Innovation and competitive advantage creation

2018 ◽  
Vol 35 (4) ◽  
pp. 580-600 ◽  
Author(s):  
Thomas Anning-Dorson
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Emerging Economies ◽  
Emerging Market ◽  
Power Distance ◽  
Leadership Role ◽  
Service Firms ◽  
Cultural Perspective ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to explain how emerging market firms create competitive advantage through innovation. The study through the upper echelon theory and the power distance cultural perspective examines the mediating role of organisational leadership in the innovation and competitive advantage relationships. Design/methodology/approach Data were collected from the service sectors of two emerging economies, i.e. India and Ghana. Robust standard error regressions were run at two levels. First, at the specific country level and later on the aggregated level for robustness check. Findings The results show that in both India and Ghana, innovation largely relates positively with competitive advantage. In specific terms, market innovation was found to be the most significant determinant of competitive advantage in both contexts. Additionally, organisational leadership was also found to be mediating between innovation and competitive advantage in both contexts independently and collectively to confirm the effect of power distance and leadership role in such cultures. Research limitations/implications The current study looks at only two emerging markets with high power distance cultures. The implication is that the impact of leadership may differ in emerging economies with low power distance. Originality/value The current study looks beyond the mundane relationship between financial performance measures and innovation to assess innovation and competitive advantage in emerging markets context, which has not received the needed attention. It further explains how emerging markets firms can ride on the back of power distance to create a competitive advantage with their innovation development and implementation through organisational innovation leadership. The study offers that the maximum exploitation of the beneficial effect of innovation – competitive advantage – in service firms can only be achieved when leaders spearhead the innovation process and see it through implementation.

An emerging market perspective of what makes professional service firms successful

2020 ◽  
Vol 17 (1/2) ◽  
pp. 57-78
Author(s):  
Felix Nana Abaka Sackey ◽  
Livingstone Divine Caesar
Keyword(s):  
Emerging Markets ◽  
Positive Impact ◽  
Emerging Market ◽  
Professional Services ◽  
Professional Service ◽  
Service Firms ◽  
Strategic Partnerships ◽  
Professional Service Firms ◽  
Content Type ◽  
The Impact

Purpose Despite the criticality of strategic partnerships to the survival and success of professional service firms (PSF) in emerging markets, there is a dearth of research on the subject matter. Specifically, not much is known concerning the dynamics of partnerships among small and medium-sized enterprises (SMEs) in the professional services sector of the economy. This paper aims to explore the dynamics of the impact of constructs such as attributes of partnership, communication behaviour and collaborative conflict resolution on partnership success. Design/methodology/approach A quantitative survey sent to 300 small and medium-sized PSFs achieved a 79% response rate. The data is then analysed using bivariate and multi-variate techniques. Findings The results revealed a positive relationship between two of the three constituents of attributes of the partnership (i.e. commitment and coordination) and the success of partnerships. Commitment and coordination emerged as the significant attributes of partners that affect the success of the partnership. Contrary to previous studies, trust and information sharing did not have a positive impact on partnership success. Practical implications PSFs in emerging markets need concerted efforts to maintain competitive and sustainable partnerships. To make any significant impact, they must develop contemporary skills in collaborative conflict management. Originality/value This paper highlights the need for PSFs and SMEs in other service sectors of emerging markets to harness partnerships as a valuable tool to overcome the policy shortcomings of current regulatory frameworks within their respective markets.

Ballarpur Industries Ltd: aligning marketing strategy in a turbulent environment

2011 ◽  
Vol 1 (3) ◽  
pp. 1-19
Author(s):  
Joffi Thomas ◽  
Ashok Pratap Arora ◽  
Rajen K. Gupta
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Marketing Strategy ◽  
Business Strategy ◽  
Emerging Market ◽  
Paper Industry ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Local Companies ◽  
The Impact

Subject area Transforming a production-oriented firm into a marketing-oriented firm; aligning marketing strategy of local companies in globalizing emerging markets; creating sustainable competitive advantage. Student level/applicability Post graduate management courses in marketing management, strategic marketing, international marketing, business strategy. Case overview This case is about how the leader in the Indian paper industry, Ballarpur Industries Ltd (BILT), is proactively transforming a production-oriented firm to a marketing-oriented firm to compete in the globalizing emerging market scenario, in the wake of economic liberalisation. It requires the participants to evaluate the impact of marketing initiatives made, and align BILT's marketing strategy to leverage it's strengths and help create sustainable competitive advantage. Expected learning outcomes To understand the need for local companies in emerging markets to proactively align marketing strategy to build competitive advantage in the globalizing industry. Supplementary materials Teaching notes.

scholarly journals Evaluating the impact of corporate logos towards corporate reputation

2017 ◽  
Vol 20 (2) ◽  
pp. 158-180 ◽  
Author(s):  
Pantea Foroudi ◽  
Khalid Hafeez ◽  
Mohammad M. Foroudi
Keyword(s):  
Emerging Markets ◽  
Cultural Values ◽  
Attribution Theory ◽  
Corporate Reputation ◽  
Emerging Market ◽  
Corporate Image ◽  
Customer Relationship ◽  
Corporate Communications ◽  
Content Type ◽  
The Impact

Purpose This paper aims to examine the impact of corporate logos on corporate image and reputation in creating competitive advantage in the context of Persia and Mexico as emerging markets. The paper provides an extensive links between corporate logo and its dimension and internal stakeholders’ attitudes towards advertisement, familiarity and recognisability as intermediaries to corporate image and reputation. Design/methodology/approach A qualitative exploratory approach was undertaken, comprising 12 face-to-face interviews and 14 skype in-depth interviews with graphic designers, design, communication and marketing consultant in Mexico and Persia based on attribution theory. Findings The study posits that the more favorable the name, colour, typeface and design of the company logo, the more favorable the attitude Mexican consumers have towards the corporate logo, corporate image and reputation. However, in comparison for Persia these factors have less effect on customers’ judgment and behaviour, towards the corporate logo, corporate image and reputation. The research findings suggest that the selection of colour in a corporate logo is related to its marketing objectives, cultural values, desired customer relationship levels with the organisation and organisation’s corporate communications. Originality/value Corporate logo has received little attention in marketing literature and rarely researched in the context of emerging market. This is the first research of its kind to find the effect of the compound logo in emerging markets of Persia and Mexico. Therefore, this research makes significant contribution towards the corporate visual identity literature by developing of the sphere of influence of the corporate logo and its antecedents and consequences (corporate image and corporate reputation).

The impact of artificial intelligence (AI) finance on financing constraints of non-SOE firms in emerging markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jun Shao ◽  
Zhukun Lou ◽  
Chong Wang ◽  
Jinye Mao ◽  
Ailin Ye
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Financing Constraints ◽  
Content Type ◽  
Emerging Market Countries ◽  
Finance Development ◽  
Cash Flow Sensitivity ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

PurposeThis study investigates the impact of AI finance on financing constraints of non-SOE firms in an emerging market.Design/methodology/approachUsing a sample of non-SOE listed companies in China from 2011 to 2018, this research employs the cash–cash flow sensitivity model to examine the effect of AI finance on financing constraints of non-SOE firms.FindingsWe find that the development of AI finance can alleviate the financing constraints of non-SOE firms. Further, we document that such effect is more pronounced for smaller firms, more innovative firms and firms in developing areas.Practical implicationsThis study suggests that emerging market countries can ease the financing constraints of non-SOE firms by promoting AI finance development.Originality/valueThis study, to the best of our knowledge, is the first one to explore the relationship between AI finance development and financing constraints of non-SOE firms in emerging markets.

IKEA Inc.: the India way

2020 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Learning Outcomes ◽  
Emerging Market ◽  
Local Environment ◽  
Global Strategy ◽  
International Strategy ◽  
Content Type ◽  
Academic Level

Learning outcomes Learning outcomes are as follows: to learn about the application of Bartlett and Ghoshal’s model of international strategy; to compare and contrast the global strategy of IKEA in India and China; and to understand how adaptability can create a new competitive advantage in emerging markets. Case overview/synopsis The case study enables discussion about the global strategy of a well-established multi-national company, IKEA in an emerging market. IKEA is a well-established and well-known brand in the international market in furniture retailing. It has decided to make a debut in India in 2017 with its first store in Hyderabad. However, it was yet to open it in 2018. The case emphasizes upon understanding the global strategy of IKEA, positioning itself in the fragmented Indian furniture industry, managing differences in emerging markets and adapting to the local environment of the particular country. The case highlights how adaptability can create a new competitive advantage in managing global strategy in different countries of emerging markets. Complexity academic level This case study is developed for post-graduate management programs as an MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

scholarly journals The impact of characteristics of intra-organizational environment on entrepreneurial marketing intensity and performance in Egypt

2020 ◽  
Vol 12 (5) ◽  
pp. 621-642
Author(s):  
Abeer Mahrous ◽  
Mohamed Ashraf Genedy ◽  
Morris Kalliny
Keyword(s):  
Emerging Markets ◽  
Organizational Performance ◽  
Emerging Market ◽  
Planning Horizon ◽  
Organizational Environment ◽  
Content Type ◽  
Entrepreneurial Marketing ◽  
And Performance ◽  
Marketing Intensity ◽  
The Impact

Purpose The purpose of this paper is to contribute to the entrepreneurial marketing (EM) paradigm by empirically investigating the relationship between intra-organizational environment, EM intensity (EMI) and organizational performance in an emerging market context. Specifically, the paper identifies the elements of the intra-organizational environment that enhances EMI and also examines the impact of EMI on organizational performance. Design/methodology/approach The data were collected from large-sized companies in Egypt. Data were analyzed by using path analysis on Smart-PLS. Findings The findings suggest that the characteristics of the intra-organizational environment that support developing and increasing EMI in large-sized companies in emerging markets are cooperative competency, deep locus of planning and institutional support. Also, it was found that the long planning horizon hinders EMI. Finally, it was found that EMI is positively related to organizational performance and competitive advantage. Practical implications The study provides guidelines for managers of large-sized organizations, especially in emerging economies, on how to develop the intra-organizational environment to enhance EMI. Originality/value The study of EMI received little or no attention in previous research. Also, there is a paucity of empirical research on the impact of the intra-organizational environment on EMI and also on the impact of EMI on the organizational performance of large-sized companies in emerging markets. Therefore, the results of this research are a step toward filling these gaps.

Design leaps: business model adaptation in emerging economies

2016 ◽  
Vol 10 (2) ◽  
pp. 105-124 ◽  
Author(s):  
Sunil Sharma ◽  
Mukund R. Dixit ◽  
Amit Karna
Keyword(s):  
Boundary Conditions ◽  
Emerging Markets ◽  
Business Model ◽  
Emerging Economies ◽  
Emerging Market ◽  
Model Adaptation ◽  
Design Features ◽  
Content Type ◽  
Business Opportunities ◽  
Contextual Intelligence

Purpose Firms take design leaps when they imitate an established business model developed either by another firm or in another market to create business opportunities. While recent research has suggested the use of contextual intelligence for imitation, the exact process of adaptation of a business model is not fully understood. The purpose of this paper is to outline the process through which an emerging market firm adapts a developed market business model for creating business opportunities in the local market. Design/methodology/approach This paper investigates the journey of Air Deccan, the pioneer low-cost airline in India, from its founding until its successful adaptation of a (Western) business model and eventual failure. The authors use a qualitative case-based approach to study business model adaptation. Findings The authors find that adaptation involves the incorporation of following design features: novelty to overcome problem of institutional voids, elasticity to exploit unexpected increase in demand and efficiency to serve large volumes. Based on the evidence, the authors suggest the introduction of global efficiency measures as the boundary conditions of business model adaptation in emerging markets. Research limitations/implications The paper contributes to the literature on business models by suggesting elasticity as a unique design feature relevant for emerging markets. This paper provides granular understanding of business model toxicity. Practical implications Entrepreneurs and managers – looking to enter emerging markets through opportunity creation – should focus on providing contextually novel design features in the adapted business model. The authors also caution practitioners against the perils of toxicity arising out of combining contextual novelty with efficiency. Originality/value Recent literature suggests that multinationals need contextual intelligence to successfully monetize their investment in emerging economies. This paper provides rich description of the challenges faced by entrepreneurs in emerging markets, local innovations used to overcome them and boundary conditions.

Knowledge and organizational performance in franchised restaurants in Colombia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
César-Augusto Bernal ◽  
Norbey Amaya ◽  
Alicia Gaviria-Peñaranda ◽  
Anne Marie Zwerg-Villegas
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
Organizational Development ◽  
Emerging Market ◽  
Value Added ◽  
Environmental Scanning ◽  
Managerial Decision ◽  
Content Type ◽  
Organizational Goals ◽  
The Impact

PurposeThe aim of this study is to analyze the importance of knowledge in reaching organizational objectives (long-term organizational goals) and in constructing competitive advantage (value-added) and identifying the impact of this knowledge on organizational performance of franchised restaurants in an emerging market.Design/methodology/approachLikert-scale surveys were applied to 50 managers representing 80% of the franchised restaurant business in Bogotá, Colombia. Data processing was performed through descriptive statistics, multiple correspondences analysis (MCA) and logit regression (LR).FindingsResults indicate that 1) of the set of factors that contribute to the achievement of franchise objectives, personnel motivation and continuous environmental scanning are the most important; 2) the primary sources of knowledge for construction of competitive advantage are clients and providers; and 3) the most significant impact of knowledge occurs in human resource and organizational development and in increased earnings.Practical implicationsThe study provides evidence of the role and the impact of knowledge in the performance of franchised restaurants and thereby contributes to academic analysis and managerial decision-making.OriginalityThis study provides aggregated and disaggregated analysis of empirical data on the role of knowledge in franchised restaurants, a sector with limited extant research in the context of emerging markets.

Driving the internet and e-business technologies to generate a competitive advantage in emerging markets

2019 ◽  
Vol 33 (2) ◽  
pp. 389-423
Author(s):  
Gamal Mohamed Shehata ◽  
Mohammed A. Montash
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Quantitative Research ◽  
Emerging Market ◽  
Empirical Studies ◽  
The Internet ◽  
Competitive Advantages ◽  
Mena Region ◽  
Content Type ◽  
Major Market

Purpose The purpose of this paper is to develop and empirically examine a comprehensive model that attempts to identify the factors that explain competitive advantage of implementing electronic business (e-business) in an emerging market. It seeks to fulfill an inevitable lack of conducting rigorous and intensive empirical studies on the Middle East and North Africa (MENA) region in which the internet use and e-business applications are on the rise. Design/methodology/approach This research is descriptive in nature where a quantitative research methodology is deployed. Data are collected using both interviews and e-survey for a sample of 302 Egyptian companies serving in diverse industries. A multivariate partial least squares technique is employed to analyze the collected data. Findings This study explores various e-business modes and applications widely employed in the MENA region. It also addresses a set of e-business-driven competitive advantages that are mainly generated from supportive ICT environment, major market forces and strategic opportunities, and at last, from electronically driven customers’ relationship initiatives. A number of e-business barriers are claimed to moderate the relationship between those forces and the resulting competitive advantages. Research limitations/implications Although this research main framework incorporates important variables based on theoretical and empirical foundations, integrating other factors may extend understanding of how these factors, independently and/or interactively, explain the adoption of e-business and its merit to create distinctive competitive advantage. Practical implications This work helps managers and e-business experts alike to comprehend the ways through which firms target the applications of e-business technologies to realize a competitive edge in MENA region. It also helps practitioners and professionals comprehend the interrelationship between the type of forces drive e-business based competitive position and key barriers that deteriorate such a connection in emerging markets. Originality/value A model that enables scholars to better understanding the e-business phenomenon in MENA market is developed and validated. This model rests on e-business experts’ perspectives, reflections and it is evidently substantiated by past works in the areas.

On the linkage between stock market development and economic growth in emerging market economies

2015 ◽  
Vol 14 (4) ◽  
pp. 363-381 ◽  
Author(s):  
Pramod Kumar Naik ◽  
Puja Padhi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Emerging Economies ◽  
Emerging Market ◽  
Market Development ◽  
Data Series ◽  
Annual Data ◽  
Content Type ◽  
Stock Market Development ◽  
The Impact

Purpose – The purpose of this study is to empirically examine the impact of stock market development on the economic growth for a panel of 27 emerging economies using annual data over the period from 1995 to 2012. Design/methodology/approach – A second-generation panel unit root test developed by Pesaran (2007) has been used to test the stationary properties of the data series. To achieve the study objectives and to mitigate the endogeneity problem that exists in the given model, the authors use a dynamic panel “system GMM” estimator. The authors also use a heterogeneous panel causality test proposed by Dumitrescu and Hurlin (2012) to examine the direction of causality among the variables. Findings – The empirical findings indicate that stock market development significantly contributes to economic growth. Further, a unidirectional causality running from stock market development to economic growth has been found. This finding is consistent with the supply-leading hypothesis. Besides stock market development, it is also evident that macroeconomic variables, such as investment ratio, trade openness and exchange rates, have significant impact on economic growth. Research limitations/implications – The findings suggest that a well-functioning stock market, a more globalized economy and increasing aggregate investment can potentially foster the economic growth in those emerging economies. Originality/value – Unlike other studies, this study constructs three alternate composite indices along with the individual indicators of stock market development and applies robust panel econometric techniques to establish more reliable results.

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