Entrepreneurial migrants from/in emerging economies: breaking taboos and stereotypes

Entrepreneurial migration from/in emerging economies, as grand societal and humanitarian challenges that we currently face, underscores the need for scholarly research. In our role as social science researchers, this special issue aimed to stimulate scholars from different social science fields to rethink more broadly about the opportunities for making an impact with our research focus on entrepreneurial migration from/in emerging economies. This article provides an overview of the theoretical, empirical, managerial, and policy implications of entrepreneurial migrants from/in emerging economies research. It puts forward key concepts and measures, explores the relations within the current broader literature on migration and entrepreneurship, and identifies several gaps that represent future research questions. We also introduce eight papers in a special section of this issue, which offer answers to critical gaps and questioning some taboos/stereotypes related entrepreneurial migrants. We conclude by outlining an agenda for engaging the academic community to extend research on entrepreneurial migrants from/in emerging economies. It is the perfect time to “make a difference” through our research, teaching, and interaction with multiple socioeconomic agents to constitute impacts that “endorse a real transformation” for supporting the migrants’ community.

     

Human resource management in China revisited: introduction

This introduction attempts to provide an overview of the Special Issue of the IJHRM on ‘Human Resource Management in China Revisited’. It deals first with the economic background of the recent changes in the PRC from 1978 to the present day, exploring the change from a command economy to a more market-led one, as well as the demise of ‘iron rice bowl’ policy dominated by a model to Soviet-inspired personnel management in favour of one gradually being characterized by possibly Japanese-/Western-influenced human resource management (HRM), albeit with ‘Chinese characteristics’. It then introduces the main debates in the field before summing up, at some length, the empirical contributions based on ‘state of the art’ field research contained in the papers submitted. Last, it deals with the comparative setting of the contributions on China vis-à-vis the national HRM systems of Japan and South Korea.     

Issues in New Political Economy: An Overview

A brief overview of the historical background, nature, and rapid growth in volume and scope of new political economy since the early 1980s is provided. the paper continues with some general reflections on the strengths and weaknesses of the new political economy approach, illustrated by the other contributions to this special issue of the Journal of Economic Surveys . The final Section summarises these contributions.     

Guest editors' introduction growth and globalization: Evolution of human resource management practices in Asia

In this introductory note, we offer an overview of how human resource management in Asian countries and corporations is evolving in the face of rapid business growth and integration into the global economy and we describe how the articles in this Special Issue contribute to new knowledge and insights regarding key issues, challenges, and evolution in the field of HRM in Asia. Driven by the combined forces of rapid gross domestic product growth in many Asian economies and their further integration into the global business arena, firms in Asia are in constant flux, no matter whether they are developed economies like Japan, Korea, andTaiwan; developing economies like Malaysia andThailand; or transitional economies like China and Vietnam. How will HRM systems in these countries evolve and transform under the combined forces of growth and globalization? We argue that HRM systems in these Asian firms most likely will evolve toward “bounded convergence.” The demands and expectations of the HR function to take on strategic roles (versus administrative roles) and address critical HR issues like attracting and retaining key talent, building talent pipelines, and creating high‐performing cultures are greater than ever. We conclude with a high‐level summary of the key contribution of the eight articles covered in this Special Issue. © 2008 Wiley Periodicals, Inc.     

Wage determination in late socialism: The case of Poland

Does economic transition necessitate a profound change in the inter-industry wage structure? This paper argues that principles of wage determination in centrally planned economies were not basically different from those prevailing in market economies. Even if the center became involved in wage setting, reward for human capital and the compensating differential had to be taken into consideration. Moreover, market power led to rent-sharing via wage bargaining and efficiency wages. Hence, this paper claims that wages in socialist economies were determined by similar factors to those in market economies. This is supported by comparison of inter-industry wage structures between socialist and capitalist countries and by results of the estimation of the wage equation for Poland. There is a noticeable degree of similarity in wage structures generated by both systems.I started this paper when I was a research visitor at the Centre of Economic Performance, London School of Economics and completed it when I was a visiting fellow at Princeton University. While at Princeton University I was financed as a Fulbright Fellow.I am grateful to David Card, Hartmut Lehmann, Marcus Rubin, Mark Schaffer and an anonymous referee for their helpful comments and suggestions. I also wish to thank the participants of the seminars at the Industrial Relations Section of Princeton University and at the University of Maryland for useful discussion. The usual disclaimer applies.     

Virtual teams in organizations

Organizations continue to widely adopt virtual teams as a primary way to structure work and the recent growth in utilization has outstripped theory and research on virtual teams. The explosive growth in virtual team use by organizations and the inherent challenges of virtual teams highlight the need for theory and research to inform organizations in designing, structuring and managing virtual teams. Therefore, the purpose of this special issue is to (a) advance theory and research on virtual teams, (b) offer new directions for research on the topic, and (c) contribute to efforts to enhance the effectiveness of virtual teams in organizations. Toward this end, in this introduction we provide a brief overview of virtual teams and present an input-process-output framework to contextualize and organize the eight papers appearing in this special issue.     

Toward Capitalism or Away from Russia?: Early Stage of Post‐Soviet Economic Reforms in Belarus and the Baltics

While at the start of systemic economic transformations in Eastern Europe, both indigenous reformers and Western observers tended to interpret the events as a rationally conceived and executed replacement of an economic system of inferior performance by another one whose superiority was proven, the developments that followed the disintegration of the Soviet polity did not support this view. Shortly after the former Soviet republics gained independence, they exhibited marked variations in speed and sometimes direction of market transformation that could not be satisfactorily explained within the framework of economic theories used by promoters of reforms. In this paper I compare the early stages of economic transformation in Belarus, where reforms were eventually abandoned, with the three Baltic states (Latvia, Lithuania, Estonia), which are the most successful emerging market economies among the former Soviet republics. In this comparison I will attempt to highlight non-economic factors that might have contributed to this difference.     

Guest Editors' Introduction

abstract    In this introductory article to the Special Issue we make a case for the study of 'field-configuring events' (FCEs). We begin with a discussion of the nature and character of FCEs. We next situate the study of FCEs in the context of ongoing research addressing the growth and evolution of institutional, organizational, and professional fields. We follow this with an overview of the relationship between FCEs and the evolution of fields, paying particular attention to how FCEs link field evolution at the macro level with individual action at the micro level. We then examine the unique methodological advantages that the study of FCEs offers to researchers who are interested in studying dynamic field processes. We conclude with a summary of the five papers that make up this Special Issue.     

The Importance of Attributes in Entrepreneurial Opportunity Evaluations: An Emerging Market Study

Although prior research has established that entrepreneurs have idiosyncratic perceptions about opportunity attributes, we do not yet understand the level of importances attached to attributes when evaluating opportunities. This article uses conjoint analysis to assess how trade‐offs are decided when evaluating opportunities considering both individual and business criteria. We hypothesize differences in the perceived importances of opportunities and the unique constellations therein. The results indicate that there is a significant difference in the degree of importance attached to the business sector, capital intensity, technology maturity, market potential and return on investment potential, when individuals evaluate an entrepreneurial opportunity. The business sector was identified as the principal determinant of opportunity attractiveness, followed closely by the market growth rate, which reflects emerging market conditions. By contextualizing the findings, it is suggested that emerging economies impose higher bureaucratic burdens on entrepreneurs, increasing uncertainty as well as operational and transactions costs of firms; therefore, reducing the incentive to invest in capital or technology. Copyright © 2013 John Wiley & Sons, Ltd.     

The weighted empirical process of row independent random variables with arbitrary distribution functions

Abstract  The relative compactness and weak convergence of reduced empirical, quantile and weighted empirical processes are demonstrated under mild conditions. For example, the reduced empirical proces of arbitrary independent iv'S is always relatively compact in any ‖ /q ‖ metric with q square integrable; and weak convergence takes place if and only if the covariance function converges. V an Z uijlen's representation of the general empirical process is a fundamental tool. This paper both unifies and extends the previous treatment of these processes - processes that have application to rank statistics and linear combinations of order statistics. Most proofs are contained in Section 3. A brief introduction to weak convergence is presented in the appendix for readers lacking this background. Applications are indicated in Section 4.     

Asymmetries between Rich and Poor Countries in Financial Crisis Responses: The Need for a Flow-of-Funds Approach

This paper focuses on the manner in which interest rates have been raised to, and sustained at, extremely high levels in developing and emerging market economies as a consequence of recent financial crises. By contrast rich market economies have typically lowered interest rates and injected liquidity in response to incipient financial crises. The paper first sketches the logic that lies behind extremely high interest rates (nominal and real) as an element of crisis resolution. It suggests that this reflects a money-phobic view of financial markets and also conflicts with some well-established economics. It then reviews the conventional wisdom about why richer economies have enjoyed sustained price stability in recent years and why this in turn has allowed their monetary authorities to be relaxed about injecting additional liquidity in response to LTCM (1998) and September 11 (2001)-type crises. It is pointed out that this conventional wisdom is also money-phobic in that it neglects the build up of corporate and government debt in bond and financial derivative form that has been associated with recent financial developments. This analysis helps to contest the common view that emerging market economies pay a higher price merely because their polices are "bad'. Finally, the paper reviews the manner in which the financial systems of developing and emerging market economies respond to the destabilization created by corrosively high real rates of interest. Even when bankruptcy arrangements are well established, certain new forms of financial flows and instruments are implicit in this response, but are invariably ignored in formal modelling.     

MAJORITY RULE AND ELECTION MODELS

Abstract. This paper surveys the theoretical work that has been done on majority rule and economic models of elections. Section I provides an overview of the topic. Section 2 reviews the most important results that have been obtained about majority rule as an abstract collective choice rule. Section 3 identifies some alternative inferences that can be made from those results. Section 4 covers some models that include additional features that are present in political institutions where majority rule is used. Section 5 concentrates on some alternative election models and equilibrium concepts. Section 6 focuses on election models with abstentions and/or candidate uncertainty about voter behaviour. Section 7 compares and contrasts models where candidates are certain about what the voters'choices will be (contingent upon about the choices made by the candidates) and models where they are uncertain about those choices. Section 8 closes the survey by identifying some emerging areas of research.     

Emerging Multinationals from Mid‐Range Economies: The Influence of Institutions and Factor Markets

This paper revisits and extends our earlier work (in 2005) in the pages of this journal. We argue that there is a need for more fine‐grained understanding of the country context along two dimensions: (1) institutional development and (2) infrastructure and factor market development. Specifically, we propose an enriched typology of emerging economies with a focus on mid‐range emerging economies, which are positioned between traditional emerging economies and newly developed economies. Then we examine new multinationals from these mid‐range emerging economies that have internationalized both regionally and globally. We outline directions for further research based on this typology in terms of (1) government influence, (2) resource orchestration, (3) market entry, and (4) corporate governance regarding the internationalization strategy of these emerging multinationals from mid‐range economies.     

Inflation targeting and expectation anchoring: Evidence from developed and emerging market economies

Inflation expectations can be inferred from treasury yields data. Previous studies utilizing such data have found evidence for the role of inflation targeting in anchoring inflation expectations in a number of developed market economies. The goal of this paper is to extend the evidence for emerging market economies. We estimate inflation expectations from nominal treasury yields data and infer the anchoring of inflation expectations from the sensitivity of inflation expectations to current inflation rates. Our analysis shows that the effect of inflation targeting is statistically significant in emerging market economies as well as in developed market economies and that the magnitude is marginally greater in the former. Our results are robust to alternative specifications.     

The relationship between R&D,innovation and productivity in emerging economies: CDM model and alternatives

CDM (Crépon, Duguet and Mairesse, 1988) is a workhorse model in the economics of innovation, which explains productivity in a three-stage procedure driven initially by R&D and leads to patents and then to productivity improvements. Based on the logic of this model, an increasing number of papers applies it to emerging economies but modifies the original model without being explicit about the nature and implications of this modification. We argue in this paper that, in its original form, CDM does not capture stylized facts of the determinants of productivity in emerging economies and that we need alternative models. Accordingly, we are critical of papers that try to maintain the validity of the model but actually change it. For that purpose, we test the original CDM model and its two alternatives: investment and production capability–driven models. Our research is based on a large sample of firms in Central and Eastern Europe, former Soviet republics and Turkey, and we show that the alternative models are much closer to the stylized facts of innovation activities and technology upgrading in these and other emerging economies. Our conclusions have important policy implications, which we discuss.     

Developing accounting and audit in a transition economy: the Romanian experience

The new Romanian accounting and auditing laws took effect in 1999. This paper investigates and evaluates the phase of development which started in 1996, comparing the outcome of that development with the experience of some other transition economies. Recognizing that the move to the market economy was a primary driver of change, the paper considers the economic and social context of Romania and the potential conflicts arising where the growing importance of the global market, political and international developments influence the shaping of strategy in matters of accounting. A strategy shaped in this way must also cater for the specific needs of the many small companies in transition economies. Key to the reform process in Romania has been the recognition that a controlled phasing-in of change, accompanied by training, is necessary to give the reform process a chance to succeed; however, this leads to tensions arising between professional associations, which wish to become self-regulatory, and governments, who need to retain a measure of control to ensure that all elements of the reform are in harmony. The paper concludes that the accounting developments from 1996 avoided some of the pitfalls experienced earlier in other transition economies and also shortened some of the development process by making changes in parallel rather than in sequence.     

Macroeconomic responses of emerging market economies to oil price shocks: An analysis by region and resource profile

We analyze the impact of oil price shocks on the macroeconomic fundamentals in emerging economies in three regions that have different resource endowments. The existing literature on emerging economies remains inconclusive on how regional factors and resource characteristics affect the response of macroeconomic variables to oil price shocks. We show that (1) exports in Europe and Central Asia are driven by oil more than East Asia and the Pacific and that (2) policy makers in East Asia and the Pacific should be concerned about real exchange appreciation following a positive oil shock to mitigate losses in the non-oil export market. Analysis by resource endowment further reveals that, in less-resource-intensive economies, an oil price shock causes large variations in consumption and has a negative and persistent impact on the real gross domestic product (GDP). In mineral-exporting economies, real GDP and interest rates are driven largely by oil price shocks. The response of real GDP in mineral-exporting economies is short lived. In oil-exporting economies, only real GDP has a large variation in response to oil price shocks. Our findings highlight the need for customized policy responses to oil price shocks, depending on resource endowments, as we show that a “one size fits all" policy does not exist.     

Entrepreneurial intentions in the context of a collectivist economy: a comparison between Cuba and Spain

Entrepreneurship research has matured and now spans multiple entrepreneurial contexts, including developing countries, emerging and transitional economies. However, collectivist economies have largely been ignored, partly due to difficulties in conducting research and partly due to the widespread assumption that they remain on the outskirts of entrepreneurial activity. In this paper, from the entrepreneurial event model perspective, we analyse entrepreneurial intention and its antecedents in Cuba, probably the best example of a collectivist economy that exists nowadays. Cuba is compared to Spain, a country that shares historical and cultural features but one which has a developed market economy. Findings indicate that desirability and feasibility constitute the main antecedents of entrepreneurial intention in Cuba, as other studies in market economy countries reflect. However, the influence of desirability on entrepreneurial intention is lower in Cuba compared to Spain, where the values of desirability and feasibility are significantly greater. These results seem to indicate that due to Cuba’s level of development, political regime and collectivist culture, entrepreneurship arises mainly out of necessity and the emergence of a strong entrepreneurial culture is stifled. This reflects a similar situation to the result obtained in previous studies in developing countries.

     

Capital flows and the boom–bust cycle: The case of Estonia

During 2000–2007, Estonia was among the fastest growing emerging market economies, but in late-2008 entered a deep recession. This paper examines shocks, institutions, and policies that have made Estonia's boom–bust cycle so severe. It finds that an open capital account, the prospect for EU entry, and the currency board facilitated massive capital inflows, which led to credit and real estate booms. In late-2008 a domestic slowdown was greatly amplified by the global financial and economic crisis. To resume sustainable growth, the country will need to regain competitiveness and rebalance resources to exports. Estonia's experience underscores the importance for other emerging market economies to retain some flexibility in their macroeconomic frameworks and approach capital account liberalization cautiously.