Antecedents of the propensity to learn management practices and their impacts on firm outcomes in emerging markets : a Bayesian model averaging approach

Ali, A; Ali, SI

Abstract

This article explores the factors that motivate firms to learn new management practices. The hypotheses are empirically tested using a representative sample of 3,676 small, medium and large firms from four South Asian countries and across all main sectors of economic activity. Given that we know little about the antecedents of the propensity to learn management practices in emerging markets, the study employs Bayesian Model Averaging approach to overcome the potential issue of model uncertainty. The results reveal that market competition, resource allocation towards internal and external R&D, good quality mobile network coverage and the use of external certified financial auditors have all positive and significant effects on the propensity to learn management practices. The results also suggest that private intellectual property rights protection in the context of inefficient legal systems can deter firms from learning, perhaps in fear of legal ramifications. Finally, the study shows that firms with a higher propensity of learning management practices are more likely to become profitable while exhibiting higher levels of both potential and actual innovation.

Citation

Ali, A., & Ali, S. (2020). Antecedents of the propensity to learn management practices and their impacts on firm outcomes in emerging markets : a Bayesian model averaging approach. International Business Review, 29(4), 101906. https://doi.org/10.1016/j.ibusrev.2020.101706

• Journal Article Type: Article
• Acceptance Date: Apr 23, 2020
• Online Publication Date: May 19, 2020
• Publication Date: Aug 1, 2020
• Deposit Date: Apr 28, 2020
• Publicly Available Date: Nov 19, 2021
• Journal: International Business Review
• Print ISSN: 0969-5931
• Publisher: Elsevier
• Volume: 29
• Issue: 4
• Pages: 101906
• DOI: https://doi.org/10.1016/j.ibusrev.2020.101706
• Publisher URL: https://doi.org/10.1016/j.ibusrev.2020.101706
• Related Public URLs: https://www.sciencedirect.com/journal/international-business-review