Organizations and Markets in Emerging Economies

Journal Information
ISSN / EISSN : 2029-4581 / 2345-0037
Current Publisher: Vilnius University Press (10.15388)
Total articles ≅ 69
Current Coverage

Latest articles in this journal

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

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

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

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

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, Yoshi Takahashi
Organizations and Markets in Emerging Economies, Volume 11, pp 388-406; doi:10.15388/omee.2020.11.39

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.
Sandra Horvat, Đurđana Ozretić Došen
Organizations and Markets in Emerging Economies, Volume 11, pp 466-461; doi:10.15388/omee.2020.11.42

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

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.
José Satsumi López-Morales , 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

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, Jumanto Jumanto
Organizations and Markets in Emerging Economies, Volume 11, pp 348-366; doi:10.15388/omee.2020.11.37

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.
Hoa HoangMr., Anh Chi Phan , Phong Le Thai
Organizations and Markets in Emerging Economies, Volume 11, pp 482-503; doi:10.15388/omee.2020.11.44

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.
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