M.R. Mulwa, A. Emrouznejad and F.M. Murithi
The data used in this study is for the period 1980‐2000. Almost midway through this period (in 1992), the Kenyan government liberalized the sugar industry and the role of the…
Abstract
Purpose
The data used in this study is for the period 1980‐2000. Almost midway through this period (in 1992), the Kenyan government liberalized the sugar industry and the role of the market increased, while the government's role with respect to control of prices, imports and other aspects in the sector declined. This exposed the local sugar manufacturers to external competition from other sugar producers, especially from the COMESA region. This study aims to find whether there were any changes in efficiency of production between the two periods (pre and post‐liberalization).
Design/methodology/approach
The study utilized two methodologies to efficiency estimation: data envelopment analysis (DEA) and the stochastic frontier. DEA uses mathematical programming techniques and does not impose any functional form on the data. However, it attributes all deviation from the mean function to inefficiencies. The stochastic frontier utilizes econometric techniques.
Findings
The test for structural differences in the two periods does not show any statistically significant differences between the two periods. However, both methodologies show a decline in efficiency levels from 1992, with the lowest period experienced in 1998. From then on, efficiency levels began to increase.
Originality/value
To the best of the authors' knowledge, this is the first paper to use both methodologies in the sugar industry in Kenya. It is shown that in industries where the noise (error) term is minimal (such as manufacturing), the DEA and stochastic frontier give similar results.
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Biresh K. Sahoo and Debashis Acharya
The purpose of this paper is to construct a robust macroeconomic performance (MEP) index of the State economies of an emerging market economy, i.e. India.
Abstract
Purpose
The purpose of this paper is to construct a robust macroeconomic performance (MEP) index of the State economies of an emerging market economy, i.e. India.
Design/methodology/approach
Two variants of data envelopment analysis (DEA) models – radial and non‐radial – are proposed to construct the macroeconomic policy performance of 22 Indian State economies in the post‐economic reforms era covering the period: 1994‐1995 to 2001‐2002, using three macroeconomic indicators: growth in gross state domestic product, price stability, and fiscal deficit.
Findings
The authors' three broad empirical findings are: first, the radial and non‐radial DEA models yield significantly different rankings of State economies in terms of their MEP index scores; second, as against the use of only growth in gross state domestic product and price stability for MEP measure, the inclusion of fiscal deficit as an additional indicator yields a noticeable improvement not only in the State MEP index scores, but also in their rankings, thus providing the evidence of relatively successful attempt by the Indian States in reducing fiscal deficit, in general, and legislating FRBM bill, in particular; and third, a positive significant correlation between foreign direct investment (FDI) and MEP indicates that a State's overall macroeconomic policy performance does matter to attract FDI.
Research limitations/implications
Since the DEA models employed in this study ignore the possibility of asymmetric shocks, the MEP results might be questioned in this deterministic setting. However, the study period has been smooth and has not been subject to any major changes in the State economic policies. Therefore, the MEP results might not be susceptible such changes. However, further research is desired on examining the macroeconomic policy performance behavior of Indian States using bootstrapping DEA.
Originality/value
None of the past Indian studies were able to give a comprehensive picture concerning the MEP behavior of Indian State economies, since the methodologies adopted in those studies were not suitable to take into consideration all the macro indicators at a time. Therefore, this present study is considered the first of its kind in assessing the MEP index of the Indian State economies by simultaneously considering all the macro indicators.
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Casimiro Almeida M Graca and Coelho Arnaldo
Corporate reputation (CR) is an important intangible asset of a company. The purpose of this paper is to investigate the role of CR on co-operants behavior and on organizational…
Abstract
Purpose
Corporate reputation (CR) is an important intangible asset of a company. The purpose of this paper is to investigate the role of CR on co-operants behavior and on organizational performance in co-operative organizations.
Design/methodology/approach
This investigation proposes an investigation model and tests the framework using structural equation modeling. For this purpose, 263 valid questionnaires were collected from a research sample comprised of co-operants of the biggest dairy union of co-operatives in Iberia.
Findings
CR has a significant impact on co-operatives members’ loyalty and on co-operatives’ performance. The model provides a wider comprehension of the CR concept and introduces both the drivers and consequences.
Research limitation
This investigation is based on a sample of members of one union of co-operatives in the specific dairy milk industry.
Practical implication
The results give new guidelines to redress the co-operatives traditional management, namely the management of intangible assets like reputation. Internal culture, satisfaction with management, image and communication can boost reputation and thus organizational performance and members’ loyalty.
Social implication
This paper aims to contribute to the competitiveness of a type of organization closed to the social structure of the rural population.
Originality value
The results bring the management challenges of the twenty-first century to the traditional principles underlying co-operatives management helping them to reinforce competitiveness.
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The issue of which financial initial conditions are necessary to materialize the benefits of financial globalization remains open to debate in the literature. In this paper, the…
Abstract
Purpose
The issue of which financial initial conditions are necessary to materialize the benefits of financial globalization remains open to debate in the literature. In this paper, the author tries to put some empirical structure on the concept of financial threshold conditions in order to give policymakers guidance on the Kose et al. and Henry hypothesis. Its object is to assess whether financial benefits of financial globalization are questionable until greater domestic financial development has taken place in African countries. The paper aims to discuss these issues.
Design/methodology/approach
In framing the financial dimension in a more concrete and tractable manner, the author examines the concerns of how domestic financial initial dynamics of depth (economic and financial systems), efficiency (banking and financial systems), activity (banking and financial systems) and size, play out in the financial development benefits of financial globalization. The estimation approach consists of assessing the impact of financial globalization through out the conditional distributions of domestic financial development dynamics.
Findings
The introduction of previously missing financial dimensions into the debate generates a number of important findings. Only financial initial (threshold) conditions of size are necessary to materialize the benefits of financial globalization. While financial depth only partially validates the hypothesis, dynamics of efficiency and activity (credit) do not confirm the hypothesis.
Practical implications
Addressing the issue of surplus liquidity in African financial institutions could improve the benefits of financial size and potentially reverse the trends of financial efficiency and activity. Depending on the context of sampled countries, the appropriate role of policy has always been either to stem the tide of capital flows or encourage them. Policymakers who have been viewing their challenges exclusively from the latter perspective for benefits in growth (finance) might be getting the financial dynamics badly wrong.
Originality/value
Blanket financial development policies may not reap the financial benefits of financial globalization until domestic financial dynamics of depth, efficiency, activity and size are critically considered. The introduction of the last three previously missing components in the literature sheds more light on the globalization-development nexus.
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Luisa Marti, Rosa Puertas and Consuelo Calafat
The purpose of this paper is to study the efficiency and financial situation of Spanish airlines by conducting a comparative analysis of those operating in hubs and those that…
Abstract
Purpose
The purpose of this paper is to study the efficiency and financial situation of Spanish airlines by conducting a comparative analysis of those operating in hubs and those that employ the point-to-point system.
Design/methodology/approach
Data envelopment analysis and accounting rates are implemented to do so.
Findings
The results show that hubs do not result in the companies that use them being efficient. Instead, it is the charter, low-cost and private flight operators that best manage their resources.
Originality/value
The study makes a novel contribution to the literature, as there has been no research on Spanish airlines that compares the two types of operators (hubs and point to point).
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Margarida Rodrigues, Rui Silva, Mário Franco and Cidália Oliveira
The year 2020 was heavily marked by an unprecedented pandemic affecting society as a whole. However, under-represented groups may have seen their financial and social situation…
Abstract
Purpose
The year 2020 was heavily marked by an unprecedented pandemic affecting society as a whole. However, under-represented groups may have seen their financial and social situation affected differently from other groups. Thus, it was found that in the literature, the term inclusive entrepreneurship, which addresses these issues, was fragmented in view of its similarity and association with social entrepreneurship, inclusive business and sustainability. In this sense, this paper aims to map the scientific knowledge on this topic.
Design/methodology/approach
To fulfil this aim, a systematic literature review was supported by bibliometrics (performance analysis and scientific mapping) and by the use of the software Bibliometrix R and VoSviewer.
Findings
The results obtained show that in the Web of Science, there are 121 documents related to this topic whose content analysis revealed that they are distributed between sustainability, entrepreneurship and inclusive entrepreneurship in the close triple association.
Practical implications
The main contributions of this study are the connection established between the three concepts and the emergence of continuing to develop research on inclusive entrepreneurship, given its binary function: employment generation for disadvantaged groups and inclusive business creation.
Originality/value
The relevance of this bibliometric analysis stands out, providing the positioning of academics on the importance of leveraging emerging research on this topic, not only in poor countries but also in others.
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Julius J. Okello, C.J. Lagerkvist, Rogers Kakuhenzire, Monica Parker and Elmar Schulte-Geldermann
Potato is a major food staple in Africa, but its production is constrained by poor quality of seed. A recent private–public partnership in Tanzania resulted in introduction of new…
Abstract
Purpose
Potato is a major food staple in Africa, but its production is constrained by poor quality of seed. A recent private–public partnership in Tanzania resulted in introduction of new higher yielding varieties. The purpose of this paper is to examine smallholder farmers’ motivations to invest in the purchase of quality seed of new potato varieties, and if the motivational structure differs by gender.
Design/methodology/approach
The paper used means-end chain (MEC) theory combined with goal priming, and laddering interviews on randomly sampled participants (n=45) of an experimental auction conducted among smallholder farmers in Tanzania. The auction was designed to goal-prime respondents on benefits of quality seed. The mental constructs obtained were grouped into attributes, consequences and values, and MECAnalyst software used to generate hierarchical value maps.
Findings
Farmers invest in quality seed of a new variety to increase yields, hence income, and also to pursue personal life goals (values) or meet psychosocial needs. The structure of mental constructs associated with the decision to invest in quality seed of a new variety differ by gender.
Research limitations/implications
The study focused on only two new varieties, hence not robust to all new potato varieties. Results need to be tested under different socioeconomic contexts. Furthermore, the MEC approach does not allow for control of other variables that likely influence farmer adoption decision-making process. Future studies should be designed to tackle these limitations.
Practical implications
Investment in quality seed of new variety is driven by monetary goals and psychosocial factors, and some of these factors differ between male and female farmers.
Originality/value
This is the first study to explore drivers of farmers’ decision to use quality seed of a new variety using MEC analysis, and role psychosocial factors play.
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Michael Enowbi Batuo and Simplice A. Asongu
The purpose of this paper is to investigate the impact of liberalisations policies on income inequality in African countries. Examining whether the liberalisations policies have…
Abstract
Purpose
The purpose of this paper is to investigate the impact of liberalisations policies on income inequality in African countries. Examining whether the liberalisations policies have affected the income distribution of everyone equally or they only assist those who are already relatively well off; leaving the poor behind. The authors also examine how they affect income distribution in the various countries within the continent, and their effect on short and long runs?
Design/methodology/approach
First, The authors used the before and after comparison, to examine the response of the level of income inequality and the volatility of income inequality from the time that financial or trade liberalisations took place in each country. Next, the authors used the panel data techniques model for a sample of 26 African countries spanning the period 1996-2010 to investigate the effect of liberalisation policies on income distribution.
Findings
The authors find that financial liberalisation has a levitated income-redistributive effect with the magnitude of the de jure measure (KAOPEN) higher than that of the de facto measure (FDI); that exports, trade and “freedom to trade” have an equality incidence on income distribution; and that institutional and/or political liberalisation has a negative impact and; economic freedom has a negative income-redistributive effect, possibly because of the weight of its legal component.
Practical implications
In general, this study provides a variegated picture, findings tend to suggest that overall the reforms have increased income inequality in African countries. It would be risky to prescribe a general policy because of the diversity of the country. However, African countries’ better performance can be attributed to a combination of policies. For example avoiding the Marco price mixture of real exchange rate appreciation and high domestic interest rates; having capital controls and prudential financial regulations which would enable them to contain the negative consequence of capital flows; putting a system in place to direct export between African countries and encouraging sub regional integration agreement. The government should put in place countervailing social policies in order to withstand social coherence and smooth the adverse transition of liberalisation policies.
Originality/value
Three main elements of originality clearly standout: first, the estimation approach used in the paper considers both short- and long-run effects of in empirical strategy; second, an exhaustive plethora of liberalisation policies (trade, financial, political and institutional are considered); and third, recent data are used to appraise second generation reforms for more updated policy implications.
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Robert Brenya, Isaac Akomea-Frimpong, Deborah Ofosu and David Adeabah
As global concerns for sustainability have gained traction in all sectors of every economy including agribusiness, the need to investigate the critical barriers that could hamper…
Abstract
Purpose
As global concerns for sustainability have gained traction in all sectors of every economy including agribusiness, the need to investigate the critical barriers that could hamper this novelty has also risen. In that regard, this study presents a comprehensive overview of the dominant barriers encountered by agribusinesses to ensure long-term success through the lenses of a literature review.
Design/methodology/approach
The study used a systematic literature review (SLR) of 43 relevant articles. The study applies content analysis to identify and analyze the selected articles. The conceptual framework underlines the three principal barriers to sustainable agribusinesses.
Findings
The results from the SLR demonstrates that inadequate financial support, excessive post-harvest loss, gender inequality, non-climate-smart policies and weak institutional controls constitute the major challenges to the sustainability of agribusinesses.
Research limitations/implications
The study is limited in scope to barriers to the sustainability of agribusiness only not the broad spectrum of the concept of agriculture.
Originality/value
This study's uniqueness is twofold. First, it provides a checklist for practice with the goal of addressing problems that hamper the sustainability of agribusinesses. Second, the findings and research gaps in this study are important to support future studies.
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Lukman Raimi, Rabiu Olowo and Morufu Shokunbi
The growing adoption of sustainable finance for inclusive agribusiness requires a cross-country comparison. In this paper, a comparative discourse of sustainable finance (SF…
Abstract
Purpose
The growing adoption of sustainable finance for inclusive agribusiness requires a cross-country comparison. In this paper, a comparative discourse of sustainable finance (SF) options for agribusiness transformation in Nigeria and Brunei is attempted; as well as examining the implications on entrepreneurship and enterprise development in both countries.
Design/methodology/approach
A mixed research method was adopted for this cross-country comparative analysis. To gain deeper insight into agribusiness and SF, the authors sourced the required data from scholarly articles, texts, World Bank data (2000–2016), national policy documents, working papers, national development plan reports, and other online resources on agribusiness and SF. The authors adopted mixed data (non-numeric and numeric data) because they allow for combining content analysis and secondary data in quantitative analysis (Williams and Shepherd, 2017). This mixed method approach follows a three-stage, namely: Data sourcing, Data development and conversion and Data analysis.
Findings
This discourse based on the mixed data produced four findings. Firstly, it was found that both countries have different statuses in the agribusiness sector, but Brunei had better growth performance in the crop, food, livestock, cereal production indices compared to Nigeria. Secondly, the challenges facing agribusiness in both countries include inadequate funding, misuse/mismanagement of land resources, deployment of extractive farming practices, application of ozone-depleting chemicals and pesticides among others have harmed the vegetation, the farmland, and the chemistry of the ocean resulting in low productivity. Thirdly, the SF options that are suitable for agribusiness transformation are green loans, green bonds, green credit, green investment funds, green mortgage scheme and other green financial support instruments given mostly as grants, subsidies and tax reliefs. The key guidelines for entrepreneurs seeking SF options for agribusiness are Principles 2, 4, 5, 6, 8, 9 and 10 of the EPs.
Research limitations/implications
The main limitation of the study is that the analysis and interpretation of the findings are based on descriptive statistics. However, future research should consider using rigorous econometric tests such as the Co-Integration Test, Test of Causality and Inferential Statistics that would enhance stronger generalisation and prediction.
Practical implications
The practical implication is that agribusiness transformation through sustainable finance options (SFOs) would bring about a structural change from the current subsistence agricultural practices to large-scale agriculture practices characterised by the deployment of agricultural information systems (AGRIS), precision agriculture and agricultural technologies. Flowing from the first implication, the nexus between agribusiness and SFOs will systematically improve agricultural productivity in the areas of crop production, fishing, livestock and forestry in both countries. Thirdly, an improved agribusiness would boost food production and availability thereby mitigating the rising trends in food insecurity, food inflation, food poverty, and ultimately will help actualize SDG 1(No poverty), SDG 2 (Zero Hunger), and SDG 3 (Good Health and Wellbeing).
Originality/value
The authors contribute to the literature on SF and agribusiness in emerging economies by identifying an inclusive strategy that matters for agribusiness transformation in high-income and low-income economies.