Organizations and Markets in Emerging Economies
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A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions
Get PDFThis article investigates the role of monetary policies in the success of exchange rate regime transition and the mitigation of related risks. We adopted a comparative methodology for three types of regime switches using 3 GARCH family models and data from 6 African countries over two decades. Our main findings are that a gradual and well-prepared transition improves its outcome and allows the market more flexibility in absorbing domestic and external volatilities, even during a crisis. The results of this study will provide policymakers with a road map to succeed in the exchange rate regime transition and mitigate the inherent risks
Heuristic Rules for the Dynamic Pricing Problem
Get PDFThis paper is devoted to the development of heuristics for the dynamic pricing problem. A discrete time model of dynamic pricing on the fixed time horizon is proposed. It is applicable to products that satisfy two properties: 1) product value expires at a certain predetermined date, and 2) consumers demand at most a single unit of the product. This type of demand structure allows deriving a simple system of recursive equations for optimal prices using dynamic programming techniques. Optimal pricing policy is expressed as a function of time to expiration and inventory levels of unsold products. An analytical solution to this problem was obtained for special cases, while for the general case, a numerical algorithm has been developed. Qualitative characteristics of the optimal pricing policy are established, and their implications for dynamics of inventories and prices are discussed. Based on these observations, a simple heuristic rule for dynamic price adjustments is proposed. Performance of this heuristic is evaluated against the optimal dynamic and fixed-price policies using Monte-Carlo experiments. Results demonstrate high efficiency of the proposed heuristic strategy and its even simpler derivatives. Heuristics’ adaptability and ease of implementation should make it suitable and attractive for small and medium businesses
Exploring Value Co-Creation in Sharing Platforms by Applying DART Framework
Get PDFThe spread and development of sharing platforms can be seen in many countries around the world, especially in emerging economies. However, sharing platforms face challenges in retaining users and attracting new ones. The value co-creation can be used as a tool to ensure competitiveness, develop innovation, and strengthen relationships with consumers. Thus, this study aims to explore value co-creation in sharing platforms from the perspective of platform developers by applying the DART framework. Case study analysis was applied to the empirical study. Its results indicate that the dialogue dimension unfolds through interaction; the access develops through information and tools; the risk-benefit reveals the disadvantages of sources and the possible risks of using the sharing platform; the transparency is exposed through transparency about user reliability. A new sub-dimension emerges in the dialogue dimension – ‘networking’, where platform actors can participate in value co-creation as user groups and foster innovation. Since information overload can lead to undesirable user behavior, we propose to assess the ‘navigation’ sub-dimension by analyzing the access dimension. The results of the study contribute to value co-creation scientific literature by extending and adapting the DART framework for sharing-based business models and provide useful practical insights for sharing platform developers
The Impact of Perceived Procedural Justice on Dimensions of Customer Citizenship Behaviours: The Mediating Effect of Customer Perceived Support
Get PDFThe present study examines the influence of perceived procedural justice (PPJ) on four fundamental dimensions of customer citizenship behaviours (helping other customers, advocacy, customer tolerance, and feedback) and the mediating role of customer perceived support (CPS). Our research setting is the smartphone after-sales service sector in China. Structural equation modeling (SEM) using AMOS is employed to empirically test our hypotheses on the basis of survey data from 368 smartphonecustomers. We find that PPJ significantly contributes to the customer citizenship behaviours of helping other customers, advocacy, and feedback. Surprisingly, we do not find a significant relationship between PPJ and customer tolerance. Our evidence indicates that CPS partially mediates the relationships between PPJ and helping other customers, advocacy, and feedback, but fully mediates the effect of PPJ on customer tolerance. This research contributes to managers’ understanding of how voluntary behaviours can be effectively managed by enhancing PPJ and CPS. Further, it enriches our theoretical understanding of key antecedents of customer citizenship behaviours
Determinants of Short- and Long-Term Commercial Lending Rates in Peru, 2010–2022
Get PDFShort- and long-term interest rates are crucial for investment and, thus, business dynamism. The injection of money depends on the ability to promote cash flows through credit which boosts productive sectors. In the last decade, among Latin American countries, Peru has stood out for its key financial system and macroeconomic stability characteristics. The Central Reserve Bank of Peru (BCRP) plays a key role in setting the reference rate given its autonomy and strong institutional trust. However, the mixed pension system injects liquidity into the financial system through its private contributions. For the purposes of this study, an autoregressive econometric model of distributed lags (ARDL) was employed. The findings reveal that the reference rate set by the BCRP establishes a long-term relationship for both short and long-term rates, empirically demonstrating the effectiveness of monetary policy. Additionally, the liquidity provided by the pension system triggers an immediate shock response in determining the short-term rate. It is also observed that the issuance of sovereign bonds is a robust tool in determining the long-term rate due to its facilitation of credit access. This research is relevant for identifying macroeconomic and financial variables and guiding the formulation of macroeconomic policies
Hybridizing Technology Management and Knowledge Management to Spur Innovation: A System Dynamics Approach
Get PDFThe purpose of this research is to identify the drivers of innovativeness in a furniture manufacturing company. The scenario is the business environment where the hybridization of Technology Management (TM) and Knowledge Management (KM) is operative to promote innovation. The elements of the Technology Acceptance Model (TAM) and Socialization-Externalization-Internalization-Externalization (SECI) Model of KM have been modeled and used for simulation for the identification of the role played by the factors influencing the furniture design information conversion rate. The research follows the case study method to research as it draws data from a single company. Data from a multinational furniture manufacturing company that has over 10,000 products and operates in 24 countries have been used for simulation purposes. Results have shown that among the five factors that influence information conversion rate, the company should focus on correction efficiency and calculation efficiency enhancement if the aim is to maximize product and process innovations; and enhance contextualization efficiency if the priority is immediate results of innovativeness improvement. The results have also shown that about 615 innovative products and processes can be produced in six months by improving the correction efficiency to 80%. The theoretical implication of the study is in the form of a model which can be used by innovative companies to identify the critical factors that influence innovativeness, and the practical implications are in the form of suggestions to the managers of the furniture manufacturing company to enhance their innovativeness so as to gain competitive advantage in business
The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence
Get PDFThis study examines the influence of financial development variables on the Composite Stock Price Index (CSPI) in Emerging Market Countries. This study uses secondary data obtained from the International Monetary Fund and Yahoo Finance, with an annual data period of 2000–2020. Panel data regression analysis using the random effects model was performed to analyze data. The results showed that Financial Market Access Index (FMAI) and Financial Market Depth Index (FMDI) variables had a positive and significant relationship affecting CSPI, while Financial Market Efficiency Index (FMEI) had a negative and significant relationship to CSPI. The FMEI results negatively affecting CSPI indicate the need for improvements in financial market efficiency. Increased efficiency can help ensure that relevant and accurate information is available quickly and fairly to all parties, driving better investment decisions
Intention to use Peer-to-Peer (P2P) Lending: The Roles of Perceived Structural Assurance and Perceived Critical Mass
Get PDFPeer-to-Peer (P2P) lending platform has enormous potential to improve financial inclusion for people in emerging countries. In this regard, the present study examined the predictors of continuance intention to borrow from P2P lending, especially as a Multi-Sided Platform (MSP) that relied heavily on critical mass to succeed. This research was among the first that analyzed the behavioral intention of P2P lending from the borrower’s perspective by expanding on the technology acceptance model (TAM) with two fundamental latent constructs for MSPs, namely perceived structural assurance and perceived critical mass. This quantitative study used Partial Least Square Structural Equation Modelling (PLS-SEM). Online questionnaires were spread to P2P lending borrowers (n =174) from all over Indonesia to measure the latent constructs. The result revealed that all the exogenous constructs did not have direct relationships with continuance intention to borrow. However, perceived structural assurance and perceived ease of borrowing indirectly affected the endogenous construct through perceived usefulness as the mediating variable. This study also offers some managerial implications for the P2P lending industry