Economic Transition

Abstract

Poland has become one of Eastern Europe's biggest success stories as an important emerging market and rapidly growing economy. However, transition from a centrally planned economy to a market economy has proven to be an enormous challenge in regard to the development and growth of small entrepreneurial ventures within the tourism and hospitality industry. The objective of this study is to examine the environment for growth and development of these enterprises after more than a decade of transition. The 2002 survey was conducted to examine various factors, such as: entrepreneurial disposition, entrepreneurial orientation, strategies, organizational factors, and environmental factors. A model of the entrepreneurial environment was used to analyze policy implications that can be used to assist in the growth and development of the tourism and hospitality industry in Poland and in the other countries in the region.     

Incorporating the Dominant Social Paradigm into Government Technology Transfer Programs

SUMMARY

This paper examines problems implicit in transferring technology from developed countries to lesser developed countries. This is done from the perspective of the dominant social paradigm, and argues that the limited success of governmental transfer programs can be attributed to paradigm conflicts between the developer of technology and the recipient. The conclusion suggests that the effectiveness of government technology transfer programs can be improved if a dual approach is adopted. For transfers to lesser developed countries, the initial step should be to understand the differences in paradigms, and this should be followed by the development of appropriate technologies that enhance the development potential of the recipient in terms of the recipients' values and worldviews.     

Why do developing countries resist global trade agreements?

Abstract

Although the Doha Development Round was launched with much promise for developing countries in 2001, the global trade negotiations have collapsed. One of the reasons for the lack of progress in the negotiation is the developed countries' unwillingness to reduce their enormous farm domestic subsidies and massive agricultural trade distortions. The developing countries' economies are characterized by heavy dependence on farm sector, labor-intensive agriculture, and persistent unemployment. Consequently, rich nations' unfair agricultural policies are detrimental to the well-being of poor exporting countries. This study develops a model incorporating developed countries' domestic and trade policies and developing countries' economic characteristics to illustrate the adverse effects of rich countries' policies on poor countries. We show that elimination of developed countries' policies will increase the world prices of agricultural commodities, which will benefit the farm-dependent developing countries.     

Advertising-Operations Interaction Effect on Promotion Success in the United States during the Early Stage of a Retailing Innovation

ABSTRACT

It has been shown that while promoting a retailing innovation, the stronger a retailer's operations capability, the more successful the retailer's promotion in its early stage. The current study is intended to be an empirical exploration of a new research question. While promoting a retailing innovation in the U.S.A., is it possible that the stronger a retailer's capability-based advertising efficiency, the stronger the positive effect of the capability-based operations efficiency on promotion success in the early stage of the innovation? Our results showed that the interaction between efficiency in advertising function and that in operations function did not appear to play any significant role towards success in the USA while promoting a retailing innovation.     

The Concept and Application of Managerial Competence in Developed and Developing Economies: A Two Country Analysis

Abstract

This paper reviews the concept of managerial competence as applied in transportation management in developing and developed economies, using Boyatzis' (1982) model of effective job performance. Boyatzis postulated that effective performance of a job is the attainment of specific results or outcomes required by the job through specific actions while maintaining or being consistent with policies, procedures, and conditions of the organizational environment. Literature search and interviews with managers with extensive experience in Nigeria and the United Kingdom reveal that Boyatzis' constructs are valid within the developed economies. However, within the developing economies, it is found that modifications are required to accommodate cultural and socio-political realities and to match the skills of individuals with their current and future roles in an organization. The study also found that there are similarities in competency requirements between the two countries. It is concluded with a recommendation that management methods be adapted rather than adopted, via such strategies as the community concept approach which emphasizes, for example, on the job training with formal theoretical reinforcement at later stages, and that practical universality of management strategies may be a myth.     

Tobacco Business and Regulation in the Developing Markets

Abstract

This paper compares BAT's business environment in Kenya and Uganda in light of the World Health Organization's (WHO) tobacco control initiative. It also illustrates the use of tobacco tax by Sub-Saharan African countries to address tobacco related conundrums. The comparison revealed elements of government ambivalence towards tobacco business and a possible recourse to tobacco tax to mollify global pressure against big tobacco. The paper uses the partial correlations between tobacco tax and basic economic development indicators across Sub-Saharan Africa and previous World Bank data as indicative of tobacco tax efficacy in controlling consumption in the region. It suggests that Sub-Saharan Africa may find regionally designed tax-based policy guidelines a palatable strategic alternative to global firms (such as BAT) that face a hostile global business environment. A united policy front that fits within the region's institutions can reduce complexity and create efficiencies through lower administrative costs across the region. Such action will make the region relatively more attractive (than it is currently) to foreign investors.     

Getting the sustainability message across: an endorsed Colombian environmental cinematographic strategy

ABSTRACT

Many ecosystems are facing environmental threats. Some of the main concerns are now focused in developing countries. Strong environmental messages by numerous stakeholders have led to varied responses on environmental issues. Companies, governmental agencies and NGOs are responding to such issues by developing campaigns to promote sustainable practices amongst key stakeholders. Green advertising is one important form of communications employed to elicit environmentally friendly attitudes and consequently promote behavioural change. This study analyses the effect of a sponsored cinematographic green advertising strategy by a NGO and a major supermarket chain in a Latin American country. Based on in-depth interviews with Colombian movie audiences, this investigation demonstrates how (1) a movie focused on nationalistic identification can effectively provoke positive attitude change toward environmental sustainable practices, (2) the movie's media format can heighten audience interest about adopting environmental sustainable practices and (3) these results benefit positively the two movie sponsors through association and affect transfer.     

Antecedents of Global Attitude

Abstract

The term “globalization” has recently been used to explain multiple world trends. Such trends include worldwide accessibility to the same products, access to the same resources around the globe, world travel, communication, convergence of lifestyles, development of “world culture,” and worldwide fascination with environmental issues. This paper explores the population's attitude towards globalization (global attitude) and investigates antecedents that affect the level of global attitude. The antecedents examined are population's current satisfaction, opinion of governance, and future expectations. Results from structural equation modeling show that current satisfaction with life and opinion of governance have a positive and significant influence on development of global attitude.     

Does Alibaba's Magic Work Outside China?

Alibaba was an established e‐commerce giant in the Chinese online retail industry. In 2014, it recorded the world's largest initial public offering (IPO), raising a total of $25 billion. Alibaba's groundbreaking IPO and continuous growth in China had raised speculation on its imminent and potential expansions into other countries including the United States. On the other hand, Amazon and eBay had been leaders in the e‐commerce industry of the United States, arguably the world. This case seeks to weigh the potential success of Alibaba should it choose to expand outside its home country, China, including the United States. This case also helps understand how the Chinese business environment influenced the success of Alibaba, relative to other countries. © 2015 Wiley Periodicals, Inc.     

Unilever's Latin American Strategy in Yellow Fats,Ice Cream and Teas

Abstract

The article investigates the interplay between the changes in the large corporate strategy of a multinational and changes in the business environment in Latin America. In its international expansion, Unilever has traditionally used a decentralized national responsive strategy where local subsidiaries develop their markets with a great degree of autonomy. In response to globalization, Unilever moved towards greater business coordination and a more focused approach in the nineties. The article examines the impact of this reorganization on the firm's regional strategy in Latin America. We examine the firm's strategy in three food categories: fat oils, ice cream and tea-based products. We conclude that Unilever continues to use a strategy of national responsiveness with no attempt to coordinate its experiences across the region.     

Applying Diffusion Theory to Chain Restaurants

Abstract

The Diffusion of Innovations (diffusion) field is a well-established area for academic research across a range of social science disciplines. One of diffusion's key applications is to help predict the adoption rates of new products and technologies in new markets. To date, however, the application of the diffusion field, generally to hospitality and tourism, including the prediction of adoption rates, has been limited. This paper presents a conceptual framework for predicting the success of chain restaurants entering international markets, using diffusion's key principles. Following an overview of diffusion, including theoretical issues affecting the application of diffusion in a service sector environment, the paper presents a case study of an application of diffusion theory to the international expansion of a U.S. chain restaurant to Australia.     

A Commentary on “Undergraduate Education: The Implications of Cross-Functional Relationships in Business Marketing–The Skills of High-Performing Managers”

ABSTRACT

This commentary reinforces the importance and need for developing the student's knowledge, abilities, and understanding of what is required to collaborate with the firm's internal and external constituencies, in the context of B2B marketing environment. It is an important goal to be achieved in the B2B marketing course. The new era of business marketing is built around achieving “collaborative advantage” with the new breed of customers who demand relatively more complex product and services arrangements as well as nature of relationships from their vendors. Today's customers also expect intellectual input and consultative selling approaches from group of diverse and independent marketing entities, whom they expect to work together to meet their requirements. The firm's success or failure in the market place may indeed be predicated on their ability to achieve this “collaborative advantage”. The commentary also expands the authors' suggestions in the areas of course pedagogy and design for building the student's know-how and capability for practicing the art-of-collaboration.     

Interactive perceptions of suppliers and corporate clients in the marketing of professional services: A comparison of accounting and legal services in the UK,Canada and Sweden

Any service offering depends, for its long‐term success, on the dyadic relationship which exists between a supplier and a client. For corporate clients, a positive and proactive approach by a supplier can enhance a relationship both in the initial stages and later, as the relationship develops. Professional services are no exception, perhaps because, in the longer term, both parties can contribute to a situation where “peace of mind” is the dominant emotion. However, such a generalisation may not be true for all professional services nor over a range of countries where currently, many changing environmental factors such as regulations, image and technology, are creating a climate which may result in different perceptions within a relationship. This article attempts to measure and compare these differences using suppliers and corporate clients of two specific categories of professional services, namely, legal and accounting services, in each of three countries, Canada, Sweden and the United Kingdom. It attempts to examine the supplier‐client relationships using elements of the Interaction Approach as developed by the Industrial Marketing and Purchasing (IMP) Group of researchers (Hakansson 1982). From the supplier firm's point of view, in targetting prospective clients and maintaining existing ones in a search for an “optimum” portfolio, the constant monitoring of clients’ perceptions and requirements as an element in generating and sustaining a positive atmosphere should be undertaken. Successful supplier firms may be those which work with a group of selected clients rather than for anyone.     

Exploring the Antecedents of Brand Loyalty and Electronic Word of Mouth in Social-Media-Based Brand Communities: Do Gender Differences Matter?

ABSTRACT

Recently, social media have emerged as key marketing communication channels. In this context, consumers are increasingly gathering in online communities which have been identified as social-media-based brand communities (SMBBCs). However, notwithstanding scholars' attention towards SMBBCs, the role of consumers' gender in developing brand loyalty intention (BLI) has been scarcely explored by literature. Moreover, scant attention has been given to the analysis of whether gender is related to different propensities towards brand recommendation—identified as a proactive behavior towards a positive electronic word of-mouth diffusion (E-WOM)—in the social media context. Hence, this research aims to explore the antecedents of BLI and E-WOM by focusing on consumers' gender differences. A structural equation model has been created based on 250 surveys collected among SMBBCs of an American sportswear brand. The results showed that male consumers' BLI is influenced by engagement in SMBBCs. Instead, brand trust was the main antecedent of females' BLI.     

The market research contribution to new product failure and success

This paper examines the use made by management of market research data in the evaluation of new product development (NPD) projects. Stressing the need for a systematic approach to NPD the paper sets out four brief case histories, the products being Crocodillo, Paul Masson wine, the Prudential's Holburn UK Unit Trusts, and Golden Wonder's Preludes. These case histories illustrate both the value of a systematic approach to NPD by building up a market research programme and also the limitations of market research data which cannot alone be any guarantee of success.     

Does foreign direct investment promote institutional development in Africa?

Foreign direct investment (FDI) inflows into Africa have increased since the turn of the millennium, mainly due to FDI growth into African countries by multinational enterprises (MNEs) from developing economies. While African governments view this growth as a positive development for the continent, many governments in the West have raised concerns regarding the institutional impact of investments from developing economies. This paper examines the impact of FDI flows on institutional quality in African countries by distinguishing investments from developed versus developing economies. Previous empirical studies have found a significant relationship between FDI flows and institutional quality in African countries but regard the relationship as MNEs rewarding African countries for adopting institutional reforms. However, little attention has been paid to the reverse causality, i.e. that FDI can cause an institutional change in African countries. Using bilateral greenfield FDI flows between 56 countries during 2003?2015, we find no significant FDI effect from developed and developing economies on institutional quality in host countries. However, aggregate FDI flows from developed and developing economies have a significant positive effect on host country institutional quality but differ concerning the impact's timing. In contrast, we find no significant effect of FDI flows from China on host country institutional quality. Our results are robust to alternative measures of institutional quality.     

Developing an Inter-Organization Relational Management Perspective

Abstract

Relationship marketing has become a frequently used strategy to increase the efficiency and effectiveness of an organization's marketing efforts. In order to manage relationships effectively over time, the domain (i.e., type of relationship) and the relational linkage (i.e., richness of interaction and communications) must be determined. In this paper, a process for establishing virtual management perspectives is developed illustrating the steps necessary for managing relationships between organizations and individuals within organizations. Taking a proactive approach to the management of relationships appears to be an essential dimension in insuring their success.     

Ecological consumer behaviour: an empirical analysis

Increasingly, consumers choose ecological products when they do the shopping, not only because it is a healthier option but also because it helps to sustain the environment for future generations. They are prepared to switch products for ecological reasons and stop buying products from companies that cause pollution. Firms and other economic institutions are aware of the importance of reflecting these attitudes towards the environment in developing their products. This paper is focused on environmental attitudes as meaningful predictor of ecological behaviour. A three‐dimensional approach to this variable has been developed, which addresses its emotional, cognitive and conative components. A random sample survey of 573 individuals was used to verify the conceptual model and framework. This model was assessed initially by principal factor analysis and subsequently, by structural equation modelling. Findings of this study showed that environmental attitudes have a significant effect on ecological behaviour. This research improves our understanding of how consumers feel and what attitudes best define their way of behaving in relation to environmental problems.     

International Marketing of Services and Developing Countries

ABSTRACT

The internationalization of services has gained great momentum in recent years. This article analyzes prospects of developing countries in the international marketing of services by examining past trends of service exports by developing countries, and relating these to demand for services in developed countries through a series of autoregression analyses. Results show that developing countries were marginalized in the international market for services over the 20-year study period. However, there are bright future prospects. The greatest prospects would be in travel services, followed by transport services. Implications of the findings for government policy in the service sector are discussed.