Misagh Tasavori, Pervez N. Ghauri and Reza Zaefarian
The purpose of this paper is to shed light on the international market expansion of multinational corporations (MNCs) to the base of the pyramid (BoP). The authors employ the…
Abstract
Purpose
The purpose of this paper is to shed light on the international market expansion of multinational corporations (MNCs) to the base of the pyramid (BoP). The authors employ the corporate social entrepreneurship (CSE) perspective to reveal how MNCs can enter this market, the key enabling factors and the benefits they can gain. CSE is related to entrepreneurial and marketing strategies that are inspired by social responsibility.
Design/methodology/approach
An exploratory, qualitative multiple-case study has been employed. In-depth interviews were conducted with managers from three MNCs that have entered the BoP market in India.
Findings
The findings of this research confirm that successful entry into the BoP requires the pursuit of social responsibility and the adaptation of marketing strategies. In addition, MNCs should identify the key environmental factors (demand conditions and socio-political actors’ expectations) and develop organisational characteristics (management support, network orientation towards non-governmental organisations and availability of financial resources) to match. The findings of this research show that engagement in CSE in countries with considerable BoP populations can bring firms legitimacy and sustainable profitability.
Research limitations/implications
This research is based on interviews with a limited number of MNCs in India. Future studies could generalise the findings of this research to a larger number of corporations in other countries.
Originality/value
This research brings new insights to the field of international marketing by integrating the corporate social responsibility, marketing and entrepreneurship disciplines. The findings of this research offer empirical support for CSE and its role in international marketing strategies.
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Pervez Ghauri, Misagh Tasavori and Reza Zaefarian
The purpose of this paper is to explore how employing corporate social entrepreneurship and developing a network of relationships with non-governmental organisations (NGOs) can…
Abstract
Purpose
The purpose of this paper is to explore how employing corporate social entrepreneurship and developing a network of relationships with non-governmental organisations (NGOs) can support and contribute towards the internationalisation of service firms into the base of the pyramid (BOP) markets in emerging markets.
Design/methodology/approach
This research adopts an exploratory approach employing qualitative multiple case studies. Three service firms that have targeted the BOP markets in India were studied. In total, 25 in-depth interviews were conducted with multinational corporations (MNCs) and their NGO partners. Data analysis was facilitated through pattern matching and systematic case comparison.
Findings
The findings reveal that, by engaging in social entrepreneurship, these MNCs have focused on the neglected needs of the BOP population, developed sustainable solutions and empowerment, and started with social value creation and postponed value capturing. The pursuit of corporate social entrepreneurship has paved the way for them to establish relationships with NGOs. While the MNCs have mainly had the technical knowledge and financial resources required, collaboration with NGOs have allowed them to learn about the BOP’s specific needs and benefit from the NGOs’ knowledge, human resources and good relationships in this market.
Originality/value
This research unravels how service firms can seize opportunities at the BOP. The authors build on social entrepreneurship theory and bring new insights to the field of international business. In addition, the authors broaden the network view and show how networking with social actors such as NGOs enables the mobilisation of resources, actors and activities in emerging markets.
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Social information is crucial to credit ratings and can improve the accuracy of the traditional credit assessment model. Drawing on the resource-based view (RBV) and social…
Abstract
Purpose
Social information is crucial to credit ratings and can improve the accuracy of the traditional credit assessment model. Drawing on the resource-based view (RBV) and social capital theory (SCT), this research explores the relationships between corporate social activities, network centrality and corporate credit behavior.
Design/methodology/approach
The authors used social network analysis (SNA) and regression analysis to analyze the data collected from 14,544 enterprises on the Alibaba platform.
Findings
The results indicate that among the four types of social activities, the number of corporate questions and posts shows a positive relationship with credit behavior; while the number of corporate comments has negative relationship with credit behavior. Further, degree and betweenness centralities mediate the relationship between the number of corporate questions, posts and comments with credit behavior.
Originality/value
This study contributes to the literature on non-financial factors (soft information) by exploring the social behavioral factors related to corporate credit. In addition, this study offers a new theoretical lens and reasonable explanations for investigating the relationship between corporate social activities, network centrality and credit behavior from the perspective of the resource-based view, while most studies are predictive and methodological. Moreover, this study provides new insights for platforms to evaluate enterprise credit and for managers to improve credit behavior.
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Mandana Farzaneh, Peivand Ghasemzadeh, Jamal A. Nazari and Gholamhossein Mehralian
The direct impact of organizational learning (OL) on organizational performance has been studied over the past two decades. However, how OL contributes to organizational…
Abstract
Purpose
The direct impact of organizational learning (OL) on organizational performance has been studied over the past two decades. However, how OL contributes to organizational innovation still remains under-researched. Based on the knowledge-based view of the firm and dynamic capability theory, we developed a theoretical framework in order to empirically examine how OL offers organizations the essential tools for creating dynamic capabilities (DCs), which pave the way for innovation performance (IP).
Design/methodology/approach
The authors apply a time-lagged, multisource and survey-based research designed to test the proposed model in the pharmaceutical industry where knowledge is a source of innovation. The data collected from companies operating in such an industry were analyzed by utilizing hierarchical regression analysis to explore how OL could lead to IP through DC.
Findings
The results indicated that OL is positively, significantly associated with DCs, as well as its dimensions of learning, integrating and reconfiguring capabilities. The findings showed that these capabilities are significant predictors of innovation performance. In addition, the findings revealed that innovation culture significantly moderates the relationship between DCs and innovation performance.
Originality/value
By dedicating more time and resources, managers can reinforce dynamic capabilities as a strategic tool to generate new knowledge and distribute it across the organization, which can go a long way toward boosting innovation performance in the pharmaceutical industry. This study offers researchers and practitioners invaluable insights into how effective OL can enhance firm-level innovation performance through dynamic capabilities.
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Joseph Oscar Akotey, Godfred Aawaar and Nicholas Addai Boamah
This research explores to answer the question: What accounts for the substantial underwriting losses in the Ghanaian insurance industry?
Abstract
Purpose
This research explores to answer the question: What accounts for the substantial underwriting losses in the Ghanaian insurance industry?
Design/methodology/approach
Thirty-four (34) insurers' audited financial reports covering the period of 2007 to 2017 were analysed through dynamic panel regression to uncover the underlying causes of high underwriting losses in the Ghanaian insurance industry.
Findings
The findings indicate that efforts at increasing market share by overtrading add no value to insurers underwriting profitability. The underwriting risk suggests that the industry charges disproportionately too small premiums for the risks it underwrites. This may indicate under-pricing by some insurers to grow their customer base.
Practical implications
The findings have implications for managerial efficiency and risk management structures that align compensation with underwriting efficiency.
Originality/value
The association between managerial preference and the underwriting performance of insurers in emerging markets has rarely been researched. This study responds to this knowledge challenge.
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Anwar Halari, Sardar Ahmad, Subhan Ullah and Joseph Amankwah-Amoah
Despite the importance and prevalence of corporate political activities in modern organizations, there remains limited insight on the potential relationship between political…
Abstract
Purpose
Despite the importance and prevalence of corporate political activities in modern organizations, there remains limited insight on the potential relationship between political contributions and companies’ risk-taking activities. This study aims to examine the relationship between monetary political contributions of firms and corporate risk-taking activities in the context of unstable political and economic environments.
Design/methodology/approach
The authors use a two-step system GMM estimation to investigate the subject using a cross-country sample of 307 firms from 22 countries covered over 2002–2017. In line with previous studies, the authors control for various corporate governance mechanisms, firm-level factors and country-level characteristics.
Findings
The findings demonstrate that firms that make monetary political contributions exhibit lower levels of risk as measured by different proxies for risks, namely, systematic, idiosyncratic and total risk.
Practical implications
The results suggest that political contributions can be a useful mechanism to mitigate risk exposure. Also, the use of different risk measures and other factors for robustness fosters a better understanding of political connectedness in a more contextualized and dynamic manner.
Originality/value
This study seeks to contribute to the debate surrounding corporate strategy, political connectedness and corporate risk-taking by using actual monetary political contributions as an explicit measure of political connection. This study furthers scholarly understanding on the dynamics of corporate political activities using political contributions in monetary terms as a measure of political connectedness and its impact on risk-taking. Furthermore, the authors explore this topic using insights from nonmarket strategy literature and studies on political contributions.
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This study aims to investigate how the commitment of Islamic banking customers is influenced by trust, relationship expectations and conflict management. In turn, the influence of…
Abstract
Purpose
This study aims to investigate how the commitment of Islamic banking customers is influenced by trust, relationship expectations and conflict management. In turn, the influence of their commitment on future satisfaction is determined.
Design/methodology/approach
A descriptive research design was applied and responses were obtained from Islamic banking customers through the application of self-administered questionnaires. A total of 350 completed questionnaires were used in analysing the data. An exploratory factor analysis established the interrelationships of the scales used to measure the study’s constructs. In addition, both the measurement and structural models were evaluated.
Findings
Trust and relationship expectations significantly and positively influence customer commitment, while conflict management has no significant influence on the commitment of Islamic banking customers to their bank. In addition, commitment significantly and positively influences the satisfaction experiences of Islamic banking customers.
Research limitations/implications
The tested model validates the hypothesised relationships between the trust, relationship expectations, commitment and satisfaction of Islamic banking customers. However, the relationship between conflict management, commitment and satisfaction was not established. Commitment is linked to trust and relationship expectations, as well as its outcome, satisfaction. However, commitment could not be linked to antecedent conflict management.
Practical implications
The findings could assist retail banks servicing Islamic banking customers in offering in-depth knowledge of how trust and relationship expectations can foster customer commitment, eventually securing the positive satisfaction of customers.
Originality/value
The study focussed on Islamic banking customers and determined the interrelationships between commitment and related constructs. Few studies, however, have examined how commitment relates to its precursors and outcome from an Islamic banking perspective in an emergent African economy.
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Ayman wael AL-Khatib, Ahmed Shuhaiber, Ibrahim Mashal and Manaf Al-Okaily
This paper aims to empirically examine the impact of dynamic capabilities on Industry 4.0 capabilities in small and medium enterprises (SMEs) in Jordan. It also aims to examine…
Abstract
Purpose
This paper aims to empirically examine the impact of dynamic capabilities on Industry 4.0 capabilities in small and medium enterprises (SMEs) in Jordan. It also aims to examine the potential impact of industry 4.0 capabilities on technological innovation.
Design/methodology/approach
Data were collected from 210 respondents who work and own SMEs in Jordan. SmartPLS software based on the partial least squares-structural equation modeling approach was used to test hypotheses.
Findings
The findings reveal the positive effects of the three components of dynamic capabilities, including sensing, seizing and reconfiguring, on Industry 4.0 capabilities. They also confirm the positive effect of Industry 4.0 capabilities on technological innovation.
Originality/value
This study provides valuable practical implications and enriches the literature on the determinants of Industry 4.0 capabilities and its role in developing the dynamic capabilities of SMEs, such as technological innovation.