•We investigate the bank lending behavior in an emerging market.•We find that bank lending behavior is significantly influenced by bank specific characteristics and macroeconomic factors.•We do not ...find a significant impact of bank market structure on lending.
This article sheds further light on the bank lending behavior of Vietnam, an important emerging market. Motivated by the fact that most of emerging economies tend to finance economic growth by bank lending, we analyze the determinants of bank lending using a sample of Vietnamese banks. Employing a number of econometric estimation approaches for robust result, we find that bank lending behavior is significantly depending on bank specific characteristics and macroeconomic factors. We do not find a significant impact of bank market structure on bank lending. The current paper has strong implications in the context of Vietnam where the problem of high non-performing loans has taken heavy toll on the economy.
We propose a quantile-based measure of conditional skewness, particularly suitable for handling recalcitrant emerging market (EM) returns. The skewness of international stock market returns varies ...significantly across countries over time, and persists at long horizons. In EMs, skewness is mostly positive and idiosyncratic, and significantly relates to a country's financial and trade openness and balance of payments. In an international portfolio setting, return asymmetry leads to sizeable certainty-equivalent gains and increases the weight on emerging countries to about 30%. Investing in EMs seems to be about expectations of a higher upside than downside, consistent with recent theories.
The literature on business groups (BGs) has identified reputation as a critical factor in their success and survival. However, most studies have assumed that BGs are well-known and well-regarded—an ...assumption that may not be tenable in the context of international expansion. We use signaling theory to explore the causes of an unacknowledged source of BG heterogeneity—variance in their reputation prominence (whether they are well-known or not) and reputation quality (whether they are regarded favorably or unfavorably)—and seek to understand how this heterogeneity may result in differences in BG affiliates’ geographic scope and location choices as they internationalize.
This study investigates the relationship between knowledge sharing and innovation performance. Quantitative survey using cross-sectional sampling was used. Sample included 355 different staff ...members. A questionnaire that was self-administered and was based on previously used metrics was chosen. The percentage of those that responded was 73.9%. A statistical method known as partial least squares structural equation modelling was used in order to examine and evaluate hypotheses that were proposed. The software program SPSS and Smart PLS were used in order to do the analysis on the data that were obtained. Findings reveal that knowledge sharing has a significant effect on innovation performance. In addition to this, data demonstrated a favorable and substantial association between the sharing of knowledge and innovation of both products and processes. The findings of research have significant implications for further developing and enhancing the relation between knowledge sharing and innovative performance.
Diplomatic and corporate networks Li, Jing; Meyer, Klaus E; Zhang, Hua ...
Journal of international business studies,
08/2018, Volume:
49, Issue:
6
Journal Article
Peer reviewed
Firms and governments operate in broad networks in which the home government and its diplomatic service are a critical node–or a “referral point” – between firms and potential partners in foreign ...locations. Thus diplomatic relations between countries matter for the choice of foreign investment location. Using a network perspective, we argue that the extent to which good diplomatic relations induce firms to invest in friendly host countries depends on their political connections to home governments. Those with stronger ties to home governments can better access and leverage intergovernmental diplomatic connections, thus benefiting potentially from enhanced access to information, reduced political risks, and increased legitimacy. Such ability of politically connected firms is more useful where weak institutional impartiality in the host country inhibits neutral treatment of foreign investors. Empirically, using overseas investment location decisions by Chinese firms, we find that the types of home government ties (i.e., whether they are organizational or personal and whether those relationships are with central or local goverments) and the impartiality of host institutions are both important contingencies affecting firms’ utilization of diplomatic relations. We discuss the implications of our study to research on network theory, political ties, and internationalization of emerging market firms.
Purpose
In this paper, the authors aim to explore the relationship between the concepts of Industry 4.0 and circular economy (CE) as a contribution to the management decision on emerging countries. ...By analyzing the trends of scientific production to ascertain the interface of both constructs, the purpose of this paper is to identify limitations for Industry 4.0 and CE implementation in Brazil, as well to present an original framework and strategic pathways to overcome limitations for emerging countries.
Design/methodology/approach
Supported in the Brazilian case, the authors draw a framework using the structuralism approach to indicate pathways for the strategic positioning of emerging economies that consider their limitation and potential for competitive advantage. By understanding country-related limitations such as social and economic contingencies, the authors conceive a structure of implications for Brazil’s capacity to develop CE in the digital era.
Findings
Results show that Brazil has a reasonable, institutional and stable environment, as well as strong regulatory policies for solid waste that can stimulate CE in the country. However, it requires more communication between actors, especially public and private institutions, performing long-range relationships. Also, the country requires consolidation of industrial policies and investments in the remanufacturing process in the supply chain. Likewise, despite Brazil’s ability to take advantage of CE’s benefits, the country presents a huge lack of qualification to fulfill the competences that the digitization process demands. Economically, Brazil has been fighting against an economic crisis since 2014 that has limited general investments, especially in the industrial sector. Industry presents low performance and decreasing GDP participation, which leads to constant overseas production transfer as a consequence of the workforce’s high costs.
Research limitations/implications
The authors can affirm that Brazil is far behind developed countries in searching for the capacity to provide CE through technological industrial change. The main problems are related to the lack of articulation of public and private spheres to promote new digital business models. Therefore, the structured framework enables managers and public agents to provide solutions and to properly address supply chain bottlenecks in emerging economies.
Originality/value
Exploring the relationship between the concepts of Industry 4.0 and CE through the specific lens of the structuralist method, this work can contribute to the management decision on emerging countries, looking into four important perspectives: political, economic, social and technological.
This study examines the relationship between firm multinationality and financial performance with a focus on firm-specific assets and dispersion of these assets for MNCs from emerging markets. ...Drawing upon internalization theory, the authors reveal that while the financial performance of manufacturing MNCs depends on technological assets, service MNCs are more dependent on marketing assets to succeed in international markets. Study findings further emphasize the critical role of the industry context in emerging markets as the authors demonstrate that international asset dispersion weakens the effects of internationalization on financial performance more for MNCs in manufacturing industries than for MNCs in services.
This study examines the differences in implementation level of both Industry 4.0 (I4.0) and Lean Production (LP), whose integration is denoted here as Lean Automation (LA), between manufacturers ...located in emerging and developed economies. A survey-based research was carried out with a total of 249 Brazilian (emerging economy) and Italian (developed economy) companies that are implementing LP and have initiated the adoption of I4.0 technologies. Collected data was analysed through multivariate data techniques. Results indicate that the socio-economic context where companies are located does influence the extension of LA implementation. However, they also suggest that, if properly managed, a high level of LA implementation is feasible regardless the socio-economic barriers and challenges that manufacturers may face. Further, companies' characteristics that favour higher LA levels might also vary between emerging and developed economies, emphasising the importance of a clear understanding of the socio-economic specificities of the contexts. This study sheds light on how pervasive LA implementation can be in manufacturers from both socio-economic contexts. Moreover, these outcomes demystify assumptions related to management approaches that may only prevail if certain socio-economic conditions are present. This evidence is especially important for multinational companies that seek for highly competitive standards across all their sites.
Considering the institutional, cultural, and regulatory differences across countries, this research investigates the association between environmental, social, and governance (ESG) performance and ...financial performance of companies from emerging and developed countries. The institutional difference hypothesis (IDH) suggests that institutional weaknesses in emerging markets affect the relationship between financial performance and corporate social performance (CSP) of companies. This can occur because, under such circumstances, firms are more likely to prioritize the capital accumulation and not recognize the potential strategic benefit of socially responsible investments. To investigate this hypothesis, we performed a regression analysis of panel data study comprising 2,165 companies from developed and emerging countries, covering the period between 2007 and 2014. Our results suggest that there is a prevalence of the institutional environment in relation to the financial and ESG performances of companies. These results are in line with the logic of the IDH.
PDF
