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Emerging Markets

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Chapter 1. Introduction

The first known incidence of ransomware is the AIDS Trojan developed and distributed by Dr. Joseph Popp in 1989 (Mungo and Clough 1992). Popp was a medical researcher who distributed 20,000 floppy disks to fellow researchers who attended the 1989 World Health Organization’s (WHO) conference on AIDS. Popp claimed that his program could analyse an individual’s risk of acquiring AIDS; however, the disk he distributed to his colleagues also contained a malware program (Trojan) that activated after the victim’s computer was rebooted 90 times. Once the malware was initiated, all the user’s files and directories were encrypted in the computer system’s root directory. Once the encryption process was completed, the malware displayed a message asking the user to pay $378 (USD) for renewing a license which could recover the lost files and directories. The request for payment asked the user to mail the ransom payment in the form of a cashier’s cheque to a post office box in Panama. The trouble and time delay in paying the ransom and receiving the decryption key ultimately limited the profitability of the attack (Solomon et al. 2000). It is unclear how many people fell victim to the attack; however, it didn’t take long for the Federal Bureau of Investigation (FBI) to attribute the attack to Popp, and he was arrested in February 1990 and extradited from London to the United States to face trial.

Matthew Ryan

28. Information Communication Technology – a Base for Innovative Automotive Solutions and Key Enabler for Efficient and Effective Systems Engineering

As the embedded world meets the internet world, the number of interacting systems with strong connectivity utilized in both society and in industry is increasing. Digitalization plays a core role as an enabling technology for all current major trends in the automotive domain. At the same time, digitalization relies on complex technology stacks; its proper integration in the traditional product and services portfolio, and the resulting value proposition shift, are challenging to manage. The situation is very similar in almost all industrial sectors; therefore, exemplarily the European Commission has started a range of initiatives to support the uptake of the digital single market. This chapter illustrates the impact of digitalization on the automotive domain by way of the example of autonomous driving and provides an overview of the technologies behind information communication technologies (ICT).

Eric Armengaud, Haydn Thompson, Daniel Watzenig

1. Challenges for Future Automotive Mobility

The way in which people and goods are transported is rapidly changing. Urbanization, green thinking, and self-driving vehicles are just a few of the contemporary trends that are changing the face of transportation and the overall mobility system. The automotive industry in particular is having to rethink its business models in order to continue to provide solutions that address current and future trends. A shift from being a traditional car manufacturer with a business model focused on product sales toward being a provider of mobility services seems to be one promising approach among many other possibilities. Furthermore, stricter legislative restrictions result in new challenges that are pushing vehicle development engineers to adopt highly efficient and effective solutions. New technologies, such as autonomous driving, vehicle driver interaction, internet of things, and powertrain-specific technologies, provide a huge number of possibilities to optimize the way vehicles and the environment interact. Lifecycle considerations and analyses are key enablers for sustainable mobility and influence the way vehicles are developed, manufactured, used, and recycled. This chapter will provide a general overview of mobility systems and their challenges from both a contemporary and future perspective.

Uwe Dieter Grebe, Hannes Hick, Martin Rothbart, Rittmar von Helmolt, Eric Armengaud, Matthias Bajzek, Philipp Kranabitl

Chapter 4. Paradigm of E-Commerce Services in Developed and Emerging Economies

Electronic commerce has opened the world as a market to the local business and vice versa. The Internet has brought a fundamental shift in which businesses are moving away from a world in which national economies were isolated from each other by barriers to cross-border trade and investment; isolated by distance, time zones, languages, government regulations, culture and business systems. With the enormous success of internet-based transactions in developed economy, developing economies, especially the emerging ones are also adopting the way business happens in their developed counterpart. In this chapter we investigate antecedents and consequences that influence growth of electronic commerce in emerging market. We illustrate the factors that influence both consumer level as well as organizational level, synthesize the same from multi-theoretical framework, and then develop propositions from the said framework to infer about the managerial implications. The lines between local and global businesses are thinning every day as e‐commerce has created a paradigm shift in the way business is conducted in emerging economies like Brazil, Russia, India, and China. . We will discuss the specialty of doing business over e-commerce in emerging markets and if implemented properly, how e-commerce provides value to emerging market companies.

Hitesh Bajpai, Atanu Adhikari

Chapter 3. Designing the Service Experience for Online Shoppers in Emerging Economies

With the growth of e-commerce retailing, technology penetration, and rising consumption power of the emerging economy, it is becoming essential for firms to design unique online service experiences for their customers. This chapter discusses the construct of online service experience and factors that drive it. The chapter also discusses the factors driving experience in emerging and developed economies, highlighting the differences in customer preferences across markets. Based on the analysis, recommendations are given to retailers for designing unique service experiences for online shoppers in Emerging markets.

Aishwarya Ramasundaram

Chapter 13. Service Recovery and Continuity in Emerging Markets

Although it is ideal not to have service failure, it happens due to a variety of reasons. In service organizations, failures are imperative, and organizations need to place an appropriate strategy to deal with it. We compare the consumer complaint system in developed (Financial Ombudsman—UK) and emerging countries (Banking Ombudsman—India). The theory of justice, which is investigated from an organizational perspective, can also be applied in the customer-service interface in an emerging country standpoint. Three types of justice include—distributive justice, procedural justice, and interactional justice. Suitable recovery strategies can help the organization can turn the adverse situation into a favorable situation. Service organizations can rely on service guarantees, which can help to build customer trust.

Dhananjay Bapat

Chapter 2. Managing Customers in Online Two-Sided Platforms: A Case of App-Cabs in an Emerging Economy

This paper focuses on customer management in online two-sided platforms (OTSPs) in emerging markets such as India. OTSPs deal with two groups of customers, those availing platform for selling products or services and those buying these products or services. As the business model of OTSPs is built on network effect, using an existing model of platform business for developed markets, we show that in light of the challenges faced by customers in emerging markets, in the long run, it is beneficial for the platform to set welfare-maximizing prices instead of the myopic profit-maximizing prices.

Megha Sharma, Subhasis Mishra

Chapter 11. Traditional Services Marketing Issues—Analysis of Impact of Technology in Developed and Emerging Markets

This chapter investigates the issues with services marketing in the current world, and the role of technology in overcoming those challenges. The chapter also describes how technology is helping companies from developed nations, and creating competitive advantage over companies based out of emerging markets. We start by looking at how technology has helped change the world of services marketing and its impact on the overall marketing activities and processes. We begin by examining two major technologies—Internet and Mobile, and its impact on various industries. A deep dive in some of the unique and exciting industry use cases that has evolved over the past decade. Each of the technical elements has been discussed in detail, with specific use cases to help users understand the impact of the technology landscape. In the next section, there is a detailed discussion about how technology has helped overcome some of the challenges of services marketing and created new business models and service delivery options. A few new businesses has been explained to give the readers more in-depth insight. The next section is about the situation in the emerging markets and how lot of the service marketing issues are still prevalent due to the lack of technology. The discussion highlights the big divide which technology is creating between the way services are delivered in developed markets versus emerging markets. The impact on business as well as social life has also been discussed. This is followed by a conclusion section.

Duswanta Roy

Chapter 12. Marketing Mix and Customer Loyalty in Services Marketing

This chapter takes a look into the interplay of services marketing with the elements of the marketing mix. It is acknowledged that services have become a dominant force in today’s economy. Some of the important services marketing activities such as retail and health care are investigated and an effort is made to understand and appreciate the dynamics of these sectors. Simultaneously, the marketing mix has expanded to include three more Ps and their relevance and applicability to extant services marketing principles were researched and studied. In the end, the concept of social marketing for socially relevant and needed projects was studied as they are a very important vehicle of development in developing countries. Proper utilization of the service marketing mix builds brand awareness which finally results in customer loyalty. The marketing mix, in the process, must be supported by adequate service quality. So, services marketing today encompasses many facets of the economy and it is in the interest of the economy and society of developing countries to make full utilization of the concepts of services marketing and marketing mix.

Rahul Gupta Choudhury

Chapter 9. Institutional Arrangements and Inter-Organizational Governance in Services Companies

This chapter examines the topic of the institutional arrangement or inter-organizational governance form, or equivalently the “mode of entry” of services companies, which is a critical component of the entry strategy of a company into international markets. Classical theoretical approaches that have evolved from studies made in the context of manufacturing companies from developed economies are briefly summarized, along with theoretical adaptations for services firms, and some practical considerations of managers examined. The behavior of companies from emerging economies presents interesting paradoxes, and hence newer theories have been proposed, along with differing practical considerations. Entry mode data based on equity ownership in partial and full acquisitions, made by services companies entering from developed economies into other developed economies, and developed into emerging economies, is compared with that of companies from emerging economies entering into developed/emerging economies. The chapter concludes with recommendations on important factors to consider while making a systematic decision on institutional arrangements.

Ramya Venkateswaran

Chapter 1. Servicescapes and E-Servicescapes Design Issues in Emerging Markets: Imperatives, Challenges and Agenda Setting

Emerging markets present one of the significant challenges as well as opportunities for multi-national service firms, but the existing knowledge on the market is inadequate to address the same, even in the context of servicescapes. Servicescape plays a significant role in service delivery for services that are facility driven. The emerging markets are characterised by challenges in infrastructure, capital investments, cultural diversity, illiteracy, poverty and many other resource constraints. These different challenges become a major point of difference as against developed economies while considering designs in servicescapes. Drawing from literature in servicescapes designs, this chapter discusses the design issues that need to be addressed in servicescapes and e-servicescapes with particular reference to emerging markets and identifies the challenges that could limit the adoption of these designs. This chapter also offers a blueprint that would guide future research in this area.

Deepak S. Kumar, V. U. Vinitha

Chapter 10. Service Marketing Issues in Emerging Economies: Brand Equity of Domestic Service Brands

The emerging economy globally has a wide arena of untapped markets with enormous growth opportunities that are being explored by the services industry presently. However, as service marketing is different from product marketing it leaves a “Pandora’s box” of challenges because in service sector industries the “product” is intangible and the offering and utilization are largely inseparable. Brand equity of domestic companies in the services industry plays a very crucial role in positing the brand in the market where the competition with foreign brands is quite high. This chapter focuses primarily on the challenges such as lack of brand awareness, brand loyalty, brand association, perceived quality by the customer of the domestic brands, and other proprietary brand assets faced by the domestic services brands in the countries that lie in the bottom of the economic pyramid. This chapter also helps in defining a scope to mitigate the challenges specifically focusing on the domestic market of the developing economic countries.

Rima Bhattacherjee, Atanu Adhikari

Chapter 8. How Does Ownership Type Influence International Diversification-Firm Performance Relationship?

International diversification and its effect on the firm remains a key theme in business literature. Yet how international diversification-firm performance (IDP) relationship is influenced by firms’ ownership has not been adequately examined. This represents an important gap in the literature as owners differ significantly in motivations, capabilities, and governing styles. Drawing on the resource-based view of the firm, agency theory, and institutional perspective, this study examines how ownership type impacts IDP relationship of a sample of 1074 publicly-listed Indian firms. Results suggest that family- and domestic corporate ownership positively moderates IDP relationship but foreign corporate ownership results in negative moderation. Results further suggest that domestic- and foreign financial institutional ownership imparts no statistically significant influence on IDP relationship. These findings are new to the literature. In conclusion, we discuss our study’s implications and limitations and provide directions for future research.

Saptarshi Purakayastha, Somnath Lahiri

Chapter 7. E-Servicescape in Service: Theoretical Underpinnings and Emerging Market Implications

Electronic servicescape referred to as e-servicescape provides a virtual environment to the prospective customer who is actively or casually looking for purchasable products/services online. It plays a significant role in facilitating the surfing experience through its ambience, search aids, design and different functional aspects within a particular online platform. In the context of the digitally driven transformation shaping the present-day business landscape, understanding the role of e-servicescape is germane. Hence, this research chapter attempts to explain the concept of e-servicescape touching upon essential elements and dimensions of e-servicescape through review of past literature and contemporary practices. The role of internet in the birth of e-servicescape and its consequent significance in the service sector are highlighted. This chapter presents a holistic e-servicescape model in an attempt to aid researchers and marketers doing business in the online platforms to strategize their move considering the innovations and amendments essential for delivering the best service experience to its key stakeholders. Furthermore, the relevance of the e-servicescape model in the context of emerging market is discussed to equip marketers with critical insights that would help in developing market-specific service delivery strategies.

Rituparna Basu, Sayani Mandal

Chapter 6. Direct Marketing Issues in Emerging Markets—Review and Proposition

The advent of several traditional and non-traditional communications has prompted many manufacturers and retailers in emerging economies to redesign their traditional marketing channel structures by engaging in direct marketing routes. This chapter demonstrates the impact of direct marketing on consumer behaviour in emerging markets. We primarily illustrate how direct marketing affects the degree to which customers accept direct communication as a substitute and complement of indirect communication for buying at a traditional store or an online platform. In this chapter, we develop the related theory, a scholastic argument, and bring several propositions related to direct marketing effects in emerging economies.

Mahuya Adhikary, Atanu Adhikari

Chapter 15. Obstacles to Doing Business in Asia: Cross-Country Analysis for State-Owned Enterprises and Private Firms

This study examines a number of factors that are essential in doing business across selected emerging countries in Asia. The analysis compares the order ranking of obstacles between state-owned enterprises (SOEs) and privately held enterprises. In this study, we define a state-owned enterprise as a business enterprise where the state has, directly or indirectly, significant control through majority ownership (at least 50.01%).

Thai-Ha Le, Farhad Taghizadeh-Hesary, Canh Phuc Nguyen

8. International Governance, Exchange and Cooperation in Cyberspace

At present, a new round of technological and industrial revolution represented by information and communication technology has created new demands and posed new challenges for cyberspace governance. Unilateralism and protectionism are spreading, and international cyberspace governance has entered the deep water.

Chinese Academy of Cyberspace Studies

Chapter 8. Labor Market in PR China

This chapter applies the framework of institutional change from Chapter 5 to the change in labor institutions in China. It offers an interpretation of the Chinese growth model as one currently changing from an extensive to an intensive developmental strategy. The space for collective bargaining and coordination is growing in recognition of the increase in structural labor power (importance of manufacturing to the economy as a whole and possible damage incurred by strikes). However, it is also constricted by the obstacles presented to labor organization (associational power), with independent organization being viewed as a competitor to the Party monopoly of political power. This chapter firstly surveys the labor institutions in China and their changes through the Northian triangle of formal, informal, and avoidable institutions and points to their changes. Secondly, it analyzes the seven drivers of change through their three channels of change (with the dominant role played by institutional design). Thirdly, it offers a view of social consequences of these shifts with income inequality rapidly rising from the mid-1980s to 2007 and somewhat decreasing since.

Josip Lučev

Chapter 23. Decision-Making in Early Internationalization: A Structured Expert Judgement Approach

The aim of this chapter is to show how a structured approach to elicit expert judgement (SEJ) can guide the practice of early internationalization. We applied SEJ to forecast some critical issues upon which an innovative start-up wished to base their decision of whether to expand their initial operations in Poland and Czech Republic to Brazil. Sixteen participants of an Executive MBA program acted as experts and underwent the procedure for eliciting their judgements. The performance of experts was quantified in terms of statistical accuracy and informativeness, which were combined to provide a performance-based weight for each expert according to Classical Model. The combination of weighted expert judgements led to improved statistical accuracy and informativeness of the forecast. The procedure demonstrates how entrepreneurs can take advantage of expert knowledge in deciding about risky endeavours when lacking their own experiences and reliable data that can guide their choices.

Michał Zdziarski, Gabriela F. Nane, Grzegorz Król, Katarzyna Kowalczyk, Anna O. Kuźmińska

Monetary Policy Regimes, Fiscal Implications, and Policy Interactions Among Developing Economies

This paper provides new empirical insights in order to give a relevant contribution to the more recent literature on international transmission of shocks among emerging market economies, with a particular emphasis in the most recent recession and postcrisis consolidation. Interdependence, commonality, and heterogeneity in macroeconomic-financial linkages are also identified in order to give new stimulus to the study of international business cycles and policy-making. An extension of a time-varying Structural Panel Bayesian Vector Autoregressive model is developed to deal with model misspecification and unobserved heterogeneity problems when studying multicountry dynamic panels and jointly investigating monetary and fiscal policy effects. The results argue that monetary policy transmission mechanisms and fiscal authority have worked actively among emerging markets but with different actions due to large differences in their financial structure.

Antonio Pacifico

Exchange Rate Sensitivity of Firm Value: Evidence from Nonfinancial Firms Listed on Borsa Istanbul

This chapter attempts to quantify the effect of exchange rate on the value of nonfinancial firms listed on Borsa Istanbul. In the first part of the analysis, the regression results using firm-level data show that currency fluctuations tend to influence the stock returns of 44 firms out of 177 firms in the sample in a significant way with negative average foreign exchange (FX) sensitivity coefficient. The sectoral-level analysis indicates that sectors with net FX short position are also subject to higher FX sensitivity with respect to firm value. In the second part, firm-level determinants of FX sensitivity are investigated using quantile regression method. The estimation results indicate that the market value of firms with net FX position surplus tends to respond positively to the depreciation of Turkish lira against the US dollar across all quantiles. It is also observed that the degree of internationalization, firm size, profitability, and growth opportunities are significant determinants of stock market pricing of FX risk.

İbrahim Ethem Güney, Abdullah Kazdal, Doruk Küçüksaraç, Muhammed Hasan Yılmaz

Chapter 16. Analyzing the Economic Depression Post-COVID-19 Using Big Data Analytics

Various industries like technology, food, agriculture, and education are predicted to suffer major financial and production depreciation. The economic crisis suffered by the major large-scale industry on the other hand is predicted to effect the other economic enterprises effecting the world on a major scale. The lockdown incurred upon the general public is implemented all over the world in order to control the widespread of this pandemic. Coronavirus has hit the worldwide economy tremendously all over the world. Various countries have suffered life loss, temporary stop gap in various industries, economic growth, loss in revenues collected, etc. Though after a span the lockdown was made open, certain extra policies and rules were implemented such as social distancing and no gathering of people more than two or three in a close proximity. Restriction over number of people who can board at the same time over any public places like shops malls have effected the cash inflow to a huge extent. This chapter aims at analyzing the depression suffered by various sectors post-COVID-19 as a result of the lockdown along with various recent policies implemented. It also covers visualizing these issues with big data analytics perspective and how the concept of AI and other technologies is working across in order to solve these issues. It covers in brief how these upcoming technologies have been able to contribute in the healthcare sector while fighting against COVID-19 or uplifting the economy by helping the industry to build and design new models or plans to regain the cash inflow.

Bandana Mahapatra, Kumarsanjay K. Bhorekar

19. Reform Design Matters: The Role of Structural Policy Complementarities

In this chapter, we discuss possible interactions across structural policy domains. While relatively more studied in the context of the post-communist transition literature, our survey suggests that relationships of this type hold more generally and can be important to improve our understanding of the relationship between structural reforms and long-run economic growth. Given its potential relevance for the design of successful reform packages, exploring in a more exhaustive way the notion that the effect of a given reform on economic growth depends on the progress made in other policy areas should be a priority point for future research. This may be particularly relevant to help unlock the growth potential of many developing and emerging countries, namely concerning their integration in the global economy.

Joaquim Oliveira-Martins, Bruno T. da Rocha

33. Taxonomies and Typologies: Starting to Reframe Economic Systems

We propose that it is an important ongoing research agenda to devise a new classification of economic systems based on empirical observation rather than abstract reasoning, and then subject this to the test of empirical validity by exploring whether this taxonomy explains observed behaviour. However, we do not ourselves yet attempt a new classification of economic systems; rather, we draw on the Varieties of Institutional Systems configuration (Fainshmidt, Judge, Aguilera and Smith, 2018) as the basis for our empirical work. We ask whether, holding country-specific institutional factors, sector-specific technological characteristics and ownership-specific firm-level attributes constant, enterprise performance is contingent on the configuration. We test this idea on the World Bank Enterprise Survey of 30,000 firms in more than 57 countries between 2006 and 2016, using a production function methodology. Our proposition that taxonomic systems matter is supported by the evidence. We find that in these understudied economies, systems based on both free market logic and state capitalism achieve equivalent firm-level performance, while systems allowing rent-seeking and cronyism are less efficient. Thus, this new approach allows for system equivalence (equifinality) as well as system superiority.

Randolph Luca Bruno, Saul Estrin

36. Conclusion: So, What Is Comparative Economics Now?

This chapter concludes the Handbook of Comparative Economics by revisiting the chapters collected in this edited book and by articulating the links that exist between them. We discuss what we have learned from each of these contributions, and how, together, they contribute to defining what comparative economics is today. We, in particular, emphasize the opening up of the field to a variety of cognate disciplines and a relative effort to incorporate their key contributions, and we discuss some of the ways in which new issues are tackled and new methods are used to tackle them. We conclude on the continued importance of comparative analysis and its relevance to understanding the important issues of the day.

Elodie Douarin, Oleh Havrylyshyn

13. Political Economy of Transition Reforms

The chapter discusses the political economy of transition from plan to market. We start with the political economy before transition when powerful vested interests delayed necessary reforms thus leading to the bankruptcy of the communist regimes. We then move to the political economy of early transition reforms and explain the divergence in the design and the outcomes of those reforms across the transition region. Next, we explain the rise in inequality and respective anti-reform backlash that was observed in many transition countries. We conclude with the analysis of today’s political economy analysis and implications for future reformers.

Sergei Guriev

23. Explaining the Heterogeneity of Health Outcomes in Post-Communist Europe

This chapter examines the trends and patterns in population health of the former command economies of Central and Eastern Europe and the Former Soviet Union during the past half century. Even following a period of stagnation and decline from the 1960s to the 1980s, few could have anticipated the dramatic increases in mortality and morbidity that plagued large parts of the region during the early 1990s and then developed into grave public health crises in what became known as the ‘mortality belt’ countries of Belarus, Estonia, Latvia, Lithuania, Moldova, Russia and Ukraine. These countries exhibited exceptionally high rates of external cause and cardiovascular-related deaths, which responded rapidly to fluctuating economic fortunes and were the cause of millions of excess deaths during the 1990s, particularly among males. As economic recovery advanced in the 2000s, a pattern of divergence within the region itself set in. Some countries are now converging on Western health standards, while others—notably Russia, Ukraine and Belarus—remain closer to those of the less developed world, despite their more advanced industrial and social welfare heritage. This chapter argues that in these countries while material well-being, investment in public health care, and progressive social policies are important, these—and economic development more generally—also interact with specific cultural, historical and institutional factors that shape the outcomes we observe and that provide important lessons for comparative economics.

Christopher J. Gerry

Chapter 12. Developments and Solutions to the International Predicament for Small-to-Medium-Sized Enterprises

The new economy based on internet has changed the way of doing business. The impacts of the US-China trade war are even more far-reaching. On top of it, the threat of corona virus has totally changed the horizon of all business. This chapter uses Taiwanese SMEs as examples to extract several useful strategies to concur the challenges, including leveraging Japan’s resources, putting more emphasis on ASEAN markets, taking advantage of One Belt and One Road Initiative, and introducing peer advisory board to enhance the quality of decision making.

Steve Hsu

Chapter 1. Why Succession Is a Critical Issue for SMEs: Perspectives and Cases in the Asian Context

The success of an SME is usually based on the talent of the founders and their families in a distinctive industrial position, the succession decision of an SME is also a decision about what direction the firm will take. For SMEs to pursue long-term survival, the owner must be able to initiate trans-generational entrepreneurship after the firm is passed on to the next generation. Therefore, the succession decision and the innovation decision for an SME is actually a two-sided coin, and thus, the succession decision is closely linked with the competitive advantage of the SME. Recognizing that each SME is situated in specific institutional environments, we present distinctive experiences and observations from SMEs in Asia to uncover the challenges for SMEs in Asian societies.

Hsi-Mei Chung, Kevin Au

Chapter 13. Opportunities and Challenges in Capital Markets for Small-to-Medium-Sized Enterprises

Having limited financial resourcesResources is a big challenge for SMEs. If a SME enters the capital marketCapital market, it will become a public company and usually can enjoy the advantages of financial and human capital. However, choosing to enter the capital market is laden with challenges even if it is a good opportunity. In this chapter, the author analyzes possible opportunities and challenges for SMEs to go public by illustrating three cases in different industries. The author highlights the motivations for a SME to go public as well as the advantages and disadvantages for a SME to entering into the public market. The key point of this chapter is that the public market is not only a source of financial capital, but it is also a chance for a SME to transform itself in both management and strategy. Therefore, how to transform well to meet the requirements of the capital marketCapital market is a tough challenge for the SME successor.

Kevin Lai

Drug Verification System Using Quick Response Code

Drug errors and abuses are the most frequently reported deficiencies in the healthcare sector worldwide. In the US alone over $3.5 billion has been expended on treatment related to drug errors that concern more than 1.5 million individuals. The drug is an important part of livelihood has faced the problem of authentication because medicines have to be tested to differentiate between the real and the fake. Drug code detection will reduce the risk of these mistakes by supplying the first responders with accurate information that can quickly decode this information using a code scanner on their smartphones and thus take the necessary steps against their use. The previous study implemented a desktop application system that checks for standardized drugs by scanning the Quick Response codes on the pack. Recently, lots of improvements have taken place in terms of smartphone development with various tools like cameras, which can be used to scan drug barcode. Therefore, the study developed a mobile application to scan the drugs' barcode and verify authenticity. The application designed using an integrated database for real-time drug authentications. The application was implemented using SQL running on a server and interacted with an Application Programming Interface (API) to serve as an intermediary between the application and the browser API built with an Object-relational mapping (ORM) called Sequelize. After code is scanned to gets its serial code, the API validates the serial code and releases a quick response code through a JavaScript Object Notation (JSON). The proposed system can be used by doctors, pharmacists and patients for the identification of fakes and harmful drugs, hence reduced the calculations of fakes or harmful drugs.

Roseline Oluwaseun Ogundokun, Joseph Bamidele Awotunde, Sanjay Misra, Dennison Oluwatobi Umoru

Chapter 6. New System of International Relations? Which Way Forward into the Rest of the Twenty-First Century?

The chapter addresses the viability of China’s claims and insistence for the need of a new more just, democratic and inclusive system of international relations, and Beijing’s “from within” and “from outside” the existing global order, third path approaches, and strategic behavior. The discussion depicts how China continues to selectively demonstrate its “responsible stakeholder’s stands regarding the centrality of some of the existing systemic structures such as the UN, WTO, WHO, G-20, and in parallel sought the establishment and enlargement of new international structures and platforms in which Beijing is playing a leading role—BRIC, SCO, CICO, BRI, and AIIB, enhanced by its global network of strategic partnerships.

Nicolai S. Mladenov

Chapter 4. Basic Pre-Covid-19 Components of “China Dream” Grand Strategy

The basic holistic components of the post-2012 Xi era gradual building blocks of “China Dream” Grand Strategy are under review. The chapter takes a thorough look at all security, ideational, and material elements that structure China Dream. The analysis attempts to describe the consequent and meticulous ambitions of President Xi for his mid-twenty-first-century Party and State-centered collectivist project and experiment of capturing, energizing, and guiding the vast national potential, and especially the expectations and the dreams of the younger Chinese generations.

Nicolai S. Mladenov

Chapter 7. Cold War 2.0 and Mega Depression Risks?

The chapter discusses the general state of the play and U.S. leadership stands in the pre-COVID-19 international system. Ideological and economic factors and confrontation between the U.S. and China help form the warning analysis of the risks that Cold War 2.0 and Mega Depression trends and threats pose for the future system of the international relations into the rest of the twenty-first century.

Nicolai S. Mladenov

Chapter 1. A World in a Dire Straits, Why and How the Book Was Conceived

The chapter addresses the current real global dire straits, the main argument, and the four research questions/challenges to why and how the book was conceived. The structural logic of the work design is explained, in addition to the policy and academic state of the art of the research questions under examination. The theoretical approach draws upon the main paradigms and IR theories with emphasis on how they explore and theorize on the topic of China’s rise. The chapter covers also the Chinese theoretical response to the international “China rise” debate, and the classical ‘Zhongyong dialectics upon which Chinese IR scholars theorize on China’s rise and Grand Strategy.

Nicolai S. Mladenov

31. The Rules of the Game in Transition: How Informal Institutions Work in South East Europe

This chapter reviews the literature on the interaction of formal and informal institutions and undertakes empirical tests for the validity of claims about the substitutive role of informal institutions. We address two questions: ‘what works when the formal institutions do not?’ and ‘to what extent do formal institutions constitute real constraints in South East European societies, characterised by strong hold of personalised trust and reliance on personal connections.’ To answer these questions, we analyse survey data from eight countries of South East Europe (SEE). When formal rules fail to be effective, social norms of reliance on ‘trusted people and connections’ predominate as a default option, alongside the complexity of factors surrounding the workings of informal networks that channel and enable such interactions.

Alena Ledeneva, Adnan Efendic

Chapter 5. Research on China’s Belt and Road Capacity Cooperation

With a new wave of infrastructure construction and industrialization in the world, international capacity cooperation characterized by industrial integration, capacity sharing, cultural intercommunication and policy coordination has accordingly developed in the context of deep integration of all countries around the world. China’s capacity cooperation with other countries along the Belt and Road serves as an important component of this international new wave, whose purpose is, based on the principle of “openness, cooperation and mutual benefits”, to enhance China’s position in the global division of labor as well as its global influence, speed up the industrialization process of backward countries along the Belt and Road, and improve the status in international division of labor and the pattern of international governance so as to achieve the healthy and sustainable development of the global economy. However, there are also many problems in China’s cooperation with certain countries along the Belt and Road. Therefore, China should improve its trade relations in goods and services with a more open attitude; focus on promoting a number of projects with quick results to form a demonstration effect; step up the building of free trade areas and overseas cooperative parks, and create a favorable economic, trade and investment environment for capacity cooperation; foster large-scale competitive multinational companies. These measures will provide a micro-foundation for the implementation of capacity cooperation, thus supporting the long-term healthy development of China’s capacity cooperation with other countries along the Belt and Road.

Jinping Zhao

Chapter 4. The Role of International Solar Alliance in Advancing the Energy Transition in Asia

For the last three consecutive years, global investments in renewables-based electricity capacity have beaten fossil fuels. In India renewables have dominated power sector investments since 2015. Despite these trends and fall in technology prices, the bulk of clean energy investments bypass developing countries. Large potential for solar (and wind) in developing countries remains untapped, in large part because risk-averse investors are unwilling to deploy funds in what they view as challenging markets.The International Solar Alliance (ISA) was announced in 2015 as a response, to bring solar-rich nations together and offer a larger market, in order to facilitate deployment of existing solar technology, reduce prices further, and promote collaborative solar R&D and capacity building. ISA has the potential to facilitate climate action in developing countries, particularly in Asia, if it can catalyse finance, technology and deployment of solar at scale.This chapter explores two themes: (i) energy demand in Asia, and (ii) the premise and purpose of ISA. Building on these themes, it dives deep into a critical question for the energy transition: How could the cost of finance associated with investments in clean energy be lowered? The chapter outlines the design of an innovative financial solution—Common Risk Mitigation Mechanism (CRMM)—that incorporates three categories of risks (offtaker, currency, and political) through a single facility. A multi-risk and multi-country approach would help to reduce exposure for any single country, investor or project developer. The chapter concludes with specific recommendations for ISA to demonstrate its value proposition to member nations.

Arunabha Ghosh, Kanika Chawla

Chapter 9. Power Purchase Agreements as Instruments of Risk Allocation and Alleviation for Renewable Energy in Asia

This chapter examines power purchase agreement (PPA) structuring mechanisms to address project risks that manifest across renewable energy projects in several Asian countries. Using India as a case study, the chapter identifies the extent to which the standard PPA provisions address current prominent risks in the sector. It goes on to identify how existing provisions could be modified and newer structures could be included to ensure a more bankable PPA format. One key intended takeaway from this chapter is that the process of arriving at a standardised model for a PPA must be a constantly evolving one, taking into account the concerns of all project stakeholders, project risks and solutions across jurisdictions, to bring stability to the PPA models.

Anjali Viswamohanan

Chapter 5. How the European Union Made Poland European Again

This chapter analyzes the sources of Poland’s unprecedented economic performance after 1989, when Poland became Europe’s and the world’s growth champion. I argue that this growth miracle was driven by five fundamental factors, including Poland’s accession to the European Union. All five factors were critically important, but without accession to the EU, Poland’s economic miracle would not have happened.

Marcin Piatkowski

Chapter 8. Bulgaria and Romania: The Latecomers to the Eastern Enlargement

Bulgaria and Romania, the last two participants in EU’s large Eastern Enlargement, joined the Union more than two years after the big Central European wave. This chapter presents an assessment of some of the changes that took place in the period after accession and also seeks to analyse to what extent EU membership has helped them to converge to the EU frontier(s). This assessment shows that despite the similarities between Bulgaria and Romania, the two economies displayed important differences both in terms of the policies followed by the authorities and in the process of economic convergence, restructuring, macroeconomic adjustment and institutional change. Such results can be regarded as evidence supporting the view that EU membership per se does not guarantee convergence to the EU’s frontier(s), sustainable growth in prosperity and the degree to which the local population benefits from these outcomes. The latter remain a mandate and responsibility of the sovereign governments of EU member states and the policies that they pursue.

Rumen Dobrinsky

Chapter 7. Building Agility in Service SMEs for Post-pandemic Era

Due to the uncertainty during the pandemic and beyond, service organizations’ skills and competencies related to adapting their service operations to the restricted customer conditions have become critically important. While many service companies are shutting down or facing demand reductions, some companies maintain their operations by transforming their service provision abilities. Accordingly, it is imperative to understand which capabilities are critical for the survival of service organizations, specifically service SMEs which are under intense pressure of the social isolation and physical distancing concerns of customers and restrictions of governments. In this paper, by focusing on the cases of service SMEs in an emerging market (Turkey), we discuss how the agility framework and agility-related capabilities of service SMEs provide service-related insights into value creation for their existing and potential customers during the pandemic. We conducted interviews with the managers of service SMEs in Turkey. Our findings suggest that each of the agility related meta-capabilities (strategic sensitivity, leadership unity, resource fluidity, and resourcefulness) of service SMEs are critical but insufficient. We observe that service SMEs should also utilize their relationship building and process enhancing co-creation capabilities to adapt their service provision processes to the new normal. Particularly, in our cases, individuated and relational interaction capabilities have emerged as crucial for service SMEs to retain customers and transform their services.

Özge Demir, Mehmet Okan, Nesenur Altinigne, Didem Gamze Isiksal, Elif İdemen, Elif Karaosmanoglu

The Research on Disruptive Technology Identification Based on Scientific and Technological Information Mining and Expert Consultation: A Case Study on the Energy Field

Disruptive technology identification is of great significance to the development of the countries and enterprises. In this paper, both quantitative analysis and qualitative analysis are combined to propose a disruptive technology identification method based on scientific and technological information mining and expert consultation. In the part of the quantitative analysis, three kinds of scientific and technological information data are involved including papers, patents, and projects, and the word embedding model and clustering technology are applied to dimension reduction and aggregation the scientific and technological information which results in finding “seeds” or “sprouts” of disruptive technologies from the mass scientific and technological information. In the part of the expert consultation, the ranking of potential disruptive technologies is evaluated by an expert questionnaire based on a “three-dimensional index system of technology disruptive potential evaluation.” The result of the energy field research is that 45 potential disruptive technologies are identified and their disruptive ranking is determined.

Lucheng Lyu, Xuezhao Wang, Wei Chen, Xin Zhang, Xiaoli Chen, Xiwen Liu

Chapter 6. Digitalisation, Productivity and Jobs: A European Perspective

This chapter describes economic insights from research having studied the ongoing information and communications technology (ICT)-based structural transformation of the business sector. It also describes initiatives by the EU in the field of digitalisation and their likely economic impact. The chapter concludes by arguing that the key for the EU to ensure that the ongoing ICT-based structural transformation creates overall prosperity is an improved entrepreneurial ecosystem, stimulating growth from new and successful firms. Institutions must be able to channel savings to start-ups and business development where well-functioning stock exchanges and venture capital markets are crucial. The educational system also needs to become more effective and flexible in order to offer future employees the skills demanded in the labour market. Finally, insurance systems should be more customised and flexible in order to make it easier for EU citizens to benefit from advancements in new technologies.

Fredrik Heyman, Pehr-Johan Norbäck, Lars Persson

Chapter 7. How G20 Can Better Support Global Governance?—A Chinese Perspective

G20 will be the most important and the most representative global governance platform in today’s world and for the foreseeable future. It should enter a new phase in its institutional development, moving beyond crisis management towards robust governance including establishing a permanent secretariat in decision-making and a setting up rules, more inclusiveness, effective policy coordination and equal and just rights of participation. The recognition of the relevance of civil society and business organizations for global governance is one step forward. The importance in the world economy and the broadly representatives of developing countries both indicate that E11 has a huge space of internal cooperation. Actively promote the internal cooperation of E11 can apparently create win-win situation between developed and developing countries and improve the efficiency. In E11, China is still a new player on the international stage and not the rule maker. Given the risks and problems of the Chinese economy, China needs to adopt a series of macroeconomic measures, including fiscal, monetary, taxation, financial and industrial policies to maintain exchange rate basically stable, prevent the inflow of hot money, contain credit binge, curb inflation, expand domestic demand, stabilize external demand, promote economic restructuring and adjust income distribution. In the next decade China’s basic attitude to global governance is to minimize the loss, not maximize the benefits. How to ponder and understand the relationship between the partial and the overall, the long-term and the short-term international obligations and right, and what kind of a global governance structure is most consistent with China’s long-term development targets, are all challenging problems that China faces in future.

Yuyan Zhang, Huifang Tian

Chapter 6. The Relationship Between China and India Within the Framework of Asian Economic Integration

Regional economic integration is undergoing an unprecedented boom since the 1990s, and the process of Asian economic integration has been accelerating at multiple levels. The development of regional integration is changing the overall pattern of traditional relations between countries and is reshaping the state of the world. Meanwhile, such political and economic factors as conflicts of interest between domestic groups, competition between nation states, and external pressures still restrict the depth and scope of such integration. During the Asian economic integration process, the economic relationship between China and India is attracting greater attention around the world. This process will not only affect the two countries, but will also have great impact on the regional integration process in Asia and on international relations. This paper attempts to throw light on the incentives for and impediments to closer economic relations between the two countries and, and based on these analyses, to outline the prospects for Sino-Indian economic relations.

Yuyan Zhang

15. Weighted Aggregated Sum Product Assessment (WASPAS)

Multiple criteria decision-making (MCDM) methods can be successfully applied to rank complex alternative decisions and to achieve optimal solutions based on multiple, usually conflicting criteria. Weighted aggregated sum product assessment (WASPAS) method is preferred to the variety of available methods because of its abilities to increase the accuracy of ranking.

Jitesh J. Thakkar

Chapter 12. BRICS and Industry 4.0

This chapter researches the challenges and opportunities in Brazil, Russia, India, China, and South Africa (BRICS) in integrating Industry 4.0 to transform and grow their local economies. This chapter follows an academic methodology to compare and reviews the skills, policies, and strategies that developed countries have implemented successfully in preparation for Industry 4.0 and how emerging markets can learn from these. The research contribution of this chapter is in identifying and studying challenges that are specific to emerging economies (with focus on BRICS), followed by observed initiatives in BRICS countries that aim to mitigate or overcome such challenges. The changing social, political, and economic fortunes of Africa that can boost economic growth through technology and industrialisation are presented in anticipation of the emergent Industry 4.0 and the contribution of this chapter is to recognise its importance.

Wynand Lambrechts, Saurabh Sinha, Tshilidzi Marwala

Chapter 14. Conclusion

This chapter takes stock of the themes highlighted in the preceding chapters in their totality, while also highlighting emerging areas for further research. Particularly highlighted are research niches around BRICS and climate change, security cooperation, and international human rights norms and transnational justice—all germane topics for consideration for all interested in the extent to which the BRICS are assertive or complementing the West.

David Monyae, Bhaso Ndzendze

Chapter 11. The Global South and Industry 4.0: Historical Development and Future Trajectories

This chapter researches the global transformation of industry towards an innovative, sophisticated, and autonomous technology-driven environment. Emerging markets within the Global South should be committed to calibrate its economic, political, and social structures towards investing in a revolutionised industry capable of transforming socio-economic growth. The chapter studies historical industrial revolutions, and presents research towards skills development for Industry 4.0 through digital transformation in emerging markets. The research contribution of the chapter is evident in its research of technologies, innovations, and tailored policies that emerging markets are encouraged to adopt, to participate and thrive in the incipient Industry 4.0.

Wynand Lambrechts, Saurabh Sinha, Tshilidzi Marwala

Chapter 1. Introduction: The Genealogies, Elements and Implications of a ‘BRICS Order’

The BRICS is composed of countries which, although strategic in their respective regions, differ in power and influence owing to economic size, military capability, skills and level of poverty. The book teases out the nexus between knowledge, politics, technology and economic activity. The contributors explore the emergence and evolution of the BRICS countries in relation to each member, and teases out the place, role and unique contribution of each one of them to the bloc as well as their relations with each other. Chapters highlight the indisputable influence of BRICS in international relations without glossing over inherent challenges that militate against the bloc operating as it should.

David Monyae, Bhaso Ndzendze

Chapter 5. China, Economic Partnership, Common Development and BRICS

China’s economic rise and participation in the BRICS grouping provides the African continent with a range of new development partners and opportunities unmatched in its postcolonial history. China’s strategic engagement with BRICS offers a unique opportunity to promote a new and innovative development path. BRICS investments and infrastructure development programmes are expected to underpin and promote continued economic growth in BRICS countries through a process of expanded South–South collaboration, policy coordination and economic cooperation. BRICS is expected to be successful to the extent that it accepts and advances China’s national interests for promoting the BRI, and increased trade and global governance reform. If BRICS can accept and embrace China’s concepts of economic partnership and common development, the organisation is expected to prosper and provide the momentum to transform the global political and economic system.

Garth Shelton

Chapter 6. Manna from Heaven! South Africa’s Search for Relevance in the BRICS Constellation

When South Africa originally joined BRICS, it had no palpable strategy towards this new-fangled constellation; it initially responded to the BRICS invitation as a boost to its international ‘prestige’. As time went on, we saw a bit by bit, almost frantic search for a strategy. As it unfolded South Africa started to stress domestic, regional and international rationales which underscored its BRICS participation. It highlighted the potential for massive economic spin-off to be had from BRICS that could boost its ailing economy at home. It further viewed BRICS as a boost to its African leadership aspirations. BRIC members singled out South Africa as a ‘gateway’ to Africa that could help to secure access to the African market during a time of ‘Africa rising’. From the perspectives of geoeconomic, geopolitical and geostrategic calculations, South Africa developed rather bold and ambitious goals vis-à-vis BRICS, viewing BRICS as both a countervailing force in a western-dominated world order, and even regarded BRICS as a potential alternative to the capitalist order that was dominated by the western powers.

Chris Landsberg, Oscar van Heerden

Kapitel 3. Das Unionsrecht als zentraler Maßstab für die Besteuerung grenzüberschreitend tätiger Konzerne

Die EU ist ganz wesentlich durch den gemeinsamen Binnenmarkt geprägt, der stets Kernelement des europäischen Integrationsprozesses war. Begrifflich und in seiner heutigen Grundkonzeption existiert der europäische Binnenmarkt seit 1993. Abgeschlossen ist die wirtschaftliche Integration damit jedoch nicht, sie ist vielmehr ein dynamischer Prozess, dessen Ende nicht abzusehen ist.

Matthias Pick

Chapter 8. Establishment of a Global Ecosystem and Its Expansion: Does the Platform Strategy Trigger a Transformation in the Structure of the International Division of Labor?

This chapter attempts to provide a comprehensive picture of the strategies of platform firms, relying on inputs from the case studies and empirical studies presented in Chaps. 3 – 7 . The picture is then examined in order to verify the propositions introduced in Chap. 2 .

Prof. Hirofumi Tatsumoto

Chapter 9. Conclusions

This final chapter verifies that the studies conducted in Chaps. 3 – 8 corroborate the fundamental proposition and the four subordinate propositions introduced in Chap. 2 . It then considers the academic and business implications of this book and prospects for further investigation.

Hirofumi Tatsumoto

Chapter 2. Business Ecosystems and Platform Firms: Theoretical Perspective and Analytical Framework

This chapter reviews studies on the competitive strategies of platform firms and presents the fundamental proposition of this book.

Prof. Hirofumi Tatsumoto

Chapter 4. Key Factors in the Success of Platform Strategy in Global Ecosystems: An Empirical Study on the Semiconductor Manufacturing Equipment Industry

This chapter examines the effectiveness of the competitive strategies of platform firms using transaction data from the semiconductor manufacturing equipment industry. For a long time, the firms in this industry had secured their competitive advantage by means of product strategies

Hirofumi Tatsumoto

Chapter 1. Financial System Development and Monetary Policy

Understanding how fast and to what extent changes in the central bank’s policy instruments affect aggregate demand and inflation through their influence on investment and consumption decisions of firms, households, and financial intermediaries. Monetary Policy of Rwanda is an effective and crucial handbook for monetary policy formulation, implementation and evaluation of monetary policy effects.

Prof. Thomas Kigabo Rusuhuzwa

Chapter 4. Monetary Transmission Mechanism in Rwanda

Monetary policy plays a fundamental role in price stability, which is a precondition for sustainable output growth and employment over the long run and is also a powerful tool in influencing economic activity in short term through several transmission channels.

Thomas Kigabo Rusuhuzwa

Green and Environment Sustainable Supply Chain Practices in Leading Indian Manufacturing Companies

This paper describes the development and need of Supply Chain Management (SCM) in manufacturing companies and how it gradually is trending towards Green Supply Chain Management (GSCM) in leading Indian manufacturing companies. Through elaborate literature review, the various work in the area of sustainability and GSCM have been observed and reflections on the origin of GSCM at global level have been collated. India is seemingly catching up on this global trend and so the paper gives a look out on the Indian government policies and commitment towards sustainability. The paper then synthesises on sustainability reports (2018–19) of top 10 manufacturing companies in India to check on the seriousness and extent of work being carried out by these companies who are supposedly the flag bearers of manufacturing industry in India. Finally, a discussion elaborates on the benefits of sustainability and GSCM as well as the challenges in implementing them in manufacturing environment with reference to India. In the last a conclusion is derived along with a summary to share the related observations and suggestions.

Deepak Sharma, Jai Kishore Sharma, B. K. Srivastava

Chapter 8. International Investment Law: A Journey from the Past to the Future

This chapter focuses on a systemic analysis of the key concepts and factors underpinning the development of international investment law within the boundaries of international law. A retrospective overview of the foundations of international investment law forms the basis on which the current state of international investment law is then approached. In the context of reviewing the complex phenomenon of international investment law, the application of the methodology of the history of law proves to be a valuable tool in determining (i) the boundaries of the prevailing legal concepts that surround the perception of law, as applies to international investments and current disputes thereof, and (ii) the opportunities that can transform the content/tools of law in relation to cross-border investments and the corresponding dispute settlement regimes going forward. In the conclusion—based on the review of the rapidly changing forms and content of investment within the current international political, economic, and human (social) interactions—the prospects of any future developments for international investment law are outlined and discussed. Finally, an evolutionary interim result is arrived at, which is described here as a journey from a chequered past to a multiverse future.

Evgeny Popov

Assessing Performance Characteristics of Concreting Equipment: Reliability Engineering Approach

Concrete production must commensurate with increasing demand for infrastructure development in both developed and developing countries. It is essential that concreting equipment be adequately maintained through effective monitoring and control for their optimum usage. Unforeseen breakdowns and inefficient monitoring techniques could result in low productivity and cost overruns. The field of predictive maintenance has largely been left unexplored in the construction sector. The present study was undertaken to understand the performance characteristics and associated parameters of concreting equipment by analyzing data on breakdown and repair history of three construction sites in India. The principles of reliability engineering were utilized to develop regression models to examine the effects of different quantifiable parameters on the performance of concreting equipment. It was found that cumulative mean time to repair and cumulative production quantity have a significant effect on time to failure. The site conditions such as harsh marine environment could lead to a significant amount of wear and tear and consequently, higher breakdown percentage. Moreover, excess workload and overtimes could result in inadequate maintenance of equipment which further increases the frequency of random breakdowns. This study highlights the need for proper monitoring, control, and predictive maintenance of concreting equipment to optimize their performance.

A. Ghosh, A. Hasan, K. N. Jha

Chapter 13. Nokia Siemens Networks: Purchase Accounting, Equity Method, and Proportionate Consolidation

During June, 2006, Nokia and Siemens announced the merger of their network business operations. The newly created entity was called Nokia Siemens Networks (“NSN”) and was ranked among the top three industry leaders in the telecom vendor sector. Prior to the transaction, Nokia and Siemens each owned 100% of their respective subsidiaries and, as part of the transaction, each entity relinquished control of its respective subsidiary for a 50% stake in NSN. In this case, we analyze the accounting implications of this transaction for both Nokia and Siemens. In particular, we analyze the transaction using three different methods for inter-corporate investments: equity method, proportionate consolidation, and full consolidation under the purchase method. Using common ratios, we examine which method would be preferred by the transacting companies.

Eli Amir, Marco Ghitti

Chapter 9. Governance Amid the Transition to Renewable Energy in the Middle East and North Africa

While some states in the Middle East and North Africa have pursued renewable energy policies, others have doubled-down on conventional fossil fuels and eschewed the development of renewable energy. What explains this variation? What implications do these choices have on domestic and international politics? Drawing on theories from political science and the political economy of development, we explore the transition from conventional to renewable energy in the Middle East and North Africa (MENA) region. We consider the impact of decarbonized, diversified economies on demands for inclusive governance and democratic institutions. First, we argue that the renewable energy transition will diffuse existing and future societal pressures by increasing youth employment, hindering corruption, and reducing fiscal volatility. Compared to the concentrated political economy of petroleum-reliant states, we posit that the up and coming renewables sector provides an opportunity for states to broaden and diversify their sources of economic and international political power. Second, we build theoretical expectations that fiscal reliance on oil exports and government time horizons explain variation in renewable energy policies in the MENA. We conclude with potential scenarios for how the transition will affect fiscal and political stability.

Paasha Mahdavi, Noosha Uddin

Chapter 3. A Future with Artificial Intelligence: Strategy for Success

The introduction of artificial intelligence allows the most successful companies in the world to advance the thesis on the predominant role of digital solutions in the achievements of leading companies. Based on the assertion of many experts about the growing gap between digital and non-digital businesses, a hypothesis emerges: to use artificial intelligence (first of all, the “weak” form), it is necessary to introduce it at the strategic level of management. This hypothesis is very useful for finding the answer to the question of what type of strategy is most applicable for the commercialization of digital products. It is shown that a generalized vision of three strategies (growth, cost reduction, and blue ocean) allows a comparative analysis of the possibility of strategizing digital solutions, which includes artificial intelligence.It is noted that pilot projects risk making the attracted investments irrevocable if their scaling is not provided at the strategic level. Finally, recommendations on the choice of strategies for different areas of digitalization, combined with artificial intelligence, are given.

Nidjad Asadli

Chapter 4. Technological Revolution in Financial Intermediation

The chapter presents current issues in the innovative modernization of financial intermediation. Development of financial innovation has in recent years led to significant structural and functional changes in the system of financial intermediation. New technologies open broad prospects, allowing the radical reduction of the costs of information transmission and processing, while exacerbating competition and stimulating the emergence of new financial intermediaries. This chapter analyzes the debate on the theoretical understanding and analysis of financial intermediation; how disruptive technologies influence the economy with a focus on organizational changes in financial markets; the use of digital currencies; and exploration of block-chain technologies applications. The chapter discusses how technologies have changed the market. Customers are also a focus: how they are perceived as they foster entrepreneurial creativity and as they disrupt existing financial markets through the introduction of innovative business models in the modern credit institution. Digital transformation in financial intermediation shows the possibility of “survive” for finance-credit institutions (which would be receptive to technological innovation), to maintain financial stability and to focus on the client. The authors do not share the views of those experts who predict that banks, in the context of digitalization, will lose their market share and field of action as a result of Fintech companies’ competition. The banks’ practice of distance-based working with their customers will create the conditions for reformatting the business model of banks, which will become more secure and familiar to customers.

Galina Panova, Irina Larionova, Istvan Lengyel

Chapter 3. The Rise of Data Capital

Data as a human-created resource is naturally one capital, which changes the game in terms of how we respond to the new economy. It is beneficial to entrepreneurs (and innovators) for many purposes, such as reclassifying capital, accounting intangibles, anchoring traditional markets, and making human capital shareable. This chapter is through case studies to compare data capital and intangible capital and to consider workforce implications under big data. An experiment of quantifying social media clout capital is given in the last.

Chunlei Tang

Chapter 5. Particularities in Data as Capital

Previous research has shown that intangible capital has unusual economic characteristics. This chapter looks at these characteristics to examine distinctive economic scenarios when the data becomes a capital, start from the two particularities (i.e., value and shareability) of the data itself. These include human coordination and enterprise concentration at the future “virtual nations,” inequalities in data capital migration, and commercialization of online data remains. The two data particularities can also help to identify a core set of issues relating to data rights, many of which, mentioned continuously by both academia and industry, have been debated in an ever-growing mountain of scholarly literature. But the perspective of examining “data sovereign” here is unique.

Chunlei Tang

An Empirical Investigation of Analytics Capabilities in the Supply Chain

This study conceptually develops the construct of Supply Chain Analytics Capability. Preliminary analysis of survey data collected from more than 100 firms in India supports several hypotheses relating supply chain analytics architecture modularity and decentralized governance, in a moderating manner, with Supply Chain Analytics Capability. The capability creation path model suggested in this study establishes the antecedents of Supply Chain Analytics Capability and is helpful to firms seeking to develop such a capability.

Thiagarajan Ramakrishnan, Abhishek Kathuria, Jiban Khuntia

Chapter 2. On Early-Stage Start-Ups

In this chapter, which comprises a series of eight product innovation case studies, compares the approaches of various designer-inventors to managing IP. The case studies range from music instruments to healthcare products. The chapter examines the inventors’ perceptions of the significance of IP in conjunction with other key business development factors. This discussion of the conditions within which design-led start-ups develop, is followed by an in-depth analysis of the key business development attributes including IP such as patents, design rights, and trade marks, as well as finance, complementary assets, and market-related factors. This generates an understanding for the development principles behind the individual start-ups, which are analysed in comparison to each other, and in consideration of the degree to which the businesses have grown in terms of value. The chapter culminates in the development of a reference framework.

Matthias Hillner

Chapter 8. Strategic Tips for the Aspirational Designer-Entrepreneur

This chapter discusses different aspects of the business development canvas. It introduces three distinct start-up business development phases and explains how the business development factors and the dependencies between, may change over time. It also articulates how IP strategies can be developed and implemented more effectively, if multiple innovations are at play. The business development canvas is discussed in relation to re-innovation and a conclusive set of recommendations outlines how the success and survival prospects of start-ups can be systematically enhanced through the dynamic management of formal and informal IP.

Matthias Hillner

Transactions & Valuation in the Global Logistics Market

The transaction market in the transport and logistics sector is a valuable indicator for the state of the industry. Digitalization shaped the development of logistics throughout the last decade. Often, the players behind this disruption are targets for investments and acquisitions by established incumbents. However, investments in digitalization and the emerging platform economy are primarily driven by venture capital, rather than strategic investors. At the same time, the global economy is experiencing a shift towards new hubs of innovation and technology. A look at the intricacies of global M&A activity reveals a turning point for the industry that questions the foundations of traditionally asset-heavy business models. The emergence of new players and new disruptive concepts might drastically change the industry. Yet, disruption is not necessarily a destructive force, but a transformative driver for change and improvement within an industry that has always been at the forefront of innovation.

Steffen Wagner, David Klein

Chapter 3. The COVID-19 Pandemic and Philippines–China Relations

As the Coronavirus disease (COVID-19) pandemic continues to ravage countries all over the world, the Philippines is among those that went to unprecedented levels of crisis mode and faced enormous difficulties in getting the virus under control. The start of the year 2020 was inauspicious for the Philippines as COVID-19 follows the Taal Volcano eruption in Batangas province in January which displaced around 300,000 people.

Aaron Jed Rabena

Chapter 1. Stakeholders’ Perspectives on Benefits and Challenges in Blockchain Regulatory Frameworks

Prior research has indicated that institutional stakeholders influence the elaboration of regulatory frameworks by seeking to maximize their institutional power to achieve favorable policy outcomes. In recent years, Blockchain services regulation has been issued with the aim at influencing the process of technological change and diffusion. Based on stakeholder theory and empirical data collected from key stakeholders, this chapter seeks to contribute to the literature on stakeholder involvement in formulating and enacting regulatory frameworks, understanding the perspectives and needs of different key stakeholders regarding benefits, challenges, and expected outcomes of legislatives initiatives to regulate services based on Blockchain Technology/Distributed Ledger Technology (BCT/DLT). Findings show that the various stakeholders analyzed have competing views and interests in the respective service regulation that ranges from the functioning of BCT/DLT services inside financial markets (financial regulators and government decision makers), to safety, security, and practical risk-management and operational measures for their conducting business (lobbyists and Fintech firms).

Manuel Pedro Rodríguez Bolívar, Hans Jochen Scholl, Roman Pomeshchikov

Chapter 2. Working in Latin America: The Paradoxes of Developmentalism

The United Nations established an international architecture meant to develop and assist poor countries—World Bank, IMF, etc. Truman’s speech, in 1949, launched the new age of developmentalism—the world was reconceptualized, rationalized, standardized, stereotyped, etc., to enable bureaucrats to simplify development and apply normative rules of the game to Third World problems. The substantive cultural-ecological analyses of Puerto Rico by Julian H. Steward and others of sugar plantations, the coffee haciendas, the producers of tobacco, and the urbanizing upper classes of San Juan developed a methodology for understanding communities or subcultural social segments in their larger context.

Ray Watters

Chapter 12. Islamic FinTech and Financial Inclusion

Purpose―FinTech revolutionized financial services and created efficient solutions to target underserved people. This chapter aims at understanding the way Islamic FinTech can improve the Islamic finance industry in order to achieve economic inclusion.Design/methodology/approach―The chapter presents a conceptual framework based on case studies and literature review describing the way Islamic FinTech can serve to upgrade economic inclusion efforts.Findings―The chapter shows that Islamic FinTech can revolutionize the way Islamic financial services are provided and to ensure an integration between the Islamic social finance and the Islamic financial institutions.Research limitations/implications―The chapter focused only on the implemented solutions without giving an insight about how new technologies such as blockchain can enhance the efforts and the results.Practical implications―The chapter demonstrates that Islamic FinTech should be seen as a fundamental pillar of any financial inclusion policy. The latter should target economic inclusion.Social implications―In general, any financial inclusion policy drafted by Islamic financial institutions shall target economic inclusion and adopt Islamic FinTech.Originality/value―Financial inclusion literature focuses mainly on the access to financial services. This chapter upgrades the initiatives and efforts to achieve economic inclusion.

Ahmed Tahiri Jouti

4. Productivity Slowdown and Inequality: Killing Two Birds with One Stone!

More than ten years on from the start of the global financial crisis (GFC) the global economic context continues to be challenging, with economic growth still below its historical trend in advanced economies and slowing in emerging markets. We witness also a worrying slowdown in productivity growth, which predates the GFC. A related concern is that this decline in productivity growth has coincided with persistently high inequalities of income, wealth and well-being in general. This, in turn, implies that we should not take it for granted that technological advances will automatically lead to better economic performance and stronger productivity growth.This contribution will argue we should have a broader and more inclusive approach to productivity growth and inequality. There should be more investment in the skills of people to expand the productive assets of an economy. Further polices are discussed to ensure that productivity growth benefits all parts of society.

Ahmad Seyf

Open Access

University Direction Case

This chapter contributes to the university governance literature by analysing the living case of a foundation university. The case is supported by the agency and stakeholder theory and the shared university governance models, such as Academic-Business-Corporate (ABC) of University Governance and the Integrated New University Governance (reversed KISS framework).

Mehtap Aldogan Eklund

Intangibles in Different Industries

Purchase price allocations (PPAs) primarily serve for valuing tangible and intangible assets that result from acquisitions. Even though the values derived for the assets can generally not be used directly for transfer pricing purposes, public information available on purchase price allocations is of interest and may be used for valuing intangibles for transfer pricing purposes. To this end, in addition to a brief theoretical summary of PPAs and their implementation, we have conducted an empirical study based on published data from 631 large corporate transactions. Besides analyzing PPAs by industry, this chapter also provides a qualitative assessment of the most important value drivers per industry.

Marc C. Hübscher, Niklas Martynkiewitz

1. A Brief History of Trade Wars

This is an introduction to the history of trade wars. We will touch on the trade war that may have led to the Great Depression in the 1930s and the many trade wars since 1945. The interest in the subject of this introduction is derived from the ongoing trade wars between the United States and its important trading partners, such as China, the European Union (EU), and Japan, that started in 2018. This section of the book will elaborate on how the seemingly insignificant complaints of blue-collar workers in the United States in the 1970s converged into the elective power of anti-globalization, which smoothed the way for the Trump presidency.

Li Sheng, Dmitri Felix do Nascimento

Chapter 6. Manufacturing for Intra-Africa Trade: A Focused Response to China’s Dominant Position in Africa for South Africa

An economic stabilization in China that is likely to be short-lived. Even before Covid-19 shook the foundations of the global economy, a range of material downside risks confronted Beijing. The lingering threat of further breakdown in relations with the US. The further erosion of the resilience of China’s financial system. The backdrop of all this is the ongoing structural slowdown, restructuring and rebalancing of the economy. Africa needs to metabolize these forces fast. Importantly, swimming against this more narrow, destructive and counter-productive tide, African nations have come together, doubling-down on regional integration, creating a continental free trade area. This then also, importantly, makes Africa a more alluring opportunity for China. Tying this all together, the chapter argues that the next phase of China–South Africa ties and partnership must more forcefully and single-mindedly prioritize tactics for further industrialization, job creation and technology transfer through Chinese investment in manufacturing industries. This must be on the table now, shaping ties in a manner that supports South African growth, development and intra-Africa trade. To this end, South Africa must make good on its commitment for incremental improvements in ease of doing business and competitiveness to create a better climate for partnerships.

Jeremy Stevens

Kapitel 5. Vision digitalisierte Automobilindustrie 2030

In den vorhergehenden Kapiteln wurden Trends und Entwicklungen erläutert, die begründen, dass sich die Automobilindustrie völlig verändern wird. Nur so können Klimawandel, Marktveränderungen und Kundenerwartungen adequat umgesetzt werden. Für die etablierten Automobilunternehmen ist es daher überlebenswichtig, die erforderliche Transformation mit einer umfassenden Digitalisierungsstrategie und -roadmap anzugehen. Ausgangspunkt ist eine Analyse der zukünftigen Erwartungen des Marktes und daraus abgeleitet die Beschreibung einer Vision, wie sich diese Industrie in den Hauptbereichen verändern muss. Daraus ergeben sich wiederum die Ziele der Transformationsstrategie, für die dann Handlungsfelder festzulegen sind. Somit wird die Basis für eine Roadmap für Schlüsselprojekte gelegt, die dann im Folgekapitel aufgegriffen wird.

Uwe Winkelhake

Kapitel 7. Unternehmenskultur und Organisation

Das Thema der Kulturanpassung sowie das Erzeugen einer Start-Up-Mentalität gekennzeichnet durch Agilität und Entrepreneurship als zwingende Voraussetzung für eine erfolgreiche und durch Digitalisierung getriebene Transformation sind Inhalt dieses Kapitel. Dazu werden neue Methoden zum Innovations- und Projektmanagement wie beispielsweise Scrum und Design Thinking vorgestellt und Organisationsvorschläge unter dem Aspekt der Digitalisierung erläutert. Der IT Anwendungsbereich sollte aus der IT-Organisation gelöst und in die Fachbereiche migriert werden, um der Bedeutung der IT als strategischem Kernelement der Automobilindustrie Rechnung zu tragen und Schwung für den digitalen Wandel zu gewinnen. Damit einhergehend werden an die Personalarbeit völlig neue Anforderungen gestellt und die Karrieremuster werden sich vollständig ändern. Diese Entwicklungen, neue Wege des Lernens und des Wissensmanagement und auch Kriterien für ein erfolgreiches Changemanagement werden aufgezeigt. Der Hunger auf kontinuiereliche Veränderung muss Kulturbestandteile werden - wie auch in der Case Study IBM gezeigt wird.

Uwe Winkelhake

Chapter 12. Designing a Human Rights Management Systems Standard: A Practical Approach to Business Enterprise Human Rights in Asia

This chapter examines the potential for a business enterprise human rights practice. It argues that there is a need to develop different approaches to protection, or look for different approaches to reinforce the principles. It argues for using a unique approach: the statistical value of human life (VHL), which is important in a world where measuring net benefit is a cornerstone of policy. By learning how to systematically value our own lives we can improve the quality and dignity of our lives both at a personal level and in the context of the workplace. The intent of organisations and institutions that use this idea is to optimise the allocation of resources and improve the quality of lives of citizens, stop lives being needlessly lost, and enhance sustainability. Calculating the VHL has been particularly important in health care and the transport safety sector and it has been spectacularly successful in the commercial aviation sector.

Robert Sadleir

Chapter 6. The Resumption of RMB Exchange Rate Reform and the Internationalization of RMB, 2010–2013

This chapter analyzes the resumption of China’s exchange rate reform after June 2010. The level I game and level II game are combined to explain the Chinese leadership’s decision to continue the exchange rate reform in 2010. It finds that, while the Congress’s influence on the RMB issue generally diminished over time after the global financial crisis, international criticism and pressure from the US administration and the IMF still played an important role of agenda-setting in China’s exchange rate policy making in 2010. The Chinese leadership stood firm to the external pressure and demonstrated solidarity and consistency towards the exchange rate policy. It argues that, with the development of RMB internationalization and increasing capital account openness, a flexible exchange rate was the feasible choice to preserve the independence and effectiveness of China’s monetary policy, which produced the Chinese leadership’s consensus on the RMB exchange rate reform in 2010. The RMB appreciated steadily and gradually against the dollar in the second round of exchange rate reform, aiming to improve confidence and promote the international use of RMB.

Assoc. Prof. Zhaohui Wang

Chapter 1. The Belt and Road Initiative and Globalization

Under the background of economic globalization, China and the world economy are increasingly connected. BRI upholds the spirit of open-style and synergetic regional cooperation, follows the principle of “Wide Consultation, Joint Contribution and Shared Benefits,” and calls for all-inclusive globalization. Construction of “The Belt and Road” is centered on policy coordination, facility connectivity, unimpeded trade, financial integration and people-to-people bonds, and will redefine economic and trade contacts among participant nations while boosting “inclusive globalization” and “globalization benefiting all.” BRI opens new horizons and provides new cooperation arenas for SMEs to plunge in globalization. Open-style participation, as proposed by BRI, implies that not only various countries along “The Belt and Road,” but also other countries and international and regional organizations are greeted to participate in and achieve all-win cooperation.

Suyun Wang, Guilong Shen

Chapter 3. The Belt and Road Initiative and SMEs

The widespread engagement of SMEs helps expand the scope of beneficiaries, allowing more entrepreneurs to gain development opportunities from the construction of the Belt and Road. This chapter explains that why SMEs are not only a critical force in China’s economic and social development but an indispensable participant in the construction of the Belt and Road and how BRI affected the engagement of SMEs in the BRI partner countries. The Belt and Road is a major historical opportunity for the development of SMEs in participating nations. Governments and SMEs should jointly create a favorable political environment and business environment, improve foreign-related laws, strengthen commercial services, explore bilateral and multilateral cooperation mechanisms, eliminate barriers to regional trade, maximize the development of SMEs, and achieve win-win results.

Yuanyuan Jiang, Zhibin Hui

Chapter 8. The Belt and Road Initiative Enhances Cooperation Opportunities for Costa Rica and Brings Development Strategies for SMEs

Due to BRI, Costa Rica and China will promote bilateral cooperation to improve exchanges of goods, technology, capital, and personnel through mutual connectivity and mutual learning. Both countries have joined efforts to promote investment in different economic sectors and boost better opportunities for those enterprises that wish to enter and compete in the market. China became one of the most important protagonists of international cooperation as part of the new cooperation roles. This chapter presents introduction on national policy for developing SMEs in Costa Rica and an overview of developing levels of local SMEs. It points out that BRI has become a cooperation platform for Costa Rica and its SMEs through policy coordination, technology access and exchanges, industrial parks or economic and commercial cooperation zones, facilities connectivity and capacity building, training, and innovation.

Jéssica Vargas Madrigal

Chapter 2: Hyman Minsky on Financial Crises

This chapter explains the 2008 financial crisis with the help of the work of Hyman Minsky on instability. He explained financial crises as the consequence of over-optimism and over-borrowing, leading to unsustainable debt. A crash happens when the bubble bursts (the ‘Minsky Moment’). Both the demand side and the supply side of financial markets in the US in the period 1990–2008 can be explained with Minsky’s theory of instability or, to use his own term, financial fragility. The lesson is that an increasingly financialized economy requires stabilizing institutions. This requires a smaller FIRE-sector preventing too-big-to-fail banks, higher buffers and less money creation by commercial banks, for example, through the introduction of central bank digital currency.

Irene van Staveren

Chapter 9: Adam Smith on the Abuse of Markets

This chapter discusses key insights from Adam Smith’s economic book The Wealth of Nations in relation to his philosophy book The Theory of Moral Sentiments. When considered together, it becomes clear that for Smith, markets are embedded in society, and together with the state and the community economy make up the economy. Moreover, he attached specific moral values to each of the three economic domains: freedom to the market, justice to the state and caring (‘benevolence’) to the community economy. He argued that every well-functioning economy forms a balance between these three domains and their values. This insight helps to explain the failure of the EU Trading System (ETS) in carbon emissions. Preventing climate change is not a matter of free choice but of a combination of justice and caring for the earth, nature and humanity.

Irene van Staveren

Project Management in Universities Under the Global Pandemic: A Focus on Finance

This paper is intended to provide an insight into the importance of project management success in implementing strategies and new financial packages within the context of university education. The discussion will call upon the universities to review and improve their strategies and detailed measures taking into account the international experience and the current situation. This paper builds up on the academic capitalism approach to show how universities can adapt to the new conditions simultaneously being under the continuous onward change processes in the context of Ukraine. The paper is structured as follows: first, it reveals the framework of the project management approach application in the university under the changing conditions with focus on the funding and financial aspect. Second, it investigates the domestic and international experience of responding to the challenges of the COVID-19 pandemic by the universities. It's worth noting that this paper provides an important source to analyze different types of support for solving problems of higher education institutions and students during challenging times.

Olena Zhykhor, Valeriy Ryeznikov, Olena Iafinovych, Nataliia Pohribna, Nataliia Miedviedkova

Chapter 3. Contemporary Entrepreneurial Practices

The contemporary entrepreneurial practices have been discussed in this chapter, which primarily focuses on entrepreneurial mindset, entrepreneurial genesis, market orientation, and growth perspectives. The entrepreneurial mindset has been explained in the context of various entrepreneurial growth perspectives. This chapter also discusses the entrepreneurial genesis, market orientation, and growth perspectives of MSMEs emerging out of family business ecosystem. Under the family business ecosystem, the critical factors of leadership, strategic thinking, business drivers, attributes of market interface, exploring opportunities, and key indicators of business economics have been discussed in detail.

Ananya Rajagopal

Chapter 2. Review of Entrepreneurial Epistemologies

This chapter critically examines the entrepreneurial theories of classical, neo-classical, and modern schools of thought. The Marshallian and Kirzner’s theories have been discussed, which have emerged from classical school of thought. The classical arguments have been further linked to the theories of neo-classical school of thought represented by Schumpeter and arguments made in the gatekeeping concepts of entrepreneurial growth. This chapter further discusses the modern school of thought comprising stewardship theory, social cognition theory, business modeling, and digitization. The epistemological transition between classical and neo-classical, and neo-classical and modern schools of thought has been discussed in this chapter to bridge the contextual knowledge across the philosophies on entrepreneurship.

Ananya Rajagopal

Chapter 1. Understanding Micro and Small Enterprises

This chapter discusses significant factors that elaborate the entrepreneurial environment in the context of micro, small and medium enterprises (MSMEs). The business environment and entrepreneurial ecosystem are central to the discussion in this chapter, which emphasizes on micro- and macro-economic factors affecting the entrepreneurial process and performance. In addition, innovation and technology, and marketing strategies, have been discussed in this chapter. The chapter also focuses on the shifts in organizational design and governance in reference to the different types of organizational structures, work culture, social effects on entrepreneurship, and organizational behavior and decision-making.

Ananya Rajagopal

Chapter 5. The Entrepreneurial Challenges Ahead

The future perspectives of entrepreneurship have been discussed in the context of public policies in emerging markets with focus on India, Brazil, South Africa, and Mexico. In addition, global entrepreneurship agenda explaining the shift from efficiency-driven to innovation-driven performance of MSMEs is central to the discussion in this chapter. The debates on digital technologies, creative entrepreneurship, and institutional entrepreneurship, which serve as core factors for entrepreneurial growth, have been discussed in this chapter.

Ananya Rajagopal

Chapter 4. Entrepreneurship and Markets

This chapter discusses the attributes of entrepreneurship and marketing strategies in the contemporary context with focus on MSMEs. The SMART entrepreneurship traits including strategic attributes, performance measurement, applied innovation, market responsiveness, and technology have been discussed in relation to upstream collaborations of MSMEs with large industries. In addition, marketing of reverse innovation products and exploring entrepreneurial opportunities in biomimicry segment have been discussed in this chapter. Discussion on biomimicry offers an interconnected understanding between life, society, and business. The principle attributes of innovation that affect customer-centric innovation have been discussed as the major challenge in improving the performance of MSMEs.

Ananya Rajagopal

Chapter 6. NAB (A): Banking and Financial ServicesNAB (A): Banking and Financial Services, 1960–2020

The changes in strategy, leadership approach, governance, services, technologies and almost every other aspect of business life make the banking/financial services industry a most interesting one to examine with the wisdom of hindsight. Lessons can be effectively learned in all these realms from past successes and mistakes in this sector. The recent Royal Commission and scandals such as the alleged 23 million breaches at Westpac reported in late 2019 make leadership, governance and strategy in the financial sector a very much live issue, with very many challenges to overcome.

Don Argus, Danny Samson

Chapter 16. BHP(H): Industrial Relations

During Don Argus’ tenure as Chairman of BHP Billiton (1999–2010), he witnessed the most profound changes in our industrial relations (IR) system and our industrial relationships that BHP had ever experienced. For the first time, we were able to engage directly with our employees and to work with them to make our workplaces as productive and rewarding as they could be. We were able to communicate with our employees directly, rather than through their representatives or unions or industrial tribunals. For their part, employees were able to gain a sense of alignment with the company’s direction and to share in the company’s successes.

Don Argus, Danny Samson

Institutional Distance in Cross-Border M&As: Indian Evidence

Cross-border mergers and acquisitions (M&A) are inherently afflicted by additional complexities and “liability of foreignness” on account of the home-host distances, often influencing the strategic decisions involving the deals. Extant studies have often alluded to unidimensional reasons like culture and geographic distance, but have not focused enough on disaggregated multi-dimensional institutional distance approach which may expectedly provide a better understanding of the choices being made in the market for corporate control. This research seeks to investigate the impact of home-host distance on the acquirer’s ownership structure choices in an emerging market setting using measures of institutional distance including cultural, geographic, financial, administrative, global connectedness, knowledge, economic, demographic and economic distances. For this purpose, 1542 completed M&A deals involving Indian firms, as target or acquirer, constitute the sample for the study. The results confirm to the fact that (multi-dimensional) home-host country distances causing institutional dynamics are factored in choosing a foreign target.

Sakshi Kukreja, Girish Chandra Maheshwari, Archana Singh

A Case for Unikernels in IoT: Enhancing Security and Performance

One of the main concerns in an IoT system is security. The nature of security compromise can be at different levels of software running on the device—operating system vulnerability, application level security bugs, bad passwords, and/or incorrect/misconfigured configurations. Since an IoT device only run a single process, it is possible to secure such IoT systems using Unikernels (i.e., single address space operating systems that have the application and OS functionality into a single address space). This can reduce the attack surface and is easily to verify (formally). Besides this, since the IoT use case is specialized, it lends easily to Unikernels. There are additional side benefits such as low memory footprint, cpu efficiency etc. In this paper the advantages and challenges of such a software stack are shown.

Siddharth Choudhuri

Chapter 17. Disaster Resilient Infrastructure

Inducting the sustainable infrastructure rating systems enable assessment of the degree to Sustainable Development Goals (SDGs) compliance (Diaz-Sarachagaa et al. 2016). Day-to-day revenue and profit pressures relegate disaster preparedness to lower priorities. Policy-makers, processors, and community are taking serious note of disaster risk management targets and indicators. (Mitchell et al. 2013). Integrated assessments put in parenthesis disaster-proofing, technology innovation, SDG compliance and overarchingly, good governance (Lotze−Campen 2015) Integrated models: integrated assessment). Infrastructure sustainability assessment commenced with societal, environmental and economic costs, and value added spanning their life cycles. This was boosted to the next level with disaster preparedness and resilience charted by Hyogo and Sendai frameworks that focused on reduction of global disaster damage to critical infrastructure, access to multi-hazard early warning, strengthen resilience of aging and new critical infrastructure, spanning, water, transportation, telecommunications, education, health care, and sanitation (UNISDR 2015).

Bhumika Gupta, Salil K. Sen

Debt Financing and Financial Performance: Empirical Evidence of Indian SMEs Listed in BSE-SME Platform

The main emphasis of this research is to empirically study the impact of debt financing on the firm performance of SMEs in India. Panel data analysis is applied to study the association among debt and SMEs firm performance using three financial measures: return on assets (ROA), return on equity (ROE), and gross profit margin (GPM). The sample includes 164 non-financial Indian small and medium enterprises listed in the Bombay stock exchange—Small and medium enterprises (BSE-SME) platform from 2014 to 2018. The results of the study demonstrate that capital structure, especially short-term and long-term debt, has an adverse effect on the efficiency of small and medium enterprises. The study reveals that decisions on capital structures have little impact on SMEs’ financial results. The analysis also proves that the pecking order theory relates to small- and medium-sized enterprises in India. This is the primary research that explores the connection between debt financing and the financial results of Indian SMEs listed on the BSE-SME platform.

K. Rajamani

Chapter 6. AI Risk Management

Artificial intelligence has become a new engine for economic growth and as the central driving force of the new round of industrial reforms, artificial intelligence will further discharge the energy accumulated from prior technological revolutions and industrial alterations by generating new powerful engines to modernize economic activities such as production, distribution, exchange, and consumption. The decentralized nature of blockchain generates, the new concept of a token economy in which the community’s revenue is allocated to the actual content producers and service users who generate value. In addition, Blockchain is a key technology that enables new protocols for the establishment of a token economy in the future, leading to a new economic paradigm. Digital technologies are now turning the world upside down and so an ongoing series of technological developments have transformed economic and social life. The integration of AI agents into society has led to a different manner in which persons interact with each other, along with a new kind of direct interaction presented with AI agents, which are increasingly posed in society.

Georgios I. Zekos

Chapter 5. Risk Management Developments

Risk is a tool which makes possible the decision-maker to get knowledge about the event with destructive effects and so, the decision-maker via the analysis of risk makes the event more certain and obtaining control on it. Moreover, risk is the net negative influence of the exercise of vulnerability, regarding both the prospect and the effect of occurrence. Risk management is the procedure of identifying risk, assessing risk, and taking steps to moderate risk to a tolerable point. Furthermore, Risk sharing or risk controlling are central justifications for joining strategic alliances. Credit risk surfaces from the prospective that one participant to a financial tool is triggering a financial loss for the other participant by neglecting to discharge an obligation. Managing risk is one of the key objectives of companies operating globally and managers normally correlate risk with negative result.

Georgios I. Zekos

Factors for the Future of Work and Their Impact on the European Economy and Labor Market

The aim of the present paper is to gain a deeper understanding of the essence of the “Future of work” by exploring simultaneously its major drivers and their impact on the job market and employment on European level in the long run. The data used are based on the research of numerous international organizations, European Union institutions, and bodies, as well as on analytical data and expertise of reputable business consulting companies. The methodology includes qualitative research, including data analysis, comparative analysis, inductive and deductive approach, and others. This type of research helps to explore how and why the phenomenon “Future of work” occurred, what it represents and what the prospects for its development are. The main drivers of this phenomenon are analyzed as follows: globalization, digitalization, and demographic change. The paper explores and summarizes the expected economic and social effects of these three factors on the labor market in the EU. The main findings conclude that the “Future of work” is an interdisciplinary phenomenon covering the current and expected trends on the world labor market, provoked by the dynamic technological development and penetration of artificial intelligence technologies in the economic and business practice, including job automation (job loss and job creation), rising skills and qualification requirements, a big change in employment occupations, and rising diversity in working arrangements. Legislative, business-oriented, and educational actions on all levels are urgently required to face these new challenges successfully.

Monika Moraliyska

Panel Estimation of High-technology Export Determinants: Evidence from Fast-Growing Countries

This study is including fast-growing emerging countries (Brazil, Russia, India, China, South Africa, and Turkey) and using the panel data analysis methods for high-technology exports of determinants 1996–2017 period. We chased some variables for our analyses, they are as follows: high-technology export is dependent variable, and economic growth, foreign direct investment, gross capital formation, patent, and trade openness were used as independent variables. After the stability of the variables was tested with first-generation unit root tests, cointegration tests were used to investigate the long-term relationship between the variables. As a result of the study, long-term relationship was determined between the variables discussed. After determining the cointegration relationship, the coefficients were estimated with the FMOLS (Full Modified Ordinary Least Square) estimator. The effects of economic growth, foreign direct investments, patents, and trade deficit on high-technology exports were found to be significant. As a result, product exports should be increased with the support of high technological product exports.

Sevilay Konya, Mücahide Küçüksucu, Zeynep Karaçor

Peer-to-Peer Lending Development in Latvia, Risks and Opportunities

Investment opportunities have become limited due to low interest rates; therefore, investors are searching for alternative investment sources. Peer-to-peer (P2P) platforms act as mediators between investors and borrowers and provide an opportunity for mutually beneficial interaction. The aim of the research is to study the P2P lending process and to identify risks and opportunities related to this area. The research is focused on the investors’ side due to the specifics of Latvian P2P lending platforms, i.e., they do not grant loans directly but use loan originators. Mixed research methods were performed as follows: a field experiment (trial investments through P2P lending platforms), a survey, structured interviews, and a focus group discussion. The study shows that rapid development of P2P lending in Latvia is driven by providing relatively lower risks to investors. The main investors’ risk mitigation tools are critical originator selection, when a due diligence procedure is executed for each prospective loan originator, buyback guarantees, and payment guarantees, when marketplaces compensate the invested principal and earned interest if the borrower is late with the repayment. Most Latvian marketplaces offer to diversify investors’ risk by investing in fractions of loans across different borrowers, originators, loan types, and geographies. Some marketplaces offer loan ratings based on the internal evaluation of the risks. Secondary loan market provides liquidity to investors. However, some specific risks still exist such as the P2P lending operating model’s sensitivity to adverse economic development scenarios.

Irina Petersone, Ilmars Kreituss

Open Access

Tourist Experiences at Overcrowded Attractions: A Text Analytics Approach

As a result of travel activities, overtourism has become a global issue. Even after the COVID-19 pandemic, the topic of overtourism would benefit localized overcrowding as a new occurrence in the tourism industry. Since there is no specific measurement to evaluate tourist experiences at crowded attractions, this study aims to explore the perception and feelings of tourists when they visit popular and crowded attractions through topic modeling and sentiment analysis based on TripAdvisor online reviews as of the end of 2019. By investigating the top 10 attractions in Paris, the results present 24 topics frequently discussed by tourists. Examples of some topics related to overtourism are safety, service, queuing, and social interaction. Specifically, tourists felt the most negative towards safety and security among all the identified topics. By bridging overtourism, text analytics, and user-generated-content, this study contributes to the field of tourist experiences and crowd management.

Joanne Yu, Roman Egger

The Younger Generation Collaborative Consumption Adoption Factors: Empirical Evidence from the Russian Market

Increased attention to the growth of collaborative consumption (CC) is primarily connected to rapid digital transformation and spread of information technology, in both developed and emerging markets. CC affects most areas of everyday life, changing transportation methods (Uber), short-term rent (Airbnb), ways of entertainment (Youtube), tasks (TaskRabbit), and financing (Kickstarter). As the younger generation representatives grew up in the era of social network and cyberspace, CC seems essential for them. The main objective of this study is to identify the typology of young customers based on their attitude to CC adoption factors in emerging markets, and specifically, the Russian market. The paper attempts to bridge the theoretical gaps by analyzing and systematizing different approaches to understanding the phenomenon of CC, considering the factors that affect CC of different generations. Based on the results of an online survey of 2038 Russian users, CC adoption factors for the younger generation have been identified. Based on the results of the online survey of 2038 Russian CC services users, seven factors of the CC adoption by the younger generation: difficulty of CC adoption, risk of fraud, economic and environmental benefits, hygienic issues, ownership as a status symbol, CC as a modern lifestyle, social norms, and approval of the reference group; and five clusters of the CC users have been identified.

Vera Rebiazina, Nadiya Zbandut

A Forecasting Model to Predict the Demand of Roses in an Ecuadorian Small Business Under Uncertain Scenarios

Ecuador is worldwide considered as one of the main natural flower producers and exporters –being roses the most salient ones. Such a fact has naturally led the emergence of small and medium sized companies devoted to the production of quality roses in the Ecuadorian highlands, which intrinsically entails resource usage optimization. One of the first steps towards optimizing the use of resources is to forecast demand, since it enables a fair perspective of the future, in such a manner that the in-advance raw materials supply can be previewed against eventualities, resources usage can be properly planned, as well as the misuse can be avoided. Within this approach, the problem of forecasting the supply of roses was solved into two phases: the first phase consists of the macro-forecast of the total amount to be exported by the Ecuadorian flower sector by the year 2020, using multi-layer neural networks. In the second phase, the monthly demand for the main rose varieties offered by the study company was micro-forecasted by testing seven models. In addition, a Bayesian network model is designed, which takes into consideration macroeconomic aspects, the level of employability in Ecuador and weather-related aspects. This Bayesian network provided satisfactory results without the need for a large amount of historical data and at a low-computational cost.

Israel D. Herrera-Granda, Leandro L. Lorente-Leyva, Diego H. Peluffo-Ordóñez, M. M. E. Alemany

China’s Economy at the Crossroads

The Chinese economy has experienced impressive growth since the late 1970s, driven by ongoing market-based reforms as well as integration into the world economy. However, growth has been biased toward the industrial sector, investment, and exports. The recent buildup of private sector debt, rising inequality, and increasing environmental problems are casting shadows over the economic outlook. The chapter discusses the roots of the growth miracle as well as complications that have arisen in recent years as a result of a more challenging international environment, imbalanced growth in the domestic economy, and limited appetite to implement further liberalization.

Klaus-Jürgen Gern, Philipp Hauber

Chapter 3. Financial Globalization

This chapter considers the growing impact of financial globalization, global trade and FDI flows in selected developed and developing countries, using a combination of cross-sectional and event-study analysis to find differences among regions. Also, worldwide Gross Stock of Foreign Assets and Liabilities are explored and their trends in a global economy are outlined by assessing the degree of cross-border capital flows in transition economies both in comparison with benchmark Euro area and over time. The chapter also looks the key analyze of the recent pattern of private capital flows to the emerging Balkans region.

Mehmed Ganić

Chapter 2. Product Strategy for Store Branding

Manufacturers of store brand products fall into four general classifications: they are (a) large national brand manufacturers that utilize their expertise and excess plant capacity to supply store brands; they are (b) small, quality manufacturers that specialize in particular product lines and concentrate on producing store brands almost exclusively (often such companies are owned by corporations that also produce national brands); they are (c) major retailers and wholesalers that own their own manufacturing facilities and provide store brand products for themselves; and they are also (d) regional brand manufacturers that produce store brand products for specific markets.

Jiazhen Huo

Chapter 9. Political Connections, Law Enforcement, and Corporate Environmental Performance

Using two sets of hand-collected data on political connections and corporate environmental performance and employing a sample of Chinese family firms in polluting industries, this chapter documents that political connections are significantly negatively associated with corporate environmental performance. Moreover, law enforcement in a province in which a firm is located attenuates the negative association between political connections and corporate environmental performance. Above findings are robust to a variety of additional tests and are still valid after controlling the potential endogeneity between political connections and corporate environmental performance. This chapter is the first to examine the influence of political connections on corporate environmental performance in the context of emerging markets.

Xingqiang Du

Chapter 2. Auditor-CEO Surname Sharing and Financial Misstatement

This chapter examines the influence of auditor-CEO surname sharing (ACSS) on financial misstatement, and further investigates whether above effect is different between common surnames and rare surnames. The findings show that ACSS is significantly positively related with financial misstatement, suggesting that the auditor-CEO ancestry membership elicits the collusion and increases the risk of financial misstatement. Moreover, the positive relation between ACSS and financial misstatement is more pronounced for rare surnames than for common surnames. Above findings are robust to a variety of sensitivity tests and still valid after mitigating the endogeneity problem. Furthermore, ACSS reduces the likelihood of modified audit opinions, weakens the positive relation between discretionary accruals and modified audit opinions and leads to higher abnormal audit fees. Lastly, the positive effect of ACSS on financial misstatement stands only for firms located in provinces with poor institutional infrastructure and firms with ACSS on the basis of hometown relationship.

Xingqiang Du

Chapter 3. Liberalism and Domestic Politics Approaches in IR

This chapter reviews liberal and domestic politics approaches in International Relations (IR), highlighting the three variables interests, institutions and ideas. Under scrutiny are theories of domestic sources of foreign economic policies, varieties of capitalism, historical institutionalism, the liberal IR theory and the societal approach to governmental preference formation. The chapter begins with a brief review of liberal IR theory during the Cold War, followed by contemporary liberalism and domestic politics approaches highlighting theoretical assumptions and propositions. The chapter then discusses the societal approach to governmental preference formation. This complementary innovative advancement conceptualises the conditions for the prevalence of all three variables vis-à-vis each other in shaping governments’ positions. A short conclusion points to the significance of future accentuation on domestic factors in governmental preference formation.

Aukje van Loon

Chapter 3. Hegemony, Power and International Law

All powers are States but some States are more powerful than others. This chapter is meant to elaborate on one of the central ideas behind this book, that power indeed matters for international law and that there is an intimate connection between power and law. Building on that assessment it evaluates increased power of emerging powers and their potential to influence international law. Finally, the chapter connects the phenomenon of emerging powers with earlier calls for a New International Economic Order and shows that BRICS keep with Third World rhetoric and argue for moderate reform.

Andreas Buser

Mapping Entrepreneurial Ecosystem for Technology Start-ups in Developing Economies: An Empirical Analysis of Twitter Networks Between Start-ups and Support Organizations of Nairobi’s Digital Economy

The literature on entrepreneurial ecosystem places emphasis on understanding the surrounding business environment for entrepreneurial activities of individual actors in a system, typically at the city or regional level. While gaining prominence as a useful concept to provide guidance for innovation and entrepreneurship policy, the framework at its current stage faces conceptual as well as empirical challenges with regards to the structural boundary of the ecosystem and measurement. This chapter aims to jointly address these issues by deploying a novel combination of methods and data sources to map the interaction within a dynamic emerging ecosystem in Nairobi, Kenya. We do so by identifying start-ups and investors utilising data from CrunchBase and exploring the dynamics of the relevant actors in the Twitter network, where we use manual categorisation as well as data-driven community detection algorithms to identify social networks in the ecosystem. We identify distinct communities in the ecosystem based on the technological focus, the types of support organisations, and interaction patterns in the network. We show how technology start-ups in developing economies are connected to support organisations of various geographical origins, which implies that ecosystems for supporting entrepreneurship can emerge across borders.

Raphael M. Martins, Eunkyung Park, Daniel S. Hain, Roman Jurowetzki

Challenges of the Agribusiness Sector in Kenya and Opportunities from Smart Specialisation Policies

Agriculture is a high-policy concern in Kenya due to the very important role it plays in ensuring food security for the nation, employment creation and trade revenues. However, the country faces a myriad of challenges including a continued decline in the production and productivity of local farms. This paper discusses key challenges of the agriculture sector in Kenya. Then it outlines the relevance of place-based approach to competitiveness such as smart specialisation strategies in order to help fostering Kenya’s agricultural innovation system(s), while tackling some of its key challenges. The paper concludes that further research, awareness raising and pilots activities would help identifying concrete synergies for adopting smart specialisation strategies in order to enhance the impacts of innovation on food security, sustainable employment and growth.

Anna Masłoń-Oracz, Anthony Wahome, Andrew Njiraini

Chapter 11. The Evolution of Conglomerates in the Digital Era: Adapting Strategies to the Requirements of the Fourth Industrial Revolution

This article discusses digital conglomerates, and the characteristics of their activities and strategies. A systematic approach was the primary method for studying this problem, and thus such diverse elements as digital technologies and conglomerate development strategies—which were previously studied separately—were comprehensively synthesized. The article purports that, at the present time, undergoing a digital transformation is key factor for a leading business’ continued success. The authors prove that conglomerates, in their current form of integrated business organization in global markets, have not yet been overtaken; however, the current phase of the digital revolution has created the prerequisite conditions under which digital leaders can transform into global digital conglomerates which, using the interconnected nature of network operations and platform features, manage to increase the efficiency of their operations. Moreover, even with a smaller volume of tangible assets, they have ensured their rapid internationalization and achieved leadership in many sectors of the emerging economies. The article holds practical value for investors and Russian companies developing their digital strategies.

Natalia Konina, Irina Vladimirova, George Stonehouse

Chapter 3. Economic Governance in Latin America

The chapter discusses economic governance in the Latin American context. It discusses Latin American developmental policies from a complementarity perspective. In so doing, the chapter pinpoints the early attempts of developmentalism to build a comprehensive set of policies and rules partially depending on one another to succeed. Subsequently, big economic crises disrupted the institutional and policymaking patterns established with the developmental project. The crises would lead political actors to initiate reforms that would not happen otherwise. These incremental reforms questioned the position of vested interests. Complementarity between institutions reduced the opportunities for vested interests to exercise their power, because this would imply substantial political costs. The constitution of institutional complementarities, reduced the margins for discretionary action over economic policies, consolidating economic governance in Latin America.

Alejandro Angel

Chapter 19. Conclusion: The Fourth Industrial Revolution—Further Research Agenda

Currently at the very beginning of the Fourth Industrial Revolution, many of its trends are difficult to imagine. The technologies of the Fourth Industrial Revolution affect firms of different sectors and economies to various degrees. The radical and dynamic changes in the global economic landscape generated by the Fourth Industrial Revolution set the questions for further research dealing with major international companies. There is a need for interdisciplinary research of different conceptual views at the intersection of management, marketing, international business, macroeconomics, and sociology. An important issue for possible future research is a new understanding of the role of the state. Studying and understanding the new types of firms and new business models generated by the digital revolution is of considerable interest. The Fourth Industrial Revolution leads to redistribution and overflow of wealth from traditional TNCs of developed countries to their competitors. It is necessary to analyze the difficulties faced by the largest TNCs in conducting digital marketing and management transformation. Modern technologies of the Fourth Industrial Revolution determine the network nature of modern firms and the modular nature of goods, services, and processes. An important research topic is the impact of digitalization on competitiveness and competition in the global market

Natalia Konina

Open Access

Future Scenario Settings for Supply Chains

Trends and future developments make it necessary to discuss the future, but it is their bundling that forms a future scenario. This chapter describes six identified and verified macro-scenarios for future industry specific settings, which are shaped by various socio-economic, political, technological and environmental future developments. The description of each macro-scenario allows conclusions to be drawn on supply chain developments such as circular aspects, trade impacts or necessary supply chain structures. Each future scenario is set in a conceptual framework that provides the context and meaning of possible futures and enables companies to prepare and adjust their strategies accordingly.

Saskia Sardesai, Markus Stute, Rosanna Fornasiero, Dimitra Kalaitzi, Ana Cristina Barros, Cemre Multu, Victoria Muerza

Chapter 9. Shojiro Ishibashi: Pioneer of Automobile Tire Manufacturing in Japan

Shojiro Ishibashi was the Bridgestone founder. He, like other entrepreneurs in the same era such as Sakichi Toyoda and Michio Suzuki, succeeded in domestic production of tires based on the technology accumulated in traditional industries. Ishibashi utilized his existing technologies to stimulate demand in related fields and entered into other industries. Ishibashi kept the manufacturing cost and selling price low and secured appropriate profits. Then, enhancing brand with customers’ trust and originality, he continued to work on management reform. At the end of World War II, Ishibashi disobeyed a military order and returned to the Goodyear Java factory with no damage. The factory was requisitioned by the Japanese army and entrusted to Ishibashi to manage. This strengthened the bond between the two companies and provided a foothold for Bridgestone to grow significantly as a tire manufacturer. The characteristic of Ishibashi as an entrepreneur was that he had the ability to grasp social needs from a long-term perspective and develop them into business opportunities.

Masaatsu Takehara, Naoya Hasegawa

Chapter 8. Regulation of Robo-Advisory in Europe and Germany

In order to present the civil law and regulatory issues in a manageable format, we have tried, on the following pages, to give you a structured overview of the current legal framework based on national and European provisions, consisting, in particular, of the MiFID II Directive and the related German implementation laws: the Securities Trading Act (WpHG), the Banking Act (KWG) and the Anti-Money Laundering Act (AMLA/GWG). Given the broad range of requirements and the high market access barriers, every company has to think carefully about the services it wishes to offer, the licenses it will need and the regulatory requirements placed on its activities. The areas of asset management and investment advice are governed by a complicated set of laws, rules and regulations. It is therefore advisable to focus both on the services offered and on the product range. In response to the licensing requirements, a company can act as an investment intermediary under the German Trade Regulation Act or as a financial services institution with a license under the German Banking Act. The latter offers a further alternative in the form of the liability umbrella. In addition to the regulatory requirements for licensing and activities, onboarding also poses considerable practical problems. Identification obligations under the GWG and the digital conclusion of contracts must be well-thought-out and solved in technical terms. In addition, the strict requirements of the General Data Protection Regulation must be observed.

Christian Hammer

Chapter 5. The Non Regulation of Hedge Funds in Offshores Jurisdictions: Cayman Islands, British Virgin Islands, Mauritius, and Delaware

Hedge funds may be established anywhere in the world, both onshore and offshore. To shed more light on the offshore hedge fund industry, with main focus on the following offshores jurisdictions: Cayman Islands, British Virgin Islands, Mauritius, and Delaware, the current chapter focuses at first on the differences between onshore and offshore funds from the point of view of their legal structures, and particularly with regard to tax requirements. Indeed, there are plenty of benefits for hedge funds in moving offshore, the most important being for sure the tax neutrality, as these locations are known also under the name of “tax havens.” Also, there is a major focus on advantages and disadvantages of legal fund vehicles and structures which operate in offshore places. The current chapter analyzes only three regions of the world’s most important locations for offshore funds: the Caribbean, more precisely the Cayman Islands and the British Virgin Islands, United States, respectively Delaware, and Africa—Mauritius. The chapter provides an in‐depth analysis of the four jurisdictions from the point of view of hedge funds. Despite increasing convergence, meaningful differences between the four regimes can be observed. The chapter explores several of these similarities and differences, as well of advantages and disadvantages offered by each jurisdiction. The Cayman Islands is one of the largest financial centers globally speaking, as well as a key node in contemporary global finance, standing as the legal domicile of choice for the global hedge fund industry. Delaware is perceived as a de facto offshore financial center or as a “domestic tax haven” of the United States, performing similar to the Cayman Island, providing low levels of regulation and taxation, as well as a high degree of stability. Both UK and US hedge funds are attracted by the British Virgin Islands, mainly because this country is historically tied to the United Kingdom and geographically to the United States. The British Virgin Islands stands as one of the best, highly respected hedge funds’ domiciles, globally speaking. In addition to its modern, efficient banking system stands the government’s public policies focused mainly on developing strict money laundering and tax evasion standards, this earning for the British Virgin Islands a leading reputation in the financial world. Last but not least, Mauritius is the favorite offshore center for Far East investing.

Ana Maria Fagetan

Chapter 9. UAE

The India–UAE relations thrive on mutual trust and understanding. Strong trade and commercial relations are propelled by frequent political, diplomatic and strategic exchanges. The Emirati dynamism in regional affairs and its strong economic performance over the years are attractive for India. Simultaneously, India’s global rise, its market potential and leadership make it alluring for the UAE. In the last five years the political leadership in both countries have imparted a threshold momentum to the bilateral relations in many crucial spheres. Further, the two sides have maintained regular political and diplomatic engagements to take the bilateral relations forward in a holistic paradigm encompassing science, technology, cleaner energy and space.

P. R. Kumaraswamy, Md. Muddassir Quamar, Sameena Hameed

Chapter 5. Kuwait

India’s engagement with Kuwait is not in tandem with its rising interactions with other countries of the Persian Gulf. Kuwait is the only stable Persian Gulf country and the only GCC country that Prime Minister Modi has skipped despite his whirlwind engagement with the region. The neglect was partly rectified by the External Affairs Minister Sushma Swaraj visiting the Emirate in October 2018. Indeed, during the past six years, that was the only high-level political exchange between the two countries. It is puzzling because Kuwait, like other GCC countries, has been keen on developing relations with India and has the potential to invest in the growing Indian market. Moreover, both have enjoyed friendly relations for a long time and there is a sizable Indian expatriate population in the Emirate.

P. R. Kumaraswamy, Md. Muddassir Quamar, Sameena Hameed

Chapter 1. Introduction

Regional crises and tensions with sporadic escalations continued to undermine the stability of the Persian Gulf during 2019. There was no end in sight for the conflict in Yemen and the GCC (Gulf Cooperation Council) crisis. Tensions between the US and Iran heightened, raising speculations of a military confrontation. The year witnessed India holding the 17th Lok Sabha elections, which slowed the pace of political engagements between India and the Persian Gulf, but the later part of the year saw a spate of meetings, especially with three high-level meetings between Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin-Salman. In February, Riyadh emerged as a possible go-between India and Pakistan as tension increased following the Pakistan-backed terror attack in Pulwama on 14 February and India’s retaliation on Balakot on 26 February. Iran’s heightened tension with the US adversely affected the Indo-Iranian relations and brought India’s energy imports from that country to a stop.

P. R. Kumaraswamy, Md. Muddassir Quamar, Sameena Hameed

The Effects of Political Short-Termism on Transitions Induced by Pollution Regulations

We study the dynamic problem of pollution control enacted by some policy of regulation and mitigation. The dynamics of the transition from one level of regulation and mitigation to another usually involves inter-temporal trade-offs. We focus on how different policymaker’s time horizons affect these trade-offs. We refer to shorter lengths in policymaker’s time horizons as political short-termism or inattention, which is associated with political economy or information constraints. Formally, inattention is modeled using Non linear Model Predictive Control. Therefore, it is a dynamic concept: our policymakers solve an inter-temporal decision problem with finite horizon that involves the repetitive solution of an optimal control problem at each sampling instant in a receding horizon fashion. We find that political short-termism substantially affects the transition dynamics. It leads to quicker, but costlier, transitions. It also leads to an under-evaluation of the environmental costs that may accelerate climate change.

Giovanni Di Bartolomeo, Enrico Saltari, Willi Semmler

Identification of Critical Factors for Construction Megaprojects Success (CMS)

The worldwide growth of construction megaprojects has triggered an increasing number of academic publications in the past few decades. Therefore, this paper aims to systematically review studies on the critical success factors (CSFs) to identify the CSFs for construction megaprojects from academic journals between 2000 and 2018. The research results indicated an increasing research interest in the investigation of critical factors for CMS since 2000. Meanwhile, based on the number of 27 journal articles, a total of 33 CSFs were identified eventually and the top five were adequate resource availability, partnering/relationships with key stakeholders, adequate communication and coordination among related parties, public support or acceptance, and clear strategic vision. A checklist of CSFs for CMS was developed and could render new insight for researchers and practitioners to conduct further studies and enhance megaproject management in practice. Moreover, the results would also enrich the theory of megaproject management.

Ting Wang, Albert P. C. Chan, Qinghua He

Chapter 9. Understanding Culture and Success in Global Business: Developing Cultural and Innovative Intrapreneurs in Small Businesses

Culture in business is a crucial step to becoming successful in global business. It helps to promote effective communication, a vital factor in business success. Organizational culture, which is often implied, but not explicitly defined, usually develops naturally and progressively overtime from the collective traits of the employees. Good corporate culture creates an environment where every employee can have the opportunity to initiate and bring about change. It is also an environment that encourages employees to be open while also going after their values and beliefs. Such an environment creates retention as well as satisfied and productive employees who are motivated and are proactive in their pursuit of innovation through intrapreneurship. Using the entrepreneurial theory of the firm and the organizational culture as a framework, the purpose of this chapter contribution is to explore how small businesses can achieve business success and competitive differentiation by making intrapreneurial culture a part of their genetic makeup. The culture of intrapreneurship in any organization—both large and small—must be deliberate, one that is embedded in the organization’s mission, vision, and strategy. I concluded the chapter with a case study of a small business owner whose goal is to ensure that the culture of intrapreneurship is at the heart of every decision that is made within the organization.

Ezenwayi Amaechi

Chapter 6. China’s Belt and Road Initiative in the European Media: A Mixed Narrative?

President Xi Jinping of China announced the One Belt One Road Initiative (OBOR), or the Belt and Road Initiative (BRI), in the autumn of 2013. Yet the BRI has drawn more attention to the European media only since 2015. This article focuses on exploring the media narrative of BRI in Europe. Through examining the representation of BRI in six European media outlets from the UK, France and Germany, it finds that there is a growing interest in BRI from the European media, though the overall coverage is marginal in comparison to their coverage of other topics related to China. Interestingly, the interpretations of BRI in the European media under examination seem to point in different directions and the narrative of China’s BRI is very much mixed with subtle differences between the British, French and German media. The article concludes with a discussion of the role of the media in EU–China strategic narratives and the potential for EU–China collaboration in the framework of the BRI.

Li Zhang

Chapter 8. Navigating Sustainability Challenges in Africa: The Ogun State Racetrack, Motor Sports and Autopark Project

Integrating sustainabilitySustainability into major or even smaller projectsProject and the business operations of organizations is increasingly de rigueur. However, delivering sustainabilitySustainability in process, product and benefits raises differing challenges dependent on contextContext, extent of alignment with pre-existing strategic objectives and definition. Multiple frameworksFramework to review sustainability within projects also exist. This study utilizes a hybrid frameworkFramework to review the delivery of sustainability in practice within the early stages of a motorsports tourismTourism projectProject in Africa and concludes with some recommendations for project managementProject management practice and further research.

Teri Vivienne Okoro

Chapter 15. Practice Competences in Project Management Decision Process: A Regional Study

The chapter focuses the decision-makingDecision-making process in project managementProject management from the perspective of the competenceCompetence area “Practice”, following IPMAInternational Project Management Association ICB4., so as a behavioural pattern which is the foundation that project managers use while making decisionsDecision. There is no doubt about the importance of the practice competenceCompetence elements like components of decision process. Therefore, an important research question is understanding the relation between practice competences, like defined by ICB4, and decision process in project managementProject management. The chapter brings preliminary results from a study conducted in three European countries: Croatia, Slovenia and Slovakia which share similar business environments, country characteristics, and cultural values (despite some differences). It highlights three main findings formed in the questions of traditional assumptions of decision-makingDecision-making. The main efforts of the study are oriented to the following: (1) the challenges of decision-makingDecision-making, (2) shifting the logic of the project managementProject management process to creative leadership, (3) the process of sustainable decision-makingDecision-making: advancing business and serving to the society. The chapter concludes with the main findings about the relevance of the competenceCompetence elements from the aspect of competenceCompetence area “Practice” according to IPMAInternational Project Management Association ICB4 and specifically for the above-mentioned market, mostly on tied to certain differnces of infrastructure projectsInfrastructure project.

Sandra Matuhina, Mladen Radujković, Maja-Marija Nahod

La régulation juridique du crowdfunding

Crowdfunding has been an alternative source of financing for both businesses and individuals in recent years. It is an alternative source of financing, since it discards the traditional financing intermediaries, such as credit institutions, in order to apply for a financing through the crowd. However, disintermediation is – in many countries – only a transitional stage in the development of a sui generis legal regime adopted in several legal orders. In these States, a new status – with its correlative obligations – is created. Other states (the majority of the 19 national reports on this subject) have merely adapted existing regimes to include these new "actors", namely companies operating platforms for linking financiers and funders.This general report first examines the different types of crowdfunding, depending on the financing arrangements (loan, donation, equity) and then sets out the different solutions proposed in the 19 legal systems from the point of view of the regime applied to crowdfunding companies and then from the point of view of the protection of "the crowd", i.e. the persons – natural or legal – who have contributed to the financing through a platform. Finally, since the use of the Internet is the essential tool in this new form of financing, it lends itself more than any other to cross-border development. The report nevertheless shows that the States here studied are reluctant to let the companies deploy an activity outside the borders where the financing company is located, even if they are very often far from having envisaged all the difficulties linked to this aspect.

Caroline Kleiner

Effects of Knowledge Management and Sustainable Supply Chain Management on the Sustainable Performance of the Industrial Manufacturing Sector

The quantity and constant flow of material, financial, technological, information resources and diverse interests of stakeholders make the management of supply chains more complex, so that the inclusion of the principles of Sustainable Development together with the management of the volume of knowledge that flows along the supply chain represent a real challenge; even more so, when it must be demonstrated that the effort employed in the practices of knowledge management and sustainability are reflected in economic, environmental and social performance. Therefore, the following questions arise: What is the outcome of sustainability and knowledge management practices in economic, environmental and social performance? How are knowledge management and sustainability management constructs related in the industrial manufacturing context? What aspects should organizations strengthen to achieve sustainability in all its dimensions? The research made it possible to identify some aspects of knowledge management that need to be strengthened in order to achieve the objectives of sustainable development, the exposition of current practices in matters of economic, environmental and social sustainability, and the dimensions of sustainable performance that are most impacted were identified.

Bertha Lucía Santos Hernández, Sandra Yesenia Pinzón Castro, Elena Patricia Mojica Carrillo

Operation Mode and Development Strategy of Internet Finance

With the rapid advancement of Internet technology, the operation mode of Internet finance is gradually showing diversified characteristics. The future of the financial sector will be a full possibilities of industry, traditional financial aid will amount Internet showing a trend of Hewlett-Packard, and therefore analyze the nature of the development of different modes of operation and internal issues, and for which the advantages and disadvantages Putting forward sustainable development strategies has certain practical significance.

Xingping Zhu

Chapter 8. Sports Innovation

Nike has fundamentally grown to be one of the world’s most recognizable brands. From its inception, the company took the sportswear industry by storm driven by one simple motto—“To bring inspiration and innovation to every athlete in the world.” Innovation has been monumental to the company’s global success and market leadership in the sports industry. The company has transformed what research and development means in the sportswear community. In fact, the first spike less, cleated track shoe was initially developed and innovated using a waffle iron in order to create more traction on the field. Cultivating innovation is ingrained in the company’s culture. Nike has elevated its brand to be synonymous with sportswear research. The following analysis will use Nike as a case study to better understand product planning, development, and technology integration strategies. There is a unique distinction between system centered design and user-centered design—Nike’s Innovation efforts span both. Nike’s research and development efforts focus on excelling performance and inspiring athleticism in their loyal consumer base.

Achala Kaushikkar, Sema Kirkewoog, Erica Merckling, Sneha Prabhu, Tugrul U. Daim, Dirk Meissner

Chapter 17. R&D Management in Rare Disease Focused Biotechnology Companies: The Case of Shire

Shire is a 30-year-old global biotechnology company focused on treating rare diseases and other highly specialized conditions, currently underserved by pharmaceutical research and development. The company’s portfolio of pharmaceutical therapies is available across hematology, immunology, neuroscience, lysosomal storage disorders, gastrointestinal disorders, internal medicine, endocrine, and hereditary angioedema in more than 100 countries. Additionally, Shire is growing its therapies used in oncology and ophthalmic. Within these core areas Shire has developed some of its most successful therapies, including Vyvanse used in the treatment of attention deficit hyperactivity disorder (ADHD), Lialda used to treat inflammatory bowel disease, and Adderall XR, also for the treatment of ADHD and narcolepsy (Ornskov 2016).The case study identifies and analyzes Shire’s approach to R&D management. This research attempts to review the approaches taken and the efficacy of strategic frameworks used within Shire’s product portfolio.

Amir Shaygan, Tania Lilja, Bobby Romanski, Rasnia Tabpla, John Bauer, Hussain Almohameed, Tugrul U. Daim

Chapter 5. Amazon: Industrial/International Corporation and Dynamics

In an environment of continuous innovation and competitive markets, it is essential for an organization to explore and concentrate its efforts toward research and development. Also, globalization of research and development with international and industrial cooperation is one of the important business strategies to expand an organization’s operations and development. Academic institutions also play an important role in industrial innovation by collaborating with the firms in the development of emerging technologies. In this way, organizations achieve pioneer innovations and achieve profits by means of international, industrial, and academic cooperation.This chapter presents a case study on Amazon, which has been one of the biggest success stories in the online marketing arena. It was best known for being the best online seller of books, music, and videos. But today, Amazon has emerged one of the global market leaders with not only its Amazon Prime Services but also by embarking on cloud computing technologies called the Amazon web services, with products like the Amazon Echo and drone technology for Amazon prime Air. This is because Amazon has been developing its technology internally and by setting up research and development centers globally. Amazon has over the decades made significant investments when compared to other organizations with the focus on pioneering solutions for their customers.This study discusses the drivers behind Amazon’s international and industrial cooperation. Along with the collaboration that Amazon has recently initiated with the universities worldwide. Along with the different types of co-operation that Amazon has currently positioned itself, we also study Amazon’s investments into emerging technologies with strategies for building profitable partnerships in the market.

Deemah Alassaf, Lipishree Vrushabhendra, Nouf Alswine, Vidhi Chokshi, Tugrul U. Daim, Dirk Meissner

Overview of IPTV Development in China

Internet Protocol Television (IPTV) provides users with digital television services, which are based on Internet Protocol (IP) and related value-added services in a low-cost and efficient manner. It combines digital television services and telecommunications broadband services with real-time interactivity, which is welcomed by users. However, in recent years, the development of global IPTV has slowed down, and the growth of the number of users has entered a bottleneck, even some countries have experienced negative growth. As the rapid increase of IPTV users in recent ten years, China has also entered the bottleneck period of development. This article summarizes the development history of IPTV in major countries and regions in the world, especially the development history of China’s IPTV in the past ten years. Based on the current status and existing problems of China’s IPTV market, the research team proposes several suggestions and development directions. We are looking forward to exploring IPTV industry opportunities in the new era and a new future.

Zhe Chen, Yaguang Yin, Xiaoning Lu, Jie Yang, Yu Wang

7. Trends und Entwicklungen

Der traditionelle After Sales Service inklusive der hohen Margen und Gewinnbeiträge steht einem Wandel gegenüber. Digitale Transformation, Globalisierung oder disruptive Geschäftsmodelle verändern die etablierten Rahmenbedingungen des Geschäftsbereiches zunehmend. Daher sollten sich Unternehmen auf diesen Wandel vorbereiten und Veränderungen in der eigenen Organisation anstoßen. Aus diesem Grund wird in dem letzten Kapitel des vorliegenden Buches auf wichtige Trends im After Sales Service eingegangen. Zu nennen sind hierbei der Ansatz der Servitization (Abschn. 7.1), die Digitale Transformation im After Sales Service (Abschn. 7.2), digitale Geschäftsmodelle (Abschn. 7.3), das Smart Service Engineering (Abschn. 7.4) oder der Einfluss der Elektromobilität auf den automobilen After Sales Service (Abschn. 7.5).

Uwe Dombrowski, Simon Fochler, Constantin Malorny, Uwe Winkelhake, Volker Stich, Philipp Jussen, Benedikt Moser, Marcel Faulhaber, Jens Pöppelbuß, Lisa Sontowski, Christian Engel, Tobias Stefanak, Felix Buck

Art for Life: Intangible Cultural Heritage as a Tool for Entrepreneurial Development in India

Today, the culture is recognized universally as an enabler and a driver of sustainable development. The International Congress ‘Culture: Key to Sustainable Development’ held in Hangzhou at China in May 2013, specifically focused on understanding the linkages between culture and sustainable development in view of the post-2015 development framework. The 2030 Agenda for Sustainable Development Goals (SDG) adopted by the United Nations recognized the importance of intangible cultural heritage as a cross-cutting component for achieving most of the SDGs. Banglanatak dot com, a national social enterprise, had started an experimental project called Art for Life (AFL) in 2005, in six districts of West Bengal focusing on using local cultural skills for generating sustainable livelihood for the rural communities practising such cultural forms. Over the period of 2005 to 2018, AFL turned into a holistic programme supporting more than 30,000 families of rural folk artists leading to a sustainable and dignified livelihood for them. This article deals with the genesis, evolution and mainstreaming of this AFL programme as a unique model of developing rural non-farm sector using cultural capital as an asset for economic, social and environmental development.

Amitava Bhattacharya

Chapter 3. An Empirical Investigation of the Determinants of Market Efficiency in Borsa Istanbul

Following the last global financial crisis, efficienciesEfficiency of stock markets have come to sight as a novel area of research. The question of what factors shape the efficiencyEfficiency of the stock market is naturally always of curiosity in theory and practice. In line with the framework of this curiosity, this study examines the determinants that play a crucial role in the efficiencyEfficiency of a certain stock market, Borsa Istanbul. Our study contributes to the literature by using five years and daily data for both individual and institutional investors. We here aim to specify the ten determinants of efficiencyEfficiency which are categorized under investor-based, market-based and country-based determinants. According to the three different regressions and VAR analysis, the model indicates the strong relationship between the efficiencyEfficiency and the specified determinants such as turnoverTurnover, market volatility, the share of foreign investors, and interest rate.

Yusuf Varlı, Ebubekir Sıddık Şahin

Financial Instability and Economic Growth in Transition Economies

The paper focuses on the fiscal and financial position of European post-socialist countries prior to the Global Financial Crisis (GFC) of 2007–2009 and afterwards. It highlights the impact of the transmission of crisis and the changes that have been ensued in terms of the pattern of economic growth. For this reason, it reviews the relation of higher GDP growth rates and the deepening of financial development, a model that had been adopted by the majority of countries until the outbreak of the crisis. More precisely, emphasis shall be given to Bulgaria, Romania, and the Baltic States due to the fact that these countries had experienced the most intense effects. Furthermore, we incorporate Minsky’s financial theory in order to identify the resemblances of the theory with their domestic financial systems and to reveal the weaknesses and vulnerabilities of their fiscal and financial stance. The scope is to indicate that the pursuit of a rapid accelerating GDP growth rates based solely on the financialisation of the economy does not constitute a panacea policy for total economy. Thus, we display relative macroeconomic data in relation with growth GDP rates ex ante and ex post the crisis. Hence, we address the issue that the advent of Global Financial Crisis has induced the countries under examination to moderate their economic policy of credit expansion and high indebtedness towards more balanced and steady growth pattern at the expense though of lower annual GDP rates.

Savvas Zachariadis

Chapter 5. Restarting the Engines

This chapter describes the re-opening of bond markets for Portuguese issuances and how it was possible. The process is presented in the context of the European peripheral bond market conditions at the time. In January 2013, following a roadshow in the US, we tapped an existing bond and came back to the medium to long term debt markets. The bond increase had a 35% participation coming from the US, showing that our diversification strategy was starting to bear fruits. I explain how the primary and secondary markets for government bonds work and the role the investment banks play. I emphasize the importance of liquid secondary bond markets for competitive bond pricing and investor participation. The process was still fragile. To keep the secondary market stable, it was important to avoid negative headline news that could trigger selling pressure by investors. It was crucial that the situation in Portugal evolved in a predictable manner in order to avoid the bond price instability experienced during periods of panic selling.

João Moreira Rato

Chapter 3. Investors

This chapter focuses on describing the interactions with the investor community during the process of rebuilding trust in Portugal. In the fall of 2012, we were ready to start meeting with investors and organize roadshows. It was to be the start of a medium to long term process aimed at restoring credibility with the investor community. To do so we chose a transparent, candid and fact-based approach. Given our massive financing needs for the next few years we were looking for repeated support from investors, so building trust was essential. I describe our first roadshows and meetings with investors that influenced deeply our style when interacting with investors: London, Tokyo and New York. The topics discussed with investors would change with circumstances in Portugal and in different investor geographies. The fall of 2012 saw massive protests in Portugal and social cohesion became an important issue for investors. I explain how different types of investors play different roles at different stages of the market normalization process.

João Moreira Rato

Chapter 6. Bumps on the Road

In this chapter I describe the spring and the summer of 2013 when Portugal went from issuing again a new long-term bond and extending the maturities of its European official loans to a political crisis that threatened to jeopardize our work and bring the sovereign back to the situation of 2012. The situation in the Portuguese government bond market is placed in the context of the evolution of that in Ireland and Greece. In May 2013, Portugal issued a new ten-year bond. It was able to attract more conservative investors to its bond market and to continue to diversify investor participation. But it was still facing a wall of redemptions for the next few years. This still conditioned the type of market access available for Portugal. European support, in the form of the maturity extension of official loans, was crucial to smoothen the redemption profile and to potentiate future investor involvement in the Portuguese bond market. A political crisis during the summer of 2013 risks jeopardizing our efforts for a market-based exit from the Troika program. This chapter describes how bond market conditions were dragged into the domestic political situation.

João Moreira Rato

Chapter 2. Warming Up

In this chapter, I explain the economic and social situation in Portugal at the beginning of 2012. The situation is dramatic, characterized by very high levels of unemployment, especially among the youth. I describe the Portuguese Debt Management Office that I am about to lead: the Treasury and Debt Management Office for Portugal (“IGCP”). In London, before joining the IGCP, I started preparing for the job. I had very useful preparatory meetings with professionals that had followed closely the emerging markets crisis of the 1990s. Our first challenge was to decide how to present the Portuguese situation to investors in view of re-establishing credibility in the markets. Our second challenge would be to rebuild a diversified investor base. We had to look for new investors to replace the investors that used to buy Portuguese government bonds before the crisis and were burnt by price moves, rating downgrades and orders to sell coming from their bosses and shareholders. In the meantime, the European government bond market situation started to contaminate Spain and Italy, triggering Draghi’s “whatever it takes” speech. The fact that our Troika funding would only last up to September 2013 triggered our first transaction: a bond exchange.

João Moreira Rato

Chapter 3. Asian Regional Cooperation: RCEP and CPTPP Strategy After Brexit

Global trade has played one of the most important roles in contributing to rapid economic growth in the world in the last five decades. However, trade growth has slowed down in the global economy since the global financial crisis. In 2016, growth in the volume of world trade was expected to remain at 2.8%, unchanged from the 2.8% increase registered in 2015. Imports of advanced nations were moderate in 2017, while demand for imported goods in developing Asian economies would rise. Despite the rising import in Asia, the ratio of trade growth in the world has been lower than the ratio of global economic growth since 2013. Therefore, many countries have tried to create bilateral, multilateral, regional, and mega FTAs in order to boost their trade volumes and economic growths. The EU’s single market provides several implications to East Asian countries trying to build their own FTA and participate in different mega FTAs such as the RCEP and the CPTPP. As a result, their economic interests are rather divided deeply and related to political and security issues in the East Asian context. Particularly, the new protectionism led by the USA and the UK has emerged and negated the TPP Agreement that turned into CPTPP without the US participation. This paper deals with Mega FTAs such as the RCEP and the CPTPP as well as East Asian economic cooperation. It also argues what East Asian countries’ economic interests are by participating in the RCEP and the CPTPP as well as how to overcome the newly emerging protectionism caused by the new US trade policy and Brexit. Finally, it also analyzes the roles and strategies of China, Japan, and Korea to protect their regional and global economic interests overcoming protectionist movement in the global trade environment individually and collectively.

Sang-Chul Park

Chapter 6. Third Mode—Oligarchy Transformed, the Republic Reduced

The political tumult of the 1960s and 1970s ushered in a period of rapid reorganization of oligarchic rule alongside multiple realignments in the party-political arena. With the federal government’s retreat from market regulation, the privatized provision of public goods and increasingly regressive taxation led to unprecedented extremes of economic and social inequality that combined with the financialization of the economy and the dynamism of the financial sector to construct a new mode of oligarchic rule. This chapter explains how high returns to capital and super-rents deriving from market power and monopolies created a new financial oligarchy and a step-change in the private command of public policy, leaving the oligarchy largely unaccountable to democratic government. In the financial crisis of 2008–2009, this oligarchy retained its profits while socializing its losses, and the exclusionary consequences effectively split the republic into ‘two nations’.

Joe Foweraker

Role of Intrinsic and Extrinsic Factors Affecting Continuance Intentions of Digital Payment Services

This paper examines the continual usage intentions of digital payments. It investigates the effects of perceived risk, quality of service, and grievance redressal structure on the Digital Payment Service continuation through the integration of the Expectation-Confirmation Model (ECM) with some of the most researched technology adoption models. The survey was conducted at two different time line, pre and post demonetization in India. The results of the study were compared to the model (pre demonetization in India), suggest that there is a control effect of ease of usage in experience, gender, and age. The effect of hedonic motivation on the desire to use is moderated by age, gender, and experience to a higher degree among young people in the early phases of digital payments also the effect of grievance redressal as a moderator variable was significant.

Anup Kumar, Parijat Upadhyay, Sujeet K. Sharma, Prashant Gupta

An Exploratory Study of Twitter Sentiment Analysis During COVID-19: #TravelTomorrow and #UNWTO

Purpose: The COVID-19 has impacted travel and tourism like no other event before in history and Tourism is the hardest hit of all economic sectors. As of now, 96% of all worldwide destinations have introduced travel restrictions in response to the pandemic. Analyzing the impact of COVID-19 sentiments throws some light on the overall situation and provides insights and guidance for recovery measures.Design: The research focuses on the collection of tweets referring to #TravelTomorrow online campaign and tweets from #UNWTO subsequently evaluated through a sentiment analysis using NViVo.Findings: We analyzed the twitter sentiments in a systematic way and investigate the insights of twitter sentiments in COVID-19 situation. Our research result shows the valence of sentiments such as positive, moderately positive, very positive, negative, moderately negative and very negative sentiments which are helpful to the tourism stakeholders for their decision making.Research Implications: The key insights, themes, subthemes and sentiments which are useful to the policy makers for their strategic decision making and the implications of this research is helpful for the academic and tourism practitioners in tourism industry.Originality: The insights of this research are helpful to Destination Marketing Organizations of developing countries to popularize their destinations and helpful for the faster recovery measures from the pandemic situations.

V. Senthil, Susobhan Goswami

3. How Industries Evolve, Mature, and Revitalize

Industries go through a similar process of evolution in pursuit of growth and efficiency. This chapter highlights that process and discusses each stage of their life cycle: start up, growth, maturity, and aging. The start-up phase is marked by significant growth and a lack of organization. Those who can create efficiency survive. In the growth phase, the challenge is to gain market share while becoming a full-line generalist. This is done by adopting one of the following strategies: market penetration, market expansion, complementary diversification, or product expansion. The maturity phase is when revitalization and the adoption of new technologies must occur for survival. Efficiency through scale typically results from the following scenarios: government mandates, regulated monopoly, shakeouts and mergers, and shared standards/costs. After an industry achieves scale efficiency and scope capabilities, it must evolve to revitalize to avoid death. The key drivers of market revitalization are substitute technologies, changing demographics, changing policy and regulation, and emerging markets. Emergence of middle-class markets presents significant opportunities for market revitalization in the twenty-first century.

Jagdish Sheth, Can Uslay, Raj Sisodia

5. Evolving to the Global Rule of Three

The chapter offers insights into the transition of the Rule of Three from local to national, regional, continental, and global, which is illustrated with numerous industry examples. Competitive markets evolve in a predictable fashion across industries and they go through similar life cycles. Many generalists that are dominant in their countries or regions are unable to have the same success when the market globalizes. There is generally one global survivor from each of the three major economic zones. For a company to survive and succeed as a global, full-line generalist, they must be prominent in at least two of the three legs of the global triad. If a country has a large stake in an industry, it may be home to two or even all three full-line players. Niche companies/specialists in a globalizing market have four options: (a) they can expand internationally and become a global niche player, (b) they can remain domestic as a superniche company, (c) they can launch new specialist businesses, or (d) they can let themselves be acquired at a premium. Many specialists will experience at least two of these options, if not more, in the coming decades.

Jagdish Sheth, Can Uslay, Raj Sisodia

6. The New Triad Power: Impact on Global Markets, Resources, and Politics

Each century has been marked by the successes of different regions and cultures. The trade triad that was prominent in the twentieth and early twenty-first century consisted of Western Europe, North America, and Japan. However, a new triad has been emerging consisting of America, China, and India, and this group will reshape world policy in the twenty-first century. Some of the factors driving this shift in the triad include rapidly aging populations in affluent nations, economic reforms in China and India, and the rise of a new middle class. Unlike the harmony orchestrated by the U.S. in the old triad, the new triad power comes with possible problems, especially between China and the U.S. Their differences will inevitably create tensions, and India will increasingly become a more strategic partner to both. Demand for the world’s resources will create strange bedfellows among nations and resource-driven global expansion for enterprises and nations. Technology breakthroughs will tend to stem from resource conservation and scarcity, shifting the way business around the world is run in the twenty-first century.

Jagdish Sheth, Can Uslay, Raj Sisodia

7. Global Expansion Strategies for Multinationals from Emerging Markets

This chapter examines how emerging-market multinational companies (EMNCs) should go about successfully operating in other emerging and developed markets so they, too, can become global players. The infrastructure, regulatory, socio-economic, socio-political, technological, and cultural systems in emerging markets are drastically different. The authors assert that their business and marketing strategies have been and should be different from those of the traditional conglomerates of the world in order to succeed. Differential advantages of EMNCs include flanking advantage, diaspora advantage, customer advantage, cost advantage, home turf advantage, and the geopolitical advantage. Resource scarcity will drive major technology breakthroughs, such as cloning and nanotechnologies, where key drivers of innovation will be affordability and accessibility of products, technologies, and services. EMNC dominance will be most apparent in sectors where operand resources are dominant. Over time, EMNCs will challenge global leadership sectors where both operand and operant resources are critical. In these sectors, we may see global leadership shared between MNCs and EMNCs. The last frontier will be sectors where primarily operant resources are sufficient.

Jagdish Sheth, Can Uslay, Raj Sisodia

Chapter 11. Technological Advancements in Coconut, Arecanut and Cocoa Research: A Century of Service to the Global Farming Community by the Central Plantation Crops Research Institute, Kasaragod, Kerala State, India

The chapter summarises the technological advances with a farmer orientation made by the Central Plantation Crops Research Institute (CPCRI) of India, Kasaragod, Kerala State, under the administrative control of the Indian Council of Agricultural Research, New Delhi, India, over the last one century, in the most important cash crops, such as, coconut, arecanut and cocoa. Starting from a very modest beginning in the early nineties, as a small research station in Nileshwar, in the northern hub of Malabar, in Kerala State, India, CPCRI has, over the last one century expanded into a mammoth research and development institute serving the farmer of the above named crops in the whole of South Asia. The chapter summarises the work done in all aspects pertaining to the three crops, with the greatest emphasis on coconut, as it is a principal foreign exchange earner for the country. Some of the salient aspects discussed in the chapter are the International Coconut Gene Bank, new vistas in coconut bio technology, coconut by products etc. And, it ventures to look at the future prospects of coconut as a very welcome health crop which has, already an international market, with new possibilities in the future, because of its important trait as a “healthy oil” producing crop from its tough nuts.

Kodoth Prabhakaran Nair

Application of Artificial Intelligence Techniques for the Creation of Novel Services Based on Connected Vehicles

New technologies have been progressively integrated into vehicles during the last thirty years. Commercial vehicles today can be seen as 2 tonne IoT devices on wheels that continuously collect high-quality information not only from the internal performance and behaviour of the vehicle but also from the external environment. The adoption of cutting-edge technologies like 5G, Edge Computing and Artificial Intelligence (AI) will be essential pillars for the actual implementation of new Intelligent Transportation Systems (ITS) leveraging Vehicle-to-everything (V2X) paradigm. This paper is focused on the design and implementation of a connected vehicle-based system to enable new services and applications to be developed, by exploiting high-quality data collected from onboard sensors and ECUs and leveraging state-of-the-art machine learning technologies.

Adrian Arroyo, David Evans, Alexandre Solleiro, Ignacio Elicegui, Alejandro Manilla, Daniel Calvo

Chapter 3. Inconvenient Truths

The previous chapter introduced three new theoretical concepts: defensive expectations, compensatory savings and the cumulative wage gap. This chapter presents the empirical evidence behind these ideas. First, it shows that downward wage flexibility is frequent. Both real and nominal wages can be cut—and they are, quite frequently and to a significant extent. Second, lower wages are translated into lower consumption even in the absence of liquidity constraints. Third, a wage cut leads to lower consumption and higher savings. Data from the last four recessions in the US confirms that savings increase when income falls. The saving behavior in a recession is counter-cyclical, while the consumer behavior is pro-cyclical.

Liviu Voinea

Chapter 5. General Conclusions and Policy Implications

The anchored inflationary expectations could be the result of a downward bias of the cumulative wage gap. The lack of automatic stabilizers for the negative cumulative wage gap contributes to the formation of defensive expectations. The cumulative wage gap Phillips Curve calls for an optimal policy mix between monetary policy and fiscal policy. This chapter presents various policy choices and outcomes of the policy mix. The final section discusses the coronavirus crisis as an extreme case of defensive expectations. The defensive expectations theory predicts that when the cumulative wage gap turns negative, consumption falls, and savings increase—which has already happened in the US. The aggregate demand will not recover, and therefore inflation will remain subdued, until the cumulative wage gap closes.

Liviu Voinea

Open Access

Chapter 11. Latin American Economic Crises and Populist Bids: Argentina, Brazil and Mexico

Through a comparative case study analysis, the chapter seeks to retrace the recent history of Argentina, Brazil and Mexico in dealing with economic crises. Despite their different institutional arrangements and macroeconomic trajectories, the comparison shows that domestic concerns were the main drivers of economic policies. Particularly regarding each country’s approaches to exchange markets and capital controls—here called financial policy—the chapter evaluates the extent to which they contradict international perceptions and even the International Monetary Fund’s (IMF’s) stance on financial regulation and the management of capital flows. A close relationship between domestic political demands and the design of economic policy indicated that even in the face of some similarity between the challenges posed to the three countries and more than responses to changes in the world economy and the quest to keep these economies integrated, economic policy aimed to accommodate internal political pressures.

Maria Antonieta Del Tedesco Lins

Chapter 10. Conclusions

In the past 10 years, Chinese FDI has experienced rapid expansion. However, they have also encountered many difficulties, particularly with respect to institutional barriers and corporate governance. In response to the call for strengthening transnational governance and facilitating the high-quality of transnational operations, this book systematically sorts out the transnational governance, investment, and operations of Chinese companies by selecting eight typical Chinese MNCs across various industries.

Runhui Lin, Jean Jinghan Chen, Li Xie

Chapter 1. Introduction

Economic globalization has become one of the most fundamental characteristics associated with the evolving world economy, in which multinational corporations (MNCs) are viewed as an important driving force of global economic integration by their overseas investment and strategic adjustment.

Runhui Lin, Jean Jinghan Chen, Li Xie

Chapter 5. The Construction and Evolution of Lenovo Group’s Transnational Governance Capability

The formation of corporate transnational governance capability is an important issue in the field of transnational governance. However, existing research lacks a theoretical framework or model for the formation of transnational governance capabilities of enterprises in emerging economies. This case study examines the process of internationalization of Lenovo Group, identifying, analyzing, and summarizing changes in its transnational governance capability. Specifically, the case study develops four stages of the development of Lenovo’s transnational governance capability, suggesting a typical evolutionary process of corporate internationalization: (1) the basic stage; (2) the transition stage; (3) Conflict stage; and (4) Formation stage.

Runhui Lin, Jean Jinghan Chen, Li Xie

Chapter 9. Transnational Governance of SANY Heavy Industry’s Acquisition of Putzmeister

In the process of internationalization of enterprises in the construction machinery industry through cross-border mergers and acquisitions, how to conduct cross-border governance is a hot issue worth studying. This case takes Sany Heavy Industry, a leading enterprise in China’s construction machinery industry, as the research object, and studies the background and process of Sany Heavy Industry’s acquisition of Putzmeister, as well as the transnational governance mechanisms such as stakeholder governance in the acquisition process, subsidiary governance after the acquisition, parent company governance, and parent–ubsidiary relationship governance. Sany Heavy Industry, promoted by its internationalization strategy, after years of preparation and good stakeholder governance, successfully acquired 100% equity of Putzmeister. The adjustment of Putzmeister’s and Sany Heavy Industry’s governance structure, together with the appropriate governance of the parent–subsidiary relationship, have achieved a successful integration of Putzmeister, achieving mutual benefit and a win–win outcome.

Runhui Lin, Jean Jinghan Chen, Li Xie

To Centralize or Decentralize: What is the Question? An Application to Digital Payments

Computing in the general sense of the word has been centralized in the early days of IFIP (1960s) with mainframe computers and became distributed in later decades (1980s) with stand-alone personal computers. Then distributed ledger technology was introduced and the arrival of Bitcoin emphasized the intention in addition to distribution to also decentralize the system as much as possible. In this article we focus on the meaning of centralized versus decentralized computing and apply this to the world of digital payments.

Ron Berndsen, Ruth Wandhöfer

Chapter 13. Securing the Expansion of Capitalism in Colombia: Canadair and the Military Regime of General Gustavo Rojas Pinilla (1953–1957)

This chapter hones in on the relationship that unfolded between international businesses and the dictatorship of Gustavo Rojas Pinilla from 1953 to 1957. The sale of Canadair jet fighters to Colombia is used as a case study to illustrate the views and perspectives of international businesses interested in capitalizing on the military regime’s effort to open up the national market to the international business community. The case study reveals how the military regime became the gateway to Colombia’s modernization, an economic development initiative that was heavily dependent on foreign direct investment as a strategy to jumpstart the Colombian economy. Ultimately, it sheds light on how Canadian-Colombian relations evolved during the second half of the twentieth century.

Stefano Tijerina

Chapter 5. Big Business and Bureaucratic Authoritarianism in Uruguay: A Network-Based Story of Policy Infiltration for Self-Preservation

Between 1973 and 1985, Uruguay was ruled by a Bureaucratic-Authoritarian regime. Following regional trends, this period mostly coincided with the stagnation of the industrialization model oriented toward the domestic market. The transition to an open-market model, however, did not exhibit the same characteristics of other countries like Chile, where the adoption of free-market reforms was more radical, displacing previous institutions. This chapter argues that the organization of corporate Uruguay around business groups was a crucial element for neutralizing potential negative consequences of the economic reforms; in turn, it shaped the liberalization process. Businesses applied two main adaptive strategies: direct and individualized participation in government, and financial mismanagement. The analysis is based on a combination of historical and network analysis to show how the structure of the business community and corporate finance made these two adaptive strategies possible. As a result, the corporate governance structure of Uruguay was not dramatically altered by either the dictatorship or the liberalization process.

Juan A. Bogliaccini, Juan Geymonat, Martín Opertti

Chapter 1. Introduction and Research Framework

The chapter explains the objectives and research framework of the book. One of the objectives of this book is to find better ways in implementing conduct of business regulation. To achieve the objective, the study adopts a comparative-analytical methodology to compare the UK’s and South Korea’s COB regimes. Using this methodology, the regulatory regimes of both countries are considered in a wider context, and subjected to deeper scrutiny than it has been hitherto. A regulatory regime should pursue stability and rationality, which can be contradictory values. The book argues that both stability and rationality must be harmoniously pursued for the regulatory regime to obtain effectiveness. In comparing how stability and rationality are pursed by the two countries, the book selects as subjects of comparison: (1) rule-making method, (2) rule-enforcing strategy, and (3) interplay between public enforcement and private enforcement.

Junghoon Kim

Chapter 7. China’s Economic Development and International Cooperation

China’s dynamic changes in international trade and international economic cooperation have significantly impacted on its rapid domestic economic development, both industrial development and rural enterprise development. Developing countries have been increasingly the development trend of collaboration with multinational enterprises and seeking the investment of such enterprises. Application of informational technology to e-commercial business development is important in helping local rural enterprises and smallholder farmers to have more agribusiness opportunities in agro-industrial development and value chain of markets. China’s international economic cooperation has enhanced its international trade in free trade zones and economic cooperation with developing countries from Asia, Africa and Global South. Some developing nations have undertaken economic and agricultural transformation. International economic and business cooperation can faciliate the agricultural and economic transformation in developing countries.

Lei Sun

Digitalisation, Productivity, and Measurability of Digital Economy: Evidence from BRICS

Digitalisation brings along both positive disruptions and a plethora of negative economic externalities. The unresolved questions are bothersome: What is the extent of undesirable markets in digital economy, and how do measurement limitations conceal the true impact of digitalisation on global economies? The objective of this paper is to examine the influence of digitalisation on labour productivity. Methodologically, the study exploits the econometric framework of endogenous-growth model, and apply the innovative data set from the Conference Board’s Total Economy Database on the BRICS case study. The findings of the study confirm the new productivity paradox of accelerated digitalisation that is not manifested in productivity growth. The outcome of this empirical study should benefit emerging market investors, technology sector industrialists, and policy makers.

Thabo J. Gopane

13. The Evolution of Relational Governance Mechanisms in International Joint Ventures (IJVs): Trust and Communication in IJVs in Morocco

The purpose of this chapter is to study the evolution of relational governance, as perceived through trust and communication during the development of a partnership. Based on three cases of vertical international joint ventures (IJVs) based in Morocco, the results show, on the one hand, how relational governance develops through the stages of development of the IJV, and, on the other, how it is affected by the compatibility of the parents’ strategic intentions at the outset.

Dora Triki, Btissam Moncef

Chapter 6. Comparative Analysis of Ecologically Conscious Business Models

This chapter analyzes the business models of ecologically conscious business organizations in the international and the Hungarian sample in a comparative way. The elements and characteristics of the business models are presented in six main dimensions, including the value propositions, market segment, cost structure, and profit potential, the structure of the value chain, position within the value network, and competitive strategy. Common attributes of ecologically conscious businesses are—compared to the market average—less environmental impact, greater social responsibility, and more attention to a wider range of stakeholders. The genuine value commitments of the former can support their cooperative-, knowledge-sharing-, and resilient functioning.

András Ócsai

Open Access

Chapter 2. Global Transformation Towards Sustainability—Clusters of Current Scholarly Discourse

Studying global transformation towards sustainability is a colossal task. The difficulties in determining the scope, boundaries and levels of the analysis have ramifications for the conceptual value of attempts to understand global transformation towards sustainability. Because of the plurality of possible entry points as well as the complexity of various issues involved, providing an overview of the academic debate, if one can speak of a single debate on global transformation towards sustainability, is highly challenging.

Ariel Macaspac Hernandez

Open Access

Chapter 3. Development Finance and the 2030 Goals

In their attempt to stimulate an exponential financing rise of “billions to trillions”, the Sustainable Development Goals (SDGs) and the 2030 Agenda are helping to normalise and promote a radical shift in development finance. A growing concern is that private finance is not forthcoming, calling into question the “billions to trillions” model. In this chapter, however, I focus on the risks of “successfully” moving in this direction. The mainstream bilateral and multilateral community appear too sanguine, and even naïve, about the financial sector. Any analysis of the SDGs must be attentive to the possibilities and risks of the emerging development finance regime that they are helping to legitimate.1

Emma Mawdsley

Open Access

Chapter 12. Interest-Based Development Cooperation: Moving Providers from Parochial Convergence to Principled Collaboration

The motives for providing development assistance change according to historical and political trajectories but always combine varying degrees of altruism and selfishness. Currently, we are witnessing disruptive change in development cooperation as political leaders forward an increasingly self-regarding rationale for international assistance. In an empirical analysis of Northern donors’ narratives and aid allocation strategies, we define the meaning of the “national interest” in development cooperation and distinguish its principled and parochial formats. Our empirical analysis suggests Northern donors continue to allocate based on principled norms, though there is a noticeable deterioration in their public spiritedness as they simultaneously seek short-term domestic benefits from overseas giving. Calls for a principled national interest narrative may, however, enable normative collaboration across Northern and Southern actors.

Nilima Gulrajani, Rachael Calleja

Open Access

Chapter 5. An Evolving Shared Concept of Development Cooperation: Perspectives on the 2030 Agenda

With a collective commitment to the Sustainable Development Goals (SDGs), the worlds of development cooperation, in general, and development finance, in particular, are keenly looking for new and innovative sources of financing for effective and timely outcomes. This chapter considers three successful efforts at providing global public goods for the goal of achieving the 2030 Agenda that operationalise development cooperation in a more “shared” manner, thereby opening up space for engagement by multiple stakeholders in a less hierarchical manner. It identifies three common ingredients that make meaningful contributions to the success of these efforts: access to resources, access to participatory institutions, and ensuring multi-stakeholder participation.

Milindo Chakrabarti, Sachin Chaturvedi

5. Organizing Patent Management

Successful patent management in a company is rooted choosing the right organizational form. Various internal organizational choices, such as establishing a separate patent department, or directly integrating patent activities into the business subunits, must be done according to the objectives of the patent management. Alternatively, it is also possible to outsource service provision. This requires measures for quality assurance and an integration of external activities into company processes. This chapter also looks at how to prevent piracy and imitation by means of both intellectual property rights and business strategy.Patent management in a company often involves departmental rivalry and conflict. A partnership between inventor culture and intellectual property requirements can serve as a catalyst for success.

Oliver Gassmann, Martin A. Bader, Mark James Thompson

Chapter 12. Strategic Assessment of Islamic Fintech in GCC Countries

Recent innovations that the Banking sector has witnessed are in the areas of Financial Technologies, Cryptocurrencies and Blockchain. The real investment opportunity for GCC countries is in the underlying innovative applications of Blockchain. The coming years could be pivotal in accelerating the transformation into more strategically focused, technologically modern, and operationally agile Islamic banking so that all stakeholders remain healthy in a rapidly evolving ecosystem. It is high time Islamic banks embrace disruptive technologies and accelerate their digitization efforts in a manner that would be difficult to achieve with a legacy, centralized approach. It is an open question for the Islamic finance industry as to whether the current practice of central authorities is desirable in the future or whether distributed systems using mathematics and cryptography to guarantee integrity are a better alternative. There is also a chance that a future state may evolve which requires both forms of processing.

Tariq Gulrez

Chapter 9. Does FinTech Revolution Lead to the Disintermediation of Banks? A Study into Islamic Bank Income

This paper aims to examine the impact of financial technology (Fintech) on Islamic banks’ income from perspective of the theory of financial intermediation. This study argues that the existence of banks as intermediaries due to transaction cost and asymmetrical information. In Islamic banking operation, fee-based income is a significant component of income derivation of providing services. The study postulates that Fintech has made access to financial services at a lower cost; hence reduce potential fee-based income for Islamic banks. This study applied panel data models from 2009 to 2016 on the dataset for Malaysia. The results provide empirical evidences on the impact of financial technology revolution on the banks’ income in Malaysia. The findings also indicated that different evidences on impact of financial technology revolution on the Islamic banks’ income and conventional banks for dual banking system. Islamic banks appear to significantly affect by the Fintech revolution due low penetration of online banking and larger banks are relatively invest more on the technology which result in cost saving and increase efficiency. However, Islamic banks should embrace with the paradigm shift and emergence of financial technology revolution promptly to prevent financial disintermediation and create value to their stakeholders. This study provides empirical evidences on the impact of financial technology and Islamic banks in a dual banking system. The study will extend the current body of knowledge in the field of financial technology and Islamic banking by providing insights into regulators and operators of the Islamic banking sector.

Ruhaini Muda, Mohd Saifulizwan Mohd Lateff, Roshayani Arshad, Arif Azhan Rashdan, Ibrahim Abiodun Oladapo, Jaizah Othman

21. ESG-Risiken und ihre Quantifizierung

Das Akronym ESG ist eine englischsprachige Abkürzung und steht für „Environment“, „Social“ und „(Corporate) Governance“ (Umwelt, Soziales/Gesellschaft und Unternehmensführung/-struktur).Allgemeine Beispiele für den Bereich „Environment“ sind Höhe des Energieeinsatzes, Anteil erneuerbarer Energieträger, Strategie rund um das Thema Klimawandel, Emissionsausstoß. Unter „Social“ sind Aspekte wie beispielsweise Achtung der Menschenrechte, Verbot von Kinder- und Zwangsarbeit, Chancengleichheit und Diversität, Arbeitsplatzgestaltung, Weiterentwicklung zu verstehen. Das Kriterium „Governance“ zielt darauf ab, inwieweit Nachhaltigkeit strukturell im Unternehmen verankert ist. Darunter fallen beispielsweise Themen wie Nachhaltigkeitsmanagement, Maßnahmen zur Korruptionsbekämpfung, Umwelt- & Qualitätsmanagementsysteme, finanzielle Nachhaltigkeit und Risikomanagementsysteme.ESG-Risiken und -Chancen haben als Ursache eine hohe Relevanz, da sie hinsichtlich Wirkung beispielsweise die Reputation oder die immateriellen Werte eines Unternehmens erheblich beeinflussen können.Es wird dabei aufgezeigt, dass auch ESG-Risiken oft finanzielle Auswirkungen haben, die als solche zu quantifizieren und bei der Beurteilung des Gesamtrisikoumfangs (Eigenkapitalbedarfs), der Kapitalkosten und des Grads der „Bestandsgefährdungen“ eines Unternehmens (u. a. auch beispielsweise im Sinne von § 91 des deutschen Aktiengesetzes [AktG, eingeführt durch durch Kontroll- und Transparenzgesetz, KonTraG]) als solche zu berücksichtigen sind.Der nachfolgende Beitrag setzt sich mit der Relevanz und Bewertung von ESG-Risiken in der Praxis auseinander. Hierbei werden auch Parallelen zum „Social Credit Rating“ aufgezeigt und diskutiert. Ein besonderer Schwerpunkt liegt hierbei auf der Erläuterung der Bedeutung von Simulationsverfahren, die eine quantitative Bewertung komplexer Systeme, wie beispielsweise von Umweltsystemen oder sozialer Systeme, ermöglichen.

Werner Gleißner, Frank Romeike

10. Internationalizing Service Businesses

Reading service businesses involves understanding the contributions that they make to internationalization. The service sector is a large and growing contributor to international trade and to internationalization. The cross-border provision of services varies by service sub-sector and product. Services businesses play two roles in the on-going development of global economic activity. First, they are internationalizing by foreign direct investment (FDI), mergers and acquisitions (M&A) and by developing approaches to service delivery to meet the needs of clients in many different locations. This reflects different forms of direct internationalization in which services are locally produced and consumed or exported or indirect internationalization in which services are embedded and exported within physical goods and within other services. Second, service businesses provide the supporting service infrastructure to support trade and FDI in goods, raw materials and in the provision of other services. This chapter explores the internationalization of services focusing on direct internationalization via FDI, exports and the movement of service providers and consumers.

John R. Bryson, Jon Sundbo, Lars Fuglsang, Peter Daniels

14. Reading and Managing Service Businesses: An Integrated Case Study Approach

Service businesses exist to create value and value-in-use through the sale of products and services and various combinations of products and services. Multiple values are created through this process including profit or economic rents and surplus value, but also social, community and individual benefits. This chapter uses case studies to explore how different processes work together within service businesses to create value. Five contrasting integrated cases are explored: Rolls-Royce, Flowserve, TikTok, Inditex (including Zara) and Dubai. The last case, Dubai, explores the development of a city-region and the role service businesses play within city-regions. In this account, we explore three dimensions of Dubai: as a service economy, as a location for service spaces—The Dubai Mall—and of service businesses. Here the challenge is to explore the ways in which an observer can ‘read’ a city-region as a service space and can read a particular servicescape—a shopping mall.

John R. Bryson, Jon Sundbo, Lars Fuglsang, Peter Daniels

13. International Financial Markets

The financial crisis led to the worst depression since 1929. Only by massive economic programs could worse be prevented. Here Keynesian theory came into play. Only through globally agreed massive credit-financed government spending increases could depression be prevented. The banks had to be saved with tax money, as many banks had invested in the government bonds of weak European countries whose solvency was called into question. The sovereign debt crisis has emerged from the financial crisis. Against this background, the question arises of state regulations that limit the risk of banks. Such regulation of the financial markets has been urged by politicians and economists since the onset of the 2007 financial crisis. What has happened in the meantime? Were the right reforms implemented or could there be another financial crisis? After analyzing the causes of the crisis, the main reforms are examined below.

Christian A. Conrad

14. Foreign Trade

As globalization progresses, international economic relationships are becoming increasingly important to managers. The following chapter will explain the basic determinants of foreign trade, international capital movements and exchange rates.

Christian A. Conrad

Chapter 4. Does Economic Policy Uncertainty Matter for Stock Market Volatility?

This study examines the dynamic relationship between economic policy uncertaintyEconomic policy uncertainty (EPU) and stock market volatilityStock market volatility in a pure order-driven emerging stock market. Considering the non-linear EPU-volatility relationship, this study uses GARCH family of models to capture the impact of policy uncertainty on stock market volatility. Empirical estimates reveal that economic policy uncertaintyEconomic policy uncertainty is an essential determinant of stock market volatilityStock market volatility", and higher EPU leads to significant increase in volatility. We believe, a thorough understanding the EPU-Volatility relationship can be beneficial for investors to better predict the behaviour of stock market volatilityStock market volatility".

Abhisek Mishra, Byomakesh Debata

Chapter 1. The Evolving Financial Landscape in Emerging Markets and Developing Economies

Emerging MarketsEmerging markets and Developing EconomiesDeveloping economies (EMDEs) have been a significant driver of global growth in the twenty-first century. This paper analyses the changing contours of the financial sector and the challenges faced by EMDEs in recent years. In these countries, banksBanks and domestic equity markets still continue to be vital as a source of financing for the corporate sector, bond markets. Amongst developing regions, South Asia had the largest equity market capitalization as a share of GDP in 2019, and the growth of corporate bond markets has been facilitated by improved macroeconomic stability, better regulation of bond markets, and protection of retail investors. Finally, the findings relating to financial inclusionFinancial inclusion (that includes digital and traditional) suggest further promoting access to and usage of formal financial services to maximize society’s overall welfare.

Sanket Mohapatra, Aswini Kumar Mishra

What Do Robo-Advisors Recommend? - An Analysis of Portfolio Structure, Performance and Risk

Robo-Advisors guide investors through an automated investment advisory process, recommend personalized portfolio assignments based on their individual risk-affinity as well as investment goals and rebalance the portfolio automatically over time. Giving basic investment advice to customers, it can provide a useful way to reduce risk by diversifying and mitigating biases, while keeping a certain degree of performance at low costs. To verify these claims we conduct a sophisticated analysis of recommended portfolios of 36 Robo-Advisors, based on six distinct model customers with different risk-affinities and investment horizons, resulting in 216 recommended portfolios. We find that the analyzed Robo-Advisors provide distinct recommended portfolios for the different risk/investment horizon combinations, while sharing similarities in used products for portfolio allocation. We also find issues within the recommended portfolios, e.g. a low degree of distinctiveness between different investment horizons and a high amount of equities even in the short-term investment horizon.

Albert Torno, Sören Schildmann

Chapter 8. Construction of the China-GCC Energy Community of Interests Under the BRI

Chairman Xi Jinping proposed the initiative of constructing “Silk Road Economic Belt” when visiting Central Asian countries and attending SCO summit in September, 2013 and the initiative of constructing “twenty-first Century Maritime Silk Road” when visiting ASEAN in October, both are known collectively as “Belt and Road”.

Dehua Wang

Chapter 21. The Connectivity Challenge in the Western Indian Ocean

The five-member states of the Indian Ocean Commission (IOC) are committed to a policy to extend intra-regional trade by improving connectivity whether by air, maritime or digital. This includes providing regionwide airlines for passengers and freight; more efficient container seaports for cargo and cruise services, with subregional shipping lines; fibre-optic cables for rapid internet linkage; and common broadcasting and media facilities. The IOC has been working closely with the Common Market for Eastern and Southern Africa (COMESA), which aims to establish a common market for the wider region. The countries of the region have wide differences in market size, diversity, stages of economic and social development and geographic dispersal across the southwest Indian Ocean. The IOC-led policy and action programme aims to create a regional competitive economic and commercial space within the goal of sustainable development. This chapter shows the long-term vision and the obstacles still to overcome.

Raj Mohabeer

Chapter 1. Theories of Internationalization and Foreign Direct Investment: How to Explain FDI from Emerging MNEs?

Szunomár offers a much-needed summary of the theoretical framework of foreign direct investment (FDI), as well as the concept of internationalization in order to show that traditional theories seem to be insufficient in explaining FDI decisions of emerging multinational enterprises (MNEs). After briefly presenting the traditional theories and the main findings of the Japanese school of FDI, the chapter continues with introducing the new theoretical attempts that try to explain the international expansion strategy of emerging MNEs, including driving forces and location choices. The author also explores the “specialties” the emerging countries possess, such as the essential function of home-country governments in promoting outward investment, the significance of institutions in influencing emerging MNEs’ behaviour and the outstanding role devoted to learning from others’ experiences.

Ágnes Szunomár

Chapter 9. South Africa: A Re-emerging Player in Global Outward FDI and a New Investor in East Central Europe?

The chapter deals with the successful reintegration of South Africa into the world economy after the demise of the apartheid regime in 1994 via foreign direct investment flows and the internationalisation of South African multinational companies. The chapter presents the magnitude, the trends, the main forms and motives as well as the geographical and sectoral distribution of outward foreign direct investment of South Africa. A unique feature of the chapter is that it analyses the state of South African investments in the Central and Eastern European region to where foreign capital is attracted by a wide range of political, macroeconomic and institutional pull factors. The chapter explores the sectoral preference of South African investors which are real estate, retail and e-commerce, manufacturing and healthcare.

Judit Kiss

Chapter 8. Motivations of Brazilian Firms to Invest in East Central Europe: Specific Home-Country Advantages and Some Host-Country Specificities Dominate

Ricz widens the geographical focus of the volume to the Latin American continent, by examining the European expansion strategies of Brazilian multinational enterprises. In terms of home-country advantages the chapter draws attention to Brazilian government policies that have actively influenced Brazilian companies’ internationalization decisions especially in the mid-2000s. It argues that the Brazilian going global strategy is rather defensive in its nature and limited in its impacts. Looking at host-country specificities of the few Brazilian companies investing in the East Central European region the study identifies the role of the diaspora and personal and informal ties as a major driving force, while some classical factors, such as low labour costs, agglomeration forces, high skilled labour force and thriving local markets, are also mentioned.

Judit Ricz

Chapter 6. Russian Multinational Direct Investment in East Central European Countries

This chapter assesses the characteristics of Russian outward foreign direct investment (OFDI) and multinationals in general and in particular in five EU-member Central and East European (CEE) states, including Czechia, Hungary, Poland, Slovakia and Slovenia. Besides official statistics, the research relies on company data analysed using Dunning’s eclectic paradigm and his typology of four motives. In addition to pull factors, the importance of push factors is emphasised. Weiner finds that Russian FDI in the five CEE countries is dominated by market-seeking and, to a lesser extent, efficiency-seeking projects carried out by state-owned or state-related private firms. Most Russian FDI has been done in hydrocarbons, iron, steel and machinery, but banking, software solutions, electronic production, real estate and even the light industry have also been targeted.

Csaba Weiner

Chapter 7. Turkish Investments in Central and Eastern Europe: Motivations and Experiences

Szigetvári offers an overview of motivations and experiences of Turkish firms investing abroad, with a focus on Central and Eastern Europe. Turkey is emerging as a major foreign direct capital investor in the new millennium, Eastern Europe being one of the top investment targets for Turkish multinational firms. The economic transformation of the region and the EU integration process create new business opportunities for Turkish firms, spurred by close geographic, but also some regulatory and cultural, proximities. Central and Eastern European countries offer good possibilities for brand management and upgrading of technologies. Good relations to local political actors and joint ventures with local firms may create a better position in the local markets.

Tamás Szigetvári

Chapter 10. Final Reflections: Emerging Market Multinational Enterprises in East Central Europe

Although the current status of East Central European (ECE) countries in the process and level of their integration into global business varies, a rather general phenomenon is the exhaustion of the foreign direct investment (FDI)-led development model, at least its dominant version of the 1990s and early 2000s. On the one hand, this is a result of multinational affiliates’ isolated and strongly integrated presence in a strictly designed international cooperation system with no physical contact with local firms to deliver spillovers. On the other hand, even those affiliates that are entangled in the development of local supplier networks deliver spillovers only to a limited level. As a consequence, they are not becoming primary players of innovative local business clusters, while the design of affiliates’ activity range is usually specialized on low value-added segments of global value chains (GVC).

Ágnes Szunomár, Tamás Gerőcs, Judit Kiss, Tamás Peragovics, Judit Ricz, Miklós Szanyi, Tamás Szigetvári, Katalin Völgyi, Csaba Weiner

Chapter 5. Outward Foreign Direct Investments from South Korea, Taiwan, and ASEAN in the V4 Countries

Völgyi and Peragovics present outward FDI of six emerging Asian countries (South Korea, Taiwan, Malaysia, Thailand, Indonesia, and Vietnam) in V4 countries, namely, Hungary, Poland, Slovakia, and the Czech Republic. After analysing the global trends of outward FDI of the six Asian countries, they focus on the activities of South Korean, Taiwanese, and ASEAN companies in V4 countries. Companies originating from the six Asian countries are engaged in several manufacturing and services sectors in the V4. Among them, Völgyi and Peragovics pay special attention to the automotive and electronics sectors, which are the most preferred one. In the last section of the chapter, they identify the pull factors for market- and efficiency-seeking investments in these two sectors.

Katalin Völgyi, Tamás Peragovics
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