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Organizations and Markets in Emerging Economies, Volume 12, pp 106-130; doi:10.15388/omee.2021.12.50

Abstract:
The existence of risks is a premise in business-related matters, mainly in the exploration of international opportunities. Organizations seeking to operate abroad are potentially more susceptible to the risks that exist internationally. This study follows the behavioral approaches to internationalization and conceptual ideas about risk and risk perception in international business. The main goal is to understand how the risk perception of managers in Brazilian companies with different entry modes is configured. In this qualitative research, a multiple case study was carried out. The data collection techniques established were the analysis of documents and the performance of semi-structured interviews with managers responsible for the internationalization processes of six Brazilian companies. Regarding the risks inherent to these processes, there was a greater emphasis on country/political risk factors, followed by monetary risk. The risks perceived with greater evidence, considering the entry modes addressed, are also presented for a better understanding of the results.
Organizations and Markets in Emerging Economies, Volume 12, pp 86-105; doi:10.15388/omee.2021.12.49

Abstract:
North Macedonia and Greece resolved the 27-year country name dispute and removed the main hurdle for North Macedonia to start the accession processes towards the EU and NATO. The paper analyzes the stock market movements around several events related to the name issue resolution to uncover whether Macedonian companies experienced stock price adjustments according to the long-term benefits/costs of joining the EU/NATO. The dynamics of the market reactions suggest that the investors reacted systematically to the short-term political uncertainty created around the referendum rather than to the long-term perspectives of the EU/NATO integration. We integrate the knowledge from the literature which explores stock market reactions to EU enlargement/exit and political elections and provide contributions for researchers and policymakers.
Vida Skudiene, Yuhua McCorkle, Denny McCorkle, Daniil Blagoveščenskij
Organizations and Markets in Emerging Economies, Volume 12, pp 198-221; doi:10.15388/omee.2021.12.54

Abstract:
While emerging markets have become an opportunity for companies in the less populated and saturated markets to expand their business, they also impose challenges for foreign partners’ competitive behavior. To offer the value that would be competitive in emerging markets, companies need to improve the quality of their relationship with business partners. Relationship quality may enhance the probability of continued interchange between companies and their stakeholders, leading to increased attractiveness for the emerging markets’ economy. This research explores antecedents (communication and relationship longevity) of relationship quality with stakeholders (suppliers, customers, and employees) and how the relationship quality with three stakeholders impacts the company’s performance risk and competitive advantage in the Lithuanian hotel, restaurant, and café market. The findings suggest that communication and relationship longevity have a positive effect on relationship quality with all three stakeholders. A higher level of relationship quality with stakeholders has a more positive effect on competitive advantage and a more significant negative effect on performance risk. The study expands the understanding of relationship quality antecedents (communication and relationship longevity) and relationship quality with customers, suppliers, and employees in terms of competitive advantage and performance risk in the less populated and saturated hotel, restaurant, and café market seeking expansion to emerging markets.
Organizations and Markets in Emerging Economies, Volume 12, pp 6-26; doi:10.15388/omee.2021.12.45

Abstract:
The internationalization processes of small and medium-sized enterprises (SMEs) differ across economic and cultural environments. Creating an operationalizable and predictive framework to explain them has long been a challenging research task. This task is particularly relevant in an era of reconfiguration of globalization, which directly affects the small business sector. This study proposes a model which includes networking, attitudinal, cultural, and environmental factors as antecedents of the degree of SME internationalization. We collected data and tested this model in three distinct cultural environments: the USA, China, and Russia. The results suggest that attitudinal characteristics of managers, such as global mindset and relationship commitment, condition SMEs network involvement. The influence of network involvement on the degree of SMEs internationalization becomes stronger with increasing environmental turbulence. This study’s findings have practical implications for businesses operating in different countries, as well as governmental organizations and educational institutions.
Rishika Shankar, Priti Dubey
Organizations and Markets in Emerging Economies, Volume 12, pp 131-159; doi:10.15388/omee.2021.12.51

Abstract:
This study examines the impact of COVID-19 pandemic on the performance of Indian stock market, measured by daily average returns and trading volume. The analysis is aimed at discovering the vulnerability of the general market as well as nine crucial sectors to the pandemic while also checking the impact on overall volatility in the market. The findings suggest that all the sectors followed a consistent pattern of being significantly impacted by the pandemic. However, the benchmark index remained resilient in the context of average returns. The entire market witnessed decreased returns and increased liquidity, which is explained by reduced volatility in the market.
, Pradeep Kumar Gupta, Pritpal Singh Bhullar
Organizations and Markets in Emerging Economies, Volume 12, pp 178-197; doi:10.15388/omee.2021.12.53

Abstract:
The present study examines the relevance of Corporate Social Responsibility (CSR) expenditure to the firms in the mandatory regime in India. The paper has its theoretical basis from the instrumental aspect of the Stakeholder theory, which assumes a positive influence of CSR over financial performance. Therefore, the study hypothesizes that the firms which fulfill the CSR expenditure requirement will exhibit higher stock returns and lower systematic risk. Since India mandated CSR in the year 2014, the data of four years (2016-2019) for the sample of 426 National Stock Exchange (NSE) listed Indian firms are taken to employ the OLS regression method. The CSR expenditure in the mandatory regime was not found to be relevant to the firms because of an insignificant positive impact of mandatory CSR expenditure on stock returns. Thus, the instrumental aspect is not supported by the findings. However, the findings indicate a decrease in the systematic risk of the firms. Only a few studies in India investigated this phenomenon in the mandatory regime. Further, the contributions of the study to the CSR literature are fairly useful from the perspective of firms, investors, policy-makers, regulators, scholars, and countries that are planning for legislating CSR.
Bilal Louail, Djamel Benarous
Organizations and Markets in Emerging Economies, Volume 12, pp 71-85; doi:10.15388/omee.2021.12.48

Abstract:
This paper aims to examine the Algerian economy by applying Okun’s law to study the impact of real GDP on unemployment rates and examine the impact of labour market protection policies on Okun’s coefficients. The annual data on the Algerian economy for the period 1991–2019 were used. The autoregressive distributed lag (ARDL) bounds testing technique model was used in conjunction with the gap version for Okun’s coefficients. The empirical results show that Okun’s law operates in Algeria’s economy. Coefficients estimated using the gap version led to the conclusion that there was a negative and significant impact of the GDP gap on unemployment rates. Though there was a decline in unemployment as GDP increased, the rise in employment was very weak for each 1% increase in the GDP. These findings should be of significant interest to regulators and policymakers in the Algerian economy, practitioners and academic researchers, international and national investors, managers and any other groups interested in the labour market in the Algerian economy and the labour markets of other developing economies. The paper provides the real GDP’s effect on unemployment rates in Algeria by releasing the gap version for Okun’s coefficient. Also, it provides evidence that increased labour market protection mitigates the adverse effects of a decrease in output growth rate on employment.
, , Muhammad Naumair Jadoon
Organizations and Markets in Emerging Economies, Volume 12, pp 27-50; doi:10.15388/omee.2021.12.46

Abstract:
The field of behavioral finance has actively researched behavioral elements influencing the choices of individual investors. This study also contributes to the behavioral finance and examines the effect of an increase in a foreign firm’s partial ownership in a domestic firm on the local individual investments in that domestic firm. Specifically, using a controlled lab experiment the study examines the investments of Pakistani individual investors between a purely Pakistani firm and a Pakistani firm with three different levels of Chinese ownership (portfolio, minority, majority). The experimental results show that with reference to Chinese minority ownership in a Pakistani firm, the potential investors are 47% (61%) less likely to invest in a Pakistani firm with Chinese portfolio (majority) ownership than in a purely Pakistani firm. The study uncovers an important non-monetary factor in the form of a foreign firm’s partial ownership that can significantly influence the choices of individual investors. It also makes an important contribution to the growing literature on the Chinese foreign investments specifically in Pakistan by exploring how potential individual Pakistani investors are likely to react to an increase in Chinese investments in Pakistani firms.
Najm A. Najm, Amany A. H. Alfaqih
Organizations and Markets in Emerging Economies, Volume 12, pp 222-251; doi:10.15388/omee.2021.12.55

Abstract:
There are many studies that have focused on the Albrecht model of organizational intelligence (OI) and its seven dimensions (strategic vision, shared fate, appetite for change, heart, alignment and congruence, knowledge deployment, and performance pressure), but the current study presents a new attempt to study OI using the Yolles model in its three dimensions (self-reference, self-regulation, and self-organization) (2005). This study sought to determine the effect of organizational intelligence on market expansion (new markets and new product) in the Jordanian pharmaceutical industry, and it examined the effect of transformational leadership as a mediating variable on the relationship between organizational intelligence and market expansion. The study sample consisted of 231 respondents taken from six pharmaceutical companies divided into three categories according to their size as small, medium and large companies. The results confirmed that there is a significant positive effect of the two dimensions (self-regulation and self-organization) on new markets, while three dimensions of OI have a significant effect on new products in the pharmaceutical companies.
Vytautas Dikčius, Svetlana Ilciukiene
Organizations and Markets in Emerging Economies, Volume 12, pp 160-177; doi:10.15388/omee.2021.12.52

Abstract:
The paper aims to examine the role of localness of a sports celebrity and a level of product involvement in the mediated impact of the perceived product quality on the relationship between a sports celebrity’s credibility and consumers’ purchase intention in a developing economy. A total of 253 respondents participated in an experiment including the localness of 2 sports celebrities (global vs national) and2 product involvement (high vs low) levels. The study determined that sports celebrity credibility had both direct and indirect effects on respondents’ intention to buy, but product involvement moderated the direct impact of sports celebrity credibility on the consumer’s intention to buy a product. The direct impact was noticed in the case of low involvement products, and no impact was observed in the situation of high involvement. Besides, the study showed that global sports celebrities enjoyed a higher level of attractiveness, but the trustworthiness was higher for national celebrities. Finally, moderation analysis showed that the mediation effect of the localness of a sports celebrity on the relationship between credibility and intention to purchase depended on the type of measured effect – direct or indirect. This study expands the research on the effects of celebrity credibility on the consumer’s intention to purchase in developing economies.
Le Thanh Tung
Organizations and Markets in Emerging Economies, Volume 12, pp 57-70; doi:10.15388/omee.2021.12.47

Abstract:
Vietnam is an Asian emerging country, which now is ranked in the group of the fastest-gro- wing economies worldwide. However, this economy has faced galloping inflation in recent years. So the Vietnamese experience is a valuable reference for the policymakers in the developing world in order to successfully control price volatility. Our study applies the Vector autoregressive method, the Johansen cointegration test, and the Granger causality test to examine the impact of fiscal and monetary policy on price volatility in Vietnam with a quarterly data sample collected over the period from 2004 to 2018. The study results confirm the existence of a long-term cointegration relationship between these policies and price volatility in Vietnam. Besides, the variance decomposition and impulse response function also show that the impact of these policies on inflation is clear, however, the fiscal policy more strongly affects inflation than the monetary policy. Finally, the Granger causality test also indicates one-way causality relationships from the government expenditure as well as the exchange rate to price volatility in the study period.
Saarce Elsye Hatane, Felicia Nathania, Jocelyn Lamuel, Fenny Darusman, Devie
Organizations and Markets in Emerging Economies, Volume 11, pp 276-304; doi:10.15388/omee.2020.11.34

Abstract:
This study aims to find the effect of Intellectual Capital Disclosure (ICD) and Corporate Governance (CG) on firm performance in ASEAN countries. Firm performance is divided into accounting-based performance and market-based performance. The accounting-based performance consists of Non-Discretionary Net Income (NDNI) and Cash Flow Operations (CFO), while market-based performance consists of Tobin’s Q and Market-to-Book Ratio (MBR). The measurement of ICD components uses a scoring system. The sample of this research is 112 firms in the industrial technology listed in the stock exchange of ASEAN-5 between 2011 and 2018. This study finds that NDNI increases when firms increase RCD quality. No ICD components are capable of affecting CFO. On the other hand, SCD is a variable that decreases NDNI value. BGEN is found to reduce NDNI and CFO values. RCD is also the only ICD component that can increase market-based performance, especially MBR. HCD consistently lowers the values of MBR and Tobin’s Q. BSIZE holds a significant role in raising Tobin’s Q score, and BGEN lowers MBR instead. BIND has no part in the market-based performance, but it significantly lowers NDNI value. This study adds another view to ICD’s benefits from two firm performance perspectives, accounting-based performance and market-based performance, especially in ASEAN-5.
Hoa Dinh Nguyen, Diem My Thi Tran, Thanh Ba Vu, Phuong Thuy Thi Le
Organizations and Markets in Emerging Economies, Volume 11, pp 429-455; doi:10.15388/omee.2020.11.41

Abstract:
The study aims to investigate the impact of participation in decision-making (PDM) and perceived organizational support (POS) on affective commitment in machinery enterprises. The study applies structural equation modeling (SEM) to test the research hypotheses. The authors surveyed 220 employees who work in machinery enterprises to collect data for the research. The study results indicate that both PDM and POS positively impact affective commitment. The findings provide empirical evidence to support the theoretical models that PDM and POS have a positive effect on affective commitment. The findings have implications for management theory: PDM and POS are the key antecedents of affective commitment. The findings also have implications for practical management in the machinery enterprises that managers should practice both PDM and POS to increase affective commitment.
Gentrit Berisha, Rrezon Lajçi
Organizations and Markets in Emerging Economies, Volume 11, pp 407-428; doi:10.15388/omee.2020.11.40

Abstract:
Retail supermarket chains face high turnover that creates costs and compromises customer satisfaction. Turnover intention is influenced by the fit or misfit of employees to the job and the organization, as well as their satisfaction with the job and the commitment to the organization. This paper investigates the relationship of person-job (P-J) and person-organization (P-O) fit with job satisfaction and organizational commitment. A total of 211 questionnaires from employees in the retail supermarket chains in Kosovo were collected. Regression analysis is used to test the relationships between fit constructs and work attitudes as outcomes and their effect on turnover intention. Bootstrap mediation is used to test the direct and indirect effect of fits on turnover intention. Results show that person-job fit and person-organization fit have a significant positive effect on job satisfaction and organizational commitment. All these constructs have a negative effect on turnover intention. P-J and P-O fit have a direct negative effect on turnover intention, which is also partially mediated by job satisfaction and organizational commitment. This paper supports previous evidence that P-J and P-O fit have a positive effect on work attitudes and eventually reduce turnover intention. The direct effect of fits on turnover intention is stronger than the indirect effect, mediated by job satisfaction and organizational commitment.
Perdana Wahyu Santosa
Organizations and Markets in Emerging Economies, Volume 11, pp 367-388; doi:10.15388/omee.2020.11.38

Abstract:
This article aims to investigate the determinants of firm’s capital structure (debt ratio) such as asset structure, profitability, agency cost, innovation and technology, and firm size as a moderating variable. This study used quarterly data from the financial statements of food and beverage firms at the Indonesia Stock Exchange with a purposive sampling method that met the research criteria with panel data analysis. The findings show that firm size and asset structure affect leverage positively; however, profitability and innovation and technology negatively affect the debt ratio, while agency cost does not affect leverage. All findings are in line with the hypotheses except agency cost. The firm size as a moderating variable shows strengthening of the interaction between agency cost and innovation with leverage. However, interacting with firm size weakens the effect of the relationship between assets structure and profitability with the debt ratio. Managerial implications of the target of debt ratio that creates the value of the firm need to be flexible and controlled by the interaction of the firm size with firm characteristics and innovation to achieve an optimal firm value of F & B sector.
Huajiang Yu,
Organizations and Markets in Emerging Economies, Volume 11, pp 388-406; doi:10.15388/omee.2020.11.39

Abstract:
This study constructed a model to explore how emotional intelligence (EI) predicts organizational citizenship behavior (OCB) and counterproductive work behavior (CWB) via the mediators of job satisfaction (JS) and work engagement (WE). Furthermore, this study examined whether organizational justice (OJ) and person-organization fit (P-O fit) moderate the effect of EI on OCB and CWB. The model was tested using data from 540 knowledge employees in mainland China. This study found that JS and WE positively and partially mediated the association between EI and OCB, as well as negatively and partially mediated the association between EI and CWB. Moreover, OJ and P-O fit moderated the effect of EI positively on OCB and negatively on CWB. This study revealed the mechanism from EI to OCB and CWB through multiple mediators, identified two variables that may adjust EI-OCB and EI-CWB relationships, and proposed that organizations could promote OCB and diminish CWB of knowledge employees by employing certain human resource practices.
Hoa HoangMr., , Phong Le Thai
Organizations and Markets in Emerging Economies, Volume 11, pp 482-503; doi:10.15388/omee.2020.11.44

Abstract:
This paper presents the results of an empirical study examining the relationship between manufacturing strategy and competitive performance of Vietnamese manufacturers, with focus on the technology factor of manufacturing strategy. Statistical techniques were used to analyze the data collected from 25 manufacturing enterprises, and the qualitative research method was employed to enrich the captured results. Findings indicate the positive impact that manufacturing strategy (together with its components namely competitive priorities and technology choices) has on firm’s competitive performance. Two case studies also provided more in-depth knowledge of the development and implementation of manufacturing strategy at Vietnamese manufacturers. From there, recommendations are proposed for management to better implement manufacturing strategy and utilize technology in order to improve competitive performance.
Sandra Žemaitytė, Laimutė Urbšienė
Organizations and Markets in Emerging Economies, Volume 11, pp 305-326; doi:10.15388/10.15388/omee.2020.11.35

Abstract:
This paper explores the macroeconomic effects of trade tariffs in the context of the recent trade conflict between the United States and China. The focus is laid on two trade war scenarios, and one of them takes into account the effects of the COVID-19 pandemic on the global trade flows. After deploying the partial equilibrium SMART model, the authors conclude that solely due to the trade war with China, in 2020, the US total trade balance will improve by 41,020 million USD (0.21% of real GDP), while 43,777 million USD (0.22% of real GDP) of the US imports will have to be sourced from other countries. The US trade intensity with China and welfare will decline. However, our study has found that the potential economic consequences of COVID-19 will reduce the relative effects of the trade war. The study has revealed that the United States economy will benefit from the trade war, which can be explained by a relatively weak China’s retaliatory response. Nevertheless, the US agriculture and automotive sectors will suffer most.
Sandra Horvat,
Organizations and Markets in Emerging Economies, Volume 11, pp 466-461; doi:10.15388/omee.2020.11.42

Abstract:
This paper explores private labels in the context of Croatia, as a representative of a CEE and EU member countries, where their importance is continuously growing. It aims to reveal whether consumers’ psychographic characteristics impact their attitudes towards private labels, which are in the growth stage of the product life cycle. Findings show that price consciousness, consumer innovativeness, and store loyalty have a positive and statistically significant impact on consumers’ attitudes towards private labels. These three psychographic characteristics allow clustering of consumers prone to private labels (by applying K-means analysis) into three different clusters. Consumers belonging to cluster 2 exhibit the highest levels of innovativeness and price sensitivity and might be considered pioneers in accepting private labels. The paper contributes to a more comprehensive insight into private labels marketing management and offers managerial implications for retailers.
Francine Chan, Dominique Jalandoni, Cecil Austin Sayarot, Marc Uy, Denver Daradar, Patrick Aure
Organizations and Markets in Emerging Economies, Volume 11, pp 462-481; doi:10.15388/omee.2020.11.43

Abstract:
Family businesses face a succession crisis where only 13% survive until the third generation (Lee-Chua, 2014). While there is sufficient literature on family business succession planning , research on the motivations behind next-generation engagement in family firms, especially for third-generation successors, is limited (Garcia, Sharma, De Massis, Wright & Scholes, 2018). Thus, the present study tested Garcia et al. (2018)’s model where perceived parental support and psychological control predict next-generation engagement, with family business self-efficacy and commitment to family business mediating this relationship. 118 third-generation successors were surveyed using established and newly developed scales based on previous literature. Mediation analysis showed that normative commitment partially mediated verbal encouragement and next-generation engagement, while affective commitment fully mediated parental psychological control and next-generation engagement. Results were also compared against 124 second-generation successors, revealing that there were no significant differences between generations. Combining these two datasets led to a new conceptual framework, where normative commitment partially mediated verbal encouragement and next-generation intention, while affective commitment partially mediated parental psychological control and next-generation intention. The results of the study can contribute to the enrichment of family business literature, particularly on the factors that influence the intentions of third-generation successors, and to the creation of effective succession plans.
, Felipe De Jesús Rosario-Flores, Antonio Huerta-Estevez
Organizations and Markets in Emerging Economies, Volume 11, pp 327-347; doi:10.15388/omee.2020.11.36

Abstract:
The base of the pyramid (BoP) is the lower-income segment of the population. It represents an important market that is often disregarded by companies as a source of economic benefit. For this reason, scholars have gained interest in this topic since the early 21st century. The main objective of this article is to identify research areas related to business in the BoP. A qualitative investigation was carried out by reviewing the business literature on the BoP. Sixty-seven articles related to the topic were reviewed. This literature review was conducted using the four-stage qualitative method, including : (1) data collection; (2) data coding; (3) data analysis; and (4) interpretation of results. The result of the review was the identification of 12 gaps that must be addressed to improve the understanding of the BoP businesses. A description of the articles selected for the review is presented.
Yulita Setiawanta, Dwiarso Utomo, Imam Ghozali,
Organizations and Markets in Emerging Economies, Volume 11, pp 348-366; doi:10.15388/omee.2020.11.37

Abstract:
Transactions between countries require a stable exchange rate. When the exchange rate of the country experiences uncertainty, then this will influence the company’s financial performance and even affect the company’s market value. This study aims to look for the direct influence of the company’s financial performance as an independent variable and the firm value as a dependent variable within the investor perspective, also including the exchange rate factor as a moderating variable. Investors could probably learn about information on the ups-and-downs of the Indonesian rupiah against foreign currencies before their investment decisions, even though financial performance substantially influences the company’s market value. The sample in this study was 50 companies within four years of observation. Data processing was carried out by the Eviews statistical application. The results showed that the financial performance, which is proxied by the capital structure, affects firm value, but not profitability. The impact of exchange rate moderation also occurs in the relationship of capital structure and firm value, while the moderation effect on profitability and firm value is not proven. This study provides information that exchange rates influence investment interests upon investors’ analysis of the financial performance of the capital structure, but not profitability.
Organizations and Markets in Emerging Economies, Volume 11, pp 18-34; doi:10.15388/omee.2020.11.21

Abstract:
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 (> 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.
, , Elizabeth Wijaya, Hatane Semuel
Organizations and Markets in Emerging Economies, Volume 11, pp 203-221; doi:10.15388/omee.2020.11.31

Abstract:
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. 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. The findings offer important contributions to the academic by enriching the body of literature on online 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.
, Fanglin Li, Doreen Idan Frowne
Organizations and Markets in Emerging Economies, Volume 11, pp 6-17; doi:10.15388/omee.2020.11.20

Abstract:
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.
Fei Chen, , Ralf Bebenroth
Organizations and Markets in Emerging Economies, Volume 11, pp 35-54; doi:10.15388/omee.2020.11.22

Abstract:
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.
Organizations and Markets in Emerging Economies, Volume 11, pp 128-151; doi:10.15388/omee.2020.11.27

Abstract:
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).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.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.
Organizations and Markets in Emerging Economies, Volume 11, pp 69-82; doi:10.15388/omee.2020.11.24

Abstract:
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.
Organizations and Markets in Emerging Economies, Volume 11, pp 173-188; doi:10.15388/omee.2020.11.29

Abstract:
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.
Gindrute Kasnauskiene, Juste Palubinskaite
Organizations and Markets in Emerging Economies, Volume 11, pp 55-68; doi:10.15388/omee.2020.11.23

Abstract:
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.
Organizations and Markets in Emerging Economies, Volume 11, pp 152-172; doi:10.15388/omee.2020.11.28

Abstract:
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.
Organizations and Markets in Emerging Economies, Volume 11, pp 222-243; doi:10.15388/omee.2020.11.32

Abstract:
R&D is one of the most important roles of universities. Many previous studies examined the impact of financial factor on university R&D activities but reached no consensus view. This article contributes to the current literature by exploring how financial factor and other factors influence R&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&D activities. Using structural equation modelling, the author found empirical evidence that financial constraint could hamper R&D productivity. On the other hand, favourable conditions in management, communication, infrastructure and human resources were found to improve R&D activities. This led to some policy suggestions to improve R&D activities in Vietnam higher education institutions.
Organizations and Markets in Emerging Economies, Volume 11, pp 83-106; doi:10.15388/omee.2020.11.25

Abstract:
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.
Organizations and Markets in Emerging Economies, Volume 11, pp 244-268; doi:10.15388/omee.2020.11.33

Abstract:
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).
Organizations and Markets in Emerging Economies, Volume 11, pp 189-202; doi:10.15388/omee.2020.11.30

Abstract:
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.
Organizations and Markets in Emerging Economies, Volume 11, pp 107-127; doi:10.15388/omee.2020.11.26

Abstract:
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.
María Teresa De La Garza Carranza, Jorge Armando López-Lemus, Eugenio Guzmán Soria, Delfino Vargas Chanes
Organizations and Markets in Emerging Economies, Volume 10, pp 257-277; doi:10.15388/omee.2019.10.13

Abstract:
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.
Yılmaz Bayar, Ömer Faruk Öztürk
Organizations and Markets in Emerging Economies, Volume 10, pp 378-391; doi:10.15388/omee.2019.10.19

Abstract:
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.
Yee Peng Chow
Organizations and Markets in Emerging Economies, Volume 10, pp 278-293; doi:10.15388/omee.2019.10.14

Abstract:
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.
Srikanth Parthasarathy
Organizations and Markets in Emerging Economies, Volume 10, pp 310-334; doi:10.15388/omee.2019.10.16

Abstract:
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.
Organizations and Markets in Emerging Economies, Volume 10, pp 212-226; doi:10.15388/omee.2019.10.11

Abstract:
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 & 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.
Anh Tho To, Yoshihisa Suzuki, Bao Ngoc Vuong, Quoc Tuan Tran, Khoa Do
Organizations and Markets in Emerging Economies, Volume 10, pp 356-377; doi:10.15388/omee.2019.10.18

Abstract:
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.
Le Duc Hoang, Tran Minh Tuan, Pham Van Tue Nha, Ta Thu Phuong
Organizations and Markets in Emerging Economies, Volume 10, pp 294-309; doi:10.15388/omee.2019.10.15

Abstract:
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.
Rasa Pauliene, Karina Sedneva
Organizations and Markets in Emerging Economies, Volume 10, pp 227-256; doi:10.15388/omee.2019.10.12

Abstract:
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.
Anton Agus Setyawan, Bernardinus M. Purwanto, Basu Swastha Dharmmesta, Sahid Susilo Nugroho
Organizations and Markets in Emerging Economies, Volume 10, pp 174-195; doi:10.15388/omee.2019.10.9

Abstract:
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.
Namitha K Cheriyan, Daniel Lazar
Organizations and Markets in Emerging Economies, Volume 10, pp 335-355; doi:10.15388/omee.2019.10.17

Abstract:
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.
Elze Uzdavinyte, Martin Aubel, Justina Gineikienė
Organizations and Markets in Emerging Economies, Volume 10, pp 196-211; doi:10.15388/omee.2019.10.10

Abstract:
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.
Sigitas Urbonavicius
Organizations and Markets in Emerging Economies, Volume 10, pp 5-7; doi:10.15388/omee.2019.10.1.1

, Sri Handayani, Ahyar Yuniawan, Edy Rahardja
Organizations and Markets in Emerging Economies, Volume 10, pp 111-131; doi:10.15388/omee.2019.10.00006

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Robiyanto Robiyanto, Rihfenti Ernayani, Rendi Susiswo Ismail
Organizations and Markets in Emerging Economies, Volume 10, pp 132-146; doi:10.15388/omee.2019.10.00007

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