Developing a Marketing Model Utilizing the Resource-Based View and Risk Management in Emerging Economies: Insights from Multinational Corporations

Yuang Shiang Chao

Authors

Yuang-Shiang Chao Department of Finance, College of management, Nanhua university, Taiwan

Keywords:

MNEs;, RBV;, Risk Management;, Emerging Economics;, Markets;

Abstract

This study focuses on a marketing model that explores the practical aspects of risk management in emerging countries. It aims to illustrate the potential advantages that multinational enterprises (MNEs) can gain by integrating the Resource-Based View (RBV) framework and effective risk management strategies to navigate the inherent complexities of these market environments. The RBV theory asserts that a company's export performance is intricately linked to its internal resources and capabilities, a proposition particularly relevant for multinational companies (MNEs) given the impact of globalization and economic downturns. Multinational enterprises (MNEs) often encounter challenges in acquiring resources and developing capabilities for global expansion, especially when compared to larger firms. Collaborative relationships between organizations emerge as a valuable avenue for MNEs, enabling them to acquire both tangible and intangible resources. This resource acquisition serves to augment their existing resource base, ultimately contributing to a favorable impact on their overall performance. However, it is essential to acknowledge that such collaborations may expose the core corporation to intangible consequences in its relationships with downstream intermediaries. These consequences include heightened dependence, increased exposure to risk, elevated vulnerability, and a diminished level of influence. To effectively navigate these complexities and integrate resources and skills, meticulous design and execution of monitoring and coordination procedures among the parties engaged in inter-firm partnerships become paramount.The current research introduces a comprehensive marketing framework tailored for multinational businesses (MNEs) operating in emerging countries. This framework harmonizes the principles of the RBV theory with effective risk management strategies. The findings of this study offer significant value to various stakeholders, including corporations, governmental bodies, and scholars. They shed light on strategies that multinational businesses (MNEs) can employ to enhance their competitiveness and sustainability in developing nations.

References

Aaker, D., & Joachimsthaler, E. (2000). The brand relationship spectrum: The key to the brand architecture challenge. California Management Review, 42(4), 8–23.

Amaral, J., & Parker, G. (2008). Prevent disasters in design outsourcing. Harvard Business Review, 86(9), 30–34.

Anwar, Muhammad. (2018). Business model innovation and MNEs Performance—Does competitive advantage mediate? International Journal of Innovation Management.

Barney, J.B. (1991). Firm resources and sustained competitive advantage. J. Manag. 17, 99–120.

Bongomin, G. Okello Candiya, Joseph Mpeera Ntayi, John C. Munene, and Charles Akol Malinga. (2017). The relationship between access to finance and growth of MNEs in developing economies: Financial literacy as a moderator. Review of International Business and Strategy, 27, 520–38.

Brouthers, K. D., Brouthers, L. E., & Werner, S. (2008). Resource-Based Advantages in an International Context†. Journal of Management, 34(2), 189–217. https://doi.org/10.1177/0149206307312508

Callahan, Carolyn, and Jared Soileau. (2017). Does Enterprise risk management enhance operating performance? Advances in Accounting, 37, 122–39.

Central Intelligence Agency. (2012). The World Factbook: USA. Retrieved November 18, 2012 from https://www.cia.gov/library/ publications/the-world-factbook/geos/us.html.

Shan, C. C., Yu, W. U. & Hung, C. H. (2015). Firm risk and performance: the role of corporate governance. Review of Managerial Science, 9, 141–73.

Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Account. Organ. Soc., 28, 127–168.

Cyprus International Institute of Management, Cyprus, Nerouppos, M., Saunders, D., University of Waterloo, Canada, Xiouros, C., University of Southern California, U.S.A., Zenios, S. A., & University of Cyprus, Cyprus. (2006). Risk Management in Emerging Markets: Practical Methodologies and Empirical Tests. Multinational Finance Journal, 10(3.4), 179–221. https://doi.org/10.17578/10-3/4-2

Day, G. (2011). Closing the marketing capabilities gap. Journal of Marketing, 75(4), 183–195.

Del Cano, A., & de la Cruz, M. P. (2002). Integrated methodology for project risk management. Journal of Construction Engineering and Management, 128(6), 473-485.

Dimitratos, P.; Jonson, J.; Slow, J.; Young, S. (2003). Micromultinationals: New types of firms for the global competitive landscape. Eur. Manag, 21, 164–174.

Florio, Cristina, and Giulia Leoni. (2017). Enterprise risk management and firm performance: The Italian case. The British Accounting Review, 49, 56–74.

Garvey, P. (2009). Analytical Methods for Engineering Risk Management: A Systems Engineering Perspective. Boca Raton: Taylor and Francis Group, LLC.

G. Derren, & P. Mallery. (2010). SPSS for Windows Step by Step. A Simple Study Guide and Reference (10. Baskı). New York: Pearson.

Gomez-Conde, J. & Lopez-Valeiras, E. (2018). The dual role of management accounting and control systems in exports: Drivers and payoffs. Span. J. Financ. Account. Revista Española de Financiación y Contabilidad, 47, 307–328.

Gordon, J.S. (1993). Profitable Exporting. Wiley: New York, NY, USA.

Guillen, M. F. (2000). Business groups in emerging economies: A Resource-Based View. Academy of Management Journal, 43(3), 362–380. https://doi.org/10.2307/1556400

Hair, Joseph F., Rolph E. Anderson, Barry J. Babin, and William C. Black. (2010). Multivariate Data Analysis: A Global Perspective. Upper Saddle River: Pearson, vol. 7.

Hu, Litze T., and Ppeter M. Bentler. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6, 1–55.

Kaleka, A. (2002). Resources and Capabilities Driving Competitive Advantage in Export Markets: Guidelines for Industrial Exporters. Ind. Mark. Manag., 31, 273–283.

Kaleka, A. (2012). Studying Resource and Capability Effects on Export Venture Performance. World Bus., 47, 93–105.

Kantur, Deniz. (2016). Strategic Entrepreneurship: Mediating the Entrepreneurial Orientation-Performance Link. Management Decision, 54, 24–43.

Kozlenkova, I. V., Samaha, S. A., & Palmatier, R. W. (2014). Resource-Based Theory in Marketing. Journal of the Academy of Marketing Science, 42(1), 1–21. https://doi.org/10.1007/s11747-013-0336-7

Kozlenkova, I.V.; Samaha, S.A.; Palmatier, R.W. (2004). Resource-Based Theory in Marketing. Journal Acad. Mark. Sci., 42, 1–21.

Löning, H.; Besson, M. (2002). Can Distribution Channels Explain Differences in Marketing and Sales Performance Measurement Systems? Eur. Manag Journal. 20, 597–609.

Ludin, Khairul Rizan Mat, Zakiah Muhammaddun Mohamed, and Norman Mohd-Saleh. (2017). The Association Between CEO Characteristics, Internal Audit Quality and Risk-Management Implementation in the Public Sector. Risk Management, 19, 281–300.

Madsen, T.K.; Moen, O.; Hammervold, R. (2012). The Role of Independent Intermediaries: The Case of Small and Medium-Sized Exporters. Int. Bus. Rev., 21, 535–546.

McDougall, P.P., Shane, S., and Oviatt, B.M. (1994). Explaining the Formation of International New Ventures: the Limits of Theories From International Business Research. Journal of Business Venturing, 9(6):469–487.

Meidell, A., & Katarina K. (2017). How the Enterprise Risk Management Function Influences Decision-Making in the Organization–A Field Study of a Large, Global Oil and Gas Company. The British Accounting Review, 49, 39–55.

Orr, L., Bush, V., & Vorhies, D. (2011). Leveraging Firm-Level Marketing Capabilities with Marketing Employee Development. Journal of Business Research, 64(10), 1074–1081.

Parnell, J. A., Zhang L, & Don L. (2015). Competitive Strategy, Capabilities and Uncertainty in Small and Medium Sized Enterprises (MNEs) in China and the United States. Management Decision, 53, 402–31.

Porter, Michael E. (1980). Industry Structure and Competitive Strategy: Keys to Profitability. Financial Analysts Journal, 36, 30–41.

Ramon, J.M.; Florez, R.; Ramon, M. A. (2017). Understanding the Generation of Value Along Supply Chains: Balancing Control Information and Relational Governance Mechanisms in Downstream and Upstream Relationships. Sustainability 9, 1487.

Rice, J., Liao, T. S., Martin, N., & Galvin, P. (2012). The Role of Strategic Alliances in Complementing Firm Capabilities. Journal Management Organization, 18, 858–869.

Sax, J., and Simon S. Torp. (2015). Speak up! Enhancing Risk Performance with Enterprise Risk Management, Leadership Style and Employee Voice. Management Decision, 53, 1452–68.

Semrau, Thorsten, Tina Ambos, and Sascha Kraus. (2016). Entrepreneurial Orientation and SME Performance Across Societal Cultures: An International Study. Journal of Business Research, 69, 1928–1932.

Soltanizadeh, S., Siti, Z. A. R., Nargess M. G., & Wan K. W. I. (2016). Business strategy, enterprise risk management and organizational performance. Management Research Review, 39, 1016–1033.

Songling, Y., Ishtiaq, M., & Anwar, M. (2018). Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy. Journal of Risk and Financial Management, 11(3), 35. https://doi.org/10.3390/jrfm11030035

Sternad, D., Mundschütz, C., & Knappitsch, E. A. (2013). Dynamic Model of SME International Performance Capacity: The Accelerating Function of Cooperation Effects. Journal Small Business Entrepreneur, 26, 277–297.

Stoian, M. C., Rialp, A., & Rialp, J. (2011). Export Performance under the microscope: A glance through Spanish lenses. International Business Review, 20, 117–135.

Su, Z., Hai Guo, and Wei Sun. (2017). Exploration and Firm Performance: The Moderating Impact of Competitive Strategy. British Journal of Management, 28, 357–71.

Suwannarat, P. (2016). The Study of Export Intermediary Performance Determinants. Multinational Business Review, 24(2), 123-143.

Wang, P. F., Li, S., & Zhou, J. (2010). Financial Risk Management and Enterprise Value Creation: Evidence from Non‐Ferrous Metal Listed Companies in China. Nankai Business Review International, 1(1), 5-19.

Xie, Y. H., & Suh, T. (2014). Perceived Resource Deficiency and Internationalization of Small-and Medium-Sized Firms. Journal of International Entrepreneurship, 12, 207-229.

Yilmaz, A. K., & Flouris, T. (2017). Corporate Risk Management for International Business. Springer.

Zou, X., & Hassan, C. H. (2017). Enterprise Risk Management in China: the Impacts On Organisational Performance. International Journal of Economic Policy in Emerging Economies, 10(3), 226-239.