Egide Karuranga

Towards a better understanding of intellectual capital in Mexican SMEs

Purpose – The purpose of this paper is to understand the characteristics of intellectual capital (IC) in Mexican small and medium enterprises (SMEs). Due to the shift from traditional factors of production to knowledge-based economy, an understanding of the role of IC has become crucial for SMEs to develop a competitive advantage. Design/methodology/approach – This study takes an in depth look at the three components of IC: human, organizational, and external capital. In order to do so, a quantitative study on 445 SMEs was conducted based on data collected through an online survey. A structural equation model is proposed that is a fit with the reality of Mexican SMEs. Regional differences are highlighted by means of multigroup analysis. Findings – The results suggest that the features of human and organizational capital are consistent with previous studies on SMEs in emerging economies. However, external capital shows some distinctive characteristics unique to Mexican context. Practical implications – Imp...

Subsidiaries of Developed Country Multinationals in an Emerging Country: A Cultural Perspective

One of the most critical challenges faced by multinationals is regarding implementation of its various units round the world. This problem has become even more significant in today’s globally competitive environment. The situation is further complicated when it comes to implementing a subsidiary in an emerging country, where the economic and cultural differences are even greater. We have attempted to gain an insight of flexibility of the adaptation and localization issues of developed country multinationals. The SAP-LAP model has been used to highlight the successful implementation of these multination in the setting of an emerging country- Morocco.

The determinants of FDI location choice in China: a discrete-choice analysis

ABSTRACT This study addresses two questions: What are the determinants of foreign direct investment (FDI) location choice in China? What are the factors that determine investors’ choice between ‘Economic zones’ in China on one hand, and ‘other cities’ of China on the other hand? This study shows that FDI location choice is sensitive both on the endowment conditions in different regions/cities/economic zones in China as well as on the country of origin of the FDI. Based on a data set of 1218 observations, the results of the binary logit regressions indicate that the protection of intellectual rights, agglomeration economies, investments in education and gross regional product affect the location choice of FDI in China. This choices, however, varies depending on the origin of the FDI. Policy makers can use these findings to channel FDI to targeted regions/ cities.