The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: An examination of the ‘liability-of-foreignness’

This paper examines the relationship between an organization's country-of-origin and the acceptance into a host country environment by constituents such as vendors, suppliers, and distributors. This study contributes to the literature by proposing the examination and ultimate measurement of various tangible and intangible sources of the ‘liabilities of foreignness’. Additionally we show that are these sources are internal and external moderators of perceived acceptance in the host country. Manager must recognize the country-of-origin strategic options to address the negative overshadowing of the liability-of foreignness. We conclude that not doing so can create a stigma that may be attached to the overall organization, its image, products, brands, and to its employees. Further, negative attribution may be caste upon all the identifying characteristics of the foreign entity. The management of the firm must note the potential resistance to accept the organization and its products/services and must develop a proactive set of strategies to address the negativism of the host country constituents.     

Research Productivity in Business Economics: A Reply

Abstract. We reply to a comment by Diamantopoulos and Wagner questioning the face validity of our research productivity ranking for the field 'Marketing and Sales'.     

An examination of the values that motivate socially conscious and frugal consumer behaviours

This article extends social psychological research on the motivations for sustainable consumption from the predominant domain of ecologically conscious consumer behaviour to socially conscious and frugal consumer behaviours. A UK‐based survey study examines relationships between socially conscious and frugal consumer behaviours and Schwartz's value types, personal and socio‐political materialism, and demographics among the general public. Socially conscious consumer behaviour, like its ecological counterpart, appears to be an expression of pro‐social values. In contrast, frugal consumer behaviour relates primarily to low personal materialism and income constraints. As such, it does not yet represent a fully developed moral challenge to consumerism.     

Micro-Entrepreneurship in Niger: Factors Affecting the Success of Women Street Food Vendors

Micro-entrepreneurship in the informal sector plays a vital role in generating employment and income in West Africa. In this article, the authors examine business success factors for micro-entrepreneurs involved in the production and sale of street foods in Niger, drawing on the resource-based view theory. Business success was measured by size of firm and vendor's perception of enterprise growth. Their results indicate that business experience is an important success factor, while the need for cash is a constraint for business success. A rare resource, limited access to financial assets translates into limited opportunities for growth of these informal micro-enterprises into viable businesses.     

Border effects in the enlarged EU area: evidence from imports to accession countries

By looking at imports of Eastern European countries, we provide novel insights on the importance and magnitude of border effects and on how they are linked with technical barriers to trade. All Central Eastern European Countries (CEECs) traded with themselves more than with other countries. We grouped products into three categories; depending on the importance of applicaple technical barriers. Our results show border effects are the largest for products, where we expect to have the most important technical barriers. We assess if border effects changed over the transition period and we find that for products where technical barriers are less important the magnitude of border effects was declining at the end of the 90s.     

Preference Erosion and Multilateral Trade Liberalization

Because of concern that tariff reductions in Organisation forEconomic Co-operation and Development (OECD) countries willtranslate into worsening export performance for the least developedcountries, the erosion of trade preferences may become a stumblingblock for multilateral trade liberalization. An econometricanalysis of actual preference use shows that preferences areunderused because of administrative burdens—estimatedto be equivalent to an average of 4 percent of the value ofgoods traded. To quantify the maximum scope for preference erosion,the compliance cost estimates are used in a model-based assessmentof the impact of full elimination of OECD tariffs. Taking intoaccount administrative costs eliminates erosion costs in theaggregate and greatly reduces the losses for countries mostaffected by preference erosion.     

Import prices,income, and inequality

We compare three theoretical explanations for the positive empirical relationship between importer income per capita and traded goods prices. A first explanation is that consumers with higher incomes demand higher quality goods with higher prices. A second explanation is that wealthier people exhibit an increased willingness to pay for necessary goods as more goods enter the consumption set in a hierarchic demand system, and can thus be charged higher markups. A third explanation is that consumers with higher incomes are more finicky regarding their preferred variety in an ideal variety framework and can thus be charged higher markups. We discriminate between these three theories by focusing on the effect of income inequality on trade prices. Based on a large dataset with bilateral HS6 level data on 1260 final goods categories from more than 100 countries between 2000 and 2004, we find a highly significant negative effect of income inequality on unit values. This contradicts both the demand for quality and finickyness theories, while providing support for the increased willingness to pay theory linked to hierarchic demand. These findings on income inequality do not falsify the quality expansion model and the ideal variety model per se. However, the results do argue for place of importance of hierarchic demand.     

Developmental network structure and support: gendered consequences for work–family strain and work–parenting strain in the Australian mining industry

Developmental networks enhance career success through the support received by the protégé via the network structure. This paper extends developmental network research by exploring the extent to which strain is associated with developmental network structure and support in the Australian mining industry, a highly volatile and unique context. Our research tests the popular notion of ‘the more support you get, the better’ which is in need of further exploration in the developmental networks literature particularly in specific work contexts with strain (vs. success variables) as outcomes. Results indicate that bigger, broader networks with more career, psychosocial and role modelling support are not always beneficial for protégés in this context. A smaller network with a broader range of developers is associated with reduced work–parenting strain, but not work–family strain. Increased career support reduced work–family strain, but this was not the case for increased psychosocial support and role modelling support. Further, gender moderated the relationship between psychosocial support and work–family strain possibly due to token group effects.     

Do natural resources define convergence clubs? Empirical evidence from the Kazakh regions

This paper deals with the hypothesis that natural resources are important in forming convergence clubs. We check this hypothesis by applying a dependence and an endowment measure of natural resource abundance and a regression tree analysis. The results indicate that for the Kazakh regions natural resources do indeed play an important role in forming convergence clubs. It is further shown that natural resource endowment rather than resource dependence determines initial conditions and thereby convergence clubs.