measurements for the adjustment process for agricultural, artisanal, and fishery co-operatives in order to analyze the stochastic process of entry-and-exit flow of co-operatives. Accordingly, the paper estimates the co-operatives’ growth index speed of adjustment (SOA) as a function of the mean-reversion Ornstein–Uhlenbeck (OU) process.<br>The theoretical results indicate that co-operatives’ earnings depend on the number of co-operatives, market-demand, and the capacity constraint. They also show that the margin for new entrants is a dynamic gap that especially depends on demand, capacity constraint and the profits. The empirical results indicate that co-operatives growth-index process is significantly mean reverting for all sectors, and the speed of adjustment for artisanal co-operatives is significantly higher than for those in agriculture and the fisheries.</p> Adil Outla | Moustapha Hamzaoui Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 State Neutrality, Business Elite and the Lack of Export Services Development in Chile: an Exploratory Qualitative Analysis <p style="text-align: justify; text-justify: inter-ideograph;"><span lang="EN-GB" style="font-family: 'Times New Roman',serif;">The process of economic development implies, among other things, the expansion of exports beyond natural resources and towards more knowledge intensive sectors. However, a common situation in developing countries is the lack of an ‘entrepreneurial push’ from economic and political elites in order to diversify such exports. The Chilean economy is not an exception as it is still characterized by an export basket anchored in natural resources, regardless the consensus among society on the importance of diversifying the Chilean economy towards new industrial and service sectors, both beyond and within natural resources. This paper focuses on the causes of the absence of such an ‘entrepreneurial push’ towards export service sector in Chile and, through a qualitative exploratory analysis of elite perceptions, presents the predominant hypothesis among key stakeholders. </span></p> <p><span lang="EN-GB" style="font-family: 'Times New Roman',serif;">&nbsp;</span></p> Dorotea Lopez | Felipe Munoz | José Miguel Ahumada Copyright (c) 2020 Dorotea Lopez | Felipe Munoz | José Miguel Ahumada Fri, 29 May 2020 04:51:23 +0000 Value Chain and Economic Development: the Case of the Colombian Coffee Industry <p>Dependency on natural resources has made economies unstable because of the fluctuation of commodity prices. However, coffee production has not had this effect on the Colombian economy owing to the process of upgrading the value chain, with the Colombian National Federation of Coffee Growers taking the lead. Using a case study methodology, the present article aims to analyse how the process of upgrading the value chain in the Colombian coffee industry has contributed to the economic development of the country, represented as an improvement of the country’s infrastructure and living conditions, economic growth, industrialisation level and education access perspectives.</p> Ana-Maria Parente-Laverde Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 The Motivation to Adopt E-commerce Among Malaysian Entrepreneurs <p>E-commerce is important in creating a knowledge society and cashless business environment in the era of the fourth industrial revolution (IR 4.0). However, not all Malaysian entrepreneurs are ready for this digital way of performing business. The e-commerce ecosystem is still less matured, and the e-commerce adoption rate is still low among entrepreneurs of small and medium enterprises (SMEs). Therefore, this study was conducted to determine the factors that influence the entrepreneurs’ motivation to adopt e-commerce. Self-determination theory (SDT) was employed in determining the factors that influence the motivation to adopt e-commerce. This study employed a quantitative research method and surveyed 273 entrepreneurs through self-administered questionnaires. It used multiple regressions analysis to analyse the data and test the hypotheses. Based on the results obtained, it concluded that competence, relatedness and autonomy positively and significantly influenced entrepreneurs’ motivation to adopt e-commerce. Relatedness was found to be the most important factor, followed by autonomy and competence. This study contributed to entrepreneurship literature by applying SDT in understanding entrepreneurs’ motivation in e-commerce adoption. It also shed light on the importance of individual psychological factors in decision making among entrepreneurs. The study suggested that building a strong connection among the entrepreneurs, providing freedom to business operations and developing knowledgeable entrepreneurs are some crucial steps in motivating entrepreneurs to adopt e-commerce, especially in a developing country like Malaysia.</p> Wei-Loon Koe | Nurul Afiqah Sakir Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 The Effect of Celebrity Endorsement on Instagram Fashion Purchase Intention: The Evidence from Indonesia <p class="ISSN-abst-virsus" xml:lang="lt-LT">To maintain the significantly positive influence of celebrity endorsement (CE) on Instagram user consumption behavior, scholars and business practitioners are motivated to have a better understanding of this phenomenon. Literature on CE focuses on its direct effect on attitude toward various brand components; however, this study takes a different approach by developing a new conceptual model and a set of hypotheses that aims to generate a better picture of the relationship between two brand components (brand image and brand trust) and repurchase intention. The present study also examines the moderating role of CE in the relationship between brand image and brand trust as well as repurchase intention.</p> <p class="ISSN-abst-vidus" xml:lang="lt-LT">The hypotheses were tested using online survey data from 220 Indonesian respondents. To test the theoretical model, this study employs ordinary least square regression (OLS), as well as Baron and Kenny’s (1986) method to test moderating hypotheses. The results show that the hypothesized model of CE on brand image, brand trust and repurchase intention fits the data. In addition, the findings also demonstrate that CE moderates the relationship between brand image and brand trust, and between brand image and repurchase intention.</p> <p class="ISSN-abst-vidus" xml:lang="lt-LT">The findings offer important contributions to the academic by enriching the body of literature on online&nbsp;<em xml:lang="en-CA">consumption behavior. They reveal the moderating effect of CE, and potentially inspire scholars to conduct further research. To business practitioners, this study suggests the importance of engaging with celebrities to endorse their brands. At the same time, to avoid the risk of reverse image, managers are recommended to think carefully about which celebrities are suitable to represent their brands.</em></p> Halimin Herjanto | Michael Adiwijaya | Elizabeth Wijaya | Hatane Semuel Copyright (c) 2020 Halimin Herjanto | Michael Adiwijaya| Elizabeth Wijaya| Hatane Semuel Fri, 29 May 2020 05:13:03 +0000 Financial Constraint on R&D Activities in Vietnamese Universities – an Empirical Research <p>R&amp;D is one of the most important roles of universities. Many previous studies examined the impact of financial factor on university R&amp;D activities but reached no consensus view. This article contributes to the current literature by exploring how financial factor and other factors influence R&amp;D activities in Vietnamese universities. The author employed a survey dataset from the Association of Vietnam universities and colleges to check whether unfavourable financial condition hindered university R&amp;D activities. Using structural equation modelling, the author found empirical evidence that financial constraint could hamper R&amp;D productivity. On the other hand, favourable conditions in management, communication, infrastructure and human resources were found to improve R&amp;D activities. This led to some policy suggestions to improve R&amp;D activities in Vietnam higher education institutions.</p> Nguyen Dang Tue Copyright (c) 2020 Authors Fri, 29 May 2020 00:00:00 +0000 Pricing Efficiency of Exchange Traded Funds in India <p>Exchange traded funds (ETFs) have two prices, the market price and the net asset value (NAV) price. ETFs NAV price gets determined by the net value of the constituent assets, whereas the market price of ETFs depends upon the number of units bought or sold on the stock exchange during trading hours. As per the law of one price, the NAV and market price of the ETF should be the same. However, due to demand and supply forces, the market price may divert from its NAV. This price difference may have significant repercussions to investors, as it represents a cost if they buy overvalued ETF shares or sell undervalued ETF shares. Pricing efficiency is the speed at which the market makers correct the deviations between ETFs NAV and market price. The present study attempts to investigate the pricing efficiency of Indian equity ETFs employing an autoregression model over its price deviation, and also attempts to understand the lead-lag relationship between the price and NAV using the vector error correction model (VECM).</p> Y V Reddy | Pinkesh Dhabolkar Copyright (c) 2020 Y V Reddy | Pinkesh Dhabolkar Fri, 29 May 2020 05:28:35 +0000