Dear all
Welcome to issue 6.1 of International Journal of Emerging Markets.  You will find the table of contents and full editorial below.
We take this opportunity to congratulate Junzhe Ji and Pavlos Dimitratos, winners of the IJOEM/EIBA Best Paper on Emerging Markets.  The award was presented at EIBA in Porto, and the winners received certificates and a shared prize of 500 euros for their paper: "Does Confucian Dynamism Complement the OLI Framework? A Study of Chinese Private Firms".
Dr Martyn Lawrence
Senior Publisher
Article Title: How much trust should risk managers place on “Brownian motions” of financial markets?
Authors: Shaheen Borna, Dheeraj Sharma
Article Type: Conceptual paper
Keywords: Debts, Portfolio theory, Recession, Risk management, Stochastic processes, United States of America
Pages: 7-16
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Article Title: Impact of business strategies of automobile manufacturers in Thailand
Authors: Vichak Phongpetra, Lalit M. Johri
Article Type: Research paper
Keywords: Automotive industry, Corporate strategy, Organizational performance, Thailand
Pages: 17-37
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Article Title: The dimensionality of trade show performance in an emerging market
Authors: Wondwesen Tafesse, Tor Korneliussen
Article Type: Research paper
Keywords: Africa, Emerging markets, Trade fairs
Pages: 38-49
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Article Title: The linkage between energy consumption and income in six emerging economies of Asia: An empirical analysis
Authors: Shuddhasattwa Rafiq
Article Type: General review
Keywords: Asia, China, Energy conservation, Gross domestic product, India, National economy
Pages: 50-73
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Article Title: The investment development path theory: evidence from India
Authors: Rakhi Verma, Louis Brennan
Article Type: Research paper
Keywords: Developing countries, India, International investments
Pages: 74-89
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(Yusaf H. Akbar)
Below is a brief summary of the papers in this issue. Our research in this issue covers a range of disciplinary, area and empirical perspectives.
Our first paper, by Shaheen Borna and Dheeraj Sharma, examines the causes for the financial market collapse in 2008 and in particular how much finance managers should trust Brownian motion theories in helping them develop finance strategies. The three assumptions, namely, independence, stationarity, and normal distribution that underlie the concept of Brownian motion are examined. The study concludes that the widely used risk management strategies predicated on Brownian motion fail to provide a rational understanding of financial turmoil. Consequently, new and improved risk management strategies need to be undertaken to augment our understanding and prediction of financial scenarios. They also contend that banks and investment houses should employ managers with broader understanding of business rather than technical staff whose quantitative skills are unmatched but who may lack a broader awareness of business strategies.
Vichak Phongpetra and Lalit M. Johri, in our second paper, examine the relationship between the business strategies of automotive assemblers in Thailand and their organizational performance. Basing their study on Porter’s positioning strategies concepts, their research shows that there are three dominant positioning strategies of automobile manufacturers in Thailand which have a positive effect on the organization’s financial and marketing performance: cost focus, cost leadership, integrated cost and differentiation combined. Drilling down from the broad business strategies, they also focused on functional strategies of these companies. They found that manufacturing strategy, i.e. production system, human resource management, marketing strategy, and the financial strategy to be the most significant factors that improved performance.
Next up, we have a study on the differences between the activities of emerging market companies and developed country companies by Wondwesen Tafesse and Tor Korneliussen at trade shows (TS). The author notes that much TS research focuses on developed country companies and that in fact emerging market companies will have a different approach to TS activity. In doing so, the study contributes to the TS literature in two ways. First, it extends the TS literature in an emerging market context and proposes TS performance dimensions that are different for emerging market exhibitors. Second, this paper sheds light on how emerging market exhibitors utilize TS activity as a marketing medium. Based on data from Ethiopian TS activity, Tafesse finds that emerging market exhibitors do often not have the internal mechanisms to gather competitive and market information from the market place. This is particularly the case due to the fact that most of the exhibitors are small in size and are unlikely to bear the cost of running independent market research and intelligence units. Consequently, emerging market exhibitors utilize TSs as a platform to collect competitive information and scan market opportunities.
Our fourth paper is from Shuddhasattwa Rafiq who carries out an interesting and insightful macroeconomic study of six Asian countries linking energy consumption to GDP. The aim of this paper is to contribute to the debate by analyzing causal linkages between energy consumption and output by using a demand side multivariate co-integration analysis. Three-country results stand out. For India, the paper suggests that where unidirectional causality from income to energy is found, she may contribute to the fight against global warming directly implementing energy-conservation measures. For China, where causality runs from energy consumption to output, the country should focus on technological developments and mitigation policies. Since energy is a critical determinant of economic growth in China, its shortage may retard economic growth. For Thailand, where bi-directional causality is found, a balanced combination of alternative policies seems to be appropriate.
Finally, Rakhi Verma and Louis Brennan contribute a paper to this issue on the investment development path (IDP) examining the case of India. This paper focuses on the country-specific level of India’s recent outward foreign direct investment (OFDI) surge, and more broadly tests the IDP hypothesis for India. This paper highlights that while India’s sharp rise in investments since 1991 has followed the GDP-driven development, its net outward investment position fails to exactly match the stylized IDP model. The study identified some peculiar features of Indian OFDI that cannot be explained by the IDP model. Hence modifications of the IDP are required for a fuller understanding of India’s investment position and perhaps those of other large emerging markets. The study is a macro level one. In order to get a closer handling of why India’s investment development appears to be different from what IDP would suggest, Rakhi Verma and Louis Brennan call for research on India’s outward investment to focus on company case studies in order to assess to what extent and how Indian firms are internationalizing faster for an emerging market than is typical.

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