Business strategy and performance in Indonesia’s service sector

© 2016, © Emerald Group Publishing Limited. PurposeThe relationship between strategic choices and performance in service firms in emerging markets has remained largely under-researched. This study aims to address this issue by studying the performance of financial institutions in the context of Indonesia’s political, institutional and socio-cultural environment. Design/methodology/approachUsing institutional theory, the authors analyzed data collected using surveys and interviews with senior managers in Indonesian financial institutions. FindingsThe authors find that the regulative and normative elements have forced organizations to incorporate the values set by the external institutional bodies. The organizations have undertaken structural isomorphism in response to culture-cognitive elements, and differentiate themselves by focusing on the provision of quality customer service and enhanced customer satisfaction. Originality/valueThe authors provide new insights by studying how the political and institutional environment and choice of strategy influences performance of the services sector in emerging economies

Multinational Enterprise Strategies for Addressing Sustainability: the Need for Consolidation

© 2018, Springer Nature B.V. This paper examines the growing number of publications on multinational enterprise management of sustainability issues. Based on an integrative literature review and thematic analysis, the paper analyses and synthesises the current state of knowledge about main issues arising. Key issues identified include the following: choice of sustainability strategies; management of the views of headquarters towards sustainability; local cultural sustainability perspectives in developed and developing host countries; MNEs with home in developing/emerging countries; and resource availability for implementing sustainability initiatives. Findings indicate that although the literature is tending towards growing acceptance about sustainability and its challenges most researchers have focused on corporate social responsibility and investigate their own niche problem, industry, and country, using their own chosen theory and do not consider the need for consolidation and integration of social, environmental and economic performance. Avenues for future research are identified which will provide a means for the ethical foundations of theory and practice to be improved

Interpersonal relations in China: Expatriates’ perspective on the development and use of guanxi

© 2017 Elsevier Ltd The literature on social networks identifies relationship building through guanxi as an effective way for Western organizations to reduce their liability of foreignness in China. Even though it is individuals rather than organizations who build these relationships, the focus in previous literature has been on organizational outcomes, and only a handful of studies have attempted to explain how expatriates perceive guanxi relations are built and maintained. To help address this issue, we conducted in-depth, semi-structured interviews with 36 Western expatriates working in China. Our findings suggest that guanxi is perceived to be an informal process that is used to build trust between individuals, which in turn can reduce the uncertainty around contract enforcement in China. We also find that the process for building guanxi between parties is initiated by the individual whose organization has less market power. Finally, the findings suggest that firms should be cautious if they elect to use agents as intermediaries to help connect to, and build relations with buyers and sellers

Knowledge management, sharing, and transfer in cross-national teams and the remote management of team members: The onsite-offshore phenomenon of service EMNEs

Purpose – This study examines how emerging market multinational enterprises operating in the service sector manage knowledge and team members in their overseas subsidiaries and what role expatriates play in their operations. Design/methodology/approach – We use a multiple case study design and interview 20 senior managers representing 16 Indian IT firm’s subsidiaries in Australia. The onsite-offshore concept and the SECI model are used to explain the knowledge management process. Findings – The findings show that Indian IT firms mostly transfer knowledge from their headquarters in the parent country to their subsidiaries in the host country using the onsite-offshore model where work is divided and coordinated between team members situated between the two locations. Furthermore, the host country subsidiaries have limited independence in decision-making due to a forward, one-way diffusion of knowledge, thus limiting a two-way interaction between the HQ and the subsidiary for opportunities to create and exchange new knowledge. Originality/Value – The study is one of the few to investigate the onsite-offshore phenomenon in service-based emerging market multinational enterprises

Talent Management in the ‘New Normal’ – Case Study of Indian IT Services Multinationals in China

Emerging market multinational corporations (MNCs) are coming under increasing scrutiny for their international performance. While the success of Indian IT multinationals in the West has been extensively researched and reported, there is a lack of research on their relative failure in China. The rise of economic nationalism and the COVID-19 pandemic pose challenges for the mobility of professionals and the global talent management (GTM) strategy of MNCs. Through in-depth interviews with senior managers from four well-known Indian IT services multinationals, this article presents an evidence-based critique of the design and implementation of their GTM strategy both inside and outside China. It focuses specifically on the quality of the IT talent pool in China, control and coordination issues, and the challenges of workforce localization

Organizational learning, innovativeness and performance of financial service firms in an emerging market: Examining the mediation effect of customer-focused strategy

Purpose -- The study investigates the extent to which organizational learning and innovativeness can improve the firms' performance through a customer-focused strategy. Design/methodology/approach – Data was collected from Indonesian financial service firms using a questionnaire-based survey. The 157 usable survey responses were analyzed to test the proposed hypotheses using SmartPLS. Findings – This study finds that both organizational learning and innovativeness have a positive effect on performance. The effect of organizational learning on performance depends on the variations of the customer-focused strategy. However, innovativeness does not mediate through customer-focused strategy to enhance performance. Theoretical implications -- As one of the types of dynamic capabilities, organizational learning and innovativeness are also important antecedents of performance. Practical implications -- In firms that implement business model innovation, managers should focus on resource flexibility. Where it is responsive, managers need to be concerned with ensuring various usage of existing resources to understand the performance effectively. Originality/value -- This study extends the business innovation model from the adaptability of customer-focused strategy. The findings confirm that organizational learning has a prominent role in meeting customer needs for a dynamic market

Awareness of islamic banking products among muslims: The case of Australia

© The Editor(s) (if applicable) and the Author(s) 2016. The concept of interest-free financing was practiced by Arabs prior to the advent of Islam, and was later adopted by Muslims as an acceptable form of trade financing. While the system had been used on a small scale for centuries, its commercial application began in the 1970s.1 Since then Islamic financing has experienced worldwide acceptance, and by early 2003 there were at least 176 Islamic banks around the world, with deposits in excess of $147bn

Developing the islamic financial services sector in Italy: An institutional theory perspective

© The Editor(s) (if applicable) and the Author(s) 2016. The Islamic Financial Services (IFS) sector has experienced wider consumer acceptance and rapid growth since its commercial launch in the 1970s. This growth has primarily been in countries in Asia such as Iran, Malaysia, Pakistan and the Middle East region. Although non-Muslim majority countries like Hong Kong and Singapore have taken positive strides in developing the sector, European countries have lagged behind their Asian counterparts (Daily Times, 2013). Europe is host to a large Muslim population, but the lack of developed Islamic financial institutions means that the potential of IFS product offerings is yet to be fully realized in the region (Volk and Pudelko, 2010)

Probability Theory in Statistical Physics, Percolation, and Other Random Topics: The Work of C. Newman

In the introduction to this volume, we discuss some of the highlights of the research career of Chuck Newman. This introduction is divided into two main sections, the first covering Chuck's work in statistical mechanics and the second his work in percolation theory, continuum scaling limits, and related topics.Comment: 38 pages (including many references), introduction to Festschrift in honor of C.M. Newma

Islamic mutual funds' financial performance and international investment style : evidence from 20 countries

We pursue the first large scale investigation of a strongly growing mutual fund type: Islamic funds. Based on an unexplored, survivorship bias adjusted dataset, we analyse the financial performance and investment style of 265 Islamic equity funds from twenty countries. As Islamic funds often have diverse investment regions, we develop a (conditional) three level Carhart model to simultaneously control for exposure to different national, regional and global equity markets and investment styles. Consistent with recent evidence for conventional funds, we find Islamic funds to display superior learning in more developed Islamic financial markets. While Islamic funds from these markets are competitive to international equity benchmarks, funds from especially Western nations with less Islamic assets tend to significantly underperform. Islamic funds’ investment style is somewhat tilted towards growth stocks. Funds from predominantly Muslim economies also show a clear small cap preference. These results are consistent over time and robust to time varying market exposures and capital market restrictions.PostprintPeer reviewe