European J. of International Management (63 papers in press)
Associations in transition: the business of Russian civil society
by Ekaterina Ivanova, Marco Maier, Michael Meyer
Abstract: What characteristics of professional and business associations determine their organisational activities in the context of Russias stage of transition? While research on associations in management and non-profit literature remains undertheorised and fragmented, professional and business associations not only constitute a significant component of the Russian nonprofit sector, but also contribute to the institutional infrastructure of the emerging market economy. This paper investigates the influence of organisational determinants on the relative importance of advocacy, community building, and service delivery within professional and business associations. Data for this study were collected from 215 associations throughout Russia. The study verifies multifunctional nature of associations and confirms that advocacy remains the highest priority activity for associations embedded in the transitional environment. Applying the Dirichlet regression, the study finds that organisational size and a specific agency type positively influence community building function. Moreover, our findings indicate that compulsory membership negatively affects service delivery and community building functions, whereas presence in social media has a positive effect on both of these functions fulfilled by Russian associations.
Keywords: multi-functionality; professional and business associations; compositional data; Dirichlet regression; Russia
The relevance of assurance statements on CSR information to independent directors
by Isabel-María García-Sánchez, Jennifer García-Sánchez And Martínez-Ferrero
Abstract: This paper aims to examine the relationship between board independence and the level of corporate social responsibility (CSR) disclosures and to check whether such a relationship is moderated by the existence of an assurance statement that increases the credibility and reliability of such information. Using an international sample of 780 companies from 2004 to 2010, as well as the GMM estimator methodology for panel data, our evidence supports the idea that independent directors show initial opposition to CSR disclosure practices, owing to concern for their career or reputation, because this reporting could lack credibility. However, the existence of an assurance statement moderates it in the sense that it protects directors from the reputation risks associated with potentially misleading CSR information.
Keywords: CSR report; independent directors; reputation risks; assurance.
Talent identification transparency: an alternative perspective
by Violetta Khoreva, Vlad Vaiman, Edyta Kostanek
Abstract: Over the course of the last decade, talent management has attracted a great deal of attention in the academic literature. Even though the field has evolved, much scepticism continues to surround it, and many questions are still to be answered that may bridge existing gaps between science and practice. This article offers an alternative perspective on talent identification transparency, the practice of informing employees of their talent pool membership. In line with the social exchange perspective, we propose that even though the reactions of those employees who are identified as talent and informed of their talent pool membership seem to be positive, the negative reactions of employees who are either identified as talent and informed of their talent pool membership, and whose expectations are not as well met, or employees who are not identified as talent (which is arguably the majority of the employee population in most companies) may outweigh the positive. This article adds value to the existing research on talent management, promotes a dialogue, and encourages new directions in theoretical and empirical research within the field. We believe that a heightened understanding of the dark side of talent identification transparency may help organisational decision makers in better executing their strategic talent initiatives.
Keywords: talent management; talent identification; talent identification transparency; social exchange perspective; workforce differentiation.
Influence of the individual characteristics and personality traits of the founder on the performance of family SMEs
by Mário Franco, Maria Prata
Abstract: The main aim of this study is to investigate the influence of the individual characteristics and personality traits of the founder on the performance of family SMEs. To achieve this goal, a questionnaire was constructed, covering the socio-demographic (individual) characteristics of the entrepreneur and an individual's personality traits through five dimensions (Big Five): extroversion, agreeableness, conscientiousness, neuroticism and openness to experience. To measure performance, an already validated scale was also used, including two fundamental dimensions: business and family. 123 questionnaires from family SMEs were validated. Results show that the individual characteristics (age, gender and academic qualifications) of the founder do not influence the performance of family SMEs. As for the personality traits of the founder, only conscientiousness and openness to experience are found to have a positive influence on performance, while neuroticism has a negative influence on performance. Some implications for theory and practice are also presented.
Keywords: founder; personality traits; Big Five; performance; family-owned SMEs.
Negotiation and the alignment of knowledge workers with organisational goals
by Alexander Madsen Sandvik, Richard Croucher, Paul N. Gooderham
Abstract: We investigate the alignment of work groups of knowledge workers with organisational goals in two large Norwegian companies. We explore whether negotiation processes are associated with positive organisational outcomes. We further explore whether clear management goals are necessary for successful negotiations. Finally, over and above goal clarity, we draw on past research to explore six antecedents of successful negotiation. We observe that successful negotiation processes both within work groups and between groups and management are associated with positive organisational outcomes. We further note that while goal clarity is necessary, it is not a sufficient condition for successful negotiations. We find that while the six antecedents for successful negotiations identified by previous research are in evidence, the presence of all six is not essential to success. Further, we find three antecedents not predicted by negotiation theory: the need to achieve stable work group membership before group formation; the need to avoid large groups with disparate professional backgrounds; and the positive function of managers acting as organisational advocates for work group approaches.
Keywords: organisational goals; knowledge workers; Norway; work groups; negotiation.
Chinese firms in Ireland: profile, motives and impact of human resource and industrial relations factors
by Yanyi Wang, Jonathan Lavelle, Patrick Gunnigle
Abstract: Despite its small scale and peripheral location, Ireland has enjoyed remarkable success in attracting foreign direct investment (FDI). This is predicated on a combination of incentives, principally low corporation tax but also certain human resource factors, particularly labour availability, quality and productivity. This paper presents an empirical investigation of the impact of human resource and industrial relations (HR/IR) considerations on the location decision of Chinese multinational enterprises (MNEs) in Ireland. To achieve this aim, our paper addresses two specific research objectives. We firstly seek to identify and profile the population of Chinese MNEs in Ireland, and secondly we empirically investigate the impact (or otherwise) of HR/IR considerations on their location decision. Our work confirms the low level of Chinese FDI in Ireland and finds that HR/IR factors had a differential impact on location decisions. We further highlight and discuss the extent of HR/IR impact and the underpinning reasons for variation.
Keywords: foreign direct investment; multinational enterprise; China; Ireland; human resource management; human resource; industrial relations.
Managing change in transnational companies: does cultural distance matter?
by Kurt Matzler, Andreas Strobl, Ellen Krill
Abstract: Employees commitment to change is an important prerequisite for change management success. We test how direct managers transformational leadership and top management communication impact employees commitment to change and how, in a transnational organisation, these relationships are moderated by cultural distance. We measure cultural distance using GLOBE (Global Leadership and Organizational Behaviour Effectiveness Research) dimensions. The results of the study in a German technology company (939 employees, operating in 30 countries) show that transformational leadership and top management communication are positively related to affective and normative commitment to change. Cultural distance positively moderates the direct managers transformational leadershipaffective commitment relationship and reduces the influence of top management communication on normative commitment to change.
Keywords: organisational change; transformational leadership; top management communication; cultural distance; GLOBE.
Local intermediaries and their organisational identification in a French subsidiary
by Mette Zoelner
Abstract: The paper explores identification processes among subsidiary employees who function as intermediaries between the subsidiary and headquarters thanks to their language competencies in the common corporate language. The study is based on a qualitative in-depth case study and adopts a social constructionist approach to identification.
The paper adds theoretically to the literature on languages in international business in three ways. First, it illustrates that fulfilling a role as local intermediary affects identification processes among subsidiary employees. Second, the paper shows that the literature on organizational identification contributes in conceptualising local intermediaries motivation for identification in terms of self-enhancement and sense-making. Third, the empirical analysis indicates that feelings of self-esteem and sense-making may derive from symbolic resources for constructing workplace-related identities that prevail within the societal context of the subsidiary.
In terms of managerial relevance, the study shows the importance of identifying the subsidiary employees that fulfil roles as local intermediaries in order to recognise their efforts and to foster organizational identification. When doing so, it might be relevant to consider prevailing symbolic resources in the local context, rather than the language.
Keywords: local employees; language intermediaries; organizational identification; corporate values and procedures,emic approach; qualitative studies; France.
Knowledge comes but wisdom lingers! Learning orientation as the decisive factor for translating social capital into organisational innovativeness and performance in Turkey
by Maximilian Holtgrave, Dilek Zamantili Nayir, Ann-Marie Nienaber, Gerhard Schewe
Abstract: The Turkish economy has been growing fast and Turkish organisations increasingly rival their Western competitors in terms of innovativeness. While strategy scholars primarily focus on internal capabilities such as learning orientation, network scholars typically consider external network ties as determinants of organisational success. Building on both research streams, our study develops and empirically tests an integrative framework that incorporates the specific cultural context of Turkey. Based on empirical data from 178 organizations, we demonstrate that in Turkey organisational innovativeness results from learning orientation mediating the effect of network ties on innovativeness. Thus, our study links external and internal explanations of what drives innovativeness and suggests that organisations in Turkey need to develop a network-enabled orientation towards learning. We make important recommendations for managers of Turkish organisations and those wishing to enter the Turkish market.
Keywords: learning orientation; network ties; innovativeness; performance; emerging economies; Turkey.
Self-employment: a promising agenda for IHRM research
by Urban Pauli, Beata Buchelt, Aleksy Pocztowski
Abstract: The main aim of this article is to present a theoretical model of applying HRM practices in the context of the self-employed (SE). According to recent studies and labour market data, the share of the self-employed in total employment is increasing. This may result from changes in both the business environment and attitudes to work. Running ones own business or being a self-contractor has become a promising alternative to contract employment. More and more, both young and experienced people choose this form of occupational activity for the higher earnings, career development and the work-life balance it affords. The article presents HRM as an important competency of the self-employed. That is followed by research designed to verify the interdependence between the level of HRM competency and business performance as well as SE employability.
Keywords: self-employment; international human resource management; human capital; micro firms; employability.
Corporate social responsibility and sustainability committee inside the board
by Ignacio Danvila, Jose M. Díez, Oscar Lopez De Foronda
Abstract: This study examines whether the existence of a sustainability committee with independent directors facilitates the requirements of the Dow Jones Sustainability Index in order to include the company within the leading sustainable companies. Our research focuses on the firms of STOXX EUROPE 600 for the year 2015. The results evidence that the existence of a CSR committee, formed by independent directors with previous experience in socially responsible actions, orientates the board to lead the firm
Keywords: sustainability committee; corporate governance; corporate social responsibility; independent directors; Dow Jones Sustainability Index; composition of board.
Multicultural competence: an empirical comparison between intercultural sensitivity and cultural intelligence
by Otmar Varela
Abstract: Numerous frameworks have been proposed to describe the set of capabilities associated with multicultural competence. Although overlaps between some frameworks have been discussed, a theory that reconciles conflicting views is still missing. A fundamental reason for the absence of such a theory is the scarcity of efforts devoted to contrasting frameworks and identifying generalisable features. This study compares two leading frameworks in the literature, Intercultural Sensitivity (IS) and Cultural Intelligence (CQ). Relying on a sample of undergraduate students (N = 98) who participated in a study-abroad program in Mexico, the study compares the nomological networks of IS and CQ. Results indicate overlaps between the cognitive components of CQ and IS. Findings also show that personality traits work as antecedents for both frameworks. Finally, results suggest that, when predicting behavioural adaptation, the variance of fine-grained competencies outperforms broad operationalisations of the general competence. The discussion section addresses the theoretical implications of results for future conceptualisations of intercultural competence and lists practical implications of findings.
Keywords: multicultural competence; intercultural sensitivity; cultural intelligence; multicultural adaptation.
Burnout and absence among hospital nurses: an empirical study of the role of context in Argentina
by Vishwanath Baba, Louise Tourigny, Silvia Ines Monserrat, Terri Lituchy
Abstract: This study explores the role of contextual factors of significant relevance to hospitals and their impact on burnout. These include shiftwork rotation, stressful work units, and understaffing. The efficacy of absence as a coping mechanism in managing nurse burnout is examined in both the most and least stressful work units under conditions of shiftwork rotation and understaffing, respectively. The sample consists of 304 hospital nurses in Argentina. Hierarchical moderated regression analysis was employed to test the hypotheses. Results reveal that absence plays a complex and differential role in moderating the impact of shift work on nurse burnout. Absence mitigates the impact of emotional exhaustion on diminished personal accomplishment among fixed shift nurses who work in the least stressful units. But the pattern is different in more stressful units. Absence buffers the impact of emotional exhaustion on diminished personal accomplishment in units that are substantially understaffed. But its role changes when it comes to buffering the impact of emotional exhaustion on depersonalisation across levels of understaffing. Consequently, we argue that absence plays an attenuating role only when specific contextual factors cohere. Nurses who are aware of this contextual confluence manage their mental health better. We suggest that these findings have significant implications for healthcare management in Argentina.
Keywords: burnout; absenteeism; shiftwork rotation; staffing; Argentinian nurses.
The role of exploitative and exploratory innovation in export performance: an analysis of plastics industry SMEs
by Claudia Ribau, Antonio Moreira, Mario Raposo
Abstract: Innovation capabilities are important for firms to compete in the market. However, the literature has rarely examined how exploitative and exploratory innovation influences the export performance of small and medium-sized firms (SMEs). As exploitative and exploratory innovation plays different roles in sustaining SMEs competitive advantages, this article presents an analysis of how four specific firms innovation capabilities (i.e. marketing, strategy, research and development and manufacturing capabilities) impact these SMEs export performance. Moreover, this study analyses how exploitative and exploratory innovation capabilities mediate the relationship of the four firms internal innovation capabilities and export performance. The results indicate that exploitative innovation positively influences SMEs export performance, but exploratory innovation does not. Another interesting finding is that strategy and manufacturing capabilities are important antecedents of both exploratory and exploitative innovation. Furthermore, the results reveal that only manufacturing capabilities have a direct impact on export performance, whereas strategy and manufacturing capabilities are the antecedents that most influence exploitative innovation and export performance.
Keywords: SMEs; export performance; innovation capabilities; exploratory innovation; exploitative innovation.
Backgrounds of the pioneer orientation: the divergent effect of social capital
by Pedro M. Garcia-Villaverde, Maria Jose Ruiz Ortega, Miguel Toledo-Picazo
Abstract: In this paper, we analyse the backgrounds of the pioneer orientation (PO), filling the theoretical and empirical gaps in the literature about first-mover advantages (FMAs). The main aim of the study is to analyse how social capital (SC) moderates the effect of exploration and exploitation capabilities on the PO. The obtained results of this empirical study in the agrifood industry in Spain show that exploration and exploitation capabilities encourage the firms development of a PO. However, as we hypothesise, SC has a divergent moderating effect on the relationship between each type of capacity and PO. While the social relations of the company reinforce the influence of the exploitation capabilities, they weaken the effect of the exploration capabilities. We also detected that an excess of SC discourages the development of PO. We contribute to link theoretical perspectives of social capital, dynamic capabilities and FMAs to understand the backgrounds of the PO.
Keywords: social capital; pioneer orientation; capabilities; exploration; exploitation; first mover advantages; foreign markets.
The role of job embeddedness: a moderator for justice and citizenship behaviour in the workplace
by Kuo-Tai Cheng
Abstract: The study draws insights from the theory of job embeddedness as a theoretical extension to explain employees' experiences of organisational justice and citizenship behaviour. Data were collected from 120 full-time employees, via a three-wave collection procedure in order to ameliorate the bias of common method variance. The analysis confirmed the moderating effect of job embeddedness on the relationship between organisational justice and organisational citizenship behaviour; that is, when the justice is deficient, people with higher job embeddedness still demonstrate citizenship behaviour. Unlike previous studies, this research found that procedural justice did not contribute to citizenship behaviour, whilst distributive, interpersonal and informational justice did effect citizenship behaviour.
Keywords: job embeddedness; employees; organisational justice; organisational citizenship behaviour.
Managing political risk in the oil and gas industry in a developing economy: the case of BP in Angola
by Adalberto J. S. Fernandes, Alfredo Jimenez, Johannes Marcelus Kraak, Dimitrios Tsagdis
Abstract: Drawing on a case research methodology, this paper analyses political risk for oil firms in the Republic of Angola. The dramatic fall in oil prices, coupled with the existing social inequalities, have substantially increased the risk of political instability, macroeconomic instability, regulatory changes and social dissent. These factors are exacerbated by the actions and, in some cases, inaction of the government and other political players. By focusing on a specific case firm, BP, we analyse the organisational processes used by this European firm to manage political risk in Angola and compare it with an existing framework for political risk management. We conducted semi-structured interviews with political risk management professionals within the firm and a review of corporate documents provided by the firm to ensure the qualitative analysis achieves more consistent results. Despite having a political risk management culture embedded in their strategies and plans, our findings show that political risk management is not completely developed yet.
Keywords: political risk; developing economy; Angola; oil and gas sector; organisational processes; country risk.
MNEs corporate social responsibility: an optimal investment decision model
by Won-Yong Oh, Kyoung Jin Choi, Young Kyun Chang, Moo-Kyeong Jeon
Abstract: Based on an assumption that corporate social responsibility (CSR) is an investment decision, we provide a theoretical model that suggests how multinational enterprises (MNEs) should optimally invest in CSR. Our model proposes the optimal timing (when) and level (how much) of CSR investment with an economic calculation of expected return and payoff uncertainty of CSR in local markets. We also specify various multi-level factors (i.e. individual, organisation, industry, and institution) that may affect the investment structure. Our model suggests that MNEs CSR decisions can be understood as a strategic investment seeking the optimal economic outcomes depending on the expected return and payoff uncertainty in each foreign affiliate. This study contributes to the literature by integrating research streams that have been polarised over the issue of the necessity of CSR for MNEs, and by offering a more complete understanding of how MNEs should invest in CSR.
Keywords: corporate social responsibility; optimal investment; expected return; payoff uncertainty; multi-level perspective.
Using expatriates for adapting subsidiaries employment modes to different market economies: a comparative analysis of US subsidiaries in Germany, the UK and Switzerland
by Johannes Meuer, Marlies Kluike, Uschi Backes-Gellner, Kerstin Pull
Abstract: Because the extent to which multinational companies (MNCs) benefit from foreign subsidiaries depends on how effectively MNCs manage their foreign subsidiaries workforce, the international management literature has long focused on how MNCs transfer Human Resource Management (HRM) practices. However, the literature has only vaguely dealt with institutional differences between host and home countries, often simplifying these differences under the umbrella of institutional or cultural distance. This article investigates how MNCs use expatriates to adjust subsidiaries employment modes to different market economies. We define employment modes as bundles of HRM and industrial relations (IR) practices implemented at the firm level and examine the employment modes of 76 subsidiaries of US MNCs in a coordinated market economy (Germany), a hybrid market economy (Switzerland), and a liberal market economy (United Kingdom). Our results reveal substantial differences in the expatriation strategies of MNCs that depend not only on the international focus of the MNC but also on the differences in IR between the parent and subsidiarys environment. Our findings qualify the role of expatriates in adjusting subsidiaries employment modes to different market economies and highlight the boundary conditions of integrating HRM with IR practices in the management of foreign subsidiaries.
Keywords: expatriation; international human resource management; industrial relations; varieties of capitalism; fsQCA.
The influence of competences and institutions on the international market orientation in foreign-owned subsidiaries
by Sven Dahms
Abstract: The international market orientation of foreign-owned subsidiaries, defined here as the importance of markets supplied outside their host country, can and often does, plays a vital role for managers as well as policy makers. This paper investigates how multilevel corporate competences and institutional differences stand to influence international market orientation and performance among firms. Our research is based on a survey of subsidiaries located in the mid-range, emerging economy of Taiwan. The results are analysed using SEM-PLS method. We found that competences that emerge from the subsidiary itself and competences from multinational enterprise networks serve to enhance; whereas, competences emerging from headquarters operations can have an adverse effect on international market orientation. Institutional differences add to the overall complexity through direct and moderating effects. This study indicates that the competence-based view of the firm can be enriched with insights from institutional theory in order to expand our understanding of subsidiary development located in emerging economies and also with their international market orientation in particular.
Keywords: foreign-owned subsidiaries; multinational enterprises; emerging economies; SEM-PLS; international market orientation; institutional theory.
International entrepreneurship: a critical review of the research field
by Hugo Baier-Fuentes, Esther Hormiga, Paloma Miravitlles, Fabio Blanco-Mesa
Abstract: This study provides a comprehensive review of the International Entrepreneurship (IE) literature and analyses its evolution in relation to the criticisms made by previous reviews. For this purpose, 272 articles published in 20 journals indexed in the Journal Citation Report for the 1989-2015 period were analysed in depth. The results reveal that researchers have increasingly worked to address these criticisms. Nevertheless, these efforts have not been sufficient since theoretical difficulties that prevent a better understanding of the IE field continue. Therefore, this study conducts a critical discussion of these difficulties: the disparity between IE definitions, the terminological disparity between rapidly internationalising firms, and the inclusion of studies that compare entrepreneurship at the national level between countries. Finally, to improve understanding and further progress in IE research, recommendations and a roadmap for future research are proposed.
Keywords: international entrepreneurship; international new ventures; born global; comparative entrepreneurship.
Expatriate academics and perceptions of organisational support
by Jodie-Lee Trembath, Zaza Nadja Lee Hansen
Abstract: Research on Perceived Organisational Support (POS) rarely focuses on the potential gap between employee perceptions versus the support the organisation purports to offer. An understanding of this may provide greater insight into the interventions that a university should be making if it hopes to improve retention of its expatriate academics. By analysing qualitative responses to a written questionnaire, this paper explores the perceptions of organisational support held by 163 expatriate academics employed at a large international Danish university, and compares these perceptions with the support the university claims to offer. Our study reveals that, in the case of expatriate academics, even extensive offerings of organisational support can be insufficient if the existence and specific benefits of the support are not adequately communicated, and if the academics do not trust the source of the support on offer. Theoretical and practical implications are discussed.
Keywords: expatriate academics; international human resource management; higher education management; perceived organisational support.
Psychic distance and FDI in Turkey: the role of industrial development and religion
by Alfredo Jimenez, Mesut Eren, Secil Bayraktar
Abstract: Our paper analyzes the critical role of psychic distance on Foreign Direct Investments (FDI) in an emerging economy, Turkey. Our results demonstrate that two psychic distance dimensions are significant when analysing FDI flows from OECD countries. First, psychic distance in industrial development has a positive effect, namely, greater industrial development distance between the investor country and Turkey increases FDI flows. Second, psychic distance in religion plays a negative role whereby greater distance between the investor country and Turkey reduces FDI flows. In addition, home country Gross Domestic Product (GDP) and European Union (EU) membership positively affect foreign investments in Turkey. By contrast, and as expected, geographic distance has a negative effect.
Keywords: psychic distance; foreign direct investment; emerging economies; Turkey; OECD countries.
Organisational innovativeness of international new ventures: evidence from Swedish firms
by Jan Abrahamsson, Vladimir Vanyushyn, Håkan Boter
Abstract: This paper scrutinises how and to what purpose international new ventures (INVs) of various development stages and formation types innovate organisational structures and routines in comparison with other internationally active firms in Sweden. We show that INVs place more emphasis on reorganising their external relationships than other internationalised firms and that INVs primarily aim their reorganisation efforts at furthering their ability to enhance innovative output. Coupled with the fact that INVs report higher rate of new to the market innovations than other internationalised firms, we conclude that INVs retain their innovative focus over time and, irrespective of their formation type, continuously advance their networking capabilities. We propose that dynamic innovation-advancing relational capability as a characteristic that is unique to the INVs as a group of firms.
Keywords: international new ventures; innovation; community innovation survey; organizational innovation; internationalization; dynamic capabilities; Sweden.
The use of market analytics in the recruitment of high potentials in the pharmaceutical industry
by Jan Posthumus, Gil Bozer, Joseph C. Santora
Abstract: This article aims to contribute to the growing body of literature on the use of market data, as well as the use of segmentation and targeting instruments, in the recruitment of high potentials. The grounded theory approach (GTM) within the contingency theory framework was used to explore the key contextual factors that influence segmentation and targeting. Corporate HR professionals and executive recruiters from European and US-based pharmaceutical companies (n = 15) were interviewed for this study. We found that a company's need for certain groups of high potentials (e.g., clinical development professionals), the scarcity of certain valuable employee groups, and HR personnel's capabilities and attitudes are key determinants of the implementation of analytical instruments, such as market analysis, segmentation and targeting. We provide theoretical implications coupled with practical implications for HR practitioners concerned about meeting targets for the recruitment of talent. Finally, based on our findings, we provide specific recommendations to be addressed in future research.
Keywords: contingency framework; data analytics; grounded theory method; high potentials; pharmaceutical industry; recruitment; segmentation; targeting.
How individual value structures shape smart shopping experience and brand choices: an international perspective
by Mónica Gómez-Suárez, Myriam Quinones, María Jesús Yagüe
Abstract: This study explores the extent to which smart shopping, and particularly its effect on consumer attitudes towards store brands and national brands, is influenced by consumers cultural values. Our conceptual model, based on Schwartzs value framework, was tested with a survey that sampled 1,272 shoppers from six countries (USA, UK, France, Germany, Italy and Spain). According to the results, the values that individuals acquire in their cultural environment significantly influenced their smart-shopper self-concept. Additionally, there were cross-country differences in consumers value frameworks. As expected, smart shoppers self-concept influenced their attitude towards both store brands and national brands, but was less influential in the formers case. These results have important implications for international marketing scholars and practitioners, especially regarding strategic aspects such as segmentation, positioning, and major communication strategies.
Keywords: consumer behaviour; cross-country; culture; individual values; smart shopper; brand attitude; store brand; private label; national brand; structural equation modelling; confirmatory factor analysis.
Are bank advertisement appeals adapted to local culture? - Lessons from multinational banks present in Romania and Hungary
by Mónika Anetta Alt, Zsuzsa Săplăcan
Abstract: The European Single Market is challenging marketing managers decisions at each EU enlargement for it is known that culturally adapted advertisements are more effective than those that are not adapted, but it is less known how advertisements from different industries should be adapted. This study presents our findings on how multinational banks have dealt with the 2007 EU enlargement in terms of their advertisement appeal adaptation to Romanian and Hungarian cultures. The aim of this paper is to identify relevant cultural dimensions for bank advertisement appeal adaptation. The research is based on 785 unique print advertisements, published between 2006 and 2014 in national newspapers, belonging to eight banks operating in both countries. Content analysis based on Pollays 42 appeals reveals 11 representative appeals for banks. The most frequently used advertising appeals in the banking industry in both countries are informational ones and are related to masculinity and power distance dimensions. The cultural adaptation of messages is more visible in transformational appeals and it is reflected mainly in the cultural dimension with the highest differences among countries, namely individualism/collectivism.
Keywords: international advertising; adaptation; cultural dimension; appeal; bank; Romania; Hungary.
Exploring the effects of subsidiary interdependence on the performance of global product launches
by Alexander Mohr, Marc Van Unen, Fernando Fastoso, Can Tihanyi
Abstract: We explore the effects of subsidiary interdependence on global product launch performance using a case-study design combining quantitative and qualitative data collected from subsidiaries participating in the global launch of a new drug by a major pharmaceutical multinational enterprise. The study combines pre-launch survey data on subsidiary interdependence with post-launch quantitative performance data to select eight of 67 subsidiaries involved in a global product launch. We also analyse information gathered through in-depth interviews with 19 subsidiary managers to explore various facets of the relationship with their headquarters and other subsidiaries. Our findings suggest that the positive effect of interdependence on global product launch success varies with subsidiaries involvement in decision-making, with the division of labour and responsibilities, and with the existence of cognitive, relational and structural social capital. Based on our findings, we present several propositions regarding the effects of subsidiary interdependence on the success of global product launches.
Keywords: global product launch; subsidiary interdependence; launch performance; social capital; case-study approach.
Toward a masstige theory and strategy for marketing
by Justin Paul
Abstract: The term 'masstige' stands for mass prestige. Masstige marketing is a strategic phenomenon with the goal of market penetration and brand management in the era of globalisation. The main purpose of this paper is to contribute to the development of the masstige marketing theory to explain the brand management phenomenon of high value/premium/moderately highly priced (but attainable) brands with a new theoretical model - focused on product, promotion and place strategies, keeping prices constant. Besides, we assess and contrast the effectiveness of marketing strategy of foreign and domestic car brands in the USA using the Masstige Mean Index (MMI) developed by Paul (2015). This study is based on the survey data of owners of Japanese and American car brands. It was found that brands can create higher mass prestige value in a foreign country if they follow a masstige marketing strategy. The study shows how MMI may facilitate masstige score estimates, allowing comparisons and aiding brands in devising strategies.
Keywords: brand perception; foreign brand; brand equity; mass prestige; masstige mean index.
Between domestic and international new ventures: the relevance of the characteristics of entrepreneurs and firms
by Nuno Fernandes Crespo, Diana Aurélio
Abstract: We investigate the relevance of both the characteristics of entrepreneurs and those of firms as determinants of new international ventures. Our investigation is built on the knowledge-based view and upper-echelons theories. Using data from a cross-sectional survey of 4,193 new ventures, domestic and international, we combine the net effects from structural equation modelling (SEM) with the combinatorial effects from a fuzzy set qualitative comparative analysis (fsQCA). The findings show that the characteristics of both the firms and the entrepreneurs are relevant to a new venture becoming international. The fsQCAs results show that both high and low values for the entrepreneurs personality characteristics influence new ventures going international.
Keywords: international entrepreneurship; domestic new ventures; international new ventures; entrepreneur’s personality; entrepreneur’s demographics; firm’s characteristics; fsQCA.
Roles and strategies of foreign MNE subsidiaries in New Zealand
by Muhammad Mustafa Raziq, Gabriel Benito, Paul Toulson, Omer Farooq Malik, Mansoor Ahmad
Abstract: This study examines the roles and strategies of foreign-owned subsidiaries in New Zealand, with the aim to develop an improved classification of subsidiaries of multinational enterprises (MNE). Previous research has proposed a range of subsidiary classifications, indicating various ways in which subsidiaries can be distinguished. There are, however, still concerns that critical contingencies, such as the subsidiary development capacity and its own strategy, remain ignored. This study addresses these gaps by drawing on network theory to develop a novel and overarching subsidiary classification framework. Based on the framework, it empirically derives a three-part subsidiary classification: entrepreneurial, constrained autonomous, and constrained. The empirical classification is based on data from 429 foreign subsidiaries in New Zealand. Implications for theory, public policy, and management practice are made.
Keywords: subsidiary role; subsidiary strategy; subsidiary development; subsidiary classification; MNE management structure.
Integrating intrinsic motivation into the relationship between product design and brand attachment: a cross-cultural investigation based on self-determination theory
by Faheem Gul Gilal, Jian Zhang, Rukhsana Gul Gilal, Naeem Gul Gilal
Abstract: Previous marketing investigations have broadly predicted brand attachment by linking extrinsic motives. However, intrinsic motives of attachment have been surprisingly disregarded in the literature. To address this gap, this study integrates intrinsic motivation into the relationship between product design and brand attachment. To this end, we studied individuals from three countries, and the self-determination theory was found to generalise across individuals from Pakistan, South Korea, and China. The effects of three product design dimensions on each form of psychological need satisfaction and the subsequent brand attachment were greater for Pakistanis than for Koreans and Chinese. In particular, relatedness satisfaction was found to be a stronger driver of brand attachment for Pakistanis and Chinese than for Koreans, whereas autonomy satisfaction was found to more promising at explaining consumer attachment to brands for Koreans than for Chinese. Competence and relatedness satisfaction failed to capture brand attachment for Koreans. Finally, implications for theory and practice are discussed.
Keywords: product design dimensions; brand attachment; intrinsic motivation; psychological need satisfaction; self-determination theory.
Demerged multinational enterprises: a study of post-demerger international strategies
by Wouter Merkestein, Johan Lindeque
Abstract: Demerged Multinational Enterprises (DMNEs) that emerge with an independent corporate status after a demerger from a parent multinational enterprise (MNE) are unique firms with a great variety of post-demerger strengths, weaknesses and international strategic responses. This paper adopts a firm-level internalisation theory approach to MNE strategy to empirically explore the characteristics and post-demerger strategies of four focal case DMNEs. Five years of post-demerger data from annual accounts, newspaper articles and databases were analysed. Analysis of the strategic responses of the four DMNEs has allowed a typology that distinguishes four DMNE types to be proposed. This typology explains the international strategies of DMNEs by the degree of post-demerger strategic dynamism that is possible and the need to address the quality of the firm specific advantages endowed to the DMNE in the demerger.
Keywords: multinational enterprise; demerger; demerged multinational enterprise; post-demerger; international strategy typology.
Intertwining the individual and organisational experience: asymmetries of cross-cultural knowledge sharing, networking and learning
by Raija Pini Kemppainen, Nigel Holden
Abstract: The aim of this research is to explore the connection between the individual and organisational experiences of cross-cultural knowledge sharing, networking and learning. A qualitative research design was devised with three Nordic technology companies and significant players in the international market: Kone, Nokia and Yara. The data collection took place through semi-structured interviews of 15 senior managers. Our research suggests that knowledge sharing, networking and learning at the individual and organisational levels form asymmetric and parallel, but not completely separate, universes. Individual and organisational experiences of knowledge management (KM) take different forms, functions and foci. The research also emphasises the centrality of individual managers for successful KM. The most effective cross-cultural managers express the importance of active communication in sharing, experience satisfaction in international networking and learn to discern cross-cultural complexities. Our findings have implications for organisational theory, highlighting the significance of the level of analysis in cross-cultural activities. The results introduce a perspective for international managerial practices: a need to harness the individual experiences in cross-cultural knowledge management for the benefit of organisational goals.
Keywords: knowledge management; cross-cultural; multinational corporation; international business; knowledge sharing; networking; learning.
When foreignness becomes a liability: the effects of flawed institutional environments on foreign vs. domestic firm performance in emerging markets
by Tilo Halaszovich
Abstract: Weak institutions in emerging markets expose foreign firms to increased liabilities of foreignness. At the same time, foreign firms have firm-specific advantages compared with those of their domestic competitors. Based on a holistic perspective of the institutional environment in emerging markets, the present study explored the conditions under which the institutional environment prevents foreign firms from fully exploiting these advantages. The article proposes measures of institutional logics to capture the fundamental institutional structures in emerging markets and firm-specific abilities to control its flawed environment. To test our assumptions, we used data from the World Bank Enterprise Survey on 12,782 firms from 35 emerging markets. The results confirm that complex environments affect firm performance negatively, both for domestic and foreign firms, but the liabilities of foreignness exceed the firm-specific advantages of foreign competitors only in the most complex environments.
Keywords: liabilities of foreignness; institutional environment; institutional logics; FDI; emerging markets; firm performance.
How does multimedia word of mouth influence consumer trust, usefulness, dissemination and gender?
by Haibin Zhang, Chikako Takanashi, Steven Si, Guoqing Zhang, Lei Wang
Abstract: Multimedia word of mouth represents unofficial information produced by consumers. It is composed of multimedia files and text and has significant influence on consumers behaviour. This study explores the interactive relationship of trust and perceived usefulness using the two-stage least squares method. A model based on two dimensions of trust theory and two dimensions of dissemination intention tests how gender-based differences in multimedia word of mouth influence consumer trust and information
dissemination. The partial least squares method is used to analyse gender differences based on experimental data. The same data are used to conduct a fuzzy-set qualitative comparative analysis to confirm the results. The results indicate that trust and usefulness can enhance each other. Additionally, womens perceived usefulness of word of mouth is greater than that of men, particularly in the online environment. Finally, trusts influence on offline dissemination intention is more pronounced for men than for women.
Keywords: consumer review; information dissemination; multimedia review; gender difference; qualitative comparative analysis.
Foreign direct investment drivers and establishment mode choice of emerging-market MNEs: the role of state ownership
by Diego Quer, Laura Rienda, Rosario Andreu
Abstract: Drawing on an institutional perspective, this study analyses how state ownership affects the relationship between foreign direct investment (FDI) drivers and establishment mode choice of emerging-market multinational enterprises (EMNEs). We argue that state-owned EMNEs encounter stronger institutional pressures in technology-and natural resource-rich countries derived from concerns about takeovers of local companies. Moreover, in low-growth markets, state-owned EMNEs do not always behave as pure profit-maximisers since they are usually subject to home government institutional influences and pursue policy goals. For these reasons, we hypothesise that their choice between acquisitions and greenfield investments differs from that of privately-owned EMNEs. Our analysis of 643 FDIs undertaken by Chinese companies confirms that state-owned EMNEs are less likely to choose acquisitions in host countries with a higher technology and natural resource endowment. However, the relationship between host market growth and establishment mode is not influenced by state ownership.
Keywords: establishment mode; EMNEs; FDI drivers; state ownership.
Factor analysis of SMEs entering foreign markets: the case of Taiwanese SMEs in Vietnam
by Kuei-Ying Hsu, Hsin-Pin Fu, Arthur Lin, Tsung-Yin Ou
Abstract: Internationalisation is an important issue for firms, especially small and medium enterprises (SMEs). Compared with large enterprises, SMEs possess limited internationalisation experience and face unknown risks owing to limited resources. However, if SMEs understand the determinants for entering into a foreign market and their relative importance, they could deploy their relatively limited resources optimally and maximise the success of entering the global market. Through literature review, this study proposes a three-level factor hierarchical table of SMEs entering foreign markets based on the dynamic capabilities framework. Through expert questionnaires, factor weights were obtained by using a fuzzy analytic hierarchy process (FAHP), and the advantages of the VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method were then used to objectively identify six critical success factors (CSFs): customer orientation, host countrys interfunctional productivity coordination, alignment of product/service with host country, competitor orientation, and open-mindedness. These six factors map the key path for SMEs to enter foreign markets and four practice implications are proposed. The results can be used as reference for Taiwanese SMEs to optimise their decision-making and resource allocation processes for entering into foreign markets.
Keywords: SMEs; entering foreign market; CSF; FAHP; VIKOR.
An experiment of institutional change in the ecosystem of entrepreneurship: easing sanctions against Iran
by Elham Kalhor, Shayegheh Ashourizadeh, Thomas Schøtt
Abstract: The ecosystem of entrepreneurship includes institutions, notably the market with its arrangements, such as the extent of the market and availability of opportunities. In Iran, extent and opportunities were limited by severe sanctions until 2015, when sanctions were eased by what is known as the nuclear agreement. This institutional change invites the hypothesis that easing sanctions entailed an expansion of entrepreneurship. This hypothesis is tested as a natural experiment, comparing entrepreneurial pursuits before and after the agreement, using the annual survey of adults and entrepreneurs in Iran conducted by the Global Entrepreneurship Monitor, complemented by in-depth interviews. Pre- and post-agreement comparisons show increases in peoples opportunity perceptions, intention to become entrepreneurs, and entry into entrepreneurship. Entrepreneurs became increasingly pulled by opportunity and decreasingly pushed by necessity and increasingly export-oriented, and expectations for growth of businesses increased. These findings contribute to understanding how institutional change in the ecosystem of entrepreneurship can change entrepreneurial pursuits.
Keywords: entrepreneurship; opportunity; growth; ecosystem; experiment; institutional change; sanctions; Iran.
Do work-related values of physicians predict their preferred employers characteristics in a job choice scenario? Results from an Austrian pilot study
by Christoph Augner, Christa Stückler
Abstract: The physicians' job market has turned from an employers' market to an applicants' market. However, little is known about the motives and values that are relevant to how physicians decide to choose an employer. The objective of this study was to identify relevance and relationship of and between work-related values of physicians and preferred characteristics of employer before the background of Person-Organization (P/O)-fit theory (Cable & Judge, 1996). We developed a questionnaire study that was administered to physicians employed by an Austrian hospital corporation. Age was the best predictor of workplace-related characteristics of the employer. Furthermore, we found that hedonism as a work-related value subscale best predicted preference of work-life-balance-related characteristics of the employer. Performance-related characteristics of the employer were best predicted by career orientation of the physicians. This pilot study contributes knowledge to the relatively scarce evidence of how physicians choose their employer.
Keywords: physicians; human resources; health care; health economics.
Which organisational capabilities matter for SME export performance?
by Antonella Zucchella, Roger Strange, Serena Mascherpa
Abstract: As a result of the increasing tendency towards a global economy, international business involvement is becoming particularly relevant for smaller companies. Exporting constitutes the most popular, quickest and easiest way for many small firms to internationalise. The aim of the paper is to provide a comprehensive picture of the determinants of SME export performance, by investigating the potential relationship between organisational capabilities and both objective and subjective measures of performance. Based on the literature review and mainly embedded in the resource-based view of the firm, we uncover a collection of organisational capabilities that are especially salient to these firms and their growing international involvement. The suggested conceptual model is tested with a sample of Italian exporting SMEs using regression analysis. The results show that entrepreneurial and innovative capabilities are the most influential antecedents of both objective and subjective measures of international performance. Finally, we discuss the managerial implications of our findings.
Keywords: organisational capabilities; SME internationalisation; export performance; international entrepreneurship.
Cultural affinity and its effects on internationalisation: an empirical investigation on Taiwanese banks
by Hsiang-Hsi Liu, Wang-Chiang Ko
Abstract: This study examines cultural affinity as a novel role in country-institution specific factors and its effects on the degree of internationalisation (DOI) of Taiwanese banking firms. The empirical results indicate that, after considering the cultural affinity factor, estimated coefficient effects of firm age at home country, advertisement intensity, outward direct investment of Taiwanese manufacturing industry, relative interest rate, relative per capita GDP and cultural affinity/liking have positive effects on the DOI of Taiwanese banks. Cultural distance and global financial crisis have negative effects on the DOI of Taiwanese banks. Overall, the effects of country-specific factors influencing the DOI for Taiwanese banks are higher than firm-specific factors. We hope our empirical results may provide government and management decision makers with guidance when considering cultural issues and interacting or expanding into international markets.
Keywords: cultural affinity; degree of internationalization; banking industry; country-institution factors.
Discourse on corporate social responsibility in external communication of agricultural enterprises
by Jolita Vveinhardt, Egle Stonkute, W?odzimierz Sroka
Abstract: The aim of the research is to evaluate the practices of corporate social responsibility in Lithuanian agricultural enterprises after the analysis of the communicative messages. The methods of analysis and synthesis of academic literature on CSR and rural development, method of analysis of the content were used during the research. The analysis of the information published on the web pages and public reports of the enterprises operating in Lithuania showed that corporate social responsibility in enterprises operating in the field of agriculture is revealed only episodically and is more typical of the enterprises of foreign capital and listed companies. It turned out that the understanding of social responsibility is still too narrow and confined to environmental protection, legal responsibility, as well as support for communities and non-governmental organizations. The relative absence of corporate social responsibility explicitly communicated by agricultural enterprises could be treated as a simple mistake of corporate communication.
Keywords: health-related quality of life; corporate social responsibility; agriculture; sustainable development; stakeholders; communication; qualitative research.
Cross-cultural diversity management in service firms
by Ricarda B. Bouncken, Andreas J. Reuschl, Céline Viala, Roman W. Barwinski
Abstract: The European healthcare sector is facing tremendous challenges, especially related to international diversity. The demographic change is generating an ageing population with rising demands for medical services, lacking the ability to train sufficient numbers of medical professionals. Foreign healthcare professionals migrate to central Europe, especially to Germany, to fill the gap in the healthcare labour market. The migration and internationalisation increases national and cultural diversity in hospital workforces. Our study contributes an adaptation of a service-profit chain model for hospitals and then empirically investigates the impact of diversity on the service capabilities of German hospitals. Our results show that the service-profit chain is applicable to hospitals and that workforce diversity has a negative indirect impact on employee job satisfaction and thereby on productivity.
Keywords: healthcare; diversity; diversity management; workforce migration; service profit chain; quantitative analysis; social identity theory.
Strategic decision-making in family firms: an exploratory study
by Andreas Kallmuenzer, Mike Peters, Wolfgang Hora
Abstract: Strategic decision-making (SDM) processes in family firms represent a complex task involving family managers, family members and, in most cases, non-family managers. Drawing on the concept of socio-emotional wealth (SEW), this study aims to explore the characteristics of SDM processes in family firms, which groups of stakeholders they involve, and how the family itself influences the process. We present a multiple case study based on qualitative data collected through 30 interviews, representing 15 family firms in the service industry. Upon discussing the findings, we are able to identify family membership, adherence of decision-makers to SEW goals, as well as the expertise and work experience of employees as crucial factors in joining and forming SDM in family firms. Moreover, strategic decisions in family firms depend on long-term firm goals and are affected by the need to cooperate/coopete with other firms to overcome barriers of size and hostile environmental dynamics.
Keywords: decision-making; family firm; service industry; SEW.
Research on compatibility strategy of ride-hailing platform
by Ke Lu, Jing Zhou, Xiaowei Lin
Abstract: In this paper, the compatibility strategy of a ride-hailing platform is analysed based on two-sided market theory. The basic model is constructed by considering the utility function of traveller and driver. Then two situations of compatibility model are extended based on basic model. In situation 1, the cross-platform cost is afforded by traveller. In situation 2, the cross-platform cost is afforded by driver. The equilibrium price and profit of both situations in compatibility model are analysed. Moreover, the factors of average waiting time and drivers commission rate are also introduced in order to reflect the characteristic of ride-hailing service. Finally, the results from the basic model and compatibility model with two situations are analysed and compared. The main results indicate that the equilibrium price charged to travellers in situation 1 is always higher than that in situation 2, while the price charged to drivers in situation 1 is always lower than that in situation 2.
Moreover, the ride-hailing platforms that afford the cross-platform cost can earn
more profit. And the relationship between drivers commission rate, average
cost per transaction and equilibrium price, and total profit also depends on the
probability that travellers choose to make cross-platform transactions
Keywords: ride-hailing platform; compatibility; two-sided market; urban transport.
Empowerment of the professional ageing workforce: a review and development of a model
by Mirali Seyed Naghavi, Mahdieh Gholamzadeh Jofreh, Reza Vaezi, Vajholah Ghorbanizadeh
Abstract: The majority of organisations recognise that they need to retain the professional ageing workforce as they are beneficial to business transformation. However, there is a lack of study that analysed specific approaches that encourage the empowerment of a professional ageing workforce. Therefore, this study aims to develop a conceptual model providing various approaches that encourage the empowerment of the professional ageing workforce within the organisation. Conceptual research methods are applied to conduct this research by reviewing the various related areas in the literature. As a result, four approaches have been identified including structural, management, psychological, and applied. The conceptual model can be used by human resources teams to comprehend the importance of retaining the professional ageing workforce and turn this issue into a competitive advantage for their organisations.
Keywords: human resources management; conceptual model; empowerment; aging workforce; conceptual research methods.
Effects of corporate social responsibility for environmental, social, and governance sectors on firm value: a comparison between consumer and industrial goods companies
by Wonsik Sul, Yejee Lee
Abstract: As the interest in the relationship between corporate social responsibility and firm value has been increasing, this study categorised the corporate social responsibility activity of companies into environmental, social, and governance segments and sample companies into consumer goods companies and industrial goods companies. Next, we empirically analysed the effect of each segment on firm value using panel data of 295 companies between 2011 and 2016. First, corporate social responsibility was found to have a positive effect on firm value. Second, in segmental corporate social responsibility activity, the effect of the environmental and social segments on firm value was positive and significant, while that of the governance segment was not significant. Finally, the environmental and social segments of consumer goods companies had a significant positive effect on firm value, whereas only the environmental segment had a significant positive effect on the firm value of industrial goods companies. These results demonstrate the necessity for each industry to emphasize specific segments to improve firm value.
Keywords: corporate social responsibility; firm value; consumer goods companies; industrial goods companies.
Knowledge sharing and language diversity in organisations: influence of code switching and convergence
by Farhan Ahmad, Gunilla Widén
Abstract: Individual-level knowledge sharing is an important collaborative activity that is critical for organisational performance. As multilingual workplaces are becoming common, it has become increasingly important to understand the impact of language on knowledge sharing. Although previous research on knowledge management acknowledges the influence of language on knowledge sharing, the language use (practices) that actually conditions this effect remains largely unexamined. In this paper, we introduce two types of language practice, known as code switching and convergence, in sociolinguistics. By using insights on language from sociolinguistics, we attempt to show how code switching and convergence by organisational employees may influence individual-level knowledge sharing in multilingual organisations. We also suggest some new research directions for language and knowledge sharing in both theoretical and methodological terms. Understanding the influence of code switching and convergence on knowledge sharing is one step toward a better understanding of knowledge sharing as a whole in multilingual organisations. It would enhance the odds of developing knowledge management strategies that may neutralise or at least limit the negative influence of language diversity on knowledge sharing.
Keywords: knowledge sharing; language diversity; sociolinguistics; multilingual organisations; multinational organisations; knowledge management; corporate language; code switching.
Dissecting the sources of competitive advantage of infant MNEs: performance antecedents of foreign affiliates of Polish firms
by Piotr Trąpczyński
Abstract: This paper draws from the resource-based view, organisational learning perspective and institution-based view of international business to explore the effects of firm capabilities and international experience on the performance of foreign affiliates of infant MNEs. In doing so, it aims to contribute to the debate on the competitive advantage of firms from less advanced economies which have only recently joined international business transactions. Moreover, the analysis includes the moderating effect of institutional differences, i.e. both more and less institutionally advanced host countries. The analysis reveals that managerial capabilities are more relevant to success in more advanced economies than in less advanced ones where non-market strategies are frequently the source of advantage of infant MNEs. Moreover, in more advanced markets overall FDI experience is essential to successfully starting up operations, to a larger extent than in less developed countries. An opposite effect can be observed for prior experience with similar countries.
Keywords: FDI; foreign affiliates; performance; infant MNEs; resource-based view; organisational learning theory; institutional theory; Central and Eastern Europe; firm capabilities; international experience; institutional difference.
An empirical study on the link between corporate social responsibility and innovation in environmentally sensitive industries
by M. Isabel González-Ramos, Mario J. Donate, Fátima Guadamillas
Abstract: Managers' perceptions on the evolution of a company's environment can have important implications for strategic decisions on Corporate Social Responsibility (CSR) and innovation, especially in industries which are sensitive to social and environmental issues. This paper follows knowledge-based and stakeholder management perspectives to state that in such industries high levels of environmental dynamism will motivate firms to engage in CSR activities to support proactive innovation strategies for faster development of new technologies. We use a sample of 86 Spanish and Portuguese firms from the renewable energy sector to test a structural equations model of relationships between environmental dynamism, innovation strategy and CSR through a partial least squares (PLS) statistical approach. The results of the study suggest that highly dynamic environments encourage firms to be more innovation proactive, and that this proactivity relates to a high CSR commitment, with process innovation capabilities being preferred as a technological source for firms in this sector.
Keywords: corporate social responsibility; environmental dynamism; innovation capabilities; innovative posture; proactive innovation strategy; renewable energy sector; partial least squares; Spain; Portugal.
R&D team composition and product innovation: gender diversity makes a difference
by Ángela González-Moreno, Cristina Díaz-García, Francisco José Sáez-Martínez
Abstract: Literature presents conflicting views on the relationship between gender diversity and performance and we know very little about the impact of R&D team gender diversity on innovation. This study aims to fill this gap by drawing on social cognitive theory. In this paper, we investigate how innovation in R&D teams is fostered by a combination of the specific context of R&D tasks and the participation of mixed gender teams. Drawing on data from 3540 manufacturing firms, our results show that gender diversity has a non-linear impact on product innovation, supporting the argument that diversity is a 'double-edged sword'. This finding indicates that gender diversity fosters innovation only to a certain level. That is, moderate levels of gender diversity are more likely to be related to innovation, whereas lower or higher levels of gender diversity lead to less optimal results.
Keywords: gender diversity; researchers; R&D; product innovation; context.
The effect of local environment on innovation: a comparison of local and foreign firms in China
by Peng-Yu Li, Kuo-Feng Huang, Kai Xu, Chwo-Ming Joseph Yu
Abstract: Innovative activities have become increasingly important to firms in emerging markets, particularly in China in recent years. Facing weak institutional and competitive environments in China, firms building local connections to react and to innovate can hold a better competitive position. Our study investigates how building local connections and local competition may influence a firm's innovation and compares the moderating effect of ownership (local vs. foreign firms) on firm innovation in the early 2000s. Our empirical findings suggest that, in China, local connections are conducive to firm innovations. Compared with local firms, foreign firms tend to have more innovations. However, when facing severe local competition, local firms are engaged in more innovative activities than foreign firms. We suggest the advantages of local connection owned by local companies may outperform the foreign companies. The foreign companies need to adapt their strategies to succeed in the fast changing emerging market.
Keywords: local connections; local competition; innovation; emerging markets; China.
Stakeholder pressures, CSR practices, and business outcomes in Denmark, Germany and the Netherlands
by Nicola Berg, Dirk Holtbrügge, Carolyn P. Egri, Olivier Furrer, Knud Sinding, Corinna Dögl
Abstract: This cross-country study investigates the antecedents and outcomes of corporate social responsibility (CSR) practices. Based on institutional theory and stakeholder theory, we conducted an empirical study among 519 firms in Denmark, Germany and the Netherlands. We found evidence that supports a significant positive relationship between stakeholder pressures, CSR practices, and business outcomes in the total sample. While our data reveals similarities between the three countries, differences in some areas can be observed as well. Implications for institutional theory and for CSR are derived.
Keywords: institutional theory; stakeholder theory; CSR; corporate social responsibility.
Special Issue on: Research Methods in International Management
New strategies to measure and strengthen the social role of business incubators: their application to a Spanish region
by Eloy Sentana, Reyes Gonzalez, Jose Gasco, Juan Llopis
Abstract: Business incubators can be defined as a service meant to promote entrepreneurship and firm creation, especially within sectors characterised by a high innovative content. The present paper takes as its starting point a review of previous studies dedicated to the profitability of investments in general, and particularly to that of business incubators, seeking to propose an own method which can make it possible to measure both the economic and the social profitability of business incubators. The subsequent application of this method to the incubators based in a specific Spanish region will lead to the conclusion that incubators are undoubtedly profitable, since society recovers 2.8 euros via taxes from each euro invested. Nevertheless, a number of deficiencies become visible amongst our findings, which should definitely be corrected. Hence our decision to make a number of suggestions aimed at improving both the operation of business incubators and their economic and social profitability levels.
Keywords: business incubator; economic profitability; social profitability; entrepreneurship; public investment; Spain.
The comparative method and comparative management: uneasy bedfellows or natural partners?
by Andreas Kornelakis
Abstract: The article considers the relationship between the comparative method and comparative management research. It begins with a comparison of quantitative and qualitative approaches and delineates the distinctive place of the comparative method. The comparative method originated in disciplinary fields such as comparative politics and comparative sociology, which took countries or societies as the main units of analysis. Since management research is mainly concerned with organisation-level practices and strategies, the comparative method and comparative management were perceived as uneasy bedfellows. However, recently there has been a resurgence of the use of comparative methodologies in management research. The article highlights two developments linked with this trend. On the one hand, methodological innovations in Qualitative Comparative Analysis (QCA) opened up new opportunities for the analysis of medium-N samples. On the other hand, the stream of comparative capitalisms and business systems provided a springboard to compare across countries, whilst using industries or organisations as the unit of analysis. Overall, the article argues that these theoretical and methodological developments suggest that the comparative method is a natural partner of comparative management, and that the renewed relevance and deeper engagement with comparative methodology is set to further enrich methodological pluralism in international management research.
Keywords: case studies; comparative method; international and comparative management; qualitative methods; quantitative methods.
Multinational enterprise subsidiaries in local clusters: embeddedness or isolation?
by José-Vicente Tomás-Miquel, Manuel Expósito-Langa, José-Antonio Belso-Martínez, Francisco Mas-Verdú
Abstract: In spite of the extent of globalisation, industrial clusters remain as vibrant spaces for the generation of knowledge and innovation. Aware of this reality, MNEs found clusters as a specific geographic place to collocate subsidiaries in order to exploit local resources of the territory. By studying the case of the Valencian Toy Valley Cluster in Spain, this research shows the way MNE subsidiaries are integrated in clusters. Results confirm that MNE subsidiaries develop their networking practices with a limited portfolio of local partners, configuring a club of skilful partners, and mainly integrated by specialised suppliers. Finally, it examines the combination of different research methods in international management to address the research questions, on the one hand social network analysis and on the other hand non-parametric tests.
Keywords: multinational enterprises; industrial clusters; social network analysis.
Exploring the asymmetric influence of socioemotional wealth priorities on entrepreneurial behaviour in family businesses
by Orlando Llanos Contreras, Manuel Alonso Dos Santos
Abstract: The objective of this study is to determine the socioemotional priorities that influence the entrepreneurial behaviour of family businesses. The sample includes 214 small and medium-sized family firms in the region of Biob
Keywords: socioemotional wealth; entrepreneurial behaviour; partial least squares; qualitative comparative analysis; family businesses; small and medium-sized enterprises; emotional attachment; corporate reputation; social ties; family identity; family succession.
Estimating the determinants of executive selection in multinational companies: A two-sided matching model
by Marketa Rickley
Abstract: Using a unique dataset on subsidiary executive appointments in multinational banks and a competitive assignment matching model, this study investigates executive selection in the international labour market. The international context is characterised by heterogeneous firms with varied human capital needs, allowing for a nuanced examination of the determinants of executive selection along multiple human capital dimensions, with a particular emphasis on firm-specific versus general human capital. The study explores (i) the determinants of executive selection in MNC subsidiaries, (ii) how these determinants shift relative to economic conditions, and (iii) how they differ for two types of functional roles. The findings show that the relationship between human capital and the firms resource base is largely complementary; however, firm-specific human capital is the dominant determinant of an executive appointment during an economic upswing, but during an economic downturn firm-specific human capital is nearly four times weaker in driving selection than general human capital.
Keywords: executive selection; competitive assignment matching model; international labour markets; strategic human capital; general human capital; firm-specific human capital; multinational corporations; foreign subsidiaries.
The influence of leadership styles on the internationalisation of 'born-global' firms and traditionally global-expanding firms
by Sascha Kraus, Thomas Niemand, Markus Besler, Philipp Stieg, Carla Martínez-Climent
Abstract: Leadership and internationalisation are both established areas of scientific research, yet the interplay the two remains insufficiently examined. The present study focuses on the former and aims to shed more light on the intersection of leadership and internationalisation. By applying fsQCA, a qualitative comparative analysis, to a set of 437 active international firms, results suggest that under distinct conditions transactional as well as transformational leadership can lead to a high level of internationalisation for both traditional internationalising and so-called 'born-global' firms.
Keywords: leadership; full range leadership model; fsQCA; internationalisation; degree of internationalisation; born global; traditional internationalising firms.
Developing management skills through experiential learning: the effectiveness of outdoor training and mindfulness
by María Teresa Del Val Nuñez, Fernando Javier Crecente Romero, Rafael Castaño Sánchez, Alba Yela Aránega
Abstract: The primary goal of this study is to develop a tool to measure the personal and interpersonal skills of individuals who participate in experiential learning based on outdoor training and mindfulness sessions. This paper presents the results of an application of this method to a sample of 97 participants (49 employees and 48 masters and undergraduate students). Using competency questionnaires, participants were evaluated by managers and tutors. Participants were assessed individually. The following competencies were analysed: teamwork, communication, leadership, motivation, stress tolerance, organisation and planning, responsibility, and analysis, resolution and anticipation of problems. The results show that students and employees require further development in terms of their leadership, teamwork, responsibility and stress tolerance. Teamwork should be promoted. Individuals should be encouraged to delegate and to accept opinions, ideas and criticism from other team members. It is important to identify the leader and the followers. This requires all individuals to accept their roles and responsibilities by taking charge of their actions. For the sample of workers, the managers' evaluations were consistently less positive than the evaluations by the workers themselves.
Keywords: outdoor training; mindfulness; tools; evaluation; emotional skills.
Special Issue on: Value Co-creation in the Course of International Entrepreneurial Opportunity Developme
The impact of knowledge creation and acquisition on innovation, coopetition and international opportunity development
by Gina Santos, Carla Marques, Vanessa Ratten, João J. Ferreira
Abstract: This study sought to analyse the impact of the creation and acquisition of knowledge in company coopetition and innovation, as well as the effect of coopetition and innovation on internationalisation. The analysis used variables included in the database of the Community Innovation Survey CIS 2012, to which multivariate statistical tests were applied. The results reveal that the creation process, including knowledge creation, has an impact on company innovation and coopetition. In addition, innovation has a positive impact on the internationalisation of enterprises. Thus, companies that promote knowledge creation and acquisition and that implement coopetition strategies innovate significantly more, thereby promoting internationalisation. This studys results contribute to validating the importance of investment in knowledge supported by coopetition strategies as a way to understand trends and to plan and define innovation strategies that contribute to companies entry into the global market.
Keywords: coopetition; internationalisation; knowledge.
Special Issue on: Entrepreneurship Cross-National and Cross-Cultural Perspectives
One size does not fit all: generalising entrepreneurial insights in a world of differences
by Gerhard Apfelthaler, William B. Gartner, Armin J. Kammel
Abstract: This article is an introduction to the special issue on 'Entrepreneurship: Cross-National and Cross-Cultural Perspectives'. Besides providing overviews of the six articles published in the special issue, we discuss some of the challenges that arise when scholars explore cross-national and cross-cultural perspectives in entrepreneurship.
Keywords: entrepreneurship; cross-cultural entrepreneurship; cross-national entrepreneurship.