The international growth of emerging market firms : evidence from a natural experiment

The recent international growth of some firms from emerging markets has attracted the attention of academics and managers alike. How do such emerging market firms achieve growth in international markets despite lacking foreign market knowledge and international competitiveness, and despite facing weak institutions in their home countries? The authors address this question by proposing a new concept—global market capital, the set of assets that prepare emerging market firms to compete globally. Global market capital consists of three elements: leadership capital (at the individual level), foreign marketing and financial capital (at the firm level), and network capital (at the inter-firm level). The authors argue that, taken together, these elements enable emerging market firms to overcome their weaknesses in foreign market knowledge, international competitiveness and home institutions. In particular, the authors highlight the prominent role that leadership capital, specifically CEOs’ foreign market experience, plays in helping emerging market firms grow internationally. The authors test their thesis using uniquely compiled data on Indian firms from the Bombay Stock Exchange 500 index. The Indian context helps to set up a natural experiment in which the independent variables of interest are measured prior to a major sudden and unanticipated regulatory shift in India’s outward investment policy and the dependent variable (international growth) is measured after this policy shift. Results from the paper highlight the crucial role of leadership capital in driving international growth both directly and through its synergistic interaction with the other elements of global market capital

The performance impact of core component outsourcing: insights from the LCD TV industry

Firms in technology markets often outsource the manufacture of core components—components that are central to product performance and comprise a substantial portion of product costs. Despite the strategic importance of core-component outsourcing, there is little empirical evidence (and many conflicting opinions) about its impact on consumer demand. The authors address this gap with an examination of panel data from the flat panel TV industry, across key regions globally. Results from their estimation indicate that core-component outsourcing reduces the firm’s ability to be on the technological frontier; this hurts demand, because the authors’ estimates suggest that consumers care about firms being on the frontier. However, such outsourcing also reduces costs. Finally, the authors find that outsourcing increases the intensity of competition in the marketplace. They assess these (often opposing) effects and conduct thought experiments to quantify the performance impact of core-component outsourcing

Multiplexed and High-Throughput Label-Free Detection of RNA/Spike Protein/IgG/IgM Biomarkers of SARS-CoV-2 Infection Utilizing Nanoplasmonic Biosensors

This article is made available for unrestricted research re-use and secondary analysis in any form or be any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.To tackle the COVID-19 outbreak, which is caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), there is an unmet need for highly accurate diagnostic tests at all stages of infection with rapid results and high specificity. Here, we present a label-free nanoplasmonic biosensor-based, multiplex screening test for COVID-19 that can quantitatively detect 10 different biomarkers (6 viral nucleic acid genes, 2 spike protein subunits, and 2 antibodies) with a limit of detection in the aM range, all within one biosensor platform. Our newly developed nanoplasmonic biosensors demonstrate high specificity, which is of the upmost importance to avoid false responses. As a proof of concept, we show that our detection approach has the potential to quantify both IgG and IgM antibodies directly from COVID-19-positive patient plasma samples in a single instrument run, demonstrating the high-throughput capability of our detection approach. Most importantly, our assay provides receiving operating characteristics, areas under the curve of 0.997 and 0.999 for IgG and IgM, respectively. The calculated p-value determined through the Mann-Whitney nonparametric test is 96% (77/80), a positive predictive value of 98% at 5% prevalence, and a negative predictive value of 100% at 5% prevalence. We believe that our very sensitive, multiplex, high-throughput testing approach has potential applications in COVID-19 diagnostics, particularly in determining virus progression and infection severity for clinicians for an appropriate treatment, and will also prove to be a very effective diagnostic test when applied to diseases beyond the COVID-19 pandemic

GVK EMRI: Social entrepreneurship and innovation in emergency medical response

SMU Faculty/Staff can download the case and teaching note with your SMU login ID and Password via the following links: The Case (SMU-13-0013) Teaching Note (SMU-13-0013TN) For purchase of the case and supplementary materials via The Case Center, please access the following links: The Case (SMU-13-0013) Teaching Note (SMU-13-0013TN) </ul

Legacy effects in radical innovation: A study of European Internet banking

How do firms cope with the challenges of disruptive change in their industry? Numerous studies have highlighted that success with any prior technology creates a negative legacy effect for the next radical technological shift. We question the overly pessimistic view of such legacy effects and ask how quickly firms embrace technological breakthroughs by radically innovating and who wins in the longer term? In this paper, we argue that legacy is a multi-faceted construct whose diverse aspects could simultaneously have different effects on innovation speed and market performance. We identify three main types of legacy related to technology, organizational, and country-level influences. Previous research tends to focus on technological or market effects in isolation, whereas we seek to study the effects of both firm and country legacy simultaneously on speed to radical innovation and market performance over time. Based on a conceptual framework we develop six hypotheses concerning the legacy effects on initial speed radical innovation and subsequent market performance. We chose the European retail banking industry and the focal innovation of transactional Internet banking as a suitable empirical context to employ quantitative hypothesis testing. Detailed and longitudinal (1996-2001) data were collected for a sample of 123 banks from six European countries: United Kingdom, Germany, France, Sweden, Finland, and Denmark. We specified a model and used threestage least squares (3SLS) as a method to estimate simultaneous regression equations due to endogeneity of a key variable. We show that the prevailing negative view of legacies is likely to be overstated.innovation, legacy, internet banking, europe