Relevant or redundant: Elite consumers' perception of foreign-made products in an emerging market

Abstract

This paper examines the attitudes of elite Pakistani consumers concerning their preferences for foreign-made products and how these preferences influence purchasing decisions. Data were collected from a sample of 250 buyers using a mixed methodology consisting of focus groups and a questionnaire survey. The results show a link between the country of origin (COO) of products and purchasing decisions. The nature and extent of this link vary across product class and purchasing decisions. A means-end chain (MEC) analysis revealed a close link between consumers' liking for foreign products connected with how they valued those products both psychologically and physiologically. The findings have implications for attaining a competitive advantage by using marketing strategies to target elite customers. As a pioneering study, this paper advances the theoretical knowledge, providing a framework as well as specific guidelines for practitioners to conceptualise the COO construct. The paper also suggests a strategic direction that successfully targets the elite consumer segment in Pakistan.     

REDISTRIBUTIVE OUTCOMES OF SICKNESS INSURANCE ON INCOME: AN EMPIRICAL STUDY OF SOCIAL INSURANCE INSTITUTIONS

We analyzed the redistributive outcomes of sickness benefits using a typology of social insurance institutions, including four different systems, after adjusting for sickness risk factors. The aim is to empirically observe if the expected redistributive pattern of the typology could be verified whether or not considering the variations in sickness risk across the countries. Data on household earnings and sickness benefits in ten countries and for different years were taken from the Luxembourg Income Study. We also used data on labor force demography and educational attainment. Gini coefficients were used for measuring earnings inequality. Relative changes in earnings inequality for sickness benefits were predicted by social insurance institutional dummies using multiple regression analyses. Among the four different schemes, the encompassing system is found to be most redistributive, followed by basic security and targeting systems. The corporatist system has shown no significant difference from the encompassing system in redistributive outcomes.     

ASEAN‐5 bond market development: Where does it stand? Where is it going?

Since the late 1990s' Asian crisis, ASEAN‐5 countries have expended considerable effort in developing their bond markets. However, the size of these markets relative to GDP has hardly changed. Can we explain this? And does it mean that domestic markets have not, in fact, developed? The article argues that bond market growth has been held back by a sharp fall in business investment, which has left firms with little need for bond borrowing. Even so, markets have developed in other ways, to such an extent that substantial amounts of foreign portfolio investment have begun to flow into ASEAN‐5 bonds. These developments have important ramifications. With the investor base growing and infrastructure investment likely to rise, ASEAN‐5 bond markets could expand rapidly, holding out the prospect that the region could finally achieve ‘twin engine’ financial systems in the near future.     

High level of education builds up strong relationship between organizational culture and organization performance in Pakistan

Organizational culture is an important aspect to be considered by dynamic organizations in order to develop some competitive advantage to ensure enhanced organizational performance. This study aims to elaborate the dimensions of cultural construct in organizations of diversified sectors and their implications in Pakistan. Ten organizations were selected for the study. Four hundred and seventy eight questionnaires were received from these organizations. The questionnaires consisted of three parts, of these, the first part had nine elements that were related to organization and personal profile of the respondents, whereas the second part consisted of 60 elements of cultural construct, namely mission, adaptability, consistency, and involvement. In the third part, dependent variable appears as organization performance and was evaluated by asking eight questions. Results are revealed in two models: according to the first model, organization performance increases from negative 56% to positive 92% due to organizational culture with respect to education. And the second model is also significant at the 95% of confidence level (p < 0.05), and there is a positive relationship between independent and dependent variables. Organizational culture is an essential part of organizational success. Core organizational values typically emphasize special themes such as performance excellence, innovation, social responsibility, worker involvement, and quality of work life. Literacy rate in Pakistan is far below the literacy rate in developed countries. Educated employees play an important role in enhancing organizational performance, particularly in corporate setup. To measure affects of education on organizational performance through its construct involvement, consistency, adaptability, and mission have been endeavored in this study.     

Societal institutions and HRM practices: an analysis of four European multinational subsidiaries in Bangladesh

Using the ‘societal-effect’ approach, a variant of the institutional theory developed and tested in Europe, this study investigates the impact of societal institutions on human resource management (HRM) practices of European multinational subsidiaries in Bangladesh, which is now on the list of the Next-11 economies of the world. In-depth case studies of four European multinational subsidiaries revealed the presence of different degrees of influence – partly attributable to societal effect – on the human resource practices of these subsidiaries. Our study added a new dimension to the interface between the strong and weak institutions and how such interfacing accords both legitimacy and reverse legitimacy to MNC subsidiaries and their societal institutions respectively. Another interesting finding of the study is the emergence of political system as a societal institution and, hence, a determinant of HRM practices in these subsidiaries. The study's implications are given.     

A model for total quality management in higher education

Total quality management (TQM) is widely recognised as a management philosophy for improving customer satisfaction and organisational performance. However, there is no consensus over the critical success factors of TQM, in particular, in higher education (HE) and developing countries. Literature shows mixed results on the success and applicability of TQM principles in education, thus, underlining the need to revisit the application of TQM principles in HE. This paper identifies the critical success factors of TQM in Pakistani universities. Data was collected from faculty members of universities through questionnaires. The findings reveal that ‘leadership’, ‘vision’, ‘measurement and analysis’, ‘process control and evaluation’, ‘programs design and resources allocation’ and ‘stakeholder focus’ emerge as the critical success factors of TQM in HE. The findings have implications at macro, meso, and micro levels of HE.     

Global estimates of growth–inequality–poverty (GIP) triangle: evidence from World Bank’s classification countries

This study extended the concept of ‘growth–inequality–poverty (GIP) triangle’ by using the principle component approach which allows us to composite different poverty and inequality indicators into one single index that contains most of the useful information from the original dataset. Using the idea of GIP triangle, this study examines the long-run relationship among weighted poverty index (which comprises headcount ratio, poverty gap and squared poverty gap); weighted inequality index (i.e., Watts Index, Gini Index and MLD Index) and average monthly per capita income in the designated 138 countries according to World Bank’s classification over a period of 2005–2010. The data set mainly contain countries’ unit record household survey at least one which is conducted between the countries during the sample period. The regression model encompassing the impact of economic growth and income inequality on poverty reflects that income inequality increases poverty while economic growth decreases poverty. It indicates that the impact of inequality in increasing poverty is a somewhat greater than that of growth in average income in reducing overall poverty in a sample countries. The other regression model encompassing the impact of economic growth and poverty on income inequality showed that the poverty itself is also likely to be a barrier for poverty reduction; and inequality seems to predict lower future growth rates. The final regression model depicting the impact of poverty and income inequality on mean income of the household suggests that poverty itself reduces mean income of the household while income inequality increases economic growth. The results are interesting and simply suggest that whenever social institutions malfunction, the incidence of damage would usually be distributed unevenly over the society’s members.     

The use of the consumer ethnocentrism and consumer animosity scales in Iran: A research note

This research note presents the results of testing the reliability of two constructs from the country‐of‐origin literature—consumer ethnocentrism and consumer animosity—within the Iranian national consumer environment. Consumer ethnocentrism, developed by Shimp and Sharma (1987), measures the level of consumer ethnocentrism and has been used broadly in several countries. The consumer animosity scale (Klein, Ettenson, & Morris, 1998), a newer construct, has not been widely tested for its reliability in diverse national contexts. The country of Iran, with its ongoing dispute and hostility with the United States, provides an ideal context to test both of these constructs. We utilized the original animosity scale and an adapted version of the ethnocentrism scale. Both scales performed well and provide strong support for the reliability of each construct, allowing other researchers a high degree of confidence in their application. This finding suggests that these research tools may be useful and can be expanded to the greater Middle East region. © 2009 Wiley Periodicals, Inc.     

Economic viability of foreign investment in railways: a case study of the China-Pakistan Economic Corridor (CPEC)

Abstract

Pakistan Railways has faced a severe financial crisis in recent years. Pakistan has recently become a partner with China in a mega-investment project under an agreement called the China-Pakistan Economic Corridor (CPEC). Among other things, CPEC also includes a range of investments in Pakistan Railways. This particular study focuses on the analysis of US$8.2 billion investment in the upgrade and expansion of the Karachi-Peshawar railways link, which is also known as the ML-1 (Main Line 1). The study found ML-1 as economically viable with a payback period of 10?years. Furthermore, ML-1 project investment is expected to result in uplifting Pakistan Railways, mainly through an increase in freight and passenger transportation. Some risk factors may hinder the expected economic return from the CPEC investment in Pakistan Railways. These factors include consistency in the government policies, the status of the Pakistani economy in upcoming years, and law and order situations in the country. The study has a utility for the governments of both countries and larger business communities have stakes in the trade between the two countries. It is equally beneficial for the international community, businesses (both in China and Pakistan) and locals of the region associated with the CPEC infrastructure.