Yusaf H. Akbar

Beyond entry mode – SME escalation in emerging markets: a conceptual framework

Drawing on core theories of international business research, this conceptual paper moves from a focus on the firms’ ‘entry mode’ decisions towards an interesting aspect of small firms’ international behaviour – namely their escalation of commitment to emerging markets. Escalation is the dynamic aspect of the entry strategy (and international form of presence) and refers to the change in the mode of presence that firms experience in a market over time. Several studies report that small and medium sized firms (SMEs) face difficulties in escalating in emerging markets. The paper investigates this issue by building a conceptual framework that links the escalation of a firm’s commitment in an emerging market to a firm’s endowment of resources and capabilities, as well as to the feedback it receives from the market and to the moderating impact of institutional voids – a key contextual aspect of emerging markets.

Application of modified MLP input weights' matrices : an analysis of sectorial investment distribution in the emerging markets

This paper aims to explore the modified multilayer perceptron (MLP) input weights’ (IW) matrices relating them with the weights of the constituent input determinants. Non-traditional MLP topologies were designed, optimized and compared with other neural networks (NN) and multidimensional linear regression methods and statistically tested. The chosen NN topology directly related the MLP IW matrices with the relative contribution of each input variable. The contribution (weights) of each input variable was estimated in a non-linear manner, which is a novel approach in the investment research domain. This approach was applied to an investigation of sectorial investment distribution in emerging investment markets. To our knowledge, there is no experiment in the field that would focus on the NN mechanisms of sectorial indices (SI) weights estimation in such an experimental setting. In summary, we found apparent correlations between multivariate linear and other NN estimates (like Garson’s, Tchaban’s and SNA methods) having some new results not revealed in the previous research.

Slip sliding away? The changing politics of European car distribution

This paper examines the development of EU regulations in the car distribution sector. In the span of approximately fifteen years, the sector has shifted from being regarded by its critics as being one of the most protected havens of European industry to one faced with open competition. The paper claims that the inability of the car industry to resist liberalization in this sector is related to several factors. First, there was declining support from member states for their national producers, in part explained by global shifts in ownership and production which rendered concepts of national producer problematic. Second, technological changes combined with the impact of globalization on in the industry undermined the case for a link between sales and service of cars. Third, DG competition, led by Mario Monti, wished to push through the ability of consumers to make cross-border purchases of cars. Fourth, a more general logic embedded in the Single European Market programme (SEM) had led to several decisions to prosecute EU car producers for infringing SEM rules and thereby undermining the ability of EU member states to protect their national producers. This has implications more broadly: will increasing globalization of industrial ownership further undermine the state-firm nexus in the EU, thus reducing the propensity of national industries to resist liberalization? In this context, will member states be prepared to give the EU Commission a freer hand in forcing through liberalization in the remaining sectors that remain problematic?

Introduction to Neo-Transitional Economics

Abstract This paper introduces the readers to Neo-Transitional Economics – a volume which aspires to reinvigorate scholarly interest in transition economics research. The classical transition storyline is briefly revisited, and new directions for empirical and policy-relevant research that target post-transition economies in the post-crisis paradigm are highlighted.

The Growth Challenge of Western SMES in Emerging Markets: An Exploratory Framework and Policy Implications

In this paper, we explore the main inhibiting factors associated with the process of entry and escalation of SMES in international markets, with a focus on Emerging Markets. We identify and propose seven main categories of Institutional Voids and three main types of resources that may critically determine SMES’ performances on EMS, namely, internationalization knowledge, social capital resources and marketing capabilities. Institutional Voids and resources are brought together within a conceptual framework suggesting that resource-scarce SMES will hold back in their attempts to commit further to Emerging Markets and will be further dissuaded the higher the Institutional Voids in the market. The paper contributes to the policy literature on SME internationalization by focusing on two areas of public policy action that could have a clear and manifest impact on SMES conduct in Emerging Markets, the first related to the resources available to and exploitable by SMES and the latter associated with Institutional Voids.

SME export performance, capabilities and emerging markets: the impact of institutional voids

In this paper we address the theme of the export performance of the SME in the context of emerging markets. Surveying a sample of 200 exporting SMEs, we test specific hypotheses concerning the role of Institutional Voids (IVs) both in directly affecting the export performance of the SME and in moderating the positive impact of the SMEs resources and capabilities. Our results show that while directly hampering the export performance of the SME, IVs also have a negative moderating role on the firms marketing capabilities.

Neo Transitional Economics

Neo-transitional economics is a policy-oriented collection of contemporary theoretical and empirical research studies on transition countries in the post-crisis paradigm. Topics covered range from monetary and financial economics to international trade and formation of a welfare state.