Infrastructure in emerging markets

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Emerging markets

Hoskisson et al. (2000) define emerging markets as “low-income, rapid-growth countries using economic liberalization as their primary engine of growth” (p. 190). According to Hoskisson, Wright, Fitatotchev, and Peng (2013), emerging markets are positioned between developed and developing markets based on economic development, extent of integration into the global market and levels of market liberalization. Emerging markets can be characterized further by decreasing trade barriers, amplified competition and dynamic consumer markets; low to medium unemployment rates, disparities in wealth distribution, trade barriers, and frequent government interference that stifles business flexibility (Narayanan & Fahey, 2005; Waiganjo et al., 2012; Xu & Meyer, 2012). Institutional factors such as politics, legislation, society, culture, and levels of technology influence the business environment of emerging market nations (Hoskisson et al., 2000; Marquis & Raynard, 2015) with government having a strong influence on business through the many state-owned firms that provide essential services like power and other utilities (Douma, George, & Kabir, 2006). In addition to the aforementioned irregularities, emerging market nations are characterized by political instabilities, a young population that is eager for opportunities and growth, resulting in high levels of urbanization; and potential social turmoil owing to existing inequities in society (Marquis & Qian, 2014; Marquis & Raynard, 2015). These challenges are exacerbated by “greater informality and less developed government and regulatory infrastructures, suggesting that market regulation, corporate governance, transparency, accounting standards, and intellectual property protection may not be as reliable or mature as those in more advanced economies” (Marquis & Raynard, 2015, p. 300). The absence of developed regulatory frameworks and unreliability of market regulations leaves business at the mercy of volatile government regulation, “exposing firms to considerable uncertainty and requiring managers to decide on appropriate strategic postures” (Engau & Hoffman, 2011a, p. 42) that will ensure long-term survival.

Weak local currency

A weak local currency is a currency the value of which in relation to other currencies has depreciated over time and continues to depreciate due to many factors (Towbin & Weber, 2013). Of the seven items (WLC1-WLC7) selected to measure a weak local currency, only five loaded on the factor matrix. The five items loaded on to three factors, adding two factors to the one proposed in the study. The indicators used to measure depreciation of currency did not converge into a single factor.Two of the indicators of depreciation of currency did not load on any of the factors. These two were ‘decreases in price of global commodities like oil has not translated in overall cheaper fuel costs and basic consumer products’ and ‘the government budget deficit in major currencies like the US$ has increased over the past 4 years’. These two items had factor loadings below 0.3, indicating that the variance in both observable variables explained by the latent variable (weak local currency) is too small. This implies a weak association between the observed variables and the underlying latent variable. The factor structure suggests two new factors; however, one of the factors has a single observable variable and will be discarded.

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Chapter 1: Introduction
1.1 Background
1.2 Problem Statement
1.3 Purpose Statement
1.4 Objectives of the Study
1.5 Definition of terms and scope
1.6 Importance of the study
Chapter 2: Research setting and relevance
2.1 Emerging markets
2.2 Infrastructure in emerging markets
2.3 The South African emerging market
Chapter 3: Literature review 
3.1 Introduction
3.2 Nonmarket strategy
3.3 Current trends in nonmarket strategy research
3.4 The need for Infrastructure-building nonmarket strategy in the business environment
3.5 Theory for evaluating the cost of an infrastructure-building nonmarket strategy
3.6 Cost of implementing infrastructure-building nonmarket strategy
3.7 Partnering and infrastructure-building nonmarket strategy
3.8 Infrastructure gaps and infrastructure-building nonmarket strategy
3.9 Weakening local currencies and infrastructure-building nonmarket strategy
3.10 Conceptual Model
Chapter 4: Research design and methodology
4.1 Introduction
4.2 Research design
4.3 Research method
4.4 Units of analysis
4.5 Population
4.6 Sampling
4.7 Data collection
4.8 Measurement of variables
4.9 Interview questionnaire – Pilot testing
4.10 Data analysis
4.11 Research reliability and validity
4.12 Ethical concerns
Chapter 5: Empirical Results 
5.1 Introduction
5.2 Survey response rate
5.3 Respondent demographics
5.4 Awareness and exposure to nonmarket strategy activities
5.5 Construct validity and reliability
5.6 Exploratory factor analysis, construct validity
5.7 Confirmatory factor analysis and model fit
5.8 SEM hypotheses tests
5.9 Summary of Results
Chapter 6: Discussion of Results
6.1 Introduction
6.5 Summarized findings
Chapter 7: Findings, Contribution and Conclusion 
7.1 Introduction
7.2 Research design and methodology
7.3 Principal findings
7.4 Contribution of the study
7.5 Future research
7.6 Study limitations
7.7 Concluding remarks


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