Insights @ CEM Magazine

Economists have long predicted the rise of Asia as a powerhouse in the global economy. Transitioning from its initial role primarily as a low-cost manufacturing center for the West, Asia has recently shifted towards innovation, establishing itself as a leader that challenges old stereotypes.

Greg Distelhorst and Anita McGahan of the University of Toronto conducted a comprehensive study of more than 4,000 companies across developing countries, investigating the impacts of wage theft, abusive disciplinary practices, and other exploitative behaviors on firm performance. They drew a comparison between “high road” employers, who treat employees with fairness and value their contributions, and “low road” employers, who exploit workers to minimize costs and enhance control. The study found that companies on the low road experienced more frequent issues with quality control, delivery timelines, and lower order values than their high-road counterparts.

In their analysis of 194 publicly listed, non-state-owned Chinese companies across 24 provinces, Elitsa Banalieva and colleagues observed that rapid implementation of pro-market reforms was associated with increased internationalization. Conversely, quick reversals had a deleterious effect on international expansion. The presence of family involvement, however, made family-owned companies more resilient in the face of such reversals, enabling firms to sustain their international presence, despite regulatory headwinds.

Read the fourth issue of Insights @ Center for Emerging Markets, bringing together researchers from Northeastern University and the broader global academic community to explore the topic of sustainability and Corporate Social Responsibility in emerging markets. Understanding these concepts enables managers and policymakers to make ethical decisions, safeguard long-term business success, and effectively handle the unique socio-environmental contexts of these key growth areas.

Read the third issue of Insights @ Center for Emerging Markets, bringing together researchers from across Northeastern University to examine topics such as innovation in Chinese management, cultural agility, the challenges of informal entrepreneurship, shifts in global supply chain management, the future of healthcare in Sub-Saharan Africa, reverse innovation, and the locational effects of the United Nations Environment Programme in Kenya.

Read the second issue of Insights @ Center for Emerging Markets, bringing together researchers from the fields of corporate governance, accounting, entrepreneurship, international business, and legal studies to explore topics such as corruption in transition economies, how blockchain is modernizing global supply chains, and the impact of developmental assistance on entrepreneurship.

Read the first issue of Insights @ Center for Emerging Markets, bringing together international business and strategy experts examining topics such as foreign direct investment in China, the role of multinational companies in sustainable development, and corporate governance in the Middle East.