Organizations and Markets in Emerging Economies
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Designing an Organization for Innovation in Emerging Economies: the Mediating Role of Readiness for Innovation
Get PDFThe study proposes an organizational design framework that impacts innovation in corporate firms. In an emerging economy like Oman, innovation helps to reduce the dependence on oil revenues and enhance its international competitiveness. However, the corporate organizations in emerging economies are unable to innovate effectively because they are not designed for innovation. Further, scarcity of resources undermines their readiness for innovation. This study empirically validates measures of an entrepreneurial organizational design framework in Omani corporate sector. In order to explain how a corporate organizational design promotes innovation and clarify the missing links between corporate entrepreneurial activity and innovation, the mediating role of readiness for innovation (RFI) is tested. Using a quantitative research approach, data is collected from 401 corporate firms in Oman and analysed using structural equation modelling. The findings support the proposition that entrepreneurial organizational design promotes both radical and incremental innovation degree and frequency, while RFI partially mediates the relationship between entrepreneurial inputs and innovation outputs. The study contributes to the understanding of innovation in emerging economies as it explains that RFI helps firms to enhance its innovation potential by optimizing its resources, capabilities and processes for innovation. These measures are essential for organizations, particularly in emerging economies focused on low cost innovation. The findings of the study will inform managerial decision-making in terms of designing organizations for innovation and implementation of measures related to readiness for innovation. 
Leadership Styles and Communication Skills at Indonesian Higher Education: Patterns, Influences, and Applications for Organization
Get PDFThe main purpose of this study is to examine the relationships among leadership styles, communication skills, and employee satisfaction and investigate the potential of women in positions of leadership to support the practice of equal employment opportunities in organizations. Data were collected from 200 self-administered surveys using questionnaires administered to employees at three private Islamic universities in Semarang, Indonesia. Regression analysis was used to test the hypotheses. The results show that leadership styles and communication skills have a significant effect on employee satisfaction. However, on the basis of employee perceptions, this study reveals no significant difference in leadership styles and communication skills between male and female leaders
It is Domestic, it Must Be Healthy: How Health Consciousness and Consumer Ethnocentrism Shape Healthiness Perception and Purchase Intentions of Domestic Food
Get PDFConsumer 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
Relationship Marketing Estimation Model in Emerging Economies: Dyadic Versus Non-dyadic Approach
Get PDFThe 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
Customer-based Brand Equity for a Tourism Destination (CBBETD): the Specific Case of Bandung City, Indonesia
Get PDFThis study examines in detail the use of customer-based brand equity for a tourism destination (CBBETD) as a strategic tool for use with a specific city (Bandung City, Indonesia in this instance). The CBBETD scale developed by Konecnik (2005) and empiricized by Konecnik and Gartner (2007) was successfully adapted using qualitative and quantitative refinements for the city of Bandung. A sample of 400 visitors to Bandung was surveyed, and empirical psychometric assessment was run. The scale required minor adaptations but was found to be appropriate for use in this new context. The components of customer-based brand equity for a tourism destination were found to be: awareness, image, quality and loyalty. The successful adaptation of the scale is encouraging as it provides strategic insight on strengthening destination positioning in the minds of both current and future tourists. Managerial implications and suggestions for future research are provided
The Relationship Between Leverage, Maturity, and Investment Decision: Evidence From Emerging Markets
Get PDFIn this paper, we examine simultaneous relationship between leverage, maturity and over(under)- investment in emerging markets. We divide leverage into short term and long term to investigate the relation between current and future simultaneous relationship between leverage and investment decision, between debt maturity and investment decision, and between leverage and debt maturity. This research used twenty emerging market data from 2006 – 2016. First of all, our results show that firms in emerging markets prefer to use short-term debt to long-term debt to minimize the underinvestment problem. Second, there is a simultaneous non-linear relation between long-term leverage and growth opportunities in emerging markets firms. Third, long-term debt has non-linear effects on investment decision in emerging markets firms. It can be concluded that firms in emerging markets have different characteristics with regard to their capabilities to manage the interaction between leverage, maturity and investment compared to developed markets
The Links Between Social Motivational Engagements, Brand Community Commitment and Repurchase Intention Across Online Brand Communities
Get PDFThe study focuses on the relationships between social motivational engagements, brand community commitment and repurchase intentions across marketer-generated and customer-generated online brand communities. The current study demonstrates that online brand community commitment mediates the effects of all the six motivational engagements (self-expression, connecting, helping, like-minded discussions, seeking assistance, and validation) on repurchase intention. The type of online brand community does not moderate any relationships between social motivational engagements and brand community commitment as expected. However, the current study demonstrates that the moderator affects the link between brand community commitment and repurchase intention indicating moderated mediation. In other words, the relationship between the two constructs becomes stronger in the marketer-generated online brand community. Consequently, the type of online brand community affects the links between the six social motivations and repurchase intention. Specifically, the effects of the six motivations on repurchase intention become stronger in the marketer-generated online community
The Mediating Effect of Human Capital on the Relationship Between Strategic Innovation and the Performance of Manufacturing SMEs in Yemen
Get PDFThe purpose of this paper is to fill gaps in the human capital literature, first, by providing insights into the relationship between human capital and strategic innovation and the performance of Small and Medium Enterprises (SMEs), and second, by exploring the role of human capital as a mediating variable. Although SMEs perform a vital role in the economic development of countries worldwide, developing countries tend to lag behind developed countries in this sector; hence, there is a need to investigate the peculiar nature of SMEs and their performance in the context of developing countries. Additionally, understanding an organization’s human capital requires the articulation of a system of variables that helps to uncover and manage the visible wealth. The contribution of SMEs can be measured through performance. This study is a conceptual discussion of manufacturing SME performance in Yemen and the effect of human capital and strategic innovation. The performance is considered to be very low, and the country is ranked by the Global Innovation Index as one of the lowest in terms of innovation. This paper describes the development of a framework which is a clear manifestation of the knowledge gap addressed by this study
Sectoral Analysis of the Determinants of Corporate Capital Structure in Malaysia
Get PDFThis 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