Found 23 article(s) for author 'Emerging Markets'

Parallel Play: Startups, Nascent Markets, and the Effective Design of a Business Model

Parallel Play: Startups, Nascent Markets, and the Effective Design of a Business Model. Rory MacDonald, 2019, Paper, “Prior research advances several explanations for entrepreneurial success in nascent markets but leaves a key imperative unexplored: the business model. By studying five ventures in the same nascent market, we develop a novel theoretical framework for understanding how entrepreneurs effectively design business models: parallel play. Similar to parallel play by preschoolers, entrepreneurs engaged in parallel play interweave action, cognition, and timing to accelerate learning about a novel world. Specifically, they (1) borrow from peers and focus on established substitutes, (2) test assumptions, then commit to a broad business-model template, and (3) pause before elaborating the activity system. The insights from our framework contribute to research on optimal distinctiveness, and to the learning and evolutionary-adjustment literature on search. More broadly, we blend organization theory with a fresh theoretical lens—business-model processes—to highlight how organizations actually work and create value.Link

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Parallel Play: Startups, Nascent Markets, and the Effective Design of a Business Model

Parallel Play: Startups, Nascent Markets, and the Effective Design of a Business Model. Rory McDonald, 2019, Paper, “Prior research advances several explanations for entrepreneurial success in nascent markets but leaves a key imperative unexplored: the business model. By studying five ventures in the same nascent market, we develop a novel theoretical framework for understanding how entrepreneurs effectively design business models: parallel play. Similar to parallel play by preschoolers, entrepreneurs engaged in parallel play interweave action, cognition, and timing to accelerate learning about a novel world. Specifically, they (1) borrow from peers and focus on established substitutes, (2) test assumptions, then commit to a broad business-model template, and (3) pause before elaborating the activity system. The insights from our framework contribute to research on optimal distinctiveness, and to the learning and evolutionary-adjustment literature on search. More broadly, we blend organization theory with a fresh theoretical lens—business-model processes—to highlight how organizations actually work and create value.Link

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The Effect of Payment Choices on Online Retail: Evidence from the 2016 Indian Demonetization

The Effect of Payment Choices on Online Retail: Evidence from the 2016 Indian Demonetization. Antonio Moreno, Donald Ngwe, April 5, 2019, Paper, “The Indian banknote demonetization in 2016 was one of the most significant international events of that year. Overnight, 86 percent of Indian currency in circulation was declared invalid unless exchanged for new bills. The sudden and unexpected demonetization constituted a large shock to the entire Indian economy. One effect of the ensuing cash shortage was a large and sustained increase in the adoption and usage of digital payments. We use detailed sales data consisting of more than two and a half million transactions from a leading Indian online retailer to empirically investigate the effects of payment digitization on the online retail industry. We take advantage of the demonetization as a source of exogenous variation that induced a subset of consumers to switch to digital payments from more commonly used cash-on-delivery payments. We show that consumers who switch to digital payments maintain their purchase frequency but spend more and are less likely to return their purchases. Our findings show that firms in emerging markets may enjoy gains from consumer demand in addition to operational gains resulting from payment digitization.LInk

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Corporate Debt, Firm Size and Financial Fragility in Emerging Markets

Corporate Debt, Firm Size and Financial Fragility in Emerging Markets. Laura Alfaro, January 2019, Paper, “The post-Global Financial Crisis period shows a surge in corporate leverage in emerging markets and a number of countries with deteriorated corporate financial fragility indicators (Altman’s Z-score). Firm size plays a critical role in the relationship between leverage, firm fragility and exchange rate movements in emerging markets. While the relationship between firm-leverage and distress scores varies over time, the relationship between firm size and corporate vulnerability is relatively time-invariant. All else equal, large firms in emerging markets are more financially vulnerable and also systemically important. Consistent with the granular origins of aggregate fluctuations in Gabaix (2011), idiosyncratic shocks to the sales growth of large firms are positively and significantly correlated with GDP growth in our emerging markets sample. Relatedly, the negative impact of exchange rate shocks has a more acute impact on the sales growth of the more highly levered large firms.Link

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Opportunistic Returns and Dynamic Pricing: Empirical Evidence from Online Retailing in Emerging Market

Opportunistic Returns and Dynamic Pricing: Empirical Evidence from Online Retailing in Emerging Market. Antonio Moreno, Donald Ngwe, September 2018, Paper, “We investigate how dynamic pricing can lead to more product returns in the online retail industry. Using detailed sales data of more than two million transactions from the Indian online retail market, where price promotions are very common, we document two types of strategic customer behavior that have not been considered in previous research. First, customers who monitor product prices after purchase may initiate opportunistic returns because of price drops. Second, customers who anticipate a future return may strategically choose a payment method that facilitates product returns.Link

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Harvard’s Rogoff Says Next Global Crisis to Come From China

Harvard’s Rogoff Says Next Global Crisis to Come From China. Kenneth Rogoff, September 12, 2018, Video, “Harvard Professor Kenneth Rogoff discusses the risks posed by emerging markets and warns that the next global crisis may potentially come from China. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg).Link

 

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Are Emerging Markets the Canary in the Financial Coal Mine?

Are Emerging Markets the Canary in the Financial Coal Mine? Kenneth Rogoff, June 6, 2018, Opinion, “Economists who assure us that advanced-economy debt is completely “safe” sound eerily like those who touted the “Great Moderation” – the supposedly permanent reduction in cyclical volatility – a generation ago. In many cases, they are the same people.Link

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An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity

An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity. Josh Lerner, Fall 2017, Paper, “The authors use transaction-level data to compare the dispersion of private equity (PE) returns in emerging markets (EMs) to the same in developed markets (DMs). They regress within-market absolute deviation from the mean on an EM indicator and controls. They find evidence suggesting that the distribution of transaction-level TVPI has lower variance within EMs than within DMs, although with some caveats. The results suggest opportunities for further research exploring the relative riskiness of EM PE.Link

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