Organizations and Markets in Emerging Economies
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Customer Perceptions of Value: Case of Retail Banking
Get PDFRecently, a growing interest in relationship marketing approach attracted much attention of marketers to the customer value creation and delivery as the most important task of marketing strategy. The fact that in the period of economic recession, the retail banking sector customers are more intended to re-assess their relationship with financial organization made marketing experts focus on the investigation of the factors that create and increase customer value in new light. Value creation and delivering to the customer in financial markets has been viewed as a competitive priority and a key component of an organization’s long term success.
The aim of the current research paper is to assess the factors of customer perceived value in the retail banking sector during the period of economic recession. The research method involved the survey conducted with 200 retail customers of commercial banks in Lithuania. In addition, this research specifically examines the perception of value in the transitional economy. The study results revealed that in the period of economic recession the dimensions of emotional (affective) value (i.e., the reliability and security of bank, good psychological climate when contacting with bank personnel) and functional value (i.e., the quality of service provision, the competence of contact personnel) are rated higher by customers. Meanwhile, the factors of social value (i.e., the established long-term relationship, personal beliefs, social integration, the opinion and recommendations of relatives, acquaintances and/or friends) are rated lower
Do Non-work Practices in MNCs Operating in India Impact Organizational Commitment?
Get PDFThe present paper establishes the concept of Non-work Practices and explores its impact on organizational commitment. Drawing upon research conducted in four multinational corporations operating in India, the paper examines the degree to which non-work practices are accepted by Indian employees and their relationship with organizational commitment. Concurrent mixed methodology was adopted in which both qualitative and quantitative data were collected. Template analysis was carried out to interpret employees’ feelings and experiences, and to identify the emerging trends. Factor analysis was carried out to find factors of non-work practices, and regression analysis was carried out to study relationship between organizational commitment and non-work practices. The article discusses the findings related to non-work practices: how these practices are experienced and perceived by Indian employees and what is their impact on the commitment of employees, which would in turn affect the effectiveness of the organization.
It was found that since most of the non-work practices were transplanted from the parent company, they were perceived as alien (except in the Anglo-American MNC). Host country employees showed little enthusiasm in carrying out those practices and hence these had no positive impact on their organizational commitment
Russian Banking Sector: Key Points of International Expansion
Get PDFBanking industry is traditionally seen as strictly regulated and driven to avoid political context. While Russian economy in general lacks both well developed regulatory framework and political independence of business entities, we would like to analyze the current state of affairs in an industry for which these attributes have become a hallmark. As Russian non-resource-based industries in general and the banking sector in particular are becoming more and more active players worldwide, the question arises, how exactly do Russian banks internationalize. We analyze four cases of international expansion by Russian banks in order to determine the main destinations for expansion, the entry modes used and whether they resemble resource-based companies in their internationalization. The results show that banks, even while being significantly state owned, are most likely guided by economic motives (as opposed to political ones), are leaning towards safer expansion destinations and are in several ways suffering from home market immaturity
Logistic Strategy and Organizational Structure in Brazilian Small and Medium-sized Enterprises (Smes)
Get PDFThis study evaluates the logistic strategies developed in Small and Medium-sized Enterprises (SMEs) as a response to their organizational structures and planning processes. A multiple case study was carried out in the second largest furniture cluster in Brazil. Based on theoretical models, it was found that the characteristics of a company’s organizational structure had an impact on planning. In the case of companies with a low level of family participation, this impact was intentional, whereas in the case of companies with strongly centralized owner control over decision-making, the impact was unplanned. However, the formal nature of planning does not guarantee that logistics will have strategic aims and, in all cases, it has a strictly reactive nature
A Comparative Study of the Impact of Leader-member Exchange in Two Samples: U.S.A. And Poland
Get PDFLeader-Member Exchange (LMX) theory argues that supervisor-subordinate interactions in the workplace are guided by the type of relationship that develops in each individual dyad, and that the quality of the relationship significantly impacts critical outcomes such as performance ratings. Further, it has been argued that supervisors and subordinates often view the relationship through different lenses – leading to significantly different perceptions of the quality of relationship. In this field study, using data from 32 supervisors and 104 subordinates in the US, and 72 supervisors and 116 subordinates in Poland, we examine the relationship between LMX and performance ratings, as well as compare supervisor and subordinate perceptions of the relationship. In both samples, supervisor ratings of LMX quality were higher than those of the subordinates, and subordinates who received higher LMX ratings from their supervisors also received higher performance ratings. Finally, the correlation between supervisor and subordinate ratings of LMX was significantly higher for the Polish sample as compared to the US sample. We discuss the results in terms of both theoretical and practical significance, and offer suggestions for future research
Adverse Effects of Transaction Costs in East European Economies
Get PDFAbstract. At a given level of technology the gross aggregate production function lies above the net aggregate production function where the difference represents the aggregate transaction costs in the economy. Transitional economies facing serious institutional impediments to creating a smoothly functioning market mechanism are faced with sizable transaction costs. We use a net production function model enhanced by Furubotn and Richter and apply it conceptually to the case of transitional economies. We find that at a particular level of a community isoprofit line much less output will be supplied compared to developed market economies with mature market institutions. The aim of the paper is to trace the falling output and the deep structural problems of East European economies to the effect of transaction costs and institutional building. The more rapidly transaction costs grow, the less the firms would be willing to pay for inputs. Furthermore, we find that certain markets tend to disappear in emerging economies due to the adverse effects of transaction costs. As a safeguard to precontractual opportunism and prevention to ex post transaction costs, ex ante transaction costs would play a more vital role in East European societies
A Conceptual Model of Cultural Distance, MNC Subsidiary Roles, and Knowledge Transfer in China-based Subsidiaries
Get PDFThis conceptual paper seeks to review the literature on international strategic management, examine the trilateral interactive relations among national culture, subsidiary strategic context and knowledge transfer between China-based subsidiaries and their headquarters. Based on the Resource-Based View (RBV), cross-cultural management theories and other studies of international strategic management, we propose a conceptual model for understanding the interaction between cultural distance and subsidiary strategic context in the knowledge transfer process within MNCs, and ultimately the impact on the performance of subsidiaries. Drawing foundational support from this new model, we explore implications for future research
Does Corruption Lead to Welfare Loss? An Empirical Evidence From Real Estate Sector of Bangladesh
Get PDFRegulation may give rise to corrupt practices thereby resulting in welfare loss in an economy. This research aims at measuring the impact of corruption on the real estate sector of Dhaka city, the capital of Bangladesh. It makes an attempt to measure the welfare loss resulting from corrupt practices exercised mainly by government regulatory agencies. Bribe and extortion fee are the two main indicators whereby welfare loss is measured. Evidence from the study reveals that around 8 floors are lost due to payment of bribe and other such payments