Rural small firms' website quality in transition and market economies

Purpose – The purpose of this paper is to investigate website quality in rural firms in four countries, by using Gonzalez and Palacios's Web Assessment Index (WAI). There is an assertion in the literature that quality is lower amongst rural firms than urban firms, and lower amongst small firms than large firms. The disadvantages of lack of access to skills and economic peripherality in rural areas are attributed to this. Concurrently, there is reason to surmise that the websites of firms in transition economies may be higher quality than those in market economies. The paper aims to explore websites in distinct rural regions to investigate if variation occurs. Design/methodology/approach – To evaluate website quality the WAI was applied to a sample of 60 rural firms representing 15 each in Scotland, New Zealand, Southern Russia and Hunan Province in China. Analysis of the categorical data was performed using a variety of established methods. Findings – The WAI is of use in terms of website quality management. Additionally, comparisons between the quality of websites in the sample of small rural firms with those of large firms in previous studies support the contention that large firms generally have better quality websites. Results also illustrate that there are some differences in website quality between rural small businesses in the different locations. In particular, small rural firms in Hunan Province in China had websites of observable better quality than those elsewhere. The authors conclude that skills, knowledge and infrastructure have a bearing on the sophistication of small firms' websites. Research limitations/implications – Implications include that variation in the rural economy by region prevails as the rural economy is not, as often implied, a homogeneous concept. Practical implications – There are implications in terms of exploring the effects of regulation, culture and infrastructure on rural small to medium-sized enterprises (SMEs). The internet may indeed contribute to rural economies, but only insofar as it is facilitated by infrastructure and access to skills, and by culture and perceived usefulness by business owners. Originality/value – The paper contributes to the understanding of rural entrepreneurship as a heterogeneous concept by comparing practice in four distinct rural regions. It also adds weight to the emerging identification of exogenous factors as being at least as much a factor in determining the use of ICT in rural SMEs as endogenous motivations, skills and resources. </jats:sec

Chinese state’s economic cooperation related investment: An investigation of its direction and some implications for outward investment

The Chinese state undertakes large scale investments in a number of countries under the auspices of economic cooperation related investment (ECI). While there are suggestions that it is an extension of China‟s soft power aimed at facilitating Chinese FDI in those countries, often for access to natural resources, there is no systematic analysis of this in the literature. In this paper, we examine this investment of the Chinese state over time. Our results suggest that the pattern of investment is indeed explained well by factors that are used in the stylised literature to explain directional patterns of outward FDI. They also demonstrate that the (positive) relationship between Chinese ECI and the recipient countries‟ natural resource richness is not economically meaningful. Finally, while there is some support for the popular wisdom that China‟s willingness to do business with a country is not strongly affected by its level of corruption, there is much weaker support, if any, for the hypotheses that China favours doing business with countries where political rights are limited.http://deepblue.lib.umich.edu/bitstream/2027.42/64432/1/wp966.pd

Is Kazakhstan a Market Economy Yet? Getting warmer….

Transition from planned to a market economy is an evolutionary process. Evolutions do not have finite beginning and ending points. We may look to the beginning of transition in 1991 when the Soviet Union broke up, or we may see it as beginning earlier, when the Soviet Union began to allow its firms to engage in private sales of output that exceeded state plans and to independently take part in international trade agreements. At what point do we say that transition is complete? Hence, it is quite difficult to say when any country begins and completes its transition. The United States and the European Union have categorized Kazakhstan differently with regard to its degree of transition. The United States removed “non market economy” status from Kazakhstan, whereas the EU gave Kazakhstan an intermediate status. The first question that this work asks is how do these political bodies rank a country’s market orientation, and how did they arrive at different conclusions? These results are then compared to what transitional economists have to say on the evolution from a planned to a market economy. The second question is, how do theoretical, academic economists differ in their analysis of the transition process? By creating unique criteria sets from several papers, can one say that, according to any set, Kazakhstan is a market economy? We conclude that the reform process in Kazakhstan is still underway. The government and the economy have experienced many radical reforms, but none completely satisfies the necessary conditions for being categorized as a market economy.http://deepblue.lib.umich.edu/bitstream/2027.42/40059/3/wp673.pd

Information systems offshore outsourcing: a descriptive analysis

Purpose - The present paper has as its aim to deepen in the study of Information Systems Offshore Outsourcing, proposing three essential steps to make this decision: weighing up the advantages and risks of Offshore Outsourcing; analysing the taxonomy of this phenomenon; and determining its current geography. Design/Methodology/Approach - With that objective in mind, it was decided to base the research work on the literature about this topic and the review of reports and statistics coming from different sources (consultants, the press, public institutions, etc.). Findings - Offshore Outsourcing has grown vertiginously in recent years. Its advantages exceed even those of onshore outsourcing, though it also involves greater risks derived from the (cultural and physical) distance existing between customer and provider. Various types of services and customer-provider relationships hide under the umbrella of Offshore Outsourcing; i.e. it is not a homogeneous phenomenon. The main Offshore Outsourcing customers can be found in the USA and Europe, mainly in the UK but also in other countries such as Germany and France. As for provider firms, most of them are located in Asia −outstandingly in India but also in China and Russia. At present, there are important providers scattered in other continents as well. Originality/Value - The conclusions suggest that the range of potential Offshore Outsourcing destinations must be widened and that the search for a provider cannot be based exclusively on cost savings; other considerations such as quality, security and proximity of the provider must also be taken into consideration. That is precisely the reason why the study of new countries like Spain as Offshore Outsourcing destinations is proposed

Currency Mismatches, Default Risk, and Exchange Rate Depreciation: Evidence from the End of Bimetallism

It is generally very difficult to measure the effects of a currency depreciation on a country%u2019s balance sheet and financing costs given the endogenous properties of the exchange rate. History provides at least one natural experiment to test whether an exogenous exchange rate depreciation can be contractionary (via an increased real debt burden) or expansionary (via an improved current account). France%u2019s decision to suspend the free coinage of silver in 1876 played a paramount role in causing a large exogenous depreciation of the nominal exchange rates of all silver standard countries versus gold-backed currencies such as the British pound%u2014the currency in which much of their debt was payable. Our identifying assumption is that France%u2019s decision to end bimetallism was exogenous from the viewpoint of countries on the silver standard. To deal with heterogeneity we implement a difference in differences estimator. Sovereign yield spreads for countries on the silver standard increased in proportion to the potential currency mismatch. Yield spreads for silver countries increased ten to fifteen percent in the wake of the depreciation. Basic growth models suggest that the accompanying reduction in investment could have decreased output per capita by between one and four percent relative to the pre-shock trajectory. This also illustrates that a substantial proportion of the decrease in spreads gold standard countries identified in the %u201CGood Housekeeping%u201D literature could be attributable to the increase in exchange rate stability. Finally, if emerging markets are going to embrace international capital flows, the most export oriented countries will manage to mitigate the negative effects of a currency mismatch.

Chinese state’s economic cooperation related investment: An investigation of its direction and some implications for outward investment

The Chinese state undertakes large scale investments in a number of countries under the auspices of economic cooperation related investment (ECI). While there are suggestions that it is an extension of China‟s soft power aimed at facilitating Chinese FDI in those countries, often for access to natural resources, there is no systematic analysis of this in the literature. In this paper, we examine this investment of the Chinese state over time. Our results suggest that the pattern of investment is indeed explained well by factors that are used in the stylised literature to explain directional patterns of outward FDI. They also demonstrate that the (positive) relationship between Chinese ECI and the recipient countries‟ natural resource richness is not economically meaningful. Finally, while there is some support for the popular wisdom that China‟s willingness to do business with a country is not strongly affected by its level of corruption, there is much weaker support, if any, for the hypotheses that China favours doing business with countries where political rights are limited.China; Economic cooperation related investment; Foreign direct investment; Natural resources; Institutional quality