Resources

In recent years, private entities are providing more aid to less developed countries relative to foreign governments. Recent research seeks to understand how different types of aid affect the strategic choices local firms and entrepreneurs make in the assisted markets, as well as the resulting outcomes. This will allow for better informed policy decisions that consider a more nuanced understanding of the entrepreneurial process.

Blockchain solutions can overcome the shortcomings of current supply chain processes. They enhance reliability and efficiency by providing transparent and secure tracking of goods and related digital documentation. One example of a blockchain solution is TradeLens, which provides accurate real-time supply chain visibility, together with collaboration and analytics tools. Another example is Ambrosus, which links Internet of Things (IoT) real-time sensors and electronic IDs with blockchain to improve supply chain monitoring, provide quality assurance, and prevent counterfeiting.

New research examines how corporate environmental, social, and governance (ESG) programs influence the financial performance of emerging market companies. This research proposes and shows that in emerging markets, social investments have a larger impact on financial performance than governance or environmental initiatives because they help create capabilities that more directly compensate for government failures in the provision of public goods and services needed by firms to operate efficiently. It also shows that government policy nudges enhance the efficacy of such initiatives. Thus, in emerging markets, ESG programs, particularly social initiatives, help improve the quality of life of local communities and companies' bottom lines.

In institutional regimes with weak creditors' rights, some company insiders might take advantage of bankruptcy rules by intentionally making their companies look less valuable. This creates problems for creditors and makes it harder for these companies to succeed in the future. To shed new light on the drivers of such opportunistic behaviors, recent research compares bankrupt British, American and Indian firms. It shows that Indian firms were more likely to be classified as “willful defaulters” indicating that bankruptcy decisions may be due to insiders' opportunistic behavior. It also suggests that such fraudulent bankruptcy behaviors can be countered through market reforms.

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.

China is rapidly moving from imitation to innovation, with Chinese companies taking a key role in the emerging paths of Chinese company innovation. Non-Chinese executives need to understand the six major paths to innovation taken by Chinese companies. While all these paths have also been taken by many Western companies, we discuss here the unique Chinese adaptation or intensification of each approach. Our findings indicate that the innovation advantages of Chinese companies may well be in the creative combinations of available innovation practices.

The Middle East and North Africa (MENA) region displays distinct corporate governance trends. These differences are due, at least in part, to the influence of Sharia law and the region's varied political regimes. Research suggests that advancing gender diversity on boards, directing attention towards corporate social responsibility, increasing the transparency of corporate disclosures, and investigating different ownership models can help further align local companies with established global best practices in the corporate governance area.

In rapidly evolving emerging and transition economies such Russia, informal social networks between individuals, companies, and the government play a key role for companies' ability to gain access to information, knowledge, and power. While such informal networks help companies' profitability, they can also entail significant costs for businesses and society at large. Understanding the deep roots of today's corruption trends in Russia can help the survival of domestic and foreign companies operating in the country.

China's approach to inward foreign direct investment (IFDI) has remained remarkably consistent since the onset of its economic opening. While the rules governing IFDI have changed, the primary goal of improving the competitiveness of Chinese companies and the secondary goal of enhancing economic development have remained. As Chinese companies become more capable and as China declares more industries “strategic,” the space for foreign invested enterprises (FIEs) may narrow. To address this, FIEs need to demonstrate their full economic impact to make their case for continued access to the world's second largest economy.

Multinational companies from emerging markets should align their sustainability reports and actual impacts. Global expansion (especially to more economically advanced markets) can help emerging market multinationals learn best practices for aligning their sustainability communications (i.e., “talk”) and impacts (i.e., “walk”).