Journal of Asia Business Studies最新文献

{"title":"Examining the interplay between managerial ties, dynamic capabilities and innovation climate in driving balanced and combined ambidextrous innovation","authors":"Bader Alhammadi, Khalizani Khalid, Syed Zamberi Ahmad, Ross Davidson","doi":"10.1108/jabs-10-2023-0407","DOIUrl":"https://doi.org/10.1108/jabs-10-2023-0407","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper aims to adopt the dynamic capabilities view to investigate the relationship between managerial ties (i.e. business and political ties), dynamic capabilities and innovation climate on ambidextrous innovation (i.e. balanced and combined ambidextrous innovation), in the renewable and sustainable energy context. It also examines the mediating effects of dynamic capabilities between managerial ties and ambidextrous innovation (i.e. balanced and combined ambidextrous innovation), and moderating effects between dynamic capabilities and ambidextrous innovation relationships.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Multilevel analyses conducted using AMOS 26 on 288 employees working in 47 UAE energy firms.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Results found that business ties influences balanced and combined ambidextrous innovation indirectly, whereas political ties only impact combined ambidextrous innovation indirectly through dynamic capabilities. Dynamic capabilities insignificantly mediated managerial ties–ambidextrous innovation and political ties–balanced ambidextrous innovation relationships, with stronger indirect effect on combined than on the balanced dimension. Findings also indicate that innovation climate is the crucial moderator between dynamic compatibilities and ambidextrous innovation, as well as balanced and combined ambidextrous innovation, with stronger effect on balanced dimension than the combined.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study addresses recent calls by highlighting the role of dynamic capabilities, an important yet underexplored organizational capabilities in the innovation and ambidexterity literature. Also, this study advances insight into how balanced and combined exploration–exploitation innovation and dynamic capabilities are connected and enhances the understanding into how organizational factors stimulate dynamic capabilities leading to superior innovation.</p><!--/ Abstract__block -->","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141501147","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Tell me more: examining consumer perception and behavior toward animal welfare certification labels in Japan","authors":"Nozomi Toyota, Caroline S.L. Tan","doi":"10.1108/jabs-07-2023-0255","DOIUrl":"https://doi.org/10.1108/jabs-07-2023-0255","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this paper is to examine the factors that influence Japanese consumer purchase intention toward products bearing animal welfare (AW) certification labels.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>A conceptual model was developed with the constructs of informativeness, trust, consumer perception, health consciousness, moral norms and purchase intention and tested using a sample of 513 Japanese consumers. Data were collected using an online panel with the direct effects analyzed using regression while the mediation analysis was performed using Hayes PROCESS macro.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings have confirmed that informativeness, consumer perception and trust contribute to consumer purchase intention of products with AW certification labels. Moral norm has a significant indirect effect on the relationship between consumer perception and intention to purchase. However, health consciousness did not demonstrate any indirect effect on the relationship between consumer perception and intention to purchase.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes significantly to our understanding of Japanese consumers' perception toward AW certification labels, especially considering the limited discussion surrounding this topic in Japan. By highlighting the importance of informativeness, it sheds light on how enhancing consumer knowledge can potentially boost the demand for AW foods. Moreover, it challenges the conventional belief in the impact of health consciousness and consumer behavioral intention, thereby expanding the discourse on the role of health consciousness in consumer choices. Through this exploration, the study not only enhances consistency in discussing consumer behavior but also strengthens the coherence and argumentation of the research findings.</p><!--/ Abstract__block -->","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141501148","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A systematic literature review of Japanese SMEs: trends, challenges and insights for future research and practice","authors":"Said Elbanna, Fareed Begum, N. Mauji","doi":"10.1108/jabs-01-2024-0049","DOIUrl":"https://doi.org/10.1108/jabs-01-2024-0049","url":null,"abstract":"\u0000Purpose\u0000The distinctiveness of Japanese management practices offers invaluable insights for the strategic development and operational excellence of small and medium-sized enterprises (SMEs) worldwide. Recognizing this, the purpose of this study is to explore an extensive review of the literature on Japanese SMEs. The aim is to reveal previously explored research domains and to systematically categorize the unique factors contributing to the success and challenges of SMEs. This investigation not only illuminates the peculiarities of Japanese SMEs management but also sets the stage for applying these insights globally to SMEs across diverse industries.\u0000\u0000\u0000Design/methodology/approach\u0000Using a systematic review approach, 63 studies on Japanese SMEs from 1996 to 2021 were identified and analyzed.\u0000\u0000\u0000Findings\u0000This analysis identified six critical themes in Japanese SME management: nuanced firm management practices; forefront innovation and technology; internationalization; supportive government policies; commitment to corporate social responsibility and sustainable development; and vibrant entrepreneurship. The authors also spotlight challenges like navigating global competition and adapting to rapid technological changes. These insights, alongside noted methodological gaps in existing literature, suggest fertile grounds for future research and hold significant implications for SMEs globally.\u0000\u0000\u0000Originality/value\u0000The investigation of Japanese SMEs in this study highlights valuable insights for SMEs, policymakers and scholars, as it represents a rich and distinctive research phenomenon with various organizational, cultural, economic and political implications.\u0000","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141334910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Sectoral performance of Indian stock market during 1st and 2nd wave of COVID-19 pandemic: an event study analysis","authors":"Vishwas Gupta, Pinky Agarwal","doi":"10.1108/jabs-02-2023-0064","DOIUrl":"https://doi.org/10.1108/jabs-02-2023-0064","url":null,"abstract":"Purpose\u0000Capital markets are the backbone of an economy. COVID-19 has created an unacceptable and unpredictable economic environment worldwide, resulting in a significant setback for securities exchanges. India also experienced two waves of this pandemic, which led to a significant downturn in the capital market.\u0000\u0000Design/Methodology/Approach\u0000Researchers have endeavored to study the impact of the first and second waves of COVID-19 on the performance of various sectoral stocks in India. The performance of selected sectoral indices of the Bombay Stock Exchange was compared with the market performance of the S&P BSE 100. An event study was conducted to analyze the normal return, abnormal return (A.R.), and t-statistics of A.R. for various sectoral stocks. In addition, the abnormal returns of sectoral stocks between the first and second waves of COVID-19 in India were compared\u0000\u0000Findings\u0000The results of the tests showed heterogeneous A.R. between different sectors in both the first and second waves of COVID-19 in India. Positive investor outlook and government financial support programs for various sectors helped them recover from the second wave of COVID-19.\u0000\u0000Research limitations/implications\u0000The study analyzed the impact of the peak of the first and second waves of COVID-19 on selected sectoral indices. There may be several reasons for the performance of this particular stock index. However, we have tried to analyze the best possible reasons for this turbulence in the performance of stocks of selected sectoral indices. The study can be further analyzed to examine the long-term impact of such a pandemic on other sectors.\u0000\u0000Originality/value\u0000The study is based on the panic behavior of investors during such a pandemic. No one was prepared for this and expected this pandemic to last this long. This pandemic has taught so many lessons to everyone involved. Investors need to be prepared and cautious for such unforeseen disasters before making any investment decision. They need to analyze which industry can survive under such circumstances, and then they should invest there. Industries and enterprises must adapt and improve by honestly looking at their weaknesses and trying to meet investors' expectations.\u0000","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141363023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Unraveling influential factors shaping employee cybersecurity behaviors: an empirical investigation of public servants in Vietnam","authors":"Dien Van Tran, Phuong Van Nguyen, Demetris Vrontis, Sam Thi Ngoc Nguyen, Phuong Uyen Dinh","doi":"10.1108/jabs-01-2024-0058","DOIUrl":"https://doi.org/10.1108/jabs-01-2024-0058","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Government employees must comply with policies on information security regulations, online security practices, social networking usage, internet addiction, online cyberthreats and other related habits. These activities are considered cybersecurity behaviors. Government social media (GSM) accounts are increasingly used to educate employees about cybersecurity risks. To support the effectiveness of cybersecurity practices in government organizations, the purpose of this study is to investigate the impacts of GSM and organizational policy compliance on employees’ cybersecurity awareness, motivation and behaviors.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Data were obtained by administering a questionnaire survey to public personnel in Vietnam. A total of 330 valid responses were obtained, and the research hypotheses were tested using partial least squares–structural equation modeling.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>First, cybersecurity awareness enhances information protection motivation and employee protective behavior. Second, GSM has positive impacts on cybersecurity knowledge and information protection motivation. Third, there is a strong positive association between information protection motivation and employee protective behavior. Finally, while organizational compliance significantly increases cybersecurity awareness, its impact on employee protective behavior is ind irect.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This research enhances the literature on the behavioral dimension of cybersecurity. The primary objective of this study is to assess the influence of cybersecurity awareness on protective behaviors rather than intents and attitudes alone. Furthermore, this research integrates protection motivation theory and cultivation theory to provide a more thorough assessment of cybersecurity awareness and protective behavior. By investigating the impact of GSM on the level of cybersecurity awareness among employees within government organizations, this study provides valuable insights into the efficacy of recent governmental initiatives aimed at fostering cybersecurity.</p><!--/ Abstract__block -->","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141258170","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Navigating diversity: identity perceptions and workplace dynamics","authors":"Fareed ud din Qureshi","doi":"10.1108/jabs-09-2023-0367","DOIUrl":"https://doi.org/10.1108/jabs-09-2023-0367","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate the impact of dissimilarity perceptions, specifically related to religious identity and socioeconomic class, on identity disclosure behavior within the workplace. It also explores the relationship between disclosure behavior and perceptions of workplace ostracism. The study further examines the moderating roles of psychological safety climate and diversity-focused human resource (HR) practices in these dynamics.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Using quantitative methods, this confirmatory study analyzes the relationships between dissimilarity perceptions, identity disclosure behavior, workplace ostracism perceptions, psychological safety climate and diversity-focused HR policies. Hypotheses are tested to understand the effects of these variables in the workplace context.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings reveal that subjective dissimilarity perceptions are negatively associated with identity disclosure behavior. In addition, disclosure behavior is positively linked to perceptions of workplace ostracism. Surprisingly, the study finds that the psychological safety climate moderates the relationship between dissimilarity perceptions and identity disclosure behavior, showing a positive relationship when psychological safety climate perceptions are high. Furthermore, perceptions of diversity-focused HR policies moderate the relationship between disclosure behavior and perceptions of workplace ostracism, indicating a weakened relationship when diversity-focused HR practices are perceived as stronger.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes to the understanding of workplace diversity, inclusion and management by emphasizing the role of subjective dissimilarity perceptions, identity disclosure behavior and workplace ostracism. It explores the moderating influence of psychological safety climate and diversity-focused HR practices, offering valuable insights for both theory and practical strategies in the context of diversity management.</p><!--/ Abstract__block -->","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141188424","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Effects of transformational leadership on psychological empowerment and employee engagement: a comparative study of Bangladesh and Thailand","authors":"Sumaia Farzana, Peerayuth Charoensukmongkol","doi":"10.1108/jabs-07-2023-0256","DOIUrl":"https://doi.org/10.1108/jabs-07-2023-0256","url":null,"abstract":"\u0000Purpose\u0000Grounded in the transformational leadership theory, conservation of resource theory and job demands-resources model, this paper aims to examine the effect of transformational leadership on psychological empowerment and employee engagement of faculty members in Bangladesh and Thailand. This study also integrates Hofstede’s cultural dimensions theory to justify whether transformational leadership could affect psychological empowerment of faculty members in these two countries differently.\u0000\u0000\u0000Design/methodology/approach\u0000Survey data were collected from a total of 457 faculty members from two universities in Bangladesh (n = 243) and two universities in Thailand (n = 241). This study used partial least squares structural equation modeling for analyzing the proposed model.\u0000\u0000\u0000Findings\u0000The evidence shows that faculty members who worked for department heads and who exhibited transformational leadership demonstrated high level of psychological empowerment and employee engagement. Psychological empowerment also mediates the effect of transformational leadership on employee engagement. Moreover, the degree to which transformational leadership positively affects psychological empowerment is stronger for faculty members in a higher power distance culture (Thailand) than for those faculty members in a lower power distance culture (Bangladesh).\u0000\u0000\u0000Practical implications\u0000Because human capital plays a crucial role in determining the potential of universities to achieve superior performance, universities should provide leadership training to help department heads understand the key elements of transformational leadership and apply them in their management practices to promote empowerment and engagement of their faculty members.\u0000\u0000\u0000Originality/value\u0000The finding provides new evidence that broadens the knowledge from existing research about the cross-cultural effectiveness of transformational leadership, which has not been explored in the area of psychological empowerment.\u0000","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141098118","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Enforced work-from-home and its impact on psychological conditions: a qualitative investigation in India","authors":"Amitabh Bhattcharjee, Shreyashi Chakraborty, Varun Elembilassery","doi":"10.1108/jabs-09-2023-0386","DOIUrl":"https://doi.org/10.1108/jabs-09-2023-0386","url":null,"abstract":"\u0000Purpose\u0000Enforced work-from-home (EWFH) was the norm during the COVID-19 pandemic and continues to be implemented by many organizations owing to its long-term financial benefits. This study aims to understand the consequences of EWFH on the three psychological conditions of employee engagement: psychological safety, psychological availability and psychological meaningfulness.\u0000\u0000\u0000Design/methodology/approach\u0000Semi-structured interviews were conducted with 21 employees from different Indian companies. Thematic analysis was adopted to understand the consequences of EWFH on employee psychological safety, availability and meaningfulness.\u0000\u0000\u0000Findings\u0000The findings demonstrated that psychological meaningfulness, availability and safety were adversely impacted owing to limited choice and autonomy in EWFH.\u0000\u0000\u0000Research limitations/implications\u0000This study contributes to the literature by examining the concept of EWFH in relation to psychological conditions, which is novel and relevant. Also, the job demands and resources framework and the COR theory are used together to explain the findings, which strengthens the concept of EWFH.\u0000\u0000\u0000Practical implications\u0000Organizations should consider various aspects of EWFH and make decisions to improve employees’ engagement at work.\u0000\u0000\u0000Originality/value\u0000This study focuses on an unexplored area and facilitates a better understanding of the concept of EWFH and its impact on employees’ psychological conditions. This study is valuable for both management professionals and organizations considering the continuation of EWFH after the pandemic. It also offers new avenues for future research.\u0000","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141114104","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The individual nature of cultural friction in cross-border M&As: exploring the role of face when working with Asian counterparts","authors":"Muriel Durand, Olivier Lamotte, Mark Thomas","doi":"10.1108/jabs-04-2023-0148","DOIUrl":"https://doi.org/10.1108/jabs-04-2023-0148","url":null,"abstract":"\u0000Purpose\u0000This study aims to address a significant gap in the literature by exploring the individual nature and microfoundation perspective of cultural friction during the integration phase following cross-border mergers and acquisitions (CBMAs). It focuses on the role of face, a pivotal facet of interactions within Asian organizations, elucidating its importance in post-M&A integration outcomes.\u0000\u0000\u0000Design/methodology/approach\u0000Using a conceptual approach, this study draws on three bodies of literature, namely, cultural friction, microfoundations and face concerns. It reconsiders cultural friction as a microfounded construct and introduces face concerns as a pivotal element to understanding the challenges faced by managers at the forefront of CBMAs involving Asian companies. The conceptual approach is illustrated with examples for the world of practice.\u0000\u0000\u0000Findings\u0000This research makes two significant contributions to the fields of CBMAs and cultural friction. First, it demonstrates the relevance of the concept of cultural friction at the individual level, shedding light on the complex post-CBMA integration process. Second, this study demonstrates the critical role of face concerns in the sociocultural integration following CBMAs. This is underexplored in extant literature.\u0000\u0000\u0000Originality/value\u0000The crucial role of face is well known to those working in Asia. Yet academic inquiry remains underdeveloped on this issue for CBMAs. The friction derived from face concerns provides additional insights into the nature of the cultural challenges confronting managers during sociocultural integration and elucidates the micro-mechanisms influencing individuals’ responses to cultural friction. This research responds to calls to examine the human side of M&As uncovering previously neglected issues within intercultural managerial encounters.\u0000","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140961830","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Investigating the international corporate tax revenue efficiency under the digital economy: multiple case study of MNES operating in India","authors":"Kavita Pandey, Surendra S. Yadav, Seema Sharma","doi":"10.1108/jabs-04-2023-0158","DOIUrl":"https://doi.org/10.1108/jabs-04-2023-0158","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this paper is to validate the theoretical finding that digital MNEs avoid physical presence norms of permanent establishment and royalty characterization rules for business and royalty taxation, respectively, to escape tax incidence in the market economy, using information, communication and technology features and transfer pricing (TP) manipulations.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Multiple case studies of MNEs from technology sector, based on judicial decisions in 141 cases, over taxability of profits earned from Indian economic activities. Additional in-depth case study of the Uber Group to study the tax avoidance structures under platform economy, by routing of Indian profits through The Netherlands, a tax haven.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The study finds a significant number of digital MNEs earning profits from India and avoiding tax by defying physical presence and royalty characterization. In majority of the cases, demand-side business activities are discharged through incorporating and remunerating affiliates at cost plus low markup, thus avoiding tax incidence, using TP manipulations under the arm’s length principle applied by governments for benchmarking the intragroup transactions of the MNEs.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The research findings validate the view that digital features promote tax avoidance in the market economy.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The originality of the study lies in the validation of profit shifting through digital features from the developing market economy and portending that digital MNEs defy physical presence to avoid business taxation through TP manipulations.</p><!--/ Abstract__block -->","PeriodicalId":46138,"journal":{"name":"Journal of Asia Business Studies","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140926219","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}