Globalization and Development

The main purpose of this study is to introduce three new indexes. In order to investigate the attitude and the capacity of communities, the entrepreneurial attitude index and the entrepreneurship capacity index were theoretically generated. This study proposed a non-linear regression approach to discussing the relationship between these indexes. The allometric relationship, as the nonlinear and well-fitted model, demonstrated that the variations of the entrepreneurship capacity index are entrepreneurial attitude index by about 56%. Finally, the entrepreneurship attitude dispersion index, as the third index of this research, was extracted from the difference between the entrepreneurship capacity index and the entrepreneurial attitude index. By using the entrepreneurship attitude dispersion index and statistical methods, a ranking list of countries was developed, proving that entrepreneurial attitude dispersion index is able to improve the economic categorization of countries.

The Middle East and North Africa (MENA) region continues to represent the world’s highest youth (15–24-year-olds) unemployment rate—at 30% in 2017. Youths in the 15–24 age group frequently make up the largest share of the unemployed; each successive year, the “demographic youth bulge” causes the number of youths entering the labour market to be larger than the preceding year; a bloated public sector that is unable to create more jobs; private sector economies that range from dormant to nascent; and public coffers that are largely insufficient to change the youth unemployment dynamic. The youth unemployment dynamic across MENA is frequently singled out as a cause of Arab Spring.

Although MENA is often referred to as a single region, there are roughly three blocks of Arab countries with characteristics more in common with one another than with the region in general. The wealthy Gulf Cooperation Council (GCC) countries form one similar bloc. War-torn countries (e.g. Syria, Yemen, Sudan, South Sudan, Ethiopia, Eritrea/Djibouti, Somalia) form another bloc. Despite some geographic, economic and/or cultural differences, the remaining countries of the third bloc (Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia) share more similarities than differences.

The authors selected the three most similar countries from the third bloc—Jordan, Morocco and Tunisia—to study more carefully. Two of the three are very similar, although one is from the Middle East (Jordan) and the other is from North Africa (Morocco). Both of these countries share more similarities than most of the others in the “third bloc”: Both are ruled by young, dynamic and popular constitutional monarchs. In fact, the enormous popularity of both King Mohammed VI and King Abdullah II sets a high standard for any risk from potential electable rivals. Despite the similarities of both of these monarchs, their fathers ruled very differently. Both countries began as protectorates of European powers: France in the case of Morocco and Great Britain in the case of Jordan. King Hassan II (Mohammed VI’s father) ruled, while Morocco was still a French protectorate. He was considerably less enthusiastic about public education than his counterpart, King Hussein of Jordan. These characteristics still affect both countries today; Morocco has lower rates of literacy (69.4%), and Jordan (97.9%) has one of the highest rates compared with world rates [85.4% (Additionally, Tunisia’s rate: 80.2%. All literacy rates from UNESCO Institute for Statistics 2012)]. Under King Hassan II and King Hussein, both countries were members of the Non-Aligned Movement (NAM). But Morocco was in the “Russian camp” and Jordan was in the “American camp”. As with decisions concerning public education, decisions implemented during the early NAM days continue to impact both countries today.

Inclusive innovation, a relatively new term emerging in the last decade, commonly refers to any innovation for poor and otherwise excluded members of society. Developing economies are particularly promising targets for this kind of innovation due to their institutional voids and the vast numbers of people living below the poverty line. This chapter introduces an integrative framework highlighting a range of factors relevant to multinationals seeking to foster inclusive innovation in developing economies. Because innovation processes in developing economies inherently face constraints, our suggested approach mitigates and transforms these challenges into advantages that assist both multinationals and the local societies. We argue that this approach fits the context of developing countries better than traditional methods; as such multinationals operating in these markets should embrace it within their strategies. By building on contemporary research into strategy, entrepreneurship and supply chain, while also extending beyond the conventional understanding of innovation processes, our study develops an integrative framework of inclusive innovation for multinationals operating in developing economies. On a practical level, our study can help managers understand inclusive innovation and their respective operational strategies, thus enabling effective innovative processes in developing countries.

The objective of chapter is to understand management of innovation in developing economies. Developing economies are the countries that are characterized by underdeveloped industrial base and have scare resources. They are also referred to as less developed economies or underdeveloped countries. They are characterized by a low human development index (HDI) as compared to other countries. Due to these reasons, innovation becomes a matter of challenge for them. Innovative culture is emerging slowly among these economies. This is because of the change in the business environmental factors. The initiation of innovative environment has positive effect on the overall business environment. Thus, in order to survive in the competitive environment, developing economies need to shift focus from traditional practices to the innovative practices. They also need to develop new partnerships and new structures with the changing business paradigm. For example, only one-quarter of Africans have a bank account, but 70% have a mobile phone. Also, due to increase in the consumption pattern, there is increase in the demand for the local products. This has resulted in increase in economic opportunity. Many developing countries are taking advantage of this opportunity. There is a need to explore management techniques adopted by SMEs in the developing economies. SMEs face different barriers like shortage of technical training, shortage of financial resources, etc. This chapter is an attempt to provide answers to such issues.

Innovation management is vital for the growth and development of the global economy. Micro, small and medium enterprises (MSMEs) have emerged as a dynamic and vibrant part of the economy of the developing countries. MSMEs are auxiliary units of large organisations, and this segment contributes towards the development and growth of developing countries and also contributes to the socio-economic development. In the past, the majority of researches on innovation management were concentrated on large organisations of developed countries. Therefore, in this study, the critical factors (CFs) of innovation management have been identified which influence MSMEs of developing countries and after that develop a model of CFs utilising Interpretive Ranking Process (IRP) approach that helps in improving the competitiveness of MSMEs. IRP result shows that the governance followed by funding has the high dominating power which drives the other CFs. This study gives an insight and overall idea about the innovation management of CFs. Understanding CFs and performance variables of innovation management in MSMEs is essential for both academicians and practitioners for the growth and the development of the organisation as well as the economy of developing countries as a whole.

With the aim of economic diversification and vision 2020, on the ninth 5-year economic plan, the Sultanate of Oman is intending to reduce its dependence on hydrocarbon to stabilize the economy and achieve sustainable economic development. To signify diversification, Oman therein is showing keenness to increase the role of private sector investments through different modes in order to increase the contribution of the same in GDP. In this context, the focus on entrepreneurship has gained a fresh momentum. Simulating an entrepreneurship-focused economic diversification requires a well-developed entrepreneurial ecosystem. The same captures various determinants of relevant activities on the micro- and macroeconomic levels. Among the main factors is the, all important, suitable financial architecture, one that while meeting the financing needs innately adjusts to the risk-return dynamics of businesses.

This chapter has two objectives: (1) to analyse pillars of Omani entrepreneurship ecosystem and identify the areas of strengths and weaknesses and (2) to reflect the influence of the expansion in Islamic finance on different entrepreneurship ecosystem pillars in Oman. The achievement of these objectives is done by applying time series analysis to each pillar. Moreover, cross-sectional analysis is carried out between each pillar and with MENA region, world, Saudi Arabia and Malaysia. Further, a full descriptive analysis has been done to reflect the impact of implementing the risk-sharing financial system (Islamic financial system) on the different pillars of Omani entrepreneurship ecosystem.

This chapter has two main findings: (1) Omani entrepreneurship ecosystem has strengths in opportunity perception, risk acceptance, networking, opportunity start-up, human capital, high growth, internationalization and risk capital. Culture support is a medium level pillar in Omani entrepreneurship ecosystem. There are five pillars representing weaknesses in Omani entrepreneurship ecosystem, which are start-up skills, technology absorption, competition, product innovation and process innovation. (2) The expansion in implementing risk-sharing financial system in Oman may improve four pillars of Omani entrepreneurship ecosystem: opportunity perception, opportunity start-up, high growth and risk capital.

The globalization of Chinese economy has a major impact on local companies worldwide today. Leaders of Chinese global mergers & acquisitions (M&As) face various cross-cultural dilemmas. This chapter captures the research on three Chinese-owned Dutch companies, examining critical M&A success and failure factors from a cross-cultural perspective. The data collected through interviews among Chinese and Dutch leaders allow us to get a better understanding of the leadership and cultural dilemmas within Chinese–Dutch M&A companies.

Our findings contribute to the literature about cross-cultural dilemmas in a globalizing workplace. In particular, the findings contribute to the understanding of cross-cultural key constraints such as miscommunication, feelings of distrust, and nontransparency. We argue that these cross-cultural constraints may be caused by the perceived divergence of Chinese versus Dutch values toward, among others, the dilemma of “money and control” versus “trust and loyalty.” How to anticipate these Chinese–Dutch dilemmas in M&As? This chapter concludes that a more servant-leadership style is needed when anticipating these dilemmas to reconcile organizational cultural values.

Fairtrade movement was launched with a goal to achieve greater social control over the commodities employing transnational supply chain in a free economy. This chapter aims at presenting an overview of the Fairtrade practices in the globalised economy and further to justify adoption of these practices through a comparative evaluation of Fairtrade and free trade. Moreover, factors which are critical in the adoption of these practices need to be identified to present an inclusive view. Appropriately, fuzzy-TOPSIS methodology is used to prioritise the Critical Success Factors (CSFs) as per their respective weights. The findings of this research identified the factor with the highest importance as consumer confidence that could be gained through promotion and educating stakeholders. Developing consensus on criteria for deciding fairness of trade needs to be extended to make Fairtrade persuasive in the globalised society. Embracing Fairtrade practices by a corporation with a transnational supply chain may ultimately help in raising the living standards of marginalised producer sections.

Thanks to globalization, crowdfunding in general has become a relevant mean through which small business owners and entrepreneurs in developing countries can raise the capital needed to start and expand their businesses. In this context, attention should be paid to crowdlending, the online loan-based crowdfunding phenomenon and a very promising and stimulating way to foster entrepreneurship and innovation. In this chapter we use a case-based exploratory analysis to outline some of the factors that influence the success of crowdlending platforms in Africa, specifically in sub-Saharan Africa (SSA). To do so, we first present the status of crowdlending in SSA and then present the case of Kiva crowdlending platform. Kiva is the most important loan-based platform in SSA. Understanding how Kiva has achieved this success and has become the largest crowdlending platform in SSA as per number of loans delivered is of interest for both practitioners and researchers. Our analysis focuses specifically on three factors: country characteristics, market entrance and network.

The altercations regarding globalization have been seething ever since it formally started in the mid-twentieth century with the commencement of institutions like the World Bank and the International Monetary Fund (IMF). India opened up to globalization considerably later in 1991 when it was felt imperative to liberalize the economic policies as well as standards and enable privatization to energize the development of its long stale economy. Verifiably, on the other hand, India has since a long time ago preached principles of Vasudhaiva Kutumbakam (unification of the world as one family) and Sarve Bhavantu Sukhinah (may all be prosperous and glad), hence, in this manner, sculpting out India’s own model of globalization. Professor Theodore Levitt of Harvard Business School was first to utilize the expression globalization and referred to as an asserted result of business sectors on the planet. As per Levitt’s considerations, globalization is the rise of worldwide markets for consumer products that are standardized, empowering a firm to profit by colossal economies of scale in production, management, marketing and distribution, and the rest will be added up by the innovation of technology for more standardization. This chapter analyses the advancement and change of the idea of globalization to glocalization and especially in Indian context. This chapter will likewise follow the history and the improvement of the idea of globalization and the term “glocalization”, which appeared first in the late 1980s in the article of Japanese economists in Harvard Business Review as a preeminent business strategy in Japan, as the word in Japanese is Dochakuka meaning global localization. This chapter winnows the factors, ideas, speculations and standards of globalization and how it led to glocalization from economic and business point of view specifically in Indian context. This chapter centres around the epistemological examination of the globalization and glocalization topics, including how glocalization has impelled the corporate giants like Pepsi Co., McDonald’s, KFC, Viacom 18, etc. to change their strategies to succeed in Indian market.

Wasta is a way of social networking, of using connections, overcoming personal and/or family dilemmas or conflicts. Wasta may provide solutions to dilemmas in societies that had or still have limited opportunities for progress and economic development. This phenomenon has important implications for business networking, especially for indirect and global networking in uncertain business situations. Despite increasing interest in understanding the importance of business networking in general, the networking systems already prevalent in many cultures, whether known as Wasta in the Arab World, Guanxi in China or Blat in Russia, have been relatively ignored. Wasta has intrigued many people and raised questions of its origin, reasons and consequences. In relation to many Arab countries, the word Wasta evokes negative sentiments even amongst its citizens. Media outlets and government announcements often denounce Wasta. However, Wasta continues to be widely practised in developing economies in the Arab World and is in many situations accepted as a normal feature of these societies. There are many dimensions to this phenomenon, historical, cultural, social, political and global, and it is impossible in a short chapter to do justice to all of these aspects. Nonetheless, the precise operation of Wasta differs from one country and social milieu to another. There are over 20 countries conventionally accepted as being part of the “Arab World”. So, in this chapter we only deal with the general features of Wasta found in most parts of that region and explores a new approach for understanding the opportunities of Wasta to continue to exist as a means of conducting business in the Arab World alongside other social networking practices in the era of globalisation. The analysis is based on the need to understand the operation of social and organisational networks. No special position is taken in this chapter on the ethical and moral issues that sometimes dominate discussion of these topics. But it is pointed out that regardless of any ethical concerns, there is no doubt that these systems exist and are a powerful reality. However, it is argued that in considering such issues as entrepreneurship and business development, the existence of Wasta relationships should not be overlooked or undervalued.

The world is gradually but surely turning to a global village, geographical and physical boundaries notwithstanding. The flow of resources across nations has equally been rapid, just as multinational firms now find havens in many more countries. The study investigated the impact of globalization on the performance of selected multinational firms in Nigeria using various indices of measurement. The study concludes that multinational firms operating in Nigeria have not done enough to justify their presence as alternatives to local companies.

It is our contention that every multinational enterprise must attempt to balance up the points in favor of Nigeria and against its operations in order to allow for a well-balanced view of the impact of globalization on the performance of multinational firms in Nigeria.

Globalization enables the worldwide trade of nontraditional products that used to be considered non-tradable in the international market due to cultural, administrative, and geographical distances. This study conducts a systematic literature review on the marketing strategy for ASEAN agro-food products for the Canadian market. Numerous opportunities to source ethnic agro-food products from ASEAN countries exist but are yet to be explored. Some of the intensive primary marketing strategies examined are country brand image, product differentiation strategy, niche market strategy, placement and promotion strategies, and the 4A marketing strategy. Secondary strategies that can be adapted by ASEAN countries to enter the Canadian agro-food market were also addressed. This analysis will enable ASEAN agro-food exporters to explore and succeed in Canadian market.

This study aims to investigate how the multinational corporations form alliance strategies with local businesses under the dynamic institutional environment in the Indonesian context. We used a qualitative approach with a case study of the medical device industry to examine how the institutional environment affects the choice of the strategic alliance. By collecting the qualitative data, including interviews, observations and archival data, the interpretive approach was adopted to understand social worlds from the point of view of participants. We identified five types of alliance strategies: the wholly owned subsidiary with contractual collaboration, the wholly owned subsidiary with the licence agreement, the international trade with the licence agreement, joint venture and outsourcing. There are also two main issues of the institutional environments that determine the choice of alliance strategic: the restriction for foreign companies to carry out direct selling and the new policy that introduces the electronic procurement system. This study provides evidence of the role of the institutional environment on collaboration strategies between the multinational enterprises from the developed countries and the local distributors from Indonesia. The results extend the concept of international business in the Asian context.

As the global recession began to affect countries in Southeast Asia in 2009, a marked difference between very large foreign and Philippine Ready-to-Wear (RTW) apparel firms emerged. Where foreign apparel firms adopted more conservative capital structures and curtailed activities in Southeast Asia, Philippine firms became more aggressive in the region with expanded distribution activities to neighboring countries, supported by debt leveraging. The result of such aggressive capital expenditure programs was a significant increase in sales growth, much faster than those of their foreign counterparts. This chapter presents methodologies in industry analysis that focus on areas of competition, industrial risks, and evident strategies. A sample of seven very large RTW apparel firms and two Philippine firms will serve as a basis for this industry case investigation. The horizon of observation in this discussion spans from 2007 to 2015. Furthermore, this discourse will introduce a Strategic-Asset-Productivity (SAP) Map that allows for the identification of stable, aggressive, lethargic, weak, underperforming, and precarious firms based on capital structure, sales growth performance, and the volatility of sales growth. Areas of competition and findings from the SAP Map serve as inputs to a Five Forces Analysis that describe the intensity of rivalry between these select competitors in Southeast Asian markets.