The stock market and the ringgit exchange rate: a note

This paper presents and tests an augmented monetary model that includes the effect of stock prices on the bilateral exchange rates. The model is applied to the ringgit/US dollar (RM/US) and ringgit/Japanese yen (RM/JY) exchange rates. The empirical analysis is conducted by the Johansen method of cointegration. Using the data from the recent float that ends with 1996:Q4, the study is motivated, among others, by an interesting preliminary finding that although the augmented monetary model is cointegrated, it is subject to parameter instability and that the parameter time dependency can be attributed at least partly to a particular subset of the variables in the system including stock prices. We find that a restricted VAR model which imposes exogeneity restrictions on I(1) variables, such as stock prices, among others, exhibits both cointegration and parameter stability. In addition, we demonstrate that exchange rate adjusts to clear any disequilibrium in the long-run relationship. The empirical findings tend to suggest that the equity market is significant in affecting the exchange rate and in explaining at least in part the parameter instability evidenced in the cointegrating system. Hence, we conclude that models of equilibrium exchange rate should be extended to include equity markets in addition to bond markets.     

Ethnic minority consumers' responses to sales promotions in the packaged food market

Many scholars have stressed the significance of understanding ethnic minority subcultures and the associated cultural dimension for marketing. Most of the previous research involving ethnic minority consumers has largely focused on coupon usage and remains North American in origin and application. Also, previous research emphasises the short-term nature of sales promotions, ignoring their dynamic effects in specific consumption settings such as the family. The paper explores ethnic consumers' responses to different sales promotional formats for packaged food products in family settings. Face-to-face in-depth interviews were conducted in original settings involving ethnic participants who regularly shopped at mainstream supermarkets, and who were the principal grocery shoppers for the family. Findings suggest that sales promotions have the potential to make consumers more responsive, less responsive or even hostile to sales promotional offers and while some promotions are better perceived than others, their overall effectiveness is largely determined by their “net-worth” as perceived by ethnic consumers in a given shopping situation. The paper discusses implications for retailers, particularly for those having store locations in market areas with high concentrations of ethnic consumers.     

Correction to: The Inhibitory Effect of Political Conservatism on Consumption: The Case of Fair Trade

Journal of Business Ethics - A correction to this paper has been published: https://doi.org/10.1007/s10551-021-04780-w     

Social Responsibility and Performance: Does Strategic Orientation Matter for Small Businesses?

This paper examines whether strategic orientation toward corporate social responsibility (CSR) is instrumental in shaping small firms’ social responsibility practices leading to their enhanced financial performance and reputation. Data were collected from 182 small businesses operating in Malaysia based on random sampling technique and analyzed using Partial Least Squares Structural Equation Modeling. Analysis of the findings confirm that small firms’ long‐term strategic approach toward CSR is critical in driving their responsible practices toward environment, customer, community, employees, and suppliers which in turn impact small firms’ financial performance and better reputation building. These findings suggest that customers' and employees’ interests are strategic imperatives that small firms should address in enhancing their financial performance and building better reputation in the community. These findings have important implications for small firms’ strategic policy posture which are highlighted in the paper. The paper also identifies the possible limits of the research and suggests avenues for future studies.     

Causality nexus of exports,FDI and economic growth of the ASEAN5 economies: evidence from panel data analysis

This paper analyzes the causal relationships between exports, FDI and economic growth among the ASEAN5 countries. We have used a three-stage procedure based on unit root, co-integration and causality tests applied to the panel data from 1981 to 2013. The results reveal that there is a bi-directional causal relationship between FDI and growth in the long run, while there is a unidirectional causal relationship from FDI to exports in the short run. Our results also confirm that the export-led growth (ELG) and FDI-led growth hypotheses hold true in the long and short run. To reinforce the FDI inflows, authorities should continue the progressive reduction of barriers, and increase the sophistication of quality exports to compete in the global market. This paper is the first of its kind to analyze the role of both FDI and exports in the ASEAN5 economies using panel analysis.     

How anticipated regret influences the effect of economic animosity on consumers’ reactions towards a foreign product

We use regret theory to explain the negative effect of economic animosity on consumers’ reactions towards a foreign product (i.e., product judgment and reluctant to buy). We conduct our study in Taiwan by collecting data via an online survey. Our results show that consumers’ economic animosity increases their anticipated regret towards purchasing a foreign product originating from a target market of animosity. Specifically, anticipated regret is found to mediate the link between economic animosity and foreign product judgment, which in turns affects consumers’ reluctance to buy. Our study is the first to consider the role of anticipated regret in explaining the negative effect of economic animosity on consumers’ reactions towards a foreign product. We also contribute to research by introducing two antecedents of economic animosity: perceived economic competition and consumer ethnocentrism.     

Can Globalisation and Global Localisation Explain Foreign Direct Investment? Japanese Firms in Europe

This paper uses logit regression on the responses of 383 Japanese manufacturing firms located in the member countries of the European Union to investigate the motives for foreign direct investment. Japan External Trade Organisation (JETRO) data, as published in their 8th Annual Survey (October 1992) classified by industry, were used. The results confirm that decisions leading to FDI cannot be explained by a single factor and, furthermore, different types of FDI are influenced by different combinations of motives.     

The impact of external environmental on business process management and organizational performance

The external business environment as a variable for explaining the impact of business process management (BPM) on organization performance is investigated. The developed model is tested using partial least squares, using a survey on human resource/information technology managers in Malaysia. Statistical results show that dynamism and hostility influence the degree of implementation of BPM. The extent of BPM also has an impact on organization performance. The model can be used by organizations to assess their level of BPM success depending on specific environmental characteristics. This research also contributes to understanding an environment–BPM–performance interface in a developing economy, not previously examined.     

Collaborating for success: managerial perspectives on co-branding strategies in the fashion industry

Abstract

This article investigates the nature of co-branded relationships within the fashion industry. Existing co-branding literature focuses heavily on consumer evaluations, and many studies explore FMCG and electronics markets, within which ingredient co-branding is common. When two brands from the fashion industry collaborate, both brands exist independently and do not rely on ‘ingredients’ for developing a new product and, therefore, presenting an opportunity for exploring the drivers and types of relationships that could exist. This study adopts an interpretive method of investigation using in-depth interviews with brand managers. Findings provide empirical support for value creation through different relationship levels (such as brand/awareness co-branding, values endorsement and complementary competence co-branding) while highlighting some challenges and risks for co-branding in practice. This article discusses implications for theory development and practice and highlights avenues for future research.