Organizations and Markets in Emerging Economies

Journal Information
ISSN / EISSN : 2029-4581 / 2345-0037
Published by: Vilnius University Press (10.15388)
Total articles ≅ 191
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Le Thanh Tung
Organizations and Markets in Emerging Economies, Volume 12, pp 57-70; https://doi.org/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.
Vytautas Dikčius, Svetlana Ilciukiene
Organizations and Markets in Emerging Economies, Volume 12, pp 160-177; https://doi.org/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.
Najm A. Najm, Amany A. H. Alfaqih
Organizations and Markets in Emerging Economies, Volume 12, pp 222-251; https://doi.org/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.
Bilal Louail, Djamel Benarous
Organizations and Markets in Emerging Economies, Volume 12, pp 71-85; https://doi.org/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; https://doi.org/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.
Rishika Shankar, Priti Dubey
Organizations and Markets in Emerging Economies, Volume 12, pp 131-159; https://doi.org/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.
, , Pritpal Singh Bhullar
Organizations and Markets in Emerging Economies, Volume 12, pp 178-197; https://doi.org/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.
Organizations and Markets in Emerging Economies, Volume 12, pp 106-130; https://doi.org/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; https://doi.org/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; https://doi.org/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.
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