The purpose of this paper is to develop a generalized 7 P-theoretical framework for strategic planning as part of international marketing (Potential, Path, Process, Pace, Pattern, Problems and ...Performance) with theoretical propositions. Although the 7 P-framework is based on the literature on internationalization of Latin American firms, we present it as a benchmark typology for firms wanting to succeed in international marketing from any similar geographical regions, cultures, or industries, particularly, firms from emerging countries. It was found that firms from developing countries such as Latin America face many challenges such as Cognitive Bias, Liability of foreignness and Resource constraints, while internationalizing their operations. Finally, we provide several recommendations for future research.
This article discusses the ten research papers compiled for the
Journal of Academy of Marketing Science
(
JAMS
) Special Issue, which has the express purpose of laying new groundwork for the ...understanding of business model innovations in emerging markets. Altogether, the papers delineate a new organizational framework for doing business in emerging markets and for optimizing gains from emerging market innovations. This Special Issue defines and clearly differentiates emerging market innovations (EMIs) from developed market innovations (DMIs) and provides a generalizable framework. The proposed framework corresponds to the process whereby developed market firms do business in emerging markets, capitalize on the innovative potential therein, reap the benefits and drawbacks of reverse innovations back to developed markets, and, finally, continually refine and optimize their innovation strategies. This study offers crucial managerial guidance through discussion on marketing to the Bottom-of-Pyramid (BoP), the importance of Grassroots Innovation (GRI), the necessity of Corporate Social Responsibility (CSR) strategies, and the role of employees in open innovation. Lastly, this Special Issue posits conceptual and methodological limitations and future research direction to capture the emerging market phenomena entirely.
The purpose of this study is to explore the relationship between green innovation (GI) and financial performance (FP) in emerging markets multinationals from Latin America (Multilatinas). Aligned ...with the natural resource‐based view and institutional theory, and using moderated and hierarchical linear regression analyses with panel data from 86 listed firms during the period 2013–2017, we find that implementing effective GIs is not associated with greater FP. The paper also analyses the moderating effect of Environmental Management Systems (ISO 14001) and research and development (R&D) investment on the relationship between GI and FP. We find that Multilatinas' implementation of ISO 14001 does not affect the way they adopt GI and thus does not enhance their levels of FP, but a positive moderating effect is generated as companies increase their level of R&D investment. The paper expands knowledge of the way GI affects Multilatinas' FP, and these findings have policy implications for managers, policy makers, government and other institutions.
•Two main clusters were revealed: international franchising and social franchising.•Most of the articles deal with developed countries’ franchisors in emerging markets.•International expansion ...topics, as entry modes and market selection, are common.•Social franchising is an emerging theme, but most articles are descriptive.•Social franchising studies approach health services, technology and development.
This study reviews the franchising literature on emerging markets. We used the Bibliometrix R-package and VOSviewer software to perform a bibliometric analysis of 297 articles between 1989 and 2020 obtained from the Scopus database. We combined bibliometric coupling, historiographic citation, keyword co-occurrence, and conceptual thematic analysis, with a content analysis of the most cited articles based on total global and local citations. We identified two main research clusters: international franchising and social franchising. This article provides a deep understanding of the intellectual and conceptual structure of the academic field. It complements existing qualitative reviews and attempts at characterizations, and suggests future research directions.
Research Summary
We study how state ownership affects the international expansion of emerging‐market firms. Building on agency theory and the resource‐based view, we propose an S‐curve relationship: ...Firms with a low level of state ownership have a limited level of international expansion, those with a medium level of state ownership have an increasing level, and those with a high level of state ownership have a decreasing level. This S‐curve is the outcome of the interaction between the “hindering hand” of state ownership, arising from multilevel agency problems, and the “helping hand,” arising from state‐ownership advantages. Analyses of 674 publicly traded firms from 16 emerging markets support these ideas and reveal that the inflection points in the S‐curve appear at state‐ownership levels of 19 and 43%.
Managerial Summary
State ownership of emerging‐market firms results in their international expansion following an S‐curve pattern because state ownership has hindering and helping influences. Firms with low state ownership have a limited level of international expansion because they are subject to government interference but receive limited support. Firms with a medium level of state ownership have an increasing level of international expansion because they have greater access to resources while the negative effects of state control are restrained by the dominance of private owners. Finally, firms with a high level of state ownership have a decreasing level of international expansion because the advantage of resource provision is offset by tight state controls. We illustrate these ideas through the analyses of 674 firms from 16 emerging markets.
•Studies the link between context international corporate governance and firm performance within the context of Turkey.•More concentrated ownership, often in the hands of families, creates better ...performance.•Larger boards and foreign ownership stakes seem to have a positive performance impact.•Increase in cross-ownership does not influence market performance but is negatively associated with accounting performance.•Finds that a higher proportion of family board membership has no discernable effect on firm performance.
This is a study of the relationship between context, internal corporate governance and firm performance, looking at the case of Turkey, an exemplar of family capitalism. We found more concentrated ownership, often in the hands of families, led to firms performing better; concentrated ownership means that controlling families bear more of the risks of poor performance. Less predictably, given that the institutional environment is so well attuned to family ownership, we found that mechanisms that accord room for a greater range of voices and interests within and beyond families – larger boards and foreign ownership stakes – seem to also make for positive performance effects. We also noted that increase in cross ownership did not influence market performance, but was negatively associated with accounting performance. Conversely, we found that a higher proportion of family members on boards had no discernable effect on performance. Our findings provide further insights on the relationship between the type of institutions encountered in many emerging markets, internal corporate governance configurations and firm performance.
•Pro-environmental behaviours (PEBs) are less well understood in developing countries.•Innovativeness was found to have the greatest positive effect on consumers’ intentions.•Materialism was found to ...have a significant negative effect on consumers’ intentions.•No significant effect was found for social influence on consumers’ intentions.•Consumers’ intentions were found to have a greater effect on indirect-PEBs than direct-PEBs.
Major environmental issues facing our planet are considered to be partly rooted in consumer overconsumption that has resulted from high economic growth. Pro-environmental behaviours (PEBs) have been studied extensively in developed Western countries but more research is needed in developing non-Western countries. Additionally, there are increasing calls for research providing broader theoretical and behavioural explanations of consumers’ intentions to adopt PEBs. Therefore, the aim of this research was to examine the factors affecting consumers’ PEBs in Saudi Arabia. Quantitative data (n = 613) were collected using a survey method. The proposed conceptual model and associated hypotheses were tested using structural equation modelling. The results revealed that consumers’ intentions to adopt direct- and indirect-PEBs are affected by innovativeness, materialism, perceived consumer effectiveness, and environmental concern, but not by social influence. Evidence was also found of differences between younger and older respondents. These findings can be used to formulate effective marketing strategies to benefit the environment, society, and sustainable companies in the country.
This study investigates business models for frugal innovation (i.e. a specific form of resource-constrained innovation) in the medical device and laboratory equipment industry in the context of ...emerging markets. Based on original data from five case studies, we investigate how firms can set up value creation and value capturing mechanisms to reach new customer segments in remote rural areas with unprecedented value propositions. With this research, we contribute to the literature on frugal innovation and business models in emerging markets. It is among the first empirical studies to apply a fine-grained perspective on resource-constrained innovation in emerging markets. In doing so, we focus on its most disruptive form, which is when these innovations entail entirely new applications. We advance and detail the value proposition for frugal innovation in these industries and argue that frugal innovation create new markets. Further, we show how firms set up their value creation and value capturing mechanisms to achieve the value proposition and identify two distinct Research & Development (R&D) strategies for frugal innovation.
•Frugal innovations enable new, unprecedented applications.•There is a threefold value proposition in frugal innovations in the healthcare industry.•Firms need to tailor value creation and capturing mechanisms to implement frugal business models.•There are two specific R&D strategies for the development of frugal business models.
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