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.

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.

The competitive advantages of emerging market multinationals: a re-assessment

2015 ◽  
Vol 11 (3/4) ◽  
pp. 216-235 ◽  
Author(s):  
Peter J. Williamson
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Emerging Market ◽  
Chain Structure ◽  
Global Market ◽  
Global Value Chain ◽  
Competitive Advantages ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Bric Countries

Purpose – The purpose of this paper is to re-assess both the nature and sources of the competitive advantages which multinationals expanding from home bases in emerging economies (EMNEs) may enjoy in the global market. Design/methodology/approach – The paper analyses the results of 12 concurrent studies undertaken by a group of experts who were asked to examine how strategies for innovation, international value chain configuration and foreign mergers and acquisitions contributed to the competitive advantages of multinationals emerging from Brazil, Russia, India and China (the BRICs), respectively. Findings – EMNEs do have competitive advantages that can underpin their expansion abroad, but these are mainly “non-traditional” advantages that have been built by finding innovative ways to leverage advantages of their home countries. EMNE’s internationalisation is as much about accessing new resources and knowledge to enable them to extend their competitive advantage, as it is a route to exploiting existing advantages over a larger set of markets. As a result, the global value chain structure of EMNEs tends to be fundamentally different from that chosen by incumbent multinationals. Research limitations/implications – The study is limited to EMNEs from the BRIC countries, but implications for EMNEs emerging from other countries are discussed. Originality/value – We bring to bear extensive data and a systematic approach to understanding the new breed of multinationals emerging from the BRIC countries; their sources of competitive advantage; and how they are using innovation, foreign investment and overseas acquisitions to transform global competition.

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.

Internationalisation commitment of emerging market firms

2018 ◽  
Vol 25 (2) ◽  
pp. 201-221 ◽  
Author(s):  
Constanza Bianchi ◽  
Jorge Carneiro ◽  
Rumintha Wickramasekera
Keyword(s):  
Latin America ◽  
Emerging Markets ◽  
Latin American ◽  
Structural Equation ◽  
Emerging Market ◽  
Empirical Studies ◽  
Institutional Environments ◽  
Cross Sectional ◽  
Content Type ◽  
Emerging Market Firms

Purpose Enhancing firm commitment towards internationalisation is an important step towards ensuring successful international performance. However, there is limited research on this topic for emerging market firms. The purpose of this paper is to investigate the factors that influence the internationalisation commitment of emerging market firms located in two Latin American countries with different institutional environments. Design/methodology/approach This study proposes and tests a conceptual model that includes drivers and barriers of internationalisation commitment. Data were collected from Chilean and Brazilian firms. The model uses confirmatory factor analysis to develop the underlying multi-item constructs and structural equation modelling to test the model. Findings The results show that managers’ perceptions of firm resources and capabilities are significant drivers of internationalisation commitment in both countries. In addition, perceptions of internal firm-specific barriers, such as a manager’s lack of international experience and knowledge, are negatively related to internationalisation commitment in Chile, but not in Brazil. Finally, external environmental barriers are negatively related to internationalisation commitment in Brazil, but not in Chile. Practical implications The context for the study is Chile and Brazil. Both are important emerging markets in Latin America, with a strong focus on firm internationalisation. The research design is cross-sectional and so does not allow for any causal claims to be made. The findings have important implications for internationalisation efforts of managers and export promotion agencies of emerging markets with different institutional environments. Originality/value This research contributes to the relatively scant but increasing number of empirical studies which investigate emerging market internationalisation in Latin America.

scholarly journals Is capital conservation buffer or regulatory leverage better at improving bank efficiency? The case of an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Korein ◽  
Ahmed Abotalib ◽  
Mariusz Trojak ◽  
Heba Abou-El-Sood
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Data Envelopment Analysis Model ◽  
Basel Iii ◽  
Analysis Model ◽  
Mena Region ◽  
Bank Efficiency ◽  
Content Type

Purpose This paper is motivated by the heated debates preceding the introduction of additional regulatory requirements of Basel III on capital conservation buffer (CCB) and regulatory leverage (RLEV) in banks of emerging markets. The paper aims to examine which policy ratio can improve bank efficiency (BE), in one of the most resilient banking settings in the Middle East and North Africa (MENA) region. Design/methodology/approach The analysis is performed on a sample of 13 banks for the period 2010–2018 in Egypt and proceeds in two steps. In the first step, the data envelopment analysis model is used to derive bank-specific efficiency scores. In the second step, BE scores are regressed on the two types of regulatory capital and a set of control variables. Findings The paper is motivated by regulatory debates on the viability of RLEV and CCB in enhancing BE. The results show that higher RLEV and CCB are associated with a reduction in BE and that RLEV is highly associated with BE compared to CCB. Hence, results are relevant to policymakers in designing measures for improving BE in emerging markets. Originality/value The findings contribute to a small but growing stream of research on capital adequacy in emerging markets. This study provides results on the viability of risk-based vs non-risk-based capital requirements. The findings are also relevant to bank regulators in similar emerging market settings in their efforts to introduce and phase in minimum leverage requirements according to Basel III.

Positioning strategies of retailers’ brands in the emerging market – a cluster analysis

2018 ◽  
Vol 13 (5) ◽  
pp. 925-942 ◽  
Author(s):  
Marzanna Katarzyna Witek-Hajduk ◽  
Anna Grudecka
Keyword(s):  
Cluster Analysis ◽  
Emerging Markets ◽  
Random Sample ◽  
Design Methodology ◽  
Emerging Market ◽  
Competitive Advantages ◽  
Brand Positioning ◽  
Content Type ◽  
Clustering Approach ◽  
Practical Implications

Purpose The purpose of this paper is to identify and profile clusters of retailers operating in emerging markets, in terms of positioning strategies of their own brands (based on the example of the Polish market). Design/methodology/approach The study is based on a random sample of 143 medium and large retailers operating in Poland. The data were collected using a CATI method at the end of 2014 and then analyzed with the use of hierarchical and non-hierarchical methods. Findings With the use of cluster analysis, six clusters of retailers were identified. Members of each cluster refer to different predominant factors when positioning their own brands. Members of each cluster do not differ significantly in terms of descriptive variables (exogenous to the cluster analysis) being used for profiling clusters. Research limitations/implications In this study, only retailers operating in Poland were surveyed. This study does not refer to the targeting strategies, which may be analyzed jointly with the positioning strategies of retailers’ brands. Practical implications The paper has implications in understanding the approaches to the retailer brand positioning representing by the identified clusters of retailers that might be a basis for the creation of the retailers’ competitive advantages. Originality/value The main contribution of this research lies in the clustering approach to segmenting retailers in terms of their own brands’ positioning strategies and identifying clusters of retailers in the Polish market due to the retailer brands’ positioning.

Navigating the digital revolution and crisis times: humanitarian and innovation-inspired leadership through the pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kathleen Marshall Park
Keyword(s):  
Emerging Markets ◽  
Supply Chains ◽  
Emerging Market ◽  
Data Access ◽  
Future Research ◽  
Mena Region ◽  
Content Type ◽  
Digital Revolution ◽  
Global Pandemic ◽  
The World

PurposeThis article examines the leadership vision, values and vigilance of an emerging markets logistics firm in managing customer and humanitarian concerns and critical supply chains during the COVID-19 pandemic. The study explores how an emerging markets firm has contributed to global supply chain mobility and vaccine distribution in the pandemic – keeping cargo moving – drawing on vision, values and vigilance, including attention to the innovation momentum of the firm.Design/methodology/approachThe article concentrates on an exemplar firm, leader and management team to illustrate challenges of helmsmanship during the pandemic for an emerging markets firm, Agility, that operates worldwide in numerous developed and developing economy markets. The article develops a case study analyzing how Agility has met the simultaneous challenges for innovation and transformation in the digital revolution and navigation through the crisis times of the global pandemic. The analysis derives from direct management communications, corporate documents and media sources.FindingsThe vision, values and vigilance of the leadership, with emphasis on digital innovations and disruptions, digital supply chains, humanitarian partnerships, focusing both globally and on emerging markets, and nurturing smaller as well as larger businesses, have enabled the firm to thrive. Given the importance of global supply chains during COVID-19, Agility is a pivotal example of partnering with governments and pharmaceutical companies worldwide in delivering the new array of vaccines, as well as personal protective equipment and other medical supplies, in the battle against the pandemic. Agility in addition illustrates the strategic value of partnering with other logistics firms in humanitarian collaborations as well as in business strategy transactions.Research limitations/implicationsThe article contributes to the emergent research stream on leadership, innovation and internationalization in the Arabian Gulf Cooperation Council and Middle East North Africa (GCC/MENA) region and more generally on the strengths and proficiencies of emerging market firms and leaders. Future research could examine additional firms, industries or regions of the world during the pandemic or other crisis contexts. Further data sources and analyses can be used in validating and extending the findings.Practical implicationsDigital supply chains, humanitarian partnerships and an emphasis on digital communications, storage and transportation innovations can benefit firms from all regions of the world during the global pandemic and other crises, as well as in normal operations.Social implicationsEmerging markets represent the majority of global population and economic growth, as well as of pandemic cases and mortality risk, signifying the importance of leadership, collaboration and innovation around issues such as vaccine delivery into emerging markets regions of the world.Originality/valueThe article takes a revelatory case perspective in the pandemic crisis context from a unique foundation of immersive field research and data access in the GCC/MENA) region.

Exploring business model innovation for competitive advantage: a lesson from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natasha Saqib ◽  
Mir Shahid Satar
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Customer Service ◽  
Business Model ◽  
Service Sector ◽  
Business Models ◽  
Current Knowledge ◽  
Emerging Market ◽  
Business Model Innovation ◽  
Content Type

Purpose Emerging markets are witnessing rapid changes in their economy owing to the ongoing liberalization and globalization. India, as one of the emerging markets in south Asia, is also experiencing a dramatic change in its business ecosystem. This poses huge opportunities to the companies, both start-ups and established ones. In this direction, the business model innovation offers a strategic renewal mechanism. The study aims to explore the practices of an online transport network company (OLA) creating a distinctive place for itself in Indian taxi service sector. Design/methodology/approach Methodologically, an exploratory case study of an India-based online transport company (OLA) business model innovation is reported. Findings This paper reveals that OLA has been able to gain competitive advantage in the Indian emerging market by developing an innovative business model with its distinctive features of personalised customer service, asset sharing, usage-based pricing, collaborative ecosystem, agile and adaptive organising and successful expansion strategies. Research limitations/implications This study adds to current knowledge concerning the theoretical foundations and antecedents of business model innovation as a competitive advantage. The paper is explorative in nature because the analysis is mostly based on literature review. Furthermore, in consideration of the analysis of business model of a single company, further research is required to generalize the results. Practical implications The understanding of the intricacies of business model innovation can be of great concern to existing and prospective managers and entrepreneurs of emerging markets. Originality/value The paper discusses the features of innovative business models and how firms can make their business models more relevant to the competitive markets. As such, the study is hopeful to aid practitioners engaged in the pursuit of beating the competition with innovation driven business models.

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.

The role of innovation in building competitive advantages: an empirical investigation

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

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