Mobile banking and financial inclusion : the regulatory lessons

Mobile banking is growing at a remarkable speed around the world. In the process it is creating considerable uncertainty about the appropriate regulatory response to this newly emerging service. This paper sets out a framework for considering the design of regulation of mobile banking. Since it lies at the interface between financial services and telecoms, mobile banking also raises competition policy and interoperability issues that are discussed in the paper. Finally, by unbundling payments services into its component parts, mobile banking provides important lessons for the design of financial regulation more generally in developed as well as developing economies.Banks&Banking Reform,Access to Finance,Emerging Markets,Debt Markets,Technology Industry

Exploiting emerging market complementarities: delayed, then accelerated internationalisation in a technology EMNE

Structured Abstract Purpose: The paper explores the delayed, then accelerated internationalisation of an emerging multinational enterprise (EMNE), with a particular focus on the media technology sector, and how it exploited complementarities between emerging markets. Design/methodology/approach: The research is qualitative in nature and focuses on the expansion of a South African media technology EMNE case study that has a footprint in over 130 countries and has one of the largest market capitalisations of any media company outside the US and China. Findings: EMNEs have unique capabilities in navigating uncertain institutional environments in emerging markets and are able to capitalise upon the institutional complementarities between their home and host countries. This may facilitate the recognition of market opportunities and the harnessing of new technologies to meet these opportunities in complementary markets for accelerated internationalisation. Practical implications: EMNEs must capitalise upon the institutional complementarities between home and host country locations and use this to take advantage of identified market opportunities. This creates the possibility for a process of accelerated internationalisation. New technologies are creating particular market opportunities in emerging markets which can be exploited by EMNEs. Originality/value: We provide a framework which illustrates how an EMNE can exploit complementarities between emerging markets to identify market opportunities, capitalise upon institutional similarities, and harness new technologies in the process

Business model innovation for sustainable development: green technologies and BOP (Bottom of Pyramid) in emerging countries: South Africa and India

Doctoral research dissertation in the fulfilment of the requirements for the degree Doctor of Philosophy in Marketing at the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, South Africa, 2016Globally, a vision exists of an economy which produces social, environmental and economic benefits, viz-a-viz three pillars of sustainable development, for all the individuals, communities and society at large. It also focuses on the development of the sustainable use of natural resources, to achieve a greater enviable society, therefore giving rise to the green economy (Bigg 2011). To make businesses sustainable, companies are increasingly focusing on green innovation, sustainable business solutions and re-inventing their business models, and expanding to untapped markets such as the bottom of the pyramid (BOP), consisting of more than four billion potential consumers (Farinelli, Bottini, Akkoyunlu & Aerni, 2011). Most research shows growth opportunities of green products in the bottom of pyramid (Olsen & Boxenbaum, 2009), and has increasingly created deliberations all over the world. Also, companies from both developed and developing countries are becoming increasingly interested in BOP. To successfully target the BOP with ‘green’ technologies, companies focus their business models on innovation, sustainability and economic profit, instead of gross margins (Prahalad & Hart, 2008). Very limited research evidence is present that links all these concepts together. And therefore, created an interest to examine how integration of green technology bring changes in business model innovation (BMI) for sustainability at BOP markets. The linkage between concepts - BMI, BOP and green technology, to bring sustainable development, has not been sufficiently explored, and especially with focus on emerging economies like South Africa and India. Therefore, the present research has three fold purposes. Firstly, to analyse and understand factors affecting the existing business models of various companies with green technologies targeting BOP markets for sustainable development. Secondly, the research brings an identification and understanding of number of key factors related to BMI, BOP markets and green technologies for sustainable development, and proposes a conceptual framework based on a series of underpinning relationships among these factors. Thirdly, it testifies the conceptualized theoretical framework on green business model innovation for sustainable development for BOP markets, among large companies. The primary objective of research study is to design a right green business model innovation across companies with green technologies for BOP markets. The secondary objective is to identify and compare the differences and similarities of green business model innovation for BOP markets of both South Africa and India. The present research undertakes a sequential exploratory mixed method approach, and is carried out in three phases: Phase 1: Exploration and study of business model innovation of identified industries/sectors with green technologies, targeting BOP segment for sustainable development, using qualitative research methods to formulate multiple cases. Phase 2: Identification of underpinning factors related to BMI, sustainable development and BOP consumers for green technologies; using qualitative methods and content analysis of results from phase 1, leading to design and development of theoretical framework of green business model innovation for South Africa and India. Phase 3: Testing of conceptualized framework of green business model innovation for sustainable development, using quantitative research methods. The present research tests underpinning factors of emerging green business model innovation for sustainable development, resulting from the qualitative phase, and is used to expand and generalize qualitative findings by using quantitative methods. The findings resulted in linking three theoretical emerging topics in the literature: business model innovation (BMI), green technology for sustainability and BOP. Four cases are developed through 33 face-to-face in-depth interviews with company top executives, using multiple case study approach. Each case comprised of sustainable business model innovation, representing comparison between South Africa and India, across four industries, namely, Energy, Banking, FMCG/Durable sectors and Cloud Computing. Qualitative content analysis and findings resulted in formation of themes and sub-themes and proposed prepositions, depicting the relationship between BMI, BOP, and green technology for sustainability. These prepositions aided in development of conceptual framework and proposed nine hypotheses. The conceptual model is quantitatively surveyed on 206 employees of large companies with focus on BOP markets. The quantitative findings supported all nine hypotheses. Therefore, indicating that integration of green technology is associated with performance of green product/service innovation and green process innovation in a company. Likewise, business model innovation variables; customer interface, infrastructure management and financial aspects, positively impacts sustainability of business model. The contribution of this thesis is in the development of green business model innovation for sustainable development, with focus on BOP markets. This adds to the contextual knowledge and empirical literature on business model innovation, green technologies and BOP markets. Theoretically, it brings better understanding of these concepts, and provides a basis of further research highlighting the importance of innovation while taking account of green economy and BOP. The findings provide marketing practitioners with better understanding of strategies that can be employed to innovate and change their own business models to incorporate green and sustainable initiative for BOP markets.XL201

The impact of manufacturing offshore on technology development paths in the automotive and optoelectronics industries

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2006.Includes bibliographical references (p. 202-209).This dissertation presents a two-case study of the impact of manufacturing offshore on the technology trajectory of the firm and the industry. It looks in particular at the automotive and optoelectronics industries. The dissertation uses an innovative combination of engineering modeling and qualitative research methods to provide insights into this question. The results suggest an important difference between the two cases. In the automotive case, the results do not show that manufacturing offshore changes the path of technology development. In the optoelectronics case, the results do suggest that manufacturing offshore may be changing the path of technology development. The cross-case analysis reveals several important similarities between the two cases: (1) the relative economic positions of the emerging technology and the prevailing design shift when production is transferred to developing East Asia; (2) while the emerging design is more cost-competitive in the U.S. production structure, the prevailing design is more cost-competitive in the developing East Asia production structure; (3) firms initially do not understand the implications of moving offshore for the competitiveness of their designs; (4) firms choose to produce the prevailing design offshore; and (5) although the firms' decisions to produce the prevailing design offshore are rational in a static model, they fail to take into account dynamic diseconomies - specifically, disincentives and disadvantages for innovations critical to long-term markets. In its conclusion, this dissertation suggests a generalizable framework for how technology may influence manufacturing location and how manufacturing location may influence technology. To develop a more representative framework will require additional case studies.by Erica R.H. Fuchs.Ph.D

A strategic framework for establishing aerospace value chains in emerging markets

Thesis (S.M.)--Massachusetts Institute of Technology, System Design and Management Program, February 2008.Includes bibliographical references (leaves 116-117).Background: CEO's and top management teams of large corporations in developed countries acknowledge that globalization is the most critical challenge they face today. They are also keenly aware that it has become during the past decade to identify internationalization strategies and to choose which countries to do business with. Still most companies have stuck to the strategies' they have traditionally deployed, which emphasize standardized approaches to new markets with some local twists. As a result they are struggling to come up with successful strategies. Aerospace as a sector has traditionally been much localized to the developed world. This makes leveraging globalization even a bigger challenge.Correlations can be drawn to the field of systems engineering, where specific processes and tools are employed to understand the stakeholder interactions and hence treat Aerospace and emerging markets as a system. EA, System Dynamics, clock speed and Game theory are some of the tools that can analyze such a system accounting for unskilled intermediaries and less skilled legal and contract enforcing systems. Results: The thesis suggests a framework that can help organizations identify the institutional voids existing in Emerging markets and Aerospace sector as a system. An introduction to Aerospace manufacturing and the emerging markets help understand the advantages and disadvantages. The framework is able to do a thorough qualitative assessment of all the potential aspects of building a new value chain Further, it shows that the framework is flexible enough to accommodate the unique aspects of Aerospace as an industry and Emerging countries as a market.Conclusions: Despite the fact that the thesis does not develop a full fledged system dynamics model and do a complete case study, it is still a beneficial framework. It provides a sound process that could be used to design and implement robust value chains.(cont.) It will help organizations understand the institutional differences between countries thus being able to choose the best market to enter, the most optimal strategy and make the most out of operating in Emerging markets. It also leverages each of the system tools such that they deliver most value by providing the best suited magnification lens.by Rishi Grover.S.M

Supply chain practices in the context of an emerging economy

Thesis (S.M. in System Design and Management)--Massachusetts Institute of Technology, Engineering Systems Division, System Design and Management Program, 2010.Cataloged from PDF version of thesis.Includes bibliographical references (p. 90-92).The emergence of the BRIC economies of Brazil, Russia, India and China as a formidable economic powerhouse is turning into a reality. The center of the world's economic gravity is slowly shifting towards these emerging economies. As per research performed by Goldman Sacs' the BRIC economies could become the four most dominant economies by 2050. As per their study China and India would become the dominant supplier of manufactured goods and services while Brazil and Russia would dominate in supply of raw materials. The BRIC economy today makes up about 25% of the land mass and has 40% of the world's population. As multinationals scramble to tap into these growing emerging markets, they have begun to acknowledge that supply chain management is an essential ingredient of a successful business strategy. Success stories of Wal-Mart, Dell and Toyota have brought in the realization that to compete and win in the market place a winning supply chain strategy is a must. This has resulted in corporations trying to benchmark their supply chain strategies against this best in class strategies. However, this kind of comparison does not always work since there are a multitude of differences between companies, industries and countries. The existing practice of developing products and services for the developed economy and then tailoring these products for other economies around the world will not suffice anymore. Companies must now learn how to develop products for countries like India, sometimes from scratch and then tailor them for other geographies. To compete in this space of rapid economic growth firms need to analyze, design and optimize their product portfolio for emerging markets. To develop these "no frills" products for emerging economies, the supply chain designed for developed countries isn't adequate to meet the unique challenges of an emerging economy with its underdeveloped infrastructure, technology and human capital resources. To be competitive corporations should re-evaluate their supply chain strategies to customize it for emerging market conditions and in many cases build it from scratch. This thesis examines the unique characteristics of supply chain by studying successful supply chain strategies employed by Indian firms and proposes frameworks and strategies to help companies innovate in their supply chain design. This thesis develops a generic framework to design effective supply chains for emerging economies by looking at five key elements or "Five Pillars" of supply chain. The five key elements were thoroughly evaluated to understand the key challenges in each pillar and develop effective "Customized Practices" in the context of an emerging economy. The five pillars which were evaluated were Demand and Supply Planning, Sourcing and Procurement, Operations, Transportation, Warehousing and distribution. The framework takes a holistic approach by aligning business strategies with operating principles to develop the customized practices. The framework was then validated by performing a deep dive analysis of the successful supply chain case of the Tata Nano small car. Analyzing the Tata Nano supply chain through the lens of this framework provided key insights into the supply chain challenges faced by firms operating in an emerging economy and the unique customized practices used by these firms to operate efficiently. Use of this framework will bring awareness of the supply chain challenges in emerging economies and the customized practices firms use to help guide organizations in designing and operating their supply chains.by Vijan Bhaumik.S.M.in System Design and Managemen

Go west for fame and fortune? The role of internationalization in the growth of Chinese telecom firms

This paper focuses on the role played by internationalization in the growth of Chinese telecom firms by comparing the three cases from China’s telecom sector – Huawei Technologies (Huawei), Zhongxing Telecom Equipment Corporation (ZTE), Datang Telecom Technology (Datang). Faced with a global market that was strongly oligopolistic and dominated by Western firms, we show that internationalization strategies triggered by resource seeking played different roles in the growth strategies of these three firms. The contrasting fortunes of these firms also underscores the fact that the success of internationalization strategies of firms from emerging markets cannot be understood without reference to the global competitive environment faced by firms

Sustainable innovation: key conclusions from Sustainable Innovation Conferences 2003–2006 organised by The Centre for Sustainable Design

The following is taken directly from the introduction. This booklet summarises the key conclusions from the 2003–2006 conferences on Sustainable Innovation organised by The Centre for Sustainable Design (www.cfsd.org.uk). The conclusions are drawn from the respective conference presentations, papers and discussions. The publication has been sponsored as part of a ‘Centre of Excellence in Sustainable Innovation & Design’ project awarded to The Centre for Sustainable Design by the South-East England Development Agency (SEEDA)

Fostering Chinese firms through entrepreneurship, globalisation and international finance

The success of ventures that have pursued non traditional marketing approaches may be attributed to a range of forward thinking practices which it is argued here, should be the starting and finishing points for Chinese companies. Chinese multinationals need to develop entrepreneurial ability more compatible with their growth in the international markets. Chinas educational framework is still largely based on rote learning, which is a method typically seen as ill suited to modern needs. Many Chinese high tech sectors are still dominated by overseas know-how and the ongoing strength of wholly foreign- owned enterprises