2013 Progress Report

The Emerging Markets Institute at Johnson continues to grow.  We have enrolled more students, increased our research and expanded our outreach.  We have become sought out thought leaders on the role of emerging markets—and emerging market multinationals—in the global economy.
We are pleased to report our progress for the first half of fiscal 2013.
Education:

  • In November we enrolled the second class of emerging market fellow candidates. 27 students joined us from the Class of 2014.
  • Fellow candidates are required to complete a management practicum, which is a consulting assignment with a company in an emerging market.  We partner with two other schools to help us in this endeavor: the Indian Institute of Management Bangalore and ESCP, a pan European business school. The students work in teams with members from each institution on global projects for client companies and have study trips to each school to learn about culture and business in the respective countries and region.  Representative company projects completed by students in the practicum included:
    • Developing a demand forecasting model for a global fiber optic cable manufacturer.
    • Creating an Indian market entry strategy for a manufacturer of floor care appliances.
    • Conducting a market assessment for new products for a leading manufacturer of kitchen appliances in India.
    • Evaluating the launch of a web based service in Brazil for a global semiconductor chip manufacturer.
    • A predictive model on solar demand was developed for a supplier of equipment to manufacture solar PV cells and modules.  A variant of the model was presented to the Office of Science & Technology Policy at the White House. 
  • Study trips now include Brazil, Colombia, India, China, Europe, Turkey, Bulgaria, Israel, Ghana, Russia, Japan and Korea.  We are exploring the addition of a new trip for the spring of 2014.
    • Brazil - Dr. Maria Tereza Alexandre
    • Colombia - Dr. Wesley Sine
    • India - Melvin Goldman
    • China - Dr. Glen Dowell
    • Europe - Dr. Elena Iankova
    • Turkey and Bulgaria - Dr. Elena Iankova
    • Israel - Dr. Ori Heffetz
    • Ghana - Dr. Erik Simanis
    • Russia - Dr. Elena Iankova
    • Japan and Korea - Dr. Mark Milstein
  • On the Johnson study trip to Ghana, students were featured on national television and met with former President of the country, John Kufuor as well as Kofi Annan, former Secretary-General of the United Nations
  • The Cornell/Queens Executive MBA Program opened new boardrooms in Monterrey, Mexico and Bogata, Colombia and plans additional growth in Latin America in the future
  • Johnson at Cornell was ranked number 10 in International Business by Bloomberg/Business Week in its annual survey of 82 international business schools.


Research:

Our second round of research grants were extended to faculty.   Faculty scholars are now researching:
    • Warren Bailey (Johnson), Wei Huang (University of Hawaii), Ghon Rhett (University of Hawaii), Zhishu Yang (Tsinghua University) – “What’s Different About Islamic Finance?”
    • Srinagesh Gavirneni (Johnson) – “Equitable Allocation of Surface Water in Indian Agriculture: Identification and Implementation of Effective and Practical Strategies”
    • George P. Gao (Johnson), with Pengjie Gao (University of Notre Dame) and Yongxiang Wang (University of  Southern California) - “Security Transaction Tax, Trading Behavior and Market Quality in China"

The Institute is about to launch a  web-based research portal to give faculty, students and corporate partners access to academic research on emerging markets topics.

Other faculty research this year includes:

Published Papers
Campello, Murillo.  "Contemporary Corporate Finance Research on South America,"  Journal of Corporate Finance  18.4  (2012):  879-882.

Accepted Papers
  • Yin, Cui; Chen, Lucy; Chen, Jian; Gavirneni, Nagesh; Wang, Qi.  "Chinese Perspective on Newsvendor Bias: An Exploratory Note"  Journal of Operations Management  (Accepted)
  • Dawande, Milind; Gavirneni, Nagesh; Mehrotra, Mili; Mookerjee, Vijay.  "Efficient Distribution of Water Between Head-Reach and Tail-End Farms in Developing Countries"  Manufacturing & Service Operations Management  (Accepted)
  • Karolyi, Andrew.  "Corporate Governance, Agency Problems and International Cross-Listings: A Defense of the Bonding Hypothesis"  Emerging Markets Review  (Accepted)
  • Hiatt, Shon; Sine, Wesley David.  "Clear and present danger: Political turmoil and the contingent nature of planning on entrepreneurial firm survival in Colombia"  Strategic Management Journal  (Accepted)

Working Papers

Outreach:
  • The Institute held a high profile conference on Brazil at the Cornell Club in New York City.  Headlining the conference was Humberto Luiz Ribeiro, Brazilian Secretary of Commerce and Services, and David Neeleman, Founder and CEO of Jet Blue Airlines.  Additional speakers from Goldman Sachs, Citi, BNY Mellon, PricewaterhouseCoopers, Bain & Company, J.P. Morgan, Reckitt Benckiser, McLarty Associates, World Fund and Wal-Mart formed outstanding panels to discuss the potential of the Brazilian economy.
  • The Institute continued its global speaker series with several high level speakers:
    •  
      • Mark Hutchinson, President and CEO, GE China, who spoke on the growing need for management talent in China
      • N.R. Narayana Murthy, Founder and Chairman Emeritus, Infosys Limited, who discussed the challenges of the global business process outsourcing industry
      • Luis Carlos Sarmiento, Jr. CEO Grupo Aval (Durland Lecture), who outlined the complexities of the financial service industry in Colombia
      • Giorgis Kaminis, Mayor of Athens, Greece, who described the difficulties which the Greek government is facing in the European financial crisis
      • Professor Taotao Chen from the School of Economics & Management at Tsinghua University, P.R.China, who analyzed foreign direct investment flows into China
      • Scott McHugh, former Vice President of International Asset Protection and Security, Wal-Mart Stores, Inc., who gave an overview of how ethics were incorporated into Wal-Mart’s business model
      • Melissa Frakman, Sr. Manager, U.S./India Business Council, who explained how the council represented the needs of companies doing business in India
      • Rodolfo Martell, Director and Portfolio Manager, BlackRock, Inc., who described how risk is assessed in emerging markets
      • Andrew Jones, MBA ’05 Vice President, Equity Markets, Pinebridge Investments, who explained how emerging markets are now managed for growth
      • Hillel Schuster, MBA ’96, Principal, Corporate Finance, KPMG Israel, (via videoconference) who gave us a perspective on doing business in Israel
      • Cynthia Steer, Head of Manager Research & Investment Solutions, BNY Mellon, who identified trends in emerging market investing
      • Armando Martinez, President and CEO, OCAM, who discussed a new model for generating organizational efficiencies
      • Jeremy Prepscius, Vice President, Businesses for Social Responsibility, Hong Kong (via videoconference), who outlined how companies can use corporate social responsibility as an effective strategy
      • Ajay Banga, President and CEO of Mastercard, who discussed the possibilities of a cash-less society
      • Nick Warren, Development Director, First Quantum Minerals, who gave an overview of the mining industry in Africa

  • In conjunction with the International Executive Resources Group, the Institute made the following webinars available to students:
    • “Building Successful Business in China” by Jean-Claude Pierre, Executive VP of Rontec Technology
    • “Growing in High Growth Markets – Middle East” by by Ramesh Nuggihalli, General Manager & Managing Director, Tyco Gulf, Dubai, UAE 
  • The Institute participated as a speaker at the 2012 Thomson Reuters Emerging Markets Investment and Compliance Forum, and the Business Insurance Risk Management Summit.
  • We jointly released a survey of global Investor Relations practices in conjunction with BNY/Mellon.  A jointly research initiative is in progress to interpret the efficiency of global issuers’ strategies for approaching capital markets.
  • We jointly published a survey of the global food service business in conjunction with GLG Research.  Emerging Markets are expected to experience moderate to significant growth.
  • GE joined Citi and BISSELL Homecare as a corporate partner of the EMI.
We look forward to a successful close to the academic year, and plan additional speakers such as Ricardo Martinelli, the President of Panama and Ron Shah, CEO of Jina Ventures, a private equity firm focused on the Indian market.  We also plan to host a roundtable session in New York City of relevant issues for companies engaged in the emerging markets.

      For more information,  contact:
        Richard J. Coyle, Executive Director
          Samuel Curtis Johnson Graduate School of Management at Cornell University
            248 Sage Hall
              Ithaca, NY 14853
                Telephone: 607.255.9428


                E-mail: rjc89@cornell.edu