European Journal of International Management
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European J. of International Management (151 papers in press)
Abstract: The internationalisation challenges that face all companies are no longer the exclusive concern of multinationals. Participation in the international marketplace has become a reality for large firms and small and medium-sized enterprises (SME) alike. This kind of participation can be rewarding for both companies and employees. The markets that SMEs enter and the success of this entry depend on several factors such as cultural differences, company tradition, venture capital, products and competitors. The goal of this study is therefore to understand whether the characteristics of the external market, the characteristics of the company itself and the barriers to internationalisation influence the strategic approach that SMEs adopt in their internationalisation processes. Using data on 320 Portuguese SMEs, we apply multivariate analyses to test the dimensions of internationalisation. We find that the decision of SMEs to internationalise involves an institutional change in response to external pressures in the home country. SMEs under greater institutional pressure not only tend to expand further but also engage in their initial international activities more radically.
Keywords: internationalisation; SMEs; strategic approach; external market; barriers.
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.
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.
Determinants of entrepreneurship in Latvia and Baltic countries in general: an empirical approach
by Gonçalo Brás
Abstract: Within the framework of North's institutional theory (1990, 2005), the aim of this study is to analyse the impact of economic and institutional factors (formal and informal), on entrepreneurship in both Latvia and the Baltic countries as a whole in the post-Soviet era. A multiple regression approach was used with data from 1996 to 2014 with a time-series model (Latvia), a panel data model and a dynamic panel data model (Baltic countries). The empirical findings for the Baltic countries suggest that a lower level of corruption, fewer constraints on capital investment, higher investment expenditure, a higher level of financial development, fewer trade barriers, lower inflationary pressure and less governmental price regulation tend to increase entrepreneurial activity. It was also found that entrepreneurial activity adjusted relatively quickly in these countries, which reveals a regenerative capacity in the short-run. On the other hand, the empirical findings specifically for the Latvian economy show that entrepreneurial activity tends to increase owing to the fall in corruption and greater financial development. Despite some unexpected results related to fiscal freedom and property rights, the findings provide economic policy-makers with important information about the main determinants of entrepreneurial activity in the Baltics.
Keywords: entrepreneurship; Latvia; Baltic countries; time-series model; panel-data model.
Glocal corporate social responsibility and co-creation of shared values in the mining industry
by João Leitão, Margarida Rodrigues, José Manuel Rodríguez-Carrasco
Abstract: This article studies how in mining multinationals the shareholders' perspective of the creation of economic value combines with social and environmental values in the perspective of the local community, following a glocal corporate social responsibility founded on a simultaneous exercise of shared values co-creation. To do so, a case study is presented about a mining subsidiary in Portugal, in two historical periods where changes in capital ownership and governance were recorded. The results show that from the shareholders' perspective, in the subsidiary studied, strict adherence to the host country's legislation was observed. From the local community's perspective, some social investment was found, but less than that expected by private and public entities at the local level.
Keywords: corporate social responsibility; co-creation; institutional theory; stakeholder theory; mines.
The interplay between empathy, learning, and opportunity in the process of entrepreneurial value co-creation
by Amir Emami, Peter G. Klein, Veland Ramadani, Robert D. Hisrich
Abstract: This study investigates value co-creation in entrepreneurship: it focuses practically on the process through which the entrepreneur's new value proposition meets the customer's problem and pain. It argues that successful entrepreneurs tend to be more empathic than unsuccessful entrepreneurs. Entrepreneurs who offer their new values through an empathic relationship tend to learn vital market knowledge that shapes a shared mental model between themselves and the consumer that increases the likelihood of value co-creation. The performance of this relationship improves when there is a match between the entrepreneur's learning approach and her initial perception of the opportunity pursued. Matching between learning skills and empathy also enhances the empathy capacity of the entrepreneur. Both matching mechanisms are important for value co-creation.
Keywords: empathy; entrepreneurial value co-creation; market knowledge; personality style.
Socioemotional wealth of family firms: the theoretical perspective and challenges.
by Orlando Llanos Contreras, Muayyad Jabri
Abstract: Using the socioemotional wealth perspective has resulted in significant advances in the understanding of family firms since this model was proposed in 2007. It is considered the most challenging theoretical framework for these organisations developed in recent years. Based on a systematic literature review from the Web of Science, 120 articles published from 2007 to 2018 were reviewed. The results show that an increasing number of works based on socioemotional wealth have been published to respond to research questions on various topics regarding family businesses. The citations of these articles have also increased greatly, confirming the pervasive influence this perspective has had. This article explains the principles behind the socioemotional wealth perspective and how it has been used in a number of empirical and theoretical studies. It also proposes an initial discussion of two research questions on a new topic where this perspective has potential to close gaps in existing research.
Keywords: socioemotional wealth perspective; family businesses’ behaviour; family firm theory.
Multiple directorships and managerial ability
by Reza Hesarzadeh, Ameneh Bazrafshan
Abstract: Theoretical literature provides different predictions on the relationship between multiple directorships and managerial ability (relationship). Therefore, we empirically investigate the relationship. We find that the relationship is generally negative and statistically significant but not economically significant, i.e., the relationship is very small. In this regard, we show that the relationship is negative (positive) and also statistically and economically significant for firms with high levels of monitoring (advising) needs. Furthermore, we show that the regulatory oversight (1) mitigates the general negative relationship; (2) changes the direction of relationship from negative to positive, for firms with high levels of monitoring needs; and (3) does not influence the relationship, for firms with high levels of advising needs. Collectively, the results suggest that the monitoring-advising needs and regulatory oversight are important factors in the analysis of the relationship.
Keywords: directorships; management; managerial ability; corporate performance; monitoring needs; advising needs; regulatory oversight; agency theory; corporate governance; busyness hypothesis; capital market.
Rethinking the roles of project management maturity and organisational culture for perceived performance
by Ronald Busse, Hasan Zafer, Malcolm Warner
Abstract: Scholars and practitioners alike have long been concerned with identifying those factors that account for most relevant impact on project success. We now add to the existing body of knowledge in this article, by re-appraising the roles of project Management Maturity (PMM) and Organisational Culture (OC) for several performance indicators. Our work is a replication which questions the results of Yazicis (2009) US-focused prior research. We collected fresh primary data from 66 German project managers that we processed using structural equation modelling. Based on partial least squares path modelling, two major contributions emerge: First, and contrary to the original study, we found a significant effect of perceptions of PMM on those of project and firm performance. Second, and in line with Yazici (2009), we confirmed the positive correlation between perceived clan-culture orientation and perceived project-performance.
Keywords: firm performance; Germany; organisational culture; project management maturity; project performance.
CRMs effect on the customer knowledge creation process and innovation
by Saeed Safari, Seyed Rohollah Hosseini Mehrabadi, Ali Hossein Keshavarzi
Abstract: This study has investigated the effect of customer relationship management systems (CRM) on the customer knowledge creation process to produce innovative products or deliver innovative services in Parsian Insurance Company in a unique Iranian culture with completely different features from Islamic and Middle-East countries, in terms of research factors. Data was collected using a questionnaire, in a research population of 600 managers of the companys headquarter, and representatives in Tehran province. The sample size was calculated 243 using Cochran formula; 280 questionnaires was distributed and 250 was returned. The Structural Equation Modeling was used for statistical analysis of data. The research findings showed that CRM systems, have affected the process of customer knowledge creation. The findings also confirmed that all components of customer knowledge creation process affect the innovative product/service production.
Keywords: customer relationship management; customer knowledge; knowledge creation; knowledge creation theory; innovative product/service.
Does culture frame technological innovativeness? A study of millennials in triad countries
by Andreas Klein, Sven Horak, Sabine Bacouel-Jentjens, Xiaomei Li
Abstract: Personal innovativeness is an important value-based human behavior that is responsible for the ability of a country to participate in the domain of technological innovations and to enhance economic growth in general. Our study investigates technological innovativeness of millennials in a cross-cultural setting on the individual level. The research design includes technological involvement and knowledge, and an individual-level measurement of five renowned cultural values as antecedents of technological innovativeness. Findings from structural equation modelling of 1,527 millennials from six triad countries confirm that technological involvement and knowledge positively affect personal innovativeness in the technology domain. Above all, from a theoretical perspective on culture, especially individual measures of power distance, uncertainty avoidance, and long-term orientation have a significant negative effect on technological innovativeness. Hence, individual cultural values play an important role for companies that search for, for example, an overseas location for their R&D facilities or innovative personnel in general.
Keywords: technological innovativeness; individual cultural values; value measurement; millennials; cross-cultural management; triad countries.
Sending expats or hiring locals? The impact of communication barriers on foreign subsidiary CEO staffing
by Matthias Schulz, Christian Schwens, Hendrik Klier, Helene Tenzer
Abstract: Communication between headquarters (HQs) and foreign subsidiaries of multinational corporations (MNCs) is crucial for coordination, control, and knowledge transfer, but language barriers and geographic distance impede this exchange. Hypothesizing that MNCs react to these hurdles by appointing subsidiary top managers with adequate communication skills, we investigate how the native language barrier, foreign language barrier, and geographic distance between HQs and a foreign subsidiary influence the choice between parent and host/third country nationals as subsidiary CEOs. Testing our hypotheses on a sample of 101 staffing decisions made by German firms in 33 countries, we find a negligible effect of the native language barrier, but establish that a foreign language barrier enhances and higher geographic distance lowers firms propensity to staff subsidiary CEO positions with parent country nationals. An MNCs international experience was found to moderate these relationships.
Keywords: HQ-subsidiary relationship; subsidiary top management staffing; communication; language; expatriate management.
Opening the reverse innovation black box to pinpoint its drivers and barriers in Western MNCs
by Thierry Burger-Helmchen, Caroline Hussler
Abstract: If hallmark examples of reverse innovation flourish, the micro-level drivers and barriers of this phenomenon remain understudied. The present paper aims at filling that gap by investigating the reversal process at stake to better tackle its managerial challenges. This conceptual paper first explores the market drivers/barriers associated to reverse innovation leading to fine tune the phenomenon, using the disruptive innovation lenses. In a second part, the article relies on international business literature, to characterize intra-MNC bottlenecks and configure enabling managerial practices. The analysis first outlines two types of reverse innovation (associated to different marketing stakes and creative processes) and then highlights their respective organizational conductive environments and major bottlenecks. Opening the reverse innovation black box and pinpointing its underlying process increase both the analytical power of the concept and the ability of Western MNCs to successfully run such global innovation strategies.
Keywords: reverse innovation; foreign subsidiaries; intra-MNCs knowledge flows.
Trust, reciprocity and reputation in informal networks in post-Soviet Russia
by Sven Horak, Andreas Klein, Anna Svirina
Abstract: This research explores the relationship between trust and informal networking using the example of blat/svyazi, simply translated as connections, in post-Soviet Russia. We find that a higher articulation of general trust does not reduce the trust in blat/svyazi, but rather both can coexist. Furthermore, the greater the importance a person ascribes to blat/svyazi, the greater the need to establish a reputation within his or her blat/svyazi network, and the greater the trust in blat/svyazi. Therefore, reputation has a mediating effect on trust in blat/svyazi. However, the more important reputation building is for a blat/svyazi-based network transaction as a guarantor for the transaction, the lower the trust in blat/svyazi. We assume that the latter mechanism takes effect due to the ambivalent nature that blat/svyazi developed during post-Soviet times, being today more cognitive trust-based, less social, and more money-centred.
Keywords: informal networks; informal institutions; blat/svyazi; trust; post-Soviet Russia; emerging markets; transitional economies.
The social network of a science park: a study of heterogeneity.
by Angel Meseguer-Martinez, Maria Jose Ruiz, Gloria Parra-Requena
Abstract: This study analyses whether heterogeneity exists in the social network of a young Spanish science park. In this sense, we check the existence of business and innovation networks and analyse how the member firms are located within (central and peripheral positions). Furthermore, we analyse the differences in the network position depending on the type of firm, their access to resources for innovation and the sector. By means of social network analysis, we analyse those aspects related to heterogeneity within the social network of a science park. Results show that stand-alone companies tend to position themselves centrally, whereas corporate companies take peripheral positions. Differences in access to external resources for innovation between the central and peripheral subnetworks are observed in the innovation network, but not in the business network. Moreover, firms in the ICT industry tend to occupy central positions whereas firms in other sectors tend to occupy peripheral positions.
Keywords: science parks; social networks; social network analysis; heterogeneity; business and innovation networks.
Innovation management in consulting firms: Identifying innovation processes, capabilities, and dimensions
by Antonio Hidalgo, Isaac Lemus-Aguilar, Alberto Urueña
Abstract: Consulting firms are considered part of knowledge-intensive business services, in which expert knowledge plays a crucial input in the provision of service. Using a multi-case study, this study aims to improve understanding of how consulting firms strategically manage innovation processes and which capabilities and dimensions they focus on to deliver innovation, based on interaction among the main actors from both an internal and external perspective. Consulting firms tend to simplify reality, but several innovation processes take place at the same time. Results show that these views are not mutually exclusive; on the contrary, many of them coexist over the life cycle of the firm and its particular business conditions. The challenge for innovation in consulting firms achieving a balance between generating incremental change by exploiting current knowledge and creating radical innovations by exploring new ideas at the same time.
Keywords: innovation management; innovation process; innovation capabilities; innovation dimensions; consulting firms.
Do board of directors roles and composition promote exploitative and exploratory innovations? Evidence from Tunisian listed firms
by Sarra Berraies, Wajdi Rejeb
Abstract: The effects of board of directors (BD's) roles and composition on exploratory and exploitative innovations and even on ambidextrous innovation have been little investigated in the literature, particularly in emerging economies. This research addresses this gap by identifying and empirically testing a conceptual model on all Tunisian listed companies. Semi-structured interviews were also conducted with directors of these firms to discuss the findings. Multiple regression analysis method was used to analyze data. Results indicate that BD service role positively influences exploratory, exploitative and ambidextrous innovations. These types of innovation are negatively linked to BD control role. Findings do not show significant effects of BD strategy role, board independence and gender diversity on all the types of innovation studied. This paper sheds light on an innovative and unexplored topic in the literature. This work addressed the research gap in the literature as prior studies focused on the effect of BD on innovation rather than on innovation types or even on ambidextrous innovation. This study provides interesting insights for firms that seek to improve their corporate governance. It highlights the key boards attributes that firms must focus on to innovate.
Keywords: corporate governance; board of directors; gender diversity; independent directors; boards roles; exploitative innovation; exploratory innovation; ambidexterity; emerging economy.
Implementing management innovations in a transition economy
by Violeta Domanović
Abstract: Managers are required to introduce various innovations in the process of evaluating company's performance over some past period and make future business decisions that would contribute to the long-term sustainability and development of the company. The question is how the managers in transition economies, such as the economy of the Republic of Serbia, address different management innovations. The paper examines whether the company managers in the Republic of Serbia are familiar with the BSC, as the most influential management innovation,, whether the mentioned model is implemented in companies, as well as what reasons are behind not implementing this model in large, medium-sized and small companies. The research findings show that the managers, in general, are not familiar with the BSC model and are not aware of the importance of this model; however, there are other similar models that are being implemented in companies operating in Serbia.
Keywords: management innovations; performance measurement; balanced scorecard; companies; Republic of Serbia.
Entrepreneurial orientation and new venture performance: the moderating role of network types
by Rimante Sedziniauskiene, Jurgita Sekliuckiene
Abstract: This study explores the link between entrepreneurial orientation, network types and international performance of new ventures. Building on international entrepreneurship theory, we specifically investigate how the type of network effects the entrepreneurial orientation and performance relationship among new ventures from Lithuania, a transition economy in Central and Eastern Europe. Data collected from 83 international new ventures revealed a positive linkage between entrepreneurial orientation and international performance outcomes. The direct relation between three network types and international performance was not supported, offering rich potential for researchers looking to advance our understanding of importance that networks may have in economies, particularly in transition economy contexts. Moreover, the findings revealed that high entrepreneurial orientation has a significantly higher international performance in the presence of high formal networks. The implications and directions for future research are discussed.
Keywords: entrepreneurial orientation; international performance; international new ventures; network type; transition economy; Lithuania.
Garut value co-creator: fostering growth of SMEs in Garut to attract more customers
by Grisna Anggadwita, Dini Turipanam Alamanda, Gadaf Rexhepi, Abdullah Ramdhani
Abstract: Garut is one of the districts in Indonesia that is known to have great potential in small and creative industries. Some small industries have been formed into industrial centres, including leather, batik garutan, fragrant roots and woven bamboo. Some industries have been changed from small industries into national scale industries, such as Dodol Garut and Chocodot. But, unfortunately, the development of local industry still faces obstacles in market development, owing to the lack of synergy and cooperation between industries. Co-creation superior product of Garut is offered as a stepping method that can be applied. The DART model, consisting of dialogue, access, transparency and technology, is used as a tool to map potential and evaluation tools that can be adopted in the future by value co-creators (Garut District Government). Full government support is absolutely necessary as a centre of co-creation (value co-creator).
Keywords: Garut; potential local industries; small industry; DART model; value co-creation.
Diaspora networks in international marketing: How do ethnic products diffuse to foreign markets?
by Maria Elo, Indianna D. Minto-Coy, Susana Costa e Silva, Xiaotian Zhang
Abstract: While diaspora networks can be instrumental for diffusion, their allin- one role has remained underexplored in international marketing management literature. Diaspora actors function as part of the channel system, diffusing ethnic products and creating the highway to new markets. Globalisation has increased geographic dispersion and plurality, fostering their participation in international business as connectors. To this end, exporting firms benefit from diaspora resources while co-creating participant distribution. This mechanism the invisible diaspora hand shapes the internationalisation processes of products and ethnic value creation on behalf of the firm. This study examines how ethnic products diffuse across borders, and how diaspora networks participate in the international diffusion and ethnic crossover process by orchestrating resources across contexts and networks. The findings contribute to advancing our understanding of product diffusion and mainstreaming, and theorising on the role of transnational diaspora in international market entry, product diffusion and international marketing.
Keywords: international diffusion; international marketing; channel partner; diaspora networks; diaspora pull; ethnic product; ethnic crossover; foreign market entry; product innovation.
Successful knowledge transfer in IJVs: the role of trust, partner compatibility and expected benefits
by Konstantinos Rotsios, Nikolaos Sklavounos, Yannis Hajidimitriou
Abstract: The purpose of this research is to investigate the influence of trust on knowledge transfer and expected benefits from knowledge transfer, and the influence of partner compatibility on knowledge transfer, trust and expected benefits from knowledge transfer. Based on elements from the resource based view and social exchange theory, Greek IJVs operating in South East Europe are empirically examined. This research contributes to the literature in four ways: First, by showing a positive impact of the level of trust the foreign partner has towards the local IJV partner on a) successful knowledge transfer to the IJV and b) expected benefits from knowledge transfer to the IJV. Second, by revealing a positive impact of the degree of partner compatibility on a) successful knowledge transfer to the IJV and b) the level of trust the foreign partner has towards the local IJV partner. Third, by providing empirical evidence regarding the above impacts in new national environments. Finally, it contributes by enhancing the understanding of knowledge transfer from the foreign partner to IJVs in emerging markets.
Keywords: international joint ventures; knowledge transfer; trust; partner compatibility; expected benefits.
Moderating effects of related experience and firm size: will multinationals opt for acquisitions in high informal institutional settings?
by Zakari Abubakari, Min Wang, Iddrisu Abubakari
Abstract: This study examines the influence of informal institutional distance on the establishment mode strategies of foreign multinational enterprises (MNEs) in Ghana with the moderation role of experiential knowledge (related experience) and parent firm size. The empirical analysis is based on a sample of 223 greenfield and acquisition market entries over the period 2001-2016, drawn from 20 countries. The study employs binomial logistic regression to establish the relationships among the variables and, the results reveal that high informal institutional distance leads to the preference for acquisitions over greenfield investments. The study also finds that high level of experiential knowledge (related experience) and large parent firm size have positive relationship with acquisition establishment as compared to greenfield investment. We therefore argue that strong related experience and large parent firm size strengthen the choice for acquisitions in relation to high informal institutional distance.
Keywords: institutions; institutional distance; informal institutional distance; institution-based view; related experience; establishment mode; acquisition; green-field investment; international management".
Riding the storm out: the short- and long-term effects of export promotion on firm performance during an economic downturn
by Joan Freixanet, I.Y.A. Churakova, Josep Rialp, Hsin-Chen Lin
Abstract: This study evaluates the short- and long-term impact of export promotion by focusing on a Spanish program to support beginning exporters. Based on the observations of 1884 firms over the period of 20052014, the findings demonstrate that the program had a positive impact on participants export and economic performance, and the effects were persistent. The paper concludes that focusing export promotion towards SMEs and beginning exporters and ensuring a balanced mix of various forms of assistance are critical to the effectiveness and lasting effects of export promotion. It also shows that, during the recent great trade collapse starting in 2008, firms using this type of assistance outperformed firms in the control group and the national average regarding both export growth and survival rates. These results are encouraging regarding the countercyclical potential of export promotion. The findings have significant implications for scholars, managers and policymakers.
Keywords: export promotion; impact evaluation; propensity-score matching; small and medium-sized enterprise; longitudinal study; economic downturn.
ISO 9001 effectiveness and financial performance of Bosnian exporters: investigating mediators
by Ensar Mekić, M. Sait Dinc
Abstract: Despite the fact that the relationship between quality practices and financial performance was significantly addressed in managerial literature, few studies investigated mediators in this relationship, and very few of them focused on the ISO 9001 Effectiveness. This study aimed to explore mediators of the relationship between ISO 9001 Effectiveness and Financial Performance of the Bosnian exporting companies. Based on the recent literature, second-order structural equation model was proposed and tested. The empirical data was obtained from a questionnaire of 126 ISO 9001-certified Bosnian exporting companies. Once data was collected, factory data analysis was made in SPSS to purify scales through items' loadings and Cronbach's Alpha values. Convergent validity and confirmatory factor analysis has been done through partial least-square path modelling using Smart PLS 3 software. Results indicated that total effects of ISO 9001 Effectiveness on Financial Performance were significant and positive, and that Organizational Learning Capability fully mediated this relationship.
Keywords: quality management; ISO 9001; business innovativeness; path modelling; organisational learning capability; financial performance; exporters; mediator.
The impact of networks on value co-creation for women-owned businesses
by Dianne H.B. Welsh, Eugene Kaciak, Izabela Koladkiewicz, Ezra Memili, Lakshmi Iyer, Veland Ramadani
Abstract: Researchers have called for more attention to the issues surrounding women entrepreneurs and their businesses that impact their success and the value co-creation it brings to stakeholders. This study examines the moderation effect of social networks on the relationships between women entrepreneurs specific entrepreneurial skills sets in information technology, management, and securing funding, value co-creation and the effect on firm performance. Social network support is considered a proxy for value co-creation. Our findings show that IT skills are positively related to firm performance. Results showed a positive interaction effect of network support with management skills and with the ability to obtain financing on firm performance. Implications and future research are discussed.
Keywords: networks; value co-creation; firm performance; women entrepreneurs; developing economy; Poland.
Barriers to ethical business in Slovakia: an exploratory study based on insights of top representatives of business and employer organisations
by Anna Lasakova, Anna Remisova, Alexandra Bohinska
Abstract: The article investigates unethical business practices and their causes in one of the CEE countries, in Slovakia. A qualitative research design was employed with focus group as the primary method. The sample consisted of top representatives of Slovak business and employer organisations. To address the complexity and interconnectedness of ethical issues identified in this study, a framework ('vicious circle of barriers to ethical business') was outlined, linking five components: (1) weak state as a bad role model for business community, (2) inadequate business regulations causing perceived injustice and lack of stability and predictability in business, (3) orientation of businesses to short-term quick gains, (4) mistreatment of stakeholders (society, competitors, suppliers, customers and employees) and (5) self-serving intrusion of business to politics, using alliances and networks to influence decision-makers in creating strategically important policies and business regulations. These five elements interfere with and reinforce each other, thus impeding advancement of business ethics in Slovakia.
Keywords: ethics; barriers; business ethics; unethical practices; business associations; employer organisations; entrepreneurship; stakeholders; Slovakia; CEE.
A study on the consumers' intention to purchase a social enterprises product
by Y.I. Hsin Lin, Kuo Hsiung Wang, Chang Hua Tsai, Feng Jyh-lin
Abstract: A social mission is usually a particularly hot issue as it can deliver unique functional and emotional elements to build a strong relationship between a social enterprise and its customers. The purpose of this study is to examine the relationships between a social mission, product competitiveness and purchase intentions in a social enterprise. Data were collected from 151 customers of Come True Coffee through the companys Facebook in January and February 2017. Multiple regression analysis was used to examine the relationships among the research variables and identify the final model. The results show that good product competitiveness and a social mission will improve the intention to purchase. Moreover, the social mission of a social enterprise is an important issue in terms of encouraging consumers to feel concern. Finally, product competitiveness is a mediating factor for a social mission in regard to the purchase intention. The outcomes of this study could help managers better understand the relationships among social mission, product competitiveness and purchase intentions.
Keywords: social enterprise; social mission; coffee; product competitiveness; purchase intentions.
The long road to omnichannel retailing: an assessment of channel integration levels across fashion and apparel retailers
by Emiliano Acquila-Natale, Julián Chaparro-Peláez
Abstract: Despite the increasing interest in omnichannel operation both in academia and business contexts, the understanding and knowledge about the elements of channel integration is still limited. Furthermore, at this moment there are no instruments that facilitate measurement of the level of channel integration, as well as of information about which indicators to use when measuring that level. This study addresses this gap by defining a systematic set of indicators to measure the level of channel integration and categorises the indicators in six different areas along the whole shopping process. The study further tests the measurement instrument with a sample of 22 fashion and clothing and apparel retailers operating in Spain. The proposed measures and the results from this study will help establish the basis for the application of the measurement instrument in different contexts and, in last instance, will help companies to improve their omni-channel strategies.
Keywords: e-commerce; cross-channel; multi-channel; omni-channel; channel integration; fashion; mobile commerce; omnichannel.
The applications of dynamic relative taxonomy methods to assess the effectiveness of transnational corporations strategies
by Katarzyna Cheba
Abstract: The main purpose of the paper is evaluating the effectiveness of strategies applied by transnational corporations on the markets worldwide on the basis of the set of indicators proposed by the author. The added value of the presented analysis is also the proposed approach to establishing the ranking of the transnational corporations using the relative taxonomy method in the dynamics perspective. The analyses presented in this paper include the information on transnational corporations published by the UNCTAD under the World Investment Report ranking. In the paper, the information on the corporations that were in the ranking lists of the top 100 non-financial MNEs from the 2011-2013 and 2015-2016 were analysed. The results of the study may be used as an alternative to the rankings developed by the United Nations Conference on the Trade and Development under the World Investment Report ranking published to date.
Keywords: transnational corporations; effectiveness of transnational corporations strategies; dynamic relative taxonomy; automotive sector.
Testing critical levels in product and geographic diversification: A structural threshold approach
by Pablo Garrido-Prada, Maria Jesús Delgado-Rodriguez, Desiderio Romero-Jordán
Abstract: This paper performs a structural threshold regression analysis to test the existence of critical diversification levels in a study of the moderating effect of diversification strategies on performance. The method is applied to a novel panel dataset comprising a sample of Spanish multinational companies from non-financial sectors in 20062011. The results reveal that a critical level of geographic diversification is needed to influence positively the product diversification-performance relationship. Moreover, the geographic diversification-performance relationship is not influenced by the level of product diversification. Our results are relevant for understanding the complexity of these strategies
Keywords: geographic diversification; product diversification; firm performance; Spanish firms; structural threshold regression.
Factors affecting online purchase intention of consumers: a comparative approach between China and Uzbekistan
by Dawei Liu, Yuting Kang, Nodir Egamberdiev, Miao Shi, Anastassiya Bakhareva
Abstract: This study examined factors that encourage purchase intentions of Chinese and Uzbekistan online consumers. With a comparative approach, the research had three primary objectives to focus on exploring relationship of subjective (individual demands and consumers' attitude), objective factors (price, quality and website credibility) and online purchase intentions. The study revealed that the subjective factor wasn't relevant in affecting the Chinese consumers' online purchase intention and behaviour. The three objective factors including price, product quality and web trust, are found significant to affect both Chinese consumers' and Uzbek consumers' online purchase intention.
Keywords: e-commerce; consumer behaviour; trust; purchase intention; China; Uzbekistan.
Coalignment of resources and diversification strategy on business groups
by Fang-Yi Lo
Abstract: Firms allocating resources and adapting proper strategy to gain better performance is an important issue in the strategic paradigm. This research examines the resource-based view to explore the resource endowment of business groups' coalignment with diversification strategy, and then studies the business groups' growth performance. Specifically, this study collects data from a database of the top 300 Taiwanese business groups, incorporating two research methods of multiple regression analysis and fsQCA (fuzzy-set Qualitative Comparative Analysis) to address the hypotheses and research questions. Results support the coalignment concept from fsQCA that states resources can complement or substitute for each other, and the coalignment of different resources with diversification strategy can then improve business groups' growth performance.
Keywords: business group; diversification strategy; fsQCA; growth performance; resources.
Conceptualising involvement in fashion social media brand communities
by Ángel Hernández-García, Santiago Iglesias-Pradas
Abstract: This study addresses the lack of understanding of the different elements (fashion products, fashion brands, social media platforms) and types of involvement (enduring and situational) that interplay in the development of involvement with fashion brands in social media communities. The research revises the concept of involvement in fashion social media brand communities from a multidimensional approach, with three different dimensions: fashion involvement, fashion brand involvement (enduring) and involvement with social media brand communities (situational). The revised conceptualization of involvement is empirically tested using a sample (N = 451) of members of different luxury fashion and fast-fashion international brands in Indonesia, a country with one of the largest social media audiences in the world. The results show that a multidimensional view provides a more adequate framework to study involvement in social media, even though further investigation is required to fully understand the concept of involvement in social media brand communities.
Keywords: involvement; fashion brands; social media; social media marketing; social media communities.
Towards an integrated model for brand adoption: Insights from an organismic integration theory
by Naeem Gul Gilal, Jing Zhang, Faheem Gilal, Rukhsana Gul Gilal
Abstract: Drawing on organismic integration theory (OIT), this study investigates what kind of motivational regulations (e.g. intrinsic, identified, introjected, and external motivation) could influence brand adoption and what kind of advertisement appeals (e.g. hard-sell and soft-sell appeals) could influence consumers motivational regulations. To this end, participants (n = 657) from Pakistan were recruited, and the hypotheses were tested in the airline industry. Results show that hard-sell appeals had the strongest effect on identified motivation, whereas soft-sell appeals were more effective at capturing consumers intrinsic motivation. Consumers intrinsic motivation had the greatest effect on consumer brand adoption. The moderation results revealed that the effect of identified, introjected, and external motivations on consumer brand adoption were salient when perceived social influence was higher, but not when social influence was lower. Finally, the authors discuss in depth the implications of these results for theory and practice.
Keywords: brand adoption; hard-sell appeal; soft-sell appeal; motivation types; social influence.
The reliability of information systems in an organisation as a source of competitive advantage
by Katarzyna Tworek
Abstract: The notion of information systems (IS) reliability in an organisation is discussed in the paper. It is a relatively new concept, gaining importance because nowadays almost every organisation (including production ones) is using some kind of IS and it is no longer enough to just use it in order to gain competitive advantage. Empirical verification of the model is based on the study conducted among 400 organisations operating in Poland. A statistical multidimensional correspondence analysis (MCA) was used in order to determine that the proposed set of variables building the model is comprehensive, complete and can be used for further analysis of the IS reliability in an organisation.
Keywords: information system; reliability; organisation; empirical research.
The impact of systematic uncertainty on corporate cash holdings
by Tarek Miloud
Abstract: This paper aims at shedding light on the empirical relationship between cash holding and firm characteristics. We introduce a more detailed relationship between cash holdings and macroeconomic uncertainty. Contrary to previous research that supposes a partial inclusion of macroeconomic uncertainty, this research considers a full impact of the macroeconomic uncertainty measured by difference macroeconomic condition variables. Empirical results show that macroeconomic uncertainties are significant and contribute to the change in cash holdings. Furthermore, results show that the firms different level of exposure to macroeconomic uncertainty can cause the different degree of cash holdings and that firms with the higher level of exposure have the higher level of cash holdings. The study, therefore, contributes to the literature on the factors that determine the corporate cash holdings. The findings may be useful for the financial managers, investors, and financial management consultants.
Keywords: corporate cash holdings; corporate governance; macroeconomic uncertainty; firm characteristics; GARCH.
Exploring the determinants of acquisition integration capability: lessons from the acquisitions of Finnish multinational enterprises
by Nnamdi Oguji, Jorma Larimo, Richard Owusu
Abstract: The objective of the study is to explore how acquisition integration capabilities are developed in acquiring firms. Through empirical case studies of acquisitions of five Finnish MNEs in global markets, the study finds four determinants of acquisition integration capability: acquisition integration knowledge management, cultural competence, acquisition integration strategy, and acquisition performance review. The study extends dynamic capability theory to acquisition integration literature and provides a comprehensive and integrated perspective on the determinants of acquisition integration capability. Finally, five propositions are developed for future empirical research and we call for future studies to explore how acquisition integration capabilities become dynamic using longitudinal research design.
Keywords: mergers & acquisition; integration capability; integration level; dynamic capability; integration strategy; integration performance.
Country- and firm-specific positions of different multinational enterprises: who is having what?
by Tarun Kanti Bose, Md. Reaz Uddin, Jannatul Ferdous Bristy, Md. Enamul Haque
Abstract: This paper investigates country- and firm-specific positions of MNEs, EMMs and mMNEs. We have developed our original CSA-CSD, FSA-FSD matrix and fizzled out nine types of firms. Then, we have carried out 20 case studies and identified their positions in the matrix. Based on our findings we have installed five key propositions. Those propositions suggest MNEs are more equipped with FSAs whereas EMMs have more CSAs. MNEs are mostly persistent dominators and potential dictators, and EMMs are mainly emerging operators and regional players. Finally, mMNEs are low on both CSA and FSA and they are mostly operation consolidators.
Keywords: CSA; FSA; CSD; FSD; MNE; EMM.
Educational credentials and career success of CEOs of Latin American firms
by Maria R. Blanco, Miguel A. Sastre Castillo
Abstract: This study investigates the influence of education (highest degree acquired, major field of study and awarding institutions) on the time taken by Chief Executive Officers (CEOs) to reach that position. For this purpose, we considered 169 CEOs of Latin American firms and employed multiple hierarchical regressions. The results do not support the influence of a high educational level on the time that took CEOs to be appointed to the position ('time to the top'). Furthermore, in family firms, it delays the appointment to the CEO role. Elite institutions do not exert an influence on 'time to the top'. Our findings offer partial support to the human capital theory education variable in Latin America, highlighting the importance of cultural, socio-economic and institutional factors.
Keywords: education; career success; CEOs; time to the top; elite credentials; human capital; Latin America; multilatinas; family firms.
High potentials in multilatinas: creation of Latin American-specific models or convergence towards existing ones?
by Maria Rita Blanco, Andrés Hatum, Mariela Golik
Abstract: Multilatinas are part of the emergent multinational enterprises that have arisen from Latin America. Even though these firms are becoming increasingly important in the global economy, little is known about their talent management strategies and practices. This article seeks to understand, through a qualitative approach, the way in which the talent identification models were conceived, where they were sourced from and who contributed to their design (actors). Seventeen semi-structured in-depth interviews were conducted with Senior Corporate Talent Management Executives working for Multilatinas from Argentina, Brazil, Chile, Colombia and Mexico. Our findings revealed a fragmented scenario. Most of the multilatinas do not copy a complete or best practice model, they create a new hybrid one. As Multilatinas draw upon some elements of European and US models in order to create their own, some mimetic and normative pressures were identified. Participant firms, in general, count on internal actors to build their talent identification models, downplaying the importance of international consultancy firms. Finally, relying on the obtained results, a classification is proposed.
Keywords: high potentials; multilatinas; emerging multinational enterprises; talent identification.
Psychic distance, marketing strategy adaptation and export performance: the role of international experience
by Beata Seinauskiene, Regina Virvilaite, Ilan Alon
Abstract: This study theorises that a performance-enhancing strategic fit between a perceived psychic distance and an export marketing strategy adaptation applies under the boundary conditions of international experience. We model an export marketing strategy as a function of psychic distance and export performance as an outcome of export marketing strategy, moderated by international experience. To test the hypotheses, we carried out a survey of Lithuanian exporting companies that conduct business in the dairy and meat processing industries. The results did not support the existence of the conditional indirect effect of perceived psychic distance on export performance through export marketing strategy adaptation. Unlike the expectation, data indicated that export performance increases with an increase in distribution adaptation, but only: (a) among companies scored low in the length of experience in an export country and (b) under conditions of low export intensity.
Keywords: standardisation; adaptation; export marketing strategy; export performance; psychic distance; international experience; strategic fit; moderated mediation; international marketing.
Fostering innovative performance through ethical leadership: examining the mediating role of employee voice
by Irfan Ullah, Nida Zahid Kayani, Abid Mehmood
Abstract: The purpose of present research is to study ethical leadership as a forecaster of employees innovative performance with the mediating role of employee voice. Data was collected from supervisorssubordinates dyad working in the software houses of Pakistan. The results of the present study suggested that ethical leadership was positively related with employees innovative performance. Moreover, employee voice was observed as mediating variable between the ethical leadership and innovative performance linkage. The social exchange theory was used to construct the theoretical framework. This study has also discussed practical implications of the findings. Very few scholars have examined the significance of ethical leadership and voice behaviour of employees and focused on mediating variable like employee voice, which has significantly contributed to the literature of business management and ethics.
Keywords: ethical leadership; employee voice; innovative performance.
A gendered analysis of Spanish SMEs' export managers in externalised channels
by Pedro Araújo-Pinzón, Florez Lopez Raquel, Jose M. Sánchez-Vázquez
Abstract: This study is intended to analyze the situation of female managers in a setting traditionally considered male as is export activities, although examining the position of boundary managers in externalized export channel management where female interpersonal skills could be particularly valuable. This research empirically carries out a gendered analysis of SMEs Spanish export managers, shedding light about actual barriers that female managers face in this setting and about determinants of export intensity. Examining human-capital, firm-level, and sociological and cultural attributes, results show that female export managers have less experience than men, are newer in managerial positions and are associated with the service sector; we also observe that export management experience, time in current position and firm export experience have different impacts on export intensity for women than for men. Women need to establish social professional networks and/or mentoring relationships and export stimulation programs should be sensitive to female differences.
Keywords: Glass ceiling; gender roles; export intensity; inter-organizational relationships; SMEs.
Managing product innovation diffusion within multinational corporations: Leveraging global scale and local responsiveness
by John Luiz, Max De Bollivier
Abstract: How multinational corporations (MNCs) manage knowledge and engage in product innovation diffusion is a central theme of study within international management, and it raises the tension of balancing global integration and local responsiveness, which is the subject of this paper. It uses a qualitative research methodology based on a case study of a MNC from the pharmaceutical industry. We demonstrate the value of a funnel and network structure for diffusion which capitalises upon the global resources and scale within the MNC but which leverages resources within subsidiaries for both reverse and horizontal diffusion. We unpack an innovation diffusion funnel framework and demonstrate how a MNC can effectively utilise the extensive inputs within its ecosystem and transform them into product innovation through a production function process. We contribute by providing an understanding of what is required within the transformation box with its associated implications for how innovation is managed through both formal and informal mechanisms.
Keywords: product innovation diffusion; multinational corporations; managerial control mechanisms; innovation transformation functions.
Intra-regional diversification and revenue of export manufacturers
by Deusdedit A. Rwehumbiza, Marin A. Marinov
Abstract: This study explores the major drivers of more exports revenue from regional markets irrespective of a fairly balanced firms diversification into both regional and extra-regional markets. It focuses on export manufacturers in a relatively least researched context of low-income developing countries. Drawing on the interplay among three theoretical foundations and insights from multiple-case studies, research findings underpinning the explored phenomenon include: growing demand; lack of input materials to fulfil customer needs in high-income developed countries; own brand manufacturing; capability to overcome foreign competition; and more exports to the proximate regional markets. Only firms with higher capability to mobilise idiosyncratic resources, use and upgrade them stand a better chance to generate exports revenue from high-value but competitive developed countries. Generally, these findings suggest that while firms need to build a strategic fit with competitive business environments, home countries need to improve their investment environments attracting competitive and well networked firms.
Keywords: export manufacturers; exports revenue; intra-regional diversification; low-income developing countries.
Collaborative networks and export intensity in family firms: a quantile regression approach
by Raúl Serrano, Isabel Acero, Natalia Dejo-Oricain
Abstract: This paper examines if collaborative networks affect the export status in family firms (FFs) and if the effect of networks is different regarding the degree of internationalisation of the firm. For the empirical analysis, a dynamic Heckman-Probit model is used, using in the second stage a quantile regression model, which shows the networks' effect on the export intensity at different points of the degree of internationalisation of the firm. The results show that the network effect is more relevant when the firm has low export intensity. However, this role becomes less relevant when firms show a higher degree of internationalisation, probably because FFs are reluctant to strengthen networks. Our results can be useful, on the one hand, for regulators who need to develop programs for supporting sales internationalisation in FFs, and on the other hand, for managers of FFs since the results provide evidence of the importance of networks in the internationalisation of FFs. This paper contributes to the literature that combines international business and family firms by analysing the participation of family firms in interorganisational networks. Moreover, our results contribute to the practice by noting that the process of internationalisation is slower in FFs than in other companies since FFs tend to be more reluctant to participate in networks that require greater commitment.
Keywords: collaborative networks; export intensity; family firms; quantile regression; internationalisation process; socioemotional wealth; network model.
Testing the mediating role of POS between perceived AMO framework and deviant behaviours in the Indian IT sector
by Pooja Malik, Usha Lenka
Abstract: This study empirically investigates the impact of perceived abilities-motivation-opportunities-enhancing HRM practices (AMO framework) on destructive and constructive deviance. Additionally, this study explores the mediating role of perceived organisational support (POS) between AMO framework and destructive and constructive deviance. Data was collected from 265 entry-level IT employees. Structural equation modelling was used to test direct, indirect, and mediating effects. Results revealed a significant negative relationship between AMO framework and destructive deviance and a significant positive relationship with constructive deviance. Furthermore, results revealed the significant positive impact of AMO framework on POS. Similarly, POS exhibited a significant negative relationship with destructive and positive relationship with constructive deviance. Using organisational support theory (OST), results indicated partial mediation of POS between AMO framework and destructive and constructive deviance. This study implies that managers must enhance the skills and abilities of employees, motivate them to strive harder, and provide equal access to opportunities to reduce destructive deviance and facilitate constructive deviance among employees.
Keywords: ability-motivation-opportunity-enhancing HRM practices; AMO framework; constructive deviance; destructive deviance; perceived organisational support; structural equation modelling.
Is a higher minimum wage associated with a higher youth employment rate? A panel data analysis
by Ana Iolanda Voda, Ana-Maria Bercu, Jarmila Sebestová
Abstract: The successful integration of young members of the workforce into the labour market has been a topic of great interest for European decision makers since the onset of the recent financial and economic crisis. Although in EU member states, particularly in Central and Eastern Europe, the statutory minimum wage has recently been increased, there are concerns among decision makers that this policy may have negative effects on employment. This paper examines the effect of the minimum wage on the regional youth employment rate, using a panel of 628 NUTS II regions from various European states, during 2008-2014. We began by using the methodology introduced by Neumark and Wascher, were labour market outcomes at regional levels are related to the relative minimum wage (Kaitz index). Our results indicate that increases in the minimum wage have a significant effect on employment.
Keywords: youth unemployment rate; minimum wage; economic development; EU countries; econometric models; labour market.
Exploiting e-commerce trends for international market expansion: the perspective of Polish fashion firms
by Malgorzata Bartosik-Purgat, Barbara Jankowska
Abstract: The paper draws from the computer-mediated communication theory, zero moment of true, and research offline purchase online concepts to identify the trends existing in e-commerce that are important from the perspective of firms' market expansion. The study is based on the fashion industry. The research applies the method of narrative description with elements of the case study approach. The theoretical considerations lead to a conceptual model highlighting the facilitators of the exploitation of e-commerce for market expansion. The study reveals that even companies from post-transition countries that may seem to be less involved in digitalisation respond to the new challenges. The comparison of the intensity of involvement of the firms in e-commerce and their actions may be a guide for other fashion companies in post-transition countries as to how to take advantage of e-commerce to expand.
Keywords: e-commerce; computer-mediated communication; zero moment of true concept; research offline purchase online concept; social media; fashion; Poland.
Fluent in change: enabling strategic change in an established firm
by Ei (Emily) Shu
Abstract: While extant research has highlighted the role of leadership in strategic change, there continues to be a scarcity of empirical research on how and in what way that top management can influence a firm's strategic transformation. Based on a case study of Haier Group Company, a global leader in home appliances industry, this study examines how top managers can deliberately influence a firm's strategic change process by designing and implementing a specific enabling mechanism that supports change. The findings reveal that top managers align the management process to transformation through a process model by articulating, embedding and reinforcing the changes.
Keywords: strategic change; top management; enabling mechanism; microfoundations of strategy.
Failure prediction models for Slovak small companies
by Lucia Svabova, Marek Durica, Katarina Valaskova
Abstract: Prediction of the financial difficulties of companies has been over the last years dealt with by scientists and economists in many countries over the world. Several prediction models, mostly focused on a particular sector of the national economy, have so far been created also in Slovakia. The most common methods used to derive prediction models include, among others, discriminant analysis and logistic regression. The main aim of this paper is to create new prediction models for small companies in Slovakia using these two statistical methods. These predictive models are created by using real data for Slovak small companies coming from Amadeus database. The results of these models can be used to classify a company into the group of prosperous companies or into the group of companies threatened by bankruptcy, based on the company financial results.
Keywords: company's failure; Slovak companies; prediction models; bankruptcy prediction; discriminant analysis; logistic regression; international management; failure prediction; small companies.
The mediating role of ambidextrous organisational culture on absorptive capacity and innovative performance
by Mohammad Taghi Sadeghi, Rostam Derakhshan, Mohammad Reza Sanaei, Niloufar Khosravi Rad
Abstract: Today, identifying knowledge and creating innovation in organisations are of great importance The presence of absorptive capacity, which means the ability to discover new knowledge, affects the improvement of innovative performance in organisations Ambidextrous organisational culture can play a significant role in the relationship between absorptive capacity and innovative performance. Owing to the significance of this study in SMEs, it is aimed at investigating the effect of absorptive capacity on innovative performance and explaining the mediating role of ambidextrous organisational culture in this relationship The statistical population of this study included SMEs in Iran, and 57 companies participated in this research. Three questionnaires were used for data collection. The data were analysed by LISREL to evaluate the structural equations model. The obtained findings showed a positive and significant the relationship between the research variables and ambidextrous organisational culture having a mediating role in the relationship between absorptive capacity and innovative performance.
Keywords: absorptive capacity; ambidextrous organizational culture; innovative performance; small and medium-sized enterprises; structural equation modelling.
Factors determining the achievement of IS/IT benefits: an empirical study in the Slovak Republic
by Vladimír Bolek, Martin Januska, Anita Romanová, Michal Zelina
Abstract: The concept of ICT includes technical, technological and methodological resources required for collection, processing and provision of information to all the stakeholders in the decision-making process - not just managers. Companies expect benefits from the implemented IS/IT. The benefit is associated with value creation and efficiency for the relevant entity, which represents the desired benefits for an enterprise. The aim of this survey was to explore the benefits achieved by using IS/IT affecting the competition among enterprises in Slovak Republic (Central and Eastern Europe, member of the European Union, Visegrad Group) and the influences determining their achievement. The main objective of the scientific discourse is to determine levels of significance of various external and internal influences on achieving benefits from the use of IS/IT, based on statistical analysis to identify which internal and external influences entering statistically significant models of the three most commonly achieved benefits affecting the competitiveness of companies.
Keywords: management of information systems; information management; benefits; information systems; information technologies.
The effect of governance mechanisms on the financial and stock market performance: the case of Canadian companies
by Hanen Ghorbel, Manel Kolsi
Abstract: The main contribution of this article is to revisit the governance
Keywords: corporate governance; financial performance; stock market performance; disclosure; effect threshold.
Media branding and value co-creation: effect of user participation in social media of newsmedia on attitudinal and behavioural loyalty
by Datis Khajeheian, Pejman Ebrahimi
Abstract: By pervasiveness of social media, co-creation of value becomes a significant trend in media industry. Newsmedia organisations are one of the sectors significantly influenced by user participation in blogs, citizen journalism and user-generated content. This study investigates effect of value co-creation on the loyalty of media consumers, by a survey on users of social media of Press-TV. The research model proposes that user participation associates with three different types of value: relational, economic and emotional values; to media brand enforcement and this associates with two types of loyalty: attitudinal and behavioural loyalties. 274 users of Press-TV social media were offered the questionnaire. FIMIX was used to measure the unobserved heterogeneity of the sample. Results show that users' participation in value co-creation significantly affects their loyalty to the media brand. Results also show that media enforcement is the most important variable in media consumers' loyalty.
Keywords: media brand; co-creation; value proposition; customer loyalty; social media; branding; user participation.
Which corporate social responsibility issues do consumers perceive as relevant to be evaluated in the hotel sector?
by José A. Pérez-Aranda, Montserrat Boronat-Navarro
Abstract: The aim of this research is to develop a measure for consumer-based perceptions of corporate social responsibility (CSR) to better understand which CSR attributes consumers consider valuable in the hotel sector. It is precisely this stakeholder group that eventually legitimises the firm's actions through its purchasing behaviour. To develop the measure, indicators proposed in previous studies are reviewed, and six dimensions are proposed, taking into account three theoretical perspectives. Previous studies have found some weaknesses in the validation of the traditional economic dimension of CSR, and therefore, this area requires further analysis. The measure for consumer-based perceptions of CSR is tested using a large and representative sample of Spanish consumers and is further validated using a second sample of foreign tourists in Spain, confirming the economic, legal, ethical, philanthropic, environmental, and stakeholder dimensions. This study provides managers with greater insight into how hotel consumers perceive the overall CSR concept.
Keywords: consumer perceptions; corporate social responsibility; measure development.
Exploring the role of organisational learning and leadership in developing dynamic capabilities
by Chang Hoon Oh, Jeong-Yang Park, Reem Muaid, Yong Kyu Lew
Abstract: Previous research has acknowledged that the interplay between organizational learning and leadership is vital. In this research, we combine organizational learning and leadership research within a dynamic capability (DC) framework to understand the nature of, and interaction between them. Drawing on a single case study, this paper develops a conceptual framework of how learning mechanisms in organizational learning and different leadership styles influence the DCs. We find that the roles of leadership foster the development of organizational learning, environmental structures and underlying processes. To cultivate DC, designing different learning processes and systematic learning mechanisms to capture each aspect of DC, at individual and collective level, is essential. We also find that the transformational visionary leadership stimulates organizations to systematically address learning mechanisms and construct organizational learning environment.
Keywords: dynamic capabilities; leadership; learning mechanism; organisational learning; pharmaceuticals.
Consumer trust and repurchase intention in B2C e-commerce: a moderation model
by Quang Ngo Van, Zhi Yang
Abstract: An important question when researching B2C e-commerce is how about the relationship between customers trust and their repurchase intention. The main purpose of this research is to divide up customer trust into three types and clarify its role in the customer decision-making process. Basing on the different targets of trust and antecedent-trust-outcome model with a sample of 518 online customers in Vietnam, the results showed that ethics of e-retailers significantly impact on customer trust which in turn influence on customer repurchase intention. Moreover, product types and customer online shopping habit act as the moderating variables in determining customer repurchase intention.
Keywords: consumer trust; repurchase intention; perceived ethics; product types; shopping habit; attitude.
Entry mode choice in emerging markets: is there any difference between emerging and developed country multinationals?
by Ana Valdés-Llaneza, Pablo Sánchez-Lorda, Esteban Garcia-Canal
Abstract: Previous research has documented that, when investing abroad, emerging market multinationals (EMMs) have a higher tolerance for risk than developed country multinationals (DCMs), highlighting their propensity to make bold acquisitions and to form alliance networks. In this paper we examine the differences between EMMs and DCMs when it comes to choosing between these options of external growth. We argue that EMMs have a higher propensity than DCMs to choose joint ownership options and, among them, those involving complex partnerships, so as to leverage their routines and imprinted capabilities to deal with partners. In order to carry out the study, we consider the differences in entry mode patterns in emerging markets by multinationals from US, European Union, BRIC, and Next-Eleven countries between 1996 and 2012. Our results supported our hypotheses.
Keywords: joint ventures; acquisitions; emerging multinationals; developed multinationals; internationalisation; investment risk; relational risk; differences in entry mode patterns; BRIC countries; Next-Eleve.
Manufacturing backsourcing: a case study of a company's process framework
by Hans Solli-Sæther, Jan Terje Karlson, Andrea Slyngstad
Abstract: The purpose of this study is to examine the backsourcing process. Based on previous research and lessons learned from a case study of a supplier of maritime equipment in a Scandinavian cluster, important drivers, activities and challenges related to the backsourcing process are identified. The key contribution of this research is the development of a stepwise model of how companies can backsource. It is a framework describing how companies can conduct the backsourcing process, which consists of four phases comprising different objectives and activities. Moreover, three main challenges are identified, namely limitations in capacity, re-building knowledge, and adapting the backsourced product to the production site. In addition to filling a gap in the existing literature, the framework can also be used as an analytic tool to help managers deal with the decisions and challenges related to the backsourcing process.
Keywords: backsourcing; manufacturing industry; backsourcing process.
Persistence and strengths of informal networks: clientelism in the post-Soviet Union
by Sven Horak, Verena Bader
Abstract: In this theoretical study, we challenge two prevalent assumptions in the international business domain: the disappearance of informal networks and the strength of weak ties assumption. Drawing on cultural as well as informality studies, we explore the phenomenon of clientelism and its characteristics in the post-Soviet Union. We argue that informal ties based on patron-client relations are neither disappearing nor is weakness a characteristic that makes them strong. We propose that diverse clientelistic ties appear to persist in the post-Soviet Union, as they are culturally embedded and dynamically adjust to changes in the environment. Finally, we argue that the nature of clientelism is paradoxical: on the one hand, it is prone to favouritism, but when it comes to weak governments, clientelistic practices may, on the other hand, be seen as an effective means to overcome social boundaries by connecting persons of different social classes.
Keywords: clientelism; corruption; patronage; informality; informal institutions; blat/svyazi; post-Soviet Union; emerging markets; Russia.
Strategic HRM and environmental performance: the role of corporate environmental policies and employee's eco-initiatives
by Annam Bibi, Bilal Afsar, Waheed Ali Umrani
Abstract: Healthcare organisations that 'embrace' environmental sustainability tend to gain significant performance improvements and decrease costs related to waste recycling and disposal. This study examined the relationship between strategic human resource management, hospitals' environmental policies, nurses' eco-initiatives, and environmental performance. Data were collected from all registered nurses who worked at three public and general hospitals located in Islamabad, the capital of Pakistan, numbering around 800 nurses. A total of 450 questionnaires were distributed among nurses, and 263 were returned. The main results indicated that nurses' eco-initiatives fully mediated the effect of strategic human resource management on environmental performance, and that hospitals' environmental policies moderated the effect of strategic human resource management on nurses' eco-initiatives. By implementing appropriate HRM practices at the strategic level that can help nurses to repeatedly engage in eco-initiatives, the environmental performance of hospitals can be enhanced.
Keywords: environmental performance; eco-initiatives; pro-environmental behaviour; green behaviour; corporate environmental policies; strategic human resource management.
Factors affecting the decision and the degree of the internationalisation of franchises
by J.M. Ramirez-Hurtado, Bernardino Quattrociocchi, Juan Manuel Berbel Pineda
Abstract: The franchise concept is present in many countries around the world. However, the franchising systems have different levels of development among countries. The purpose of this paper is to analyse the influence of a series of factors in the internationalisation of Italian franchises. The results show that the only two variables that affect internationalisation are size and sector. On the other hand, the results obtained via the Tobit analysis show that the franchise's degree of internationalisation is determined by the number of franchisees in the domestic market, by the investment that the franchisee has to make to open an establishment, by the time the franchisor has been operating with a franchise formula, and by the sector. This work's conclusions can be very valuable for firms to be able to correctly define their internationalisation strategy.
Keywords: franchising; internationalisation; strategy; Italy.
Sustainability reporting practices of media companies - the case of Europe
by Justyna Berniak-Wo?ny, Katarzyna Walotek-?cia?ska, Magdalena Wójcik-Jurkiewicz
Abstract: Despite the dynamic development of sustainability reporting, there is a limited amount of practical and academic knowledge on sustainability reporting practices in the media industry. The aim of this paper is to investigate on the scope and quality of sustainability reporting practices of the companies operating in the European media industry. The empirical part of the paper will be based on a qualitative descriptive research design. In this study a content analysis was conducted on 33 sustainability reports issued in 2017 by European media companies. The nature of the study will be descriptive and based solely on information from secondary data sources. Based on the findings, the media industry sustainability reporting practices will be characterised.
Keywords: Sustainability reporting; CSR reporting; Non-financial reporting; GRI; media industry; content analysis.
The determinants of foreign investment size: the role of parent firm advantage and cross-national distance
by Nan Zhou, Tianyou Hu, Andrew Delios.
Abstract: This study investigates the determinants of foreign investment size by considering the role of both parent firm advantage and cross-national distance. We first develop an economic model of foreign investment size. Building on this model and theories in international business, we derive hypotheses on the determinants of foreign investment size: it is positively related to parent firm-specific advantage, while it follows an inverted U-shape relationship with different dimensions of cross-national distances. Moreover, parent firm advantage and cross-national distance interact with each other to influence investment size. Our empirical analysis of Japanese firms foreign direct investment (FDI) data from 1990 to 2009 supports our hypotheses. Our study contributes to the literature on FDI by examining an overlooked aspect of FDI: investment size. We also integrate economic model and international business theories to explain firm-level and country-level determinants of foreign investment size.
Keywords: FDI; investment size; parent firm advantage; cross-national distance.
Feeling the fit and self-determination? A PLS-SEM approach for self-initiated expatriates' self-determination, person-environment fit, and turnover intention
by Shih Yung Chou, Tree Chang, Bo Han
Abstract: The purpose of this study is to investigate the impact of self-initiated expatriates perceived person-environment (P-E) fit on their psychological need fulfilment as well as the impact of self-initiated expatriates perceived psychological need fulfilment on their turnover intentions through the lens of self-determination theory. Utilising an online cross-sectional survey approach, this study tests the proposed hypotheses via the PLS-SEM approach with a sample of 40 self-initiated expatriates in Taiwan. Results illustrate that self-initiated expatriates person-vocation fit significantly affects their autonomy need fulfilment. Moreover, self-initiated expatriates person-organisation fit influences their autonomy need fulfilment. Furthermore, self-initiated expatriates relatedness need fulfilment is predictive of their turnover intention. Limitations and implications are discussed.
Keywords: person-environment fit; self-determination theory; turnover intention; self-initiated expatriates.
An integrated approach to the global strategy of entertainment firm: motivation, process, and management
by Yeon W. Lee, Hwy-Chang Moon
Abstract: Korea's entertainment firms demonstrated fast entry and success in the global markets, starting with Japan and Asia and then gradually expanding their globalisation to the USA and Europe. The successful entry into these global markets has led to tremendous growth among Korea's entertainment companies, not only in profits but also in enhancing their competitiveness. This paper explains the unique strategy of how Korea's leading entertainment firm has succeeded in globalisation. By comparing conventional theories on firms' motivations and strategies for investing in foreign markets, this study makes two contributions: (1) this paper extends earlier international business theories by capturing the unique investment motivations that are related to the explorative and absorptive strategies of market and technology learning; (2) this paper highlights process-based strategies that often override the advantages of physical resources. The case study on the entertainment industry in this paper provides new implications for a comprehensive global strategy.
Keywords: international business strategy; entertainment firm; upward foreign direct investment; imbalance theory; learning.
Disentangling the antecedents of relationship between dynamic internationalisation capability and international performance: the moderating role of absorptive capacity
by Michael Yao-Ping Peng, Chunchun Chen, Ku-Ho Lin
Abstract: This study distinguishes between international exploitation and international exploration and extends the literature on dynamic internationalisation capability by introducing absorptive capacity as a moderator. This study empirically examines the research framework using survey data from 211 manufacturing firms in Taiwan. Informants' (CEOs, vice presidents, senior managers) knowledge about and shouldering of firm responsibilities are explored. The findings confirm previous studies that claim a positive relationship among overseas market orientation, dynamic internationalisation capability, and international performance. In addition, the results indicate that absorptive capacity positively moderates the relationship among overseas market orientation international exploration and exploitation. This study contributes to both dynamic capability and international marketing strategy literature by extending recent studies through investigating the relationships between overseas market orientation, dynamic internationalisation capability, absorptive capacity, and international performance.
Keywords: absorptive capacity; dynamic internationalisation capability; international performance; internationalisation; overseas market orientation.
System dynamics simulation model for inventory optimisation of manufacturers: a case study in electrical industry
by Masoud Rahiminezhad Galankashi, Syed Ahmad Helmi, Maryam Mofarrahi, Farimah Mokhatab Rafiei
Abstract: System Dynamics (SD) is an approach to understand the behavior of complex systems over the time. Although SD has been applied in different areas, its integration with fuzzy inventory optimization is less investigated. In addition, customers demand fluctuation is a significant factor in inventory optimization which is not studied in previous literature. Therefore, this study applies SD to consider customers demand fluctuation and improve the inventory level of companies. Particularly, a SD model is constructed in iThink software to represent the inventory level of the companies. Following, the Stock and Flow Diagrams (SFDs) are applied to represent the structure of the system. Next, three variables of demand variation, demand average and the highest demand are modelled in Matlab Simulink fuzzy controller to optimize the inventory. According to the obtained results, the inventory level of the considered case study is optimized by applying the developed model. Finally, obtained results are compared with the current inventory level of the company and some managerial implications are suggested.
Keywords: inventory optimisation; system dynamics; iThink software; Matlab Simulink.
Achieving regional sustainable development: a bibliometric analysis on firm migration
by Liu Fan, Yichen Wang, Zhongchao Zhao, Xinmin Liu, Lei Wang
Abstract: Firm migration has significant influence on the local industrial transformation and regional economic development. Meanwhile, the impetus of globalization has intensified firm migration, which, in turn contributes to business formation and diversification. Therefore, this study conducts a comprehensive literature review pertaining to this area through bibliometric analysis and further discusses the bidirectional relationship between firm migration and regional economic development. Top-tier journals, important institutes and hot topics are taken into analysis by CiteSpaceV to quantitatively and visually evaluate scientific documents from Web of Science (WoS) published between 2000-2017. The results identified that major studies of firm migration mainly concentrate on the United States, the United Kingdom and China. Using co-citation analysis, hot topics are found mainly focusing on theoretical research, driving factors on firm migration and related economic phenomena caused by firm migration.
Keywords: firm migration; bibliometric analysis; co-citation analysis; burst detection; sustainable regional development.
Corporate responsibilities and values in codes of ethics: an exploratory study of the Global Fortune companies
by Yücel Öztürkoğlu, Omer Ozturkoglu, Ebru Saygılı
Abstract: This study aims to develop a common language for code of ethics (CofE) statements and explore whether Global Fortune companies have expanded their CofE statements by including all stakeholder responsibilities and universal values. The results of the exploratory factor analysis demonstrated that even though compliance and other first generation CSR were the dominant concepts, second and third generation stakeholders were included in the first factor which was named as core values and responsibilities. In the four-factor model with 30 sub-factors, the second factor was community issues, the third factor was internal conduct and the fourth factor was employee rights. The findings indicated the complete presence of trustworthiness, citizenship, and respect values whereas responsibility, fairness and caring values can be improved in CofE statements. Further, due to the dynamic nature of CofE companies should give more importance to new concepts like risks, fair dealing, fair competition, industry issues, training and education.
Keywords: codes of ethics; codes of conduct; corporate values; exploratory factor analysis; corporate responsibilities; Global Fortune companies.
Internationalisation of family firms: the role of networks and coopetition
by Sascha Kraus, Andrea Mauracher, Andreas Kallmuenzer, Johanna Gast, Andrea Calabro
Abstract: Whether and to what extent socioemotional wealth (SEW) influences family firm internationalisation is currently a highly debated topic in family business research. We add the network approach to the debate and, specifically, investigate whether business networks affect family firm internationalisation. We also examine how international entrepreneurial orientation (IEO), as an internal factor, and coopetition, as an external factor, mediate that relationship. We test our hypotheses on a sample of 122 internationally active family firms. Our main findings suggest that business networks positively affect family firm internationalisation if mediated by IEO and negatively if mediated by coopetition. Strong SEW concerns moderate these effects divergently: while SEW negatively affects the positive mediation of IEO, it strengthens the negative mediation of coopetition. These results contribute to our understanding of the importance of networks and entrepreneurship in family firm internationalisation, as well as to the context-specific relevance of socioemotional and coopetitive behaviour.
Keywords: internationalisation; family firm; SEW; IEO; coopetition; networks.
Intellectual capital, organisational performance and competitive advantage
by Felipe Hernández-Perlines, Manuel Alejandro Ibarra-Cisneros, María Rodríguez-García
Abstract: At present, the role of intellectual capital in organisations is significantly more important than in the past owing to the transition from an economy based on assets to another based on knowledge. The value of intangible assets increases as that of tangible assets decreases; this allows organisations that prioritise intellectual capital to produce competitive advantages and achieve better performance. The purpose of this paper is to ascertain if human capital, structural capital and relational capital have a positive influence on the organisational performance of medium-sized firms in the Mexican manufacturing sector. Moreover, it is analysed if competitive advantage mediates the relation between intellectual and organisational performance. Data were obtained from a survey to 309 CEOs of Mexican manufacturing firms. In order to test the research hypotheses, the construct validity was tried by means of face, content, convergent, nomological and discriminant validity, for which techniques such as exploratory and confirmatory factor analysis using SPSS and AMOS, respectively, were resorted to. Later on, Partial Least Squares Structural Equation Modeling (PLS SEM) was applied using software SmartPLS. Results showed that the three dimensions of intellectual capital have a positive and significant influence on organisational performance. Furthermore, competitive advantage mediates the relation between intellectual capital and organisational performance.
Keywords: intellectual capital; competitive advantage; organisational performance; manufacture.
Goodbye to determinism: the circle of innovation
by Fred Phillips
Abstract: An argument, lasting from the 19th century through the present day, has to do with whether social changes create technological innovation (technological determinism) or vice versa (social determinism). Advocates of either argued that both could not be true. Modern interactive information technology allows us to see that neither view is fully correct, and that there is full circular feedback from social and organizational effects to technological innovation and back again. This paper offers instances of the Circle of Innovation. It analyzes and attempts to resolve the nuances of both determinist positions. It ties a third determinist tradition, linguistic determinism, to technology management practice. Implications of this theoretical discussion for research, for public policy, and for business include the need for renewed dialog between economics and sociology; the need for a new embrace of nonlinear analysis; and the potential for greater profits from looking anew at technology assessment and market segmentation.
Keywords: Technology; Technological determinism; Social determinism; Feedback; Nonlinear economics; Sapir-Whorf hypothesis; innovation; technology assessment; interactive technology; technology colonisation.
Globalisation: blessing or curse? Evidence from the insurance industry
by Christian Biener, Martin Eling, Ruo Jia
Abstract: A central debate in international business is whether there is a relationship between internationalisation and firm performance, and if so, what its shape and contingent factors are. We use a sample of European insurance companies to show that industry context and cost efficiency are contingent factors of this relationship. Life insurers, particularly those focusing on cost leadership, exhibit a negative impact of globalisation (G) on firm performance (P). We proxy cost leadership by a novel multidimensional measure of cost efficiency and show that it negatively moderates the G-P relationship in the life insurance industry. In contrast, there is no significant G-P relationship and no cost efficiency moderating effect in the nonlife insurance industry. We attribute these results to the higher liability of foreignness driven by greater distance in the globalisation process and by the greater importance of cost efficiency in life insurance as opposed to nonlife insurance.
Keywords: globalisation; liability of foreignness; cost efficiency; data envelopment analysis; cost leadership strategy; insurance.
Assessing the impact of marketing and advertisement as strategic approaches to Euro-cities' development: an Iberian case study approach.
by Rui Alexandre Castanho, Ana Vulevic, José Manuel Naranjo Gómez, José Cabezas, Luis Fernández-Pozo, Luís Loures, Sérgio Lousada, Patrícia Escórcio, Joanna Kurowska-Pysz
Abstract: It is taken for granted that new challenges require new approaches. Based on such principles, new methods and strategies allow spatial planning to still evolve as the specific case of the cooperation between sovereign territories. Euro-cities are one of those examples. To reach higher growth and development performances, cross-border cooperation projects of Euro-cities are carrying out several marketing and advertisement efforts to achieve these purposes. Considering the reflection of acquired knowledge in terms of supporting border region developments, especially from the viewpoint of the marketing communication (advertising) organisations in these regions. Throughout the analyses of five Iberian Euro-cities projects, which are based on pivotal processes of the EU cohesion policy - cross-border cooperation. In this regard, the research is able to assess and determinate how those factors, marketing and advertisement, could influence the regional and cross-border development.
Keywords: advertisement; cross-border cooperation; Euro-cities; marketing; regional development.
Foreign motivation? Managerial international exposure and international regional involvement effects on firms' entrepreneurial orientation
by Karina Bogatyreva, Galina Shirokova, William Wales, Richard Germain
Abstract: Despite increasing recognition of the importance of entrepreneurial orientation (EO), insufficient attention has been devoted to international factors which foster EO. In this paper, we examine managerial international exposure and regional involvement in international economic activity as two potential key drivers of firms' EO formation. We explore these focal relationships using a robust sample of 769 manufacturing firms from Russia, a BRIC country and emerging economy that has received relatively scant attention within the literature. Our findings indicate that managerial international exposure increases a firm's EO, and that this effect is weakened as regional involvement in international activity increases.
Keywords: entrepreneurial orientation; managerial international exposure; regional effects; emerging markets; Russia.
The relationship between the structure of the board of directors and firm performance in family versus non-family firms
by Rebeca Garcia-Ramos, Belén Díaz Díaz, Myriam García Olalla
Abstract: This paper investigates the impact of four characteristics of the board of directors (board size, board independence, leadership structure, board meetings) on firm performance (Tobins Q). Accordingly, four hypotheses have been developed. The analysis is based on data (objective variables) from 221 firms operating in three countries (Spain, Portugal, Italy) and differentiates between non-family-controlled businesses (NFCBs) and family-controlled businesses (FCBs). Considering the cross-sectional (three countries) and the time series (six years) nature of the data, we used a panel data estimation approach. Our findings show that, although corporate governance recommendations advocate larger, more independent and proactive boards, as well as structures that ensure the separation of the chairperson and CEO roles, these board features do not always result in more effective boards. Indeed, smaller, less independent and less active boards and dual leadership structures are tied to better performance by the FCBs in our sample as compared with the NFCBs.
Keywords: corporate governance; board of directors; family ownership structure; firm performance.
Determinants of relocation mode choice: effect of resource endowment, competitive intensity and activity character
by Marlena Dzikowska, Radoslaw Malik
Abstract: The study investigates the factors determining relocation mode choice (in-house sourcing, outsourcing, captive offshoring, offshore outsourcing) and provides an insight into the behaviour of companies from a transition economy. A multinomial logit model run on a sample of 150 Polish companies from the automotive and clothing industries allows us to refer to four hypotheses based on strategic management literature emphasising core activities, resource endowment and competition intensity. Our research indicates that relocations undertaken by firms operating in a transition economy are characterised with unique qualities that are not frequently associated with business entities from developed economies and require special consideration.
Keywords: Relocation; relocation mode choice; offshoring; outsourcing; core activities; competitive intensity; resource endowment; in-house sourcing; offshore outsourcing; captive offshoring.
International management of customer orientation.
by José Luis Gonzalez Porras, José Luis Ruiz-Alba Robledo, Miguel A. Rodriguez-Molina, Vanesa F. Guzmán-Parra
Abstract: This study investigates, with a focus on international management, the role of customer orientation of service employees (COSE) and its influence on customer satisfaction and on electronic word of mouth (e-WOM). An empirical study was conducted amongst hotel customers with a final valid sample of 265 respondents Digital capabilities have been included in the COSE model for the first time. Findings indicate that digital capabilities have a positive influence on customer satisfaction that is mediated by COSE. This study has also compared differences between international and national firms and also in considering family business and non-family business criteria. Results show that international hotels have a higher level of COSE than nationals, mainly due to the technical skills of the employees, and the presence of a higher level of COSE in FBs rather than in NFBs. Some contributions to academia and to international management have been discussed.
Keywords: international management; hotels; digital capabilities; customer orientation; customer satisfaction; e-WOM; family business.
When hotels go abroad: the internationalisation of the Portuguese hospitality
by Vitor Braga, Anabela Oliveira, Eliana Silva
Abstract: The tourism sector in Portugal has been experiencing unequal levels of development in its different counties. These different regions display different natural, economic and social characteristics that impact on the internationalisation process and affect the attractiveness of foreign hotel chains. Supported by the existing literature, in this article, we present logistic models, based on data from 2015, to estimate the probability associated to the decision for internationalisation of the hotels' industry or to the establishment of foreign hotel chains in Portuguese territory. The logistic regression model concludes that the existence of a high degree of knowledge, access to inherited or developed resources and the participation on the international trade, affect the probability of internationalisation of hotels. In turn, the probability of foreign hotels establish their activity in a certain region varies according to the international trade, the endowment of natural and historical-cultural resources and its climate.
Keywords: iinternationalisation; tourism; foreign direct investment; logistic regression; OLI paradigm.
Teamwork competence and collaborative learning in entrepreneurship training
by Mauricio Jara, Melany Hebles, Concepción Yániz Alvarez-de-E
Abstract: Given the dynamics of the business environment, training in teamwork competence is becoming increasingly important vis-
Keywords: teamwork competence; university teaching; cooperative learning; innovation; entrepreneurship.
Does internationalisation give firms a second life? Evidence from turnaround attempts of declining firms during performance decline
by Xin Liang, Rongji Zhou, Jugang Yan, Sibin Wu
Abstract: Based upon a sample of 97 US public firms that attempted turnaround from performance decline, we tested the influence of internationalisation on the outcomes of turnaround attempts of firms. We found that internationalised firms had a better chance to recover from performance decline than their domestic counterparts. In addition, the greater the degree of internationalisation, the better chance a firm would recover from performance drop. The chances of recovery do not demonstrate a tendency to decrease even as a firm moves into very high stages of internationalisation. We discuss our results and conclude on what strategies managers can take to achieve successful turnaround.
Keywords: turnaround; internationalisation; strategic option.
Customer information search in the context of e-commerce: a cross-cultural analysis
by Alexandru Capatana, Federica Codignola, Jessica Lichy, Kiyohiro Yamazaki
Abstract: Over recent decades, the internet has emerged as a widely-used e-commerce tool for information searching and decision-making concerning consumer goods and services. Taking into account B2C consumers, greater access to information has generated significant competitive advantage for the firms that operate in the global marketplace. Recognizing the knowledge-intensive nature of online business, information is managed with the intention of delivering unique customer experience. The existing literature puts forward that the search for information represents a fundamental step in the decision-making process. Research shows that in the global marketplace, individuals from different cultures rely on different typologies of information for making shopping decisions. However, few studies have investigated whether, in order to fulfill different information needs, e-commerce informative elements should be localized or standardised depending on the cultural context. In an attempt to fill this gap in knowledge, this paper takes a customer behavior approach to investigate how individuals from Finland, Italy and Japan search for information within the specific context of e-commerce.
Keywords: e-commerce; cross-cultural studies; information search; online customer behaviour.
Immigrants and natives export benefitting from business collaborations: a global study
by Shayegheh Ashourizadeh, Mehrzad Saeedikiya
Abstract: The authors hypothesised that export develops in the network of business collaborations that are embedded in migration status. In that, collaborative networking positively affects export performance and immigrant entrepreneurs enjoy higher collaborative networking than native entrepreneurs due to their advantage of being embedded in the home and the host country. Moreover, the advantage of being an immigrant promotes the benefits of collaborative networking for export compared to those of native entrepreneurs. 47,200 entrepreneurs starting, running and owning firms in 71 countries were surveyed by Global Entrepreneurship Monitor and analysed through hierarchical linear modelling technique. Collaborative networking facilitated export and migration status influenced entrepreneurs networking, in that, immigrant entrepreneurs had a higher level of collaborative networking than native entrepreneurs. Consequently, immigrant entrepreneurs seemed to have benefited from their network collaborations more than their native counterparts did. This study sheds light on how immigrant entrepreneurs network collaborations can be effective for their exporting.
Keywords: export; immigrant entrepreneurs; native entrepreneurs; business collaborations; dual embeddedness.
An empirical assessment of antecedents able to attract the prospective talented workforce for information technology industry across borders
by Bhartrihari Pandiya, Vijayshri Tiwari, Chandra Kant Upadhyay
Abstract: In the present corporate scenario, attracting and retaining highly skilled and talented employees is one of the key to competitive advantage. Employer branding is the latest concept which is being practised by some organisations to create an attractive brand as an employer. The review of the existing literature in the emerging area of employer branding found the antecedents capable of alluring the prospective employees by their employers. A survey instrument was developed with a scale of employer branding to empirically evaluate the employer attractiveness in the Information Technology (IT) sector. The uniqueness of the research is a novel and comprehensive scale in employer branding in the IT sector that will not only help to attract the talented workforce in cross border but also retain them. The findings can be useful for policy-makers in other national borders and Asian countries as they have related and somewhat similar situations.
Keywords: employer; branding; talent management; antecedent; information technology sector.
Born Global phenomenon: a critical review and avenues for future research
by Md Imtiaz Mostafiz, Murali Sambasivan, See-Kwong Goh
Abstract: The phenomenon of Born Global has received significant attention by international business scholars because of its distinctive characteristics. Several theories, perspectives and frameworks have been adapted to investigate and scrutinise the characteristics of Born Global phenomenon. This study aims to review and evaluate critically the literature to (1) discuss the diverse theoretical approaches, (2) discuss the findings from qualitative and quantitative studies, (3) develop holistic conceptual framework, and (4) propose avenues for future research. The in-depth critical literature review includes the analysis of 230 articles published in peer-reviewed journals over a 24-year time-span between 1993 and 2017. The result shows that the interest in the Born Global research has increased gradually. Both theoretical and empirical scholarships have contributed significantly to this interest. Based on the results, a theoretical model has been developed to describe the unrivalled factors to achieve Born Globals' success.
Keywords: Born Global firms; international new ventures; early internationalising firms; Born Global characteristics.
Ukrainian skilled migrants in Polish emerging economy
by Lukasz Sulkowski, Sylwia Przytula, Anna Migdal
Abstract: The aim of this paper is to analyse the implications for knowledge management of influx of skilled Ukrainian migrants into Polish emerging economy We applied a model of four types of knowledge (embrained, embodied, encultured, embedded) in the migration context The quantitative research was conducted on a sample of 167 Ukrainian skilled migrants (students) The qualitative study comprised 13 semi-skilled interviews with highly-skilled Ukrainian migrants working in Poland We found that Ukrainian skilled employees can fill the employment and competency gap in the emerging Polish economy and they face fewer barriers in knowledge transfer due to their the high level of adaptation in Poland This paper presents implications for knowledge management in the context of global migration This study contributes to theory and research in two ways It fills the gap in the literature related to knowledge management of skilled migrants in emerging economy.
Keywords: skilled migrants; migration; Ukrainian migrants; Polish emerging economy; knowledge management; knowledge transfer.
Organisational culture as a stress determinant in SME sector organisations.
by Anna Wzi?tek-Sta?ko, Magdalena Stuss, Izabela Sta?czyk
Abstract: This article is theoretical and empirical in nature. Its first purpose is to present the results of the authors' own empirical research devoted to assessing the present and expected organisational culture model in Polish SME sector employees' opinion. Another key research objective was to assess the occurrence of some statistically significant dependencies between the declared model of the organisational culture and the perception of the present level of respondents' stress. The research results show that the current model of the organisational culture is a statistically significant determinant of employees' level of stress in all kinds of analysed organisation.
Keywords: organisational culture; organisation; stress; stress management; SME sector.
Board gender diversity and strategic change in high-tech firms: Evidence from an emerging economy
by Abubakr Saeed, Syed Shafqat Mukarram
Abstract: This article examines the effect of board gender diversity on strategic change in high-tech industries which are associated with high propensity of competition and uncertainty. A sample of 60 Indian high-tech firms listed on the National stock exchange over the period of 2008-2014 is used. First-difference generalized method of moment (GMM) estimation technique is applied for data analysis. Using upper echelon and social identity theories, results reveal that women directors positively affect strategic change in high-tech firms and their industry expertise further strengthens this relationship. Our study offers new insight to managers and policy makers that strategic involvement of women directors enables board to deal effectively industry environmental changes in high-tech firms suggesting that women directors contribution in board strategy is contingent upon industry of the firm.
Keywords: women directors; strategic change; high-tech sector; industry expertise.
Linking diversity on audit committees and financial reporting quality in Poland
by Dorota Dobija, Karolina Pu?awska
Abstract: This study investigates the influential effects of diversity among audit committee members on the quality of financial reporting. We use an insider corporate governance model characterised by high ownership concentration, low minority shareholder protection, and a two-tier corporate governance system to show how different environments affect the efficiency of boards and their AC. Our findings highlight how various diversity characteristics influence a board's monitoring function and can, therefore, help supervisory bodies and regulators promote corporate governance practices, especially the responsibilities of ACs, in both Central and Eastern Europe and other emerging economies.
Keywords: corporate governance; audit committees; international experts; diversity; financial reporting quality; audit reporting lag; Poland; CEE.
Institutional misalignment and cost of doing business abroad: a Varieties of Capitalism approach
by Kim Clark, Indu Ramachandran
Abstract: Cost of Doing Business Abroad (CDBA) and the variety of causes leading to this phenomenon has remained an important research stream in international business. In this paper, we set forth a new perspective on the CDBA by incorporating institutional misalignment between the home and the host country as a component of the CDBA. Through the lens of Varieties of Capitalism from political economics, we develop an integrated set of propositions to describe why and how institutional misalignment can create additional cost for MNEs. Specifically, we discuss how the differences in institutional configurations between the home and the host country create institutional misalignment. Furthermore, we theorise why institutional misalignment is inevitable as MNEs cross national borders and how this creates additional economic as well as social costs for MNEs.
Keywords: cost of doing business abroad; institutional misalignment; varieties of capitalism; business systems.
Why do half of the cross-border M&As conducted by Chinese MNCs fail? Government affiliation and cross-border M&A completion
by Zhu Zhang, Xuanli Xie, Ting Qian
Abstract: Government affiliation is a very important factor to consider when studying multinational corporations (MNCs) in emerging markets. However, the role of government affiliation in the completion of cross-border M&As conducted by emerging market MNCs is little understood. This gap is significant because half of publicly announced cross-border M&As are never completed. To fill this gap, we study how government affiliation affects the likelihood of M&A completion. Considering cross-border M&A data on Chinese multinationals, we find a negative relationship between government affiliation and acquisition completion. Moreover, SOEs with previous business operations in the host country, or operations in the same industry in other foreign countries, are more likely to complete cross-border M&As. However, when a large number of SOEs enter a foreign country simultaneously, the host country will feel threatened instead of feeling that the SOEs are creditable or legitimate. Therefore, the likelihood of M&A completion will be reduced.
Keywords: Cross-border M&As; M&A completion; government affiliation; legitimacy; MNCs; emerging market.
Human resources and internationalisation processes. A cognitive based view
by Francesco Caputo, Marco Pironti, Roberto Chierici, Roberto Quaglia
Abstract: The paper aims at contributing to the complex debate about the role of human resources in advancing or hampering companies' internationalisation processes. Adopting a cognitive-based view, a set of variables for coding the role of human resources in internationalisation processes are identified, and their relations with companies' return on sales (ROS) in foreign countries are tested using structural equation modelling. From empirical research involving 638 employees from 45 Italian small and medium enterprises, the findings extend the managerial literature on internationalisation processes and human resource management, highlighting the impact of employees' previous international job experience, culture of origin, cultural orientation toward globalisation, and educational background on companies' ROS in foreign countries.
Keywords: human resources management; internationalisation; cognitive view.
Technological knowledge intensity and entry modes in the European automotive industry
by Denis Lacoste, Pierre-André Buigues
Abstract: In this research, the entry modes (export or foreign direct investments) into foreign markets and the R&D strategies of the major European car manufacturers are analysed over an 11-year period. Three strategic groups are identified and the differences in technological knowledge intensity (TKI) between these three groups are tested. The research indicates that firms with high (low) technological knowledge intensity favour exports (FDI) over FDI (export). Additionally, a decrease of TKI over time is associated with a decrease in export intensity and an increase of FDI. As companies analysed in this study belong to a single industry in a homogeneous economic area, the effect of many variables is neutralised, enabling an in-depth understanding of the phenomena. The study also allows an analysis of the dynamic links between TKI and internationalisation.
Keywords: export; foreign direct investments; internationalisation; technological knowledge intensity; R&D; automobile industry.
Applying a company stakeholder responsibility approach to human resources management: the external human resources model
by Cecilia Casalegno, Chiara Civera, Jerome Couturier
Abstract: This paper uses a stakeholder theory perspective to investigate the phenomenon of External Human Resource Management (EHRM) by amalgamating the concepts of company stakeholder responsibility and strategic and international HRM. We propose a theoretical model based on a literature review, interviews and focus groups to support the emergence of an HRM approach to external resources. Global and complex supply chains are used to develop our study, such as the coffee supply chain, where we demonstrate that vulnerable and low-power stakeholders can turn into valuable and talented external human resources, through specific initiatives of company stakeholder responsibility. Our model illustrates the benefits of adopting such an approach on stakeholder engagement among vulnerable and low-power stakeholders. We discuss that embracing a stakeholder relational approach based on engagement is key to favouring self-initiatives, cooperative strategic posture, fair relationships in society, and attributing social legitimacy to the company.
Keywords: international human resources management; global supply chain; company stakeholder responsibility; external human resources.
Male trailing spouses in the United Arab Emirates: adding novel insight to the prevailing expatriate spouse adjustment frameworks
by Rizwan Tahir, Zarine Chamas
Abstract: Nowadays, female expatriates with male trailing partners have been on the increase and it is likely that this trend will continue in the future. The present study attempts to comprehend the challenges in the adjustment process of the Western male spouses during their time in the UAE. We believe that instead of problematising it as an impediment to be managed, spouses are the partners who stand to gain as much as from the expatriation process as the expatriate employee. This paper extends beyond the conventional trailing female spouses to consider Westerner male spouses of the female expatriates in the UAE where the domestic conditions are very different from China and the USA that have dominated the past research attention. We conclude that this matter will pose a dramatic challenge for the MNC in the coming decade and failure to do so could jeopardise their endeavours in countries such as the UAE.
Keywords: male expatriate spouses; female expatriates; international assignments; UAE .
The interaction of board network structure and network content on firm innovation.
by Tatevik Poghosyan, Kamal Badar, Julie M. Hite
Abstract: This study, extending prior research on the effect of strategic networks on firm performance, examines the impact of board networks on firm innovation. This research examines firm innovation based on the roles and interactions of the debated network structures of structural holes and cohesion and network content available through board ties with partner firms Employing social network data of board interlocks in year 2005, an innovation survey for the period 2008-2010 and the firms financial variables for the period 2000-2010 the hypothesized model was tested using a probit model Findings from the board network of 192 Armenian firms provide empirical evidence of the influence of the interaction between network structure and network content on firm innovation Hence, this study finds that while board network structure does matter, structure alone does not explain firm innovation Rather, the combination of specific network structures, and types of network content stand to provide
Keywords: structural holes; network closure; industry diversity; partners’ assets; partners’ exports; firm innovation; interaction.
Leaders' emotional labour strategies and followers' emotional engagement: mediating effect of perceived transformational leadership
by Qasim Ali Nisar, Noraini Othman, Bidayatul Akmal, Muhammad Sarfraz, Kamal Badar, Muhammad Saeed Aas Meo
Abstract: The purpose of this study is to explore the nature of relationship between leaders emotional labour strategies (surface acting and deep acting) and followers emotional engagement at work; the mediating role of transformational leadership on the relationship is investigated as well. Using mail and personal surveys, data were collected from 372 employees (33 supervisors and 339 subordinates/followers) of 87 NGOs in Malaysia. We employed confirmatory factor analysis (CFA) and structure equation modelling (SEM) techniques for statistical analysis. Findings reveal that leaders' emotional labour strategies (surface acting and deep acting) play a significant role to influence their subordinates' emotional engagement. Specifically, leaders surface acting negatively effects to followers emotional engagement and deep acting has a positive relationship with followers emotional engagement. Moreover, perceived transformational leadership significantly mediates the relationship between leaders' emotional labour strategies (surface acting and deep acting) and followers' emotional engagement. This study gives an insightful understanding of the crucial roles of leaders emotions and followers emotional engagement in the workplace.
Keywords: emotional labour strategies; surface acting; deep acting; perceived transformational leadership; emotional engagement.
Big Five, entrepreneurial orientation, and entrepreneurial intentions
by Edit Terek, Milan Nikolic, Vladimir Brtka, Sanja Bozic, Ivan Tasic, Jelena Rajkovic
Abstract: The paper presents the results of research into the influence of the Big Five, enterprise potential, individual entrepreneurial orientation and entrepreneurial intention (three dimensions: personal attitude, subjective norm and perceived behavioural control) on the entrepreneurial intentions of students in Serbia. There were 488 questionnaires completed by students from seven faculties in Serbia. Perceived behavioural control, and then personal attitude have the strongest statistically significant and positive correlations with the entrepreneurial intentions dimension. Although the possession of finance is a basic need for launching an entrepreneurial venture, it is not crucial: a strong desire for achievement and willingness to take risks may compensate for the possible lack of finance.
Keywords: Big Five; enterprise potential; individual entrepreneurial orientation; entrepreneurial intention; students; Serbia.
Strategy and performance of Russian firms: an organisational capabilities perspective
by John E. Spillan, John Parnell, Andrei Panibratov, Andrey Yukhanaev
Abstract: This paper investigates how specific organisational capabilities shape business strategy and influence performance of Russian enterprises. Although the extent of strategy emphasis on cost leadership and differentiation was positively associated with performance, the links only became significant after marketing and technology capabilities were included in a composite model. Marketing and technology capabilities not the strategy per se appear to be the primary and dynamic drivers of firm performance. The implications of this perspective on the capabilities-strategies-performance nexus are discussed within the Russian context.
Keywords: strategy; organisational capabilities; Russian firms; marketing; technology; performance.
Augmented Popperian experiments: a framework for sustainability knowledge development across contexts
by Fred Phillips, Hsing-Er Lin, Trudi Schifter, Nicholas Folse
Abstract: The challenges to sustainability governance across multiple geographical/cultural contexts lead us to the piecemeal engineering idea advocated by the philosopher Karl Popper, which explicitly considers context We argue for adopting the Popperian approach, augmented by adaptive policies and modern collaboration platforms to maximize the prospects of sustainable practices worldwide This recommended course is not intended to be a theory in itself Rather, it is a well-grounded, practicable stop-gap measure in times when complexity and change outpace theories and strategies We present a philosophical foundation for this Augmented Popperian Experimentation Focusing on The Water Network (the largest collaborative platform for water researchers and professionals), we show that sustainability-oriented organizations in the water realm and others are inching toward the practice we advocate Policy and practice implications include speeding informed response to climate change through online collaboration and flexible policies, and the need to tolerate multiple, possibly incommensurate measurement streams.
Keywords: sustainability; governance; piecemeal engineering; collaboration; Karl Popper.
Impact of the interactive mechanism between resource transfer and absorptive capacity on innovation performance: evidence from two Ghanaian automobile clusters
by Michael Addai, Hu Xuhua, Adelaide Spio-kwofie, Chosniel Elikem Ocloo, Abdul-aziz Ibn Musah
Abstract: This study examined the impact of the interactive mechanism between resource transfer and absorptive capacity on innovation performance. The significance of this study is to expatiate on the knowledge, the positioning and the role of absorptive capacity in the process of resource transfer and innovation performance. Data was procured through questionnaire administration using a two-stage cluster sampling procedure in selecting 561 small-scale automobile firms from two automobile clusters in Ghana. We employed the Structural Equation Modelling analytical tool for our analysis. Our result explicitly revealed that the interactive mechanism (A_X_B) between resource transfer and AC results in a far more positive and significant impact on innovation performance than AC acting as a mere moderator. We recommended that Ghanaian automobile cluster-based firms should develop their absorptive capacity to ensure that, at all times they possess the capacity to identify resources that only have the grounded potential to enhance innovation performance.
Keywords: resource transfer; absorptive capacity; innovation performance; automobile clusters; interactivity mechanism.
Understanding sport media spectators preferences: The relationships among motivators, constraints and actual media consumption behaviour
by Konstantinos Koronios, Panagiotis Dimitropoulos, Athanasios Kriemadis, Andreas Papadopoulos
Abstract: The purpose of the study was to provide clarifications regarding the connection among motivators, constraints and sport media consumption, and experimentally measuring the application of the balance proposition in the field of sports. A total of 1,704 questionnaires were successfully completed and analyzed by means of STATA. The results indicate that previous attendance, attachment to the community and the team, level of sport, the fans need to escape from stress and socialization, aesthetics, media advertising and players behavior all impact positively to the fans future attendance intention. Also, the lack of knowledge of the rules and regulation of the game, the cost, other sport and leisure alternatives and the lack of fans favorite team athletic success are factors that reduce fans intention to attend future Euroleague matches.
Keywords: motivators; constraints; sport attendance; media consumption; balance proposition.
When silence creates noise: an analytical review of manifest, hidden, and silent trends in self-initiated expatriate studies
by Kamila Moulaï
Abstract: Self-initiated expatriates (SIEs), people who decide to expatriate without organisational support, are a valuable resource for companies and a rich source of human capital. Today, understanding these workers remains challenging for academic experts and managerial structures. Therefore, in order to better understand the enigma posed by this demographic, the present paper offers an investigation of the theoretical approach to SIEs that has been used in previous management studies. This review contributes to the literature by exploring and analysing research methods and studies that have been developed over time to understand this population. Indeed, this contribution goes further than identifying theoretical advances made in studying these mobile workers; it examines the challenges and shortcomings encountered in knowledge advancement on SIEs. It also provides valuable material to aid scholars to not only overcome some barriers to studying this population, but also to shape stronger managerial recommendations.
Keywords: self-initiated expatriation; expatriates; analytical review; international mobility; talent; globalisation; global mobility; international HRM; organisations; management; theorisation; conceptual development.
The missing link between governance factors and entrepreneurial internationalisation of family SMEs: an empirical analysis for an emerging economy
by Waleed Omri, Pinar Sener, Abdoulkarim Idi Cheffou
Abstract: This study aims to clarify the conflicting results regarding the influence of family ownership on international entrepreneurial strategies. Drawing on the stewardship, resource-based view, and principal-principal perspectives, we hypothesise an indirect relationship between family ownership concentration and international entrepreneurial orientation through the proportion of the independent directors in the board. We tested our hypotheses using structural equation modelling on data drawn from 194 family small- and mid-sized enterprises in Tunisia. Our analyses confirmed the positive association between family ownership concentration and international entrepreneurial orientation, as well as a partial mediating effect of board independence on this association. We provide several practical implications and future research themes based on our findings.
Keywords: international entrepreneurship; international entrepreneurial orientation; family ownership; board independence; family business.
Asymmetrical influence of personality on entrepreneurship
by Manuel Alonso Dos Santos, Jorge Espinoza Benavides, Karla Soria-Barreto
Abstract: The objective of this study is to explore the antecedents of the formation of entrepreneurial intention from a linear, causal and asymmetrical perspective. We have combined the Ajzen model applied to entrepreneurship, including two personality variables (self-confidence and creativity). This study involves a structural equation model based on partial least squares (PLS) and fuzzy set qualitative comparative analysis (fsQCA). All of the hypotheses were supported except for the influence of the variables subjective norms and self-confidence on EI. The PLS model explains 68.7% of the variance of EI. According to the QCA results, four models explain 88.1% of the existence of EI. The two models with the greatest degree of coverage are: Self-Confidence
Keywords: entrepreneurial intention; Ajzen theory; creativity; self-confidence; Chile; asymmetrical perspective; partial least squares; PLS; fuzzy set qualitative comparative analysis; fsQCA; QCA.
Disengagement factors associated with creativity in organisations: a conceptual framework
by William McDowell, Gerald Burch, John Batchelor, Jana Burch
Abstract: This research develops and presents a model of creativity disengagement by integrating research in the fields of New Product Development (NPD), Technology and Innovation Management (TIM) research, and Organisational Behaviour (OB). This deliberate approach of taking an antithetical view of creativity takes into consideration the process of innovation and the psychological conditions that must be present for employees to decide to engage in creative tasks. A full conceptual model is developed to identify mechanisms that remove roadblocks that stand in the way of creativity within organisations. Finally, the article concludes with over 100 specific disengagement factors for diagnosing creativity issues within organisations.
Keywords: creativity disengagement; new product development; technology; organisational behaviour; innovation.
Investigating the effect of eco-efficiency actions on the performance of European small and medium enterprises
by Sara Majid, Muhammad Akram Naseem, Amir Ikram, Ramiz Rehman
Abstract: The paper investigates the link between eco-efficiency actions and turnover of SMEs within the EU28. In particular, we study how specific cases of eco-efficiency actions and the investment in these actions as well as the available support to implement them affect the SME turnover and production costs. For the analysis, we use Flash Eurobarometer surveys that are conducted in different time periods, namely: FL342, FL381, FL426 and FL456. Porter Hypothesis provides theoretical outlet while the ordered logit model is applied to test the relationship between the aforementioned variables and parameters. The results confirm that offering green services has a positive relationship with firm growth in all four datasets. However, resource efficiency actions have mixed results. The increase in production cost in implementing eco-efficiency actions and investments does not go well with firm growth.The findings are crucial for stakeholders, policymakers, and corporations to provide technical and legislative advice to SMEs for achieving competitiveness.
Keywords: SMEs; eco-efficiency actions; green business; sustainability; resource efficiency; Flash Eurobarometer.
Mediation effect of work-life balance between big five personality traits and eudaimonic wellbeing among Indian business school teachers
by Pooja Soni, Kanupriya Misra Bakhru
Abstract: Much research has been done in understanding the concept of eudaimonia but it lacks identifying correlates and predictors that have a significant impact on eudaimonic wellbeing. The aim of the study is to examine whether work-life balance mediates the relationship between big five personality traits and eudaimonic wellbeing of Indian business school teachers. The result indicates a full mediation effect of work-life balance between big five personality traits and eudaimonic wellbeing. It implies when business school teachers possess a positive personality they may perceive better work-life balance, which in turn may lead to a higher eudaimonic aspect of wellbeing. This work makes an original contribution to the limited research towards identifying significant factors affecting eudaimonic wellbeing. Work-life balance as a mediator of the relationship between big five personality traits and eudaimonic wellbeing has not been explored earlier and thus this study adds to the body of knowledge. The outcome can be used for dispositional job redesign, work-life policies and intervention planning for a eudaimonic interface.
Keywords: eudaimonic wellbeing; work-life balance; big five personality traits; bootstrap; business school teachers.
An analysis of the socioeconomic characteristics that determine religious choice.
by Jose Manuel Guaita Martínez, Jose María Martín Martín, Andrea Burgos Mascarell
Abstract: This paper analyses the relationship between religious choice and the socioeconomic characteristics of citizens. The data were obtained from an ad-hoc survey involving 2,708 people, a representative sample of the population in the Andalusian region of Spain. The existing literature indicates that some socioeconomic determinants have an influence on social and religious contexts; therefore, by conducting the research in a different context, this study is an extension to the existing bibliography. The correlations, both simple and multiple, between age, gender, level of studies and income, and the choice of religion were analysed. The results show that income and educational level have a significant effect on religious choice; however, despite both being interrelated, it is a higher level of income that causes people to move away from Catholicism and towards atheism, whereas higher educational attainment results in more individuals defining themselves as agnostics and a few as non-practising Catholics.
Keywords: religious choice; socioeconomic determinants; education; income; Spain.
SMEs prefer JVs: why SMEs' equity entry mode choices are different from those of large firms
by Maria Cristina Sestu, Alfredo D'Angelo, Antonio Majocchi
Abstract: Using a sample of 770 foreign market entries in the time period 2005-2015 we examine whether the entry mode strategies chosen by SMEs are different from those of large firms. Our findings reveal that when compared to large firms, SMEs tend to rely more on cooperative entry modes. More specifically, SMEs prefer equity joint venture rather than wholly owned subsidiary. Using a propensity score matching approach to avoid sample bias issues, our results show that the choice between joint venture and wholly owned subsidiary is strongly influenced by the size of the investing firm and by their financial resources, while the family ownership structure is not a significant discriminant. We discuss the theoretical underpinnings of our findings along with the managerial implications emerged from this research
Keywords: entry modes; joint venture; wholly owned subsidiary; SMEs.
Exports and firm growth: the moderating effect of innovation
by David Rodeiro-Pazos, María Jesús Rodríguez-Gulías, Sara Fernández-López, Manuel Nogueira
Abstract: It has been claimed that innovation and export activities are important performance vehicles that can increase firm growth. Previous research has ignored how the links between firms' exports and innovation simultaneously affect employment growth at the micro level. In this paper, using a sample of 3267 Spanish manufacturing firms over the period 2004 to 2014, we explore the combined effect of exports and innovation on firm employment growth by using quantile regression dynamic panel models. Our results reveal that exporting has different effects on employment growth depending on firm size and the types of innovative activity carried out by firms. The authors find that the employment growth of innovative firms is negatively affected by export activities. Furthermore, the firm growth driven by R&D activities is slightly more pronounced in non-exporter SMEs and in large innovative firms, export activities are positively associated with employment growth in the upper quantiles.
Keywords: exports; innovation; employment growth; Spain; panel data; quantile regressions; manufacturing firms.
Evaluating the role of Confucian virtues in Chinese negotiation strategies using a Yin Yang cultural perspective
by Gregor Pfajfar, Agnieszka Malecka
Abstract: The purpose of the paper is to assess the dynamic and paradoxical nature of Chinese culture and Confucian virtues; particularly how deeply rooted they are in the culture and how they impact negotiation strategies of Chinese negotiators. A multiple case study method revealed important implications for negotiations with the Chinese. Just a few of the identified factors impacting negotiation strategies of the Chinese were location within China, industry, business partner personal characteristics, hierarchy, age, seniority, and guanxi. More importantly, their negotiation strategies are changing in time, depending on the context and situation. In the case of high hierarchy and power distance, Chinese negotiators will resort to rites and rituals (li) as a tactic of a more competitive or distributive (win-lose) negotiation strategy. However, when they expect and seek long-term relationships (win-win negotiations), Confucian virtues of benevolence and compassion (ren), honesty and righteousness (yi) and faithfulness (xin) will be amplified.
Keywords: negotiation strategies; Confucian virtues; Yin Yang conceptualisation of culture; guanxi; Chinese negotiator's personality; case studies.
From brain drain to brain gain in emerging markets: exploring the new agenda for global talent management in talent migration
by Yanbing Mao, Marina Latukha, Louisa Selivanovskikh
Abstract: The research aims to provide a review of the brain gain and brain drain phenomena in the emerging market context. Specifically, we investigate the push and pull factors of talent migration focusing at society-, firm-, industry- and location-specific determinants, and develop a theoretical framework that establishes the relationships between different types of factors and global talent management. The paper extends the understanding of the role of global talent management and global talent mobility in non-Western contexts. Through a series of propositions, we claim that global talent management, as a system of practices aimed at attracting, developing and retaining talented workers on a global scale, may serve as a mediator in transforming outward talent migration into inward talent migration, thus stimulating future empirical research on the topic.
Keywords: brain drain; brain gain; emerging markets; global talent management; talent migration.
Investors' knowledge and interlocking directorship: the domino effect of media news on corporate performance
by Elvira Anna Graziano, Lucrezia Fattobene, Vincenzo Farina
Abstract: Owing to social structures that promote different types of connection, including investments and vertical relationships, boards of directors of international large companies often have some directors in sharing. Managing these complex relationships is very relevant both in terms of human resource management and knowledge management. Investors' knowledge usually is influenced by the news on interlocked directors affecting financial market trends. Using an event-study methodology, this paper aims to investigate whether newspaper articles (1999-2013) mentioning CEOs and Chairmen affiliated to multiple organisations influence the stock market prices of the companies where they are appointed. Results highlight that when the directors serve two different companies, they work as a transmission channel in influencing investors' knowledge and behaviour through media.
Keywords: investors' knowledge; interlocking directorship; human resource management; media effect; text analysis; event study; investors' behaviour; knowledge management; board of directors; domino effect.
The impact of ecosystem on the speedy internationalisation of born global firms in emerging markets
by Mohammad Falahat, Zizah Che Senik, Yan Yin Lee, Melissa W. Migin
Abstract: This study presents the ecosystem of born global firms in emerging markets by combining international entrepreneurship, born global perspective, and the forces contributing to the advancement of competitive capabilities. The qualitative approach through in-person interviews with six born global firms was employed. Thematic coding was performed to facilitate model building required for this study. Findings reveal that triggering facets of push and pull factors, government support initiatives, enabling factors of entrepreneurial characteristics, market orientation, learning orientation and networking strongly contribute to building the competitive capabilities of born global that leads to speedy internationalisation. This study extends the research agenda in the field of international entrepreneurship in emerging markets by presenting the ecosystem comprising seven triggering, supporting, and enabling forces contributing to competitive capabilities that lead to the speed of internationalisation of export-oriented enterprises in emerging markets.
Keywords: early internationalisation; speedy internationalisation; ecosystem; born globals; institutional voids; competitive capabilities; emerging markets.
A longitudinal study of birth, death and survival rates of micro companies in the European Union
by Fernando Almeida
Abstract: Micro companies play an extremely important role in the economy being the main driver of economic growth. They contribute decisively for employability, business innovation and in reducing social asymmetries. This role of micro companies in particular, and small and medium enterprises in general, is widely recognised in the literature. Nevertheless, the number of longitudinal studies that explicitly address the contribution of micro companies to the European economy is small, and most of them are essentially reports produced by European and national agencies that analyse the importance of this phenomenon in their economies. This study intends to characterise the birth, death and survival rates of micro companies in the European Union. The study adopts a quantitative and statistical approach in data analysis between 2008 and 2016, which allows us to characterise the evolution of these indicators and to understand which countries have the best and the worst performances.
Keywords: micro companies; small and medium enterprises; economic performance; European Union; European economy.
Effect of internal knowledge sourcing on multinational enterprise subsidiaries' service innovation performance: the mediating role of organisational learning
by Charles Oduro Acheampong Otoo, Wenyuan Li, Wisdom Wise Kwabla Pomegbe, Courage Simon Kofi Dogbe
Abstract: The study assesses the mediating role of organisational learning on the relationship between internal knowledge sourcing and MNE subsidiaries' service innovation performance. The study was based on primary data gathered from 156 MNE subsidiaries. We found exploratory learning had a partial mediating effect on the relationship between internal knowledge sourcing and MNE subsidiaries service innovation performance, but the effect was negative. Exploitative learning had a positive mediating effect on the relationship between internal knowledge sourcing and MNE subsidiaries' service innovation performance. Although previous studies have focused on the combined effect of exploratory and exploitative learnings (thereby considering organisational learning as a single construct), this study points out that the relationships of the two dimensions with internal knowledge sourcing were different.
Keywords: internal knowledge sourcing; organisational learning; exploratory learning; exploitative learning; service innovation performance; multinational enterprises.
Host country factors and international joint venture survival in the Middle East and North Africa
by Emna Moalla, Dora Triki, Ulrike Mayrhofer
Abstract: The purpose of this article is to analyse the influence of three host country-specific variables (political risk, cultural distance, level of economic development) on international joint venture (IJV) survival in the Middle East and North Africa (MENA). The authors compiled a database of 124 IJVs established in MENA countries. The findings demonstrate that cultural distance and the level of economic development have an impact on IJV survival, whereas political risk does not seem to affect IJV sustainability in this region. The study contributes to the debate about the role of host country factors for IJV survival, indicating that these factors may vary across geographic regions.
Keywords: survival; international joint ventures; political risk; cultural distance; level of economic development; MENA region.
Do institutional quality, innovation and ICT technologies promote financial market development?
by Muhammad Asif Khan, Domicián Máté, Mohamued Elyas Abdulahi, Rabeea Sadaf, Muhammad Atif Khan, Jozsef Popp, Judit Oláh
Abstract: Over the last two decades, emerging markets have received much attention due to their substantial development relative to the rest of the world This is mainly based on the progress of the financial sector Considering these facts, this study investigates whether the quality of financial institutions, and the innovative and technological environment stimulated financial development in various (22) emerging markets during period from 2006 to 2017 The analyses are based on distinctive competitiveness pillars, and additional control variables from the World Economic Forum?s publication, the Global Competitiveness Index, and the World Bank?s Development Indicators Another novelty of this research is its investigation of the moderation effect of innovation and ICT technologies on the quality of institutions The empirical findings of the linear and dynamic regressions (generalized method of moments) affirm that the interaction of innovation and technology with well-functioning institutions can accelerate the development of financial markets in emerging economies
Keywords: ICT Technologies; Institutional quality; Innovation; Financial market development.
Bibliometric analysis of the theory of effectuation and the internationalisation of small and medium-sized enterprises
by Juan Gil-Barragan, Jose Antonio Belso Martinez, Francisco Mas
Abstract: This article presents a review of the literature on the theory of effectuation and the internationalisation of small and medium-sized enterprises. Bibliometric analysis of 30 articles collected from the Web of Science database was performed. Using Bibexcel, VOSviewer, Pajek and Tree of Science to analyse the data, mathematical and statistical methods were applied to classify the literature and identify its structure and key trends. The results of the bibliometric analysis are based on evaluation of the most influential authors, articles and journals. The impact of the articles was evaluated, and the structure of the research field was identified. To test the robustness of the results, we also run a bibliometric analysis of 25 articles collected from Scopus database. This analysis revealed substantial similarities that allow us to identify the conceptual structure of this research field. The results can be used to support further research in this area.
Keywords: effectuation; internationalisation; SMEs; bibliometric analysis; co-citation analysis; intellectual structure; Born global; Uppsala model.
Evaluating the effects of Hong Kong-Zhuhai-Macao bridge on international air travel: demand analysis of the air-bridge-air path
by Jing Lu, Cheng Lv, Tao Feng, Zheqing Wang
Abstract: To consolidate its position as the busiest Chinese hub in Southeast Asia, Hong Kong airport is collaborating with Zhuhai airport through the Hong Kong-Zhuhai-Macao bridge to establish an air-bridge-air path, which may potentially encourage the international business and tourism along the Belt and Road economic corridor. To predict the increased demand attracted by this path, this paper proposes a path choice model using a nested logit model, which incorporates intermodal transfers on a time-space network. The proposed model was estimated based on the data collected from a stated preference survey and was applied to forecast the geographical distribution of air passenger flow. As predicted, the air-bridge-air path improves the connection and travel efficiency between Northwest China and Southeast Asia, indicating its contribution to develop the Belt and Road initiative.
Keywords: Belt and Road initiative; air-bridge-air path; time-space network; passenger flow distribution.
The effect of internal and external practices of green supply chain management on performance and competitiveness of a company
by Ali Nazeri, Soodabeh Gholami, Nasser Safaie
Abstract: The purpose of this paper is to evaluate the effect of internal and external practices of green supply chain management on organisational performance and competitiveness. The validity of the questionnaire was approved based on the views and comments of academic and industrial experts In addition, Cronbach's alpha for this questionnaire was more than 0.7. The obtained data were statistically analysed in Amos software application. Then, the research hypotheses were tested in order to find out whether they are confirmed or rejected. The results showed that, out of 31 hypotheses, eight were rejected, as the significance level of the impact factor was greater than 0.05, and the others were confirmed. In other words, company size and ISO certificate showed no moderating effect on environmental, social, and operational performance. Hence, green supply chain management provides an opportunity for a company to invest in the design and production of green products.
Keywords: green supply chain management; performance; competitiveness.
How open are SMEs? Exploring the impact of different open innovation practices
by Ignacio Odriozola-Fernandez, Jasmina Berbegal-Mirabent
Abstract: SMEs tend to collaborate with many other economic agents to gain new ideas and build a solid network, with the ultimate purpose of increasing their profitability and sales, and expanding their market share. Rooted in this context, this paper aims at shedding new light on the adoption of open innovation in SMEs. Specifically, we examine the combined effect of open innovation practices, innovation performance and the characteristics of the firm that, according to the literature, have been found to shape firms' performance. Given the heterogeneity inherent in SMEs, we expect to find different patterns that firms follow based on their capabilities, vision and characteristics. The empirical application is based on a sample of 32 SMEs located in the Spanish region of Valencia. The methodology we use is qualitative comparative analysis, which has been found to be suitable when assuming causal complexity, as it is the case in this study
Keywords: SMEs; open innovation; qualitative comparative analysis; strategic choices.
Coopetition strategies of start-ups: evidence from a Spanish regional innovation system
by Jasmina Berbegal-Mirabent, Dolors Gil-Doménech, Carolina Senent-Bailach
Abstract: Start-ups operate in a highly competitive environment, surrounded by companies that offer similar products and services. In this context, collaboration between competitors has been found to help companies reduce risk and share costs, resources and expertise. Despite its relevance, coopetition (i.e. the simultaneous pursuit of cooperation and competition) in entrepreneurship has attracted little scholarly attention. This study aims at filling this theoretical and empirical gap by exploring the impact of coopetition on the performance of start-ups. Drawing on the existing literature, this study also considers innovation and knowledge sharing as key factors that can shape business performance. The analysis is based on qualitative comparative analysis because the focus is on the combined effect of the determinants of firm performance rather than their net effects. This approach enables us identifying different start-up strategies. The results indicate that coopetition and innovation are key factors. However, knowledge sharing is only relevant when coopeting start-ups either have solid market experience or are highly innovative.
Keywords: coopetition; innovation; knowledge sharing; performance; start-ups.
Institutional theory and outward foreign direct investment: a review and future directions
by Bernardo Silva-Rêgo, Ariane Figueira
Abstract: This study aims to map what we know and what we do not know concerning both the institutional theory and OFDI in order to elucidate how this subject has been treated in the international business arena and how it could help us to understand not only the emerging markets phenomena, but also how institutions and OFDI can open new research venues to the understanding of IB. To do so, we reviewed 140 papers concerning the relationship between institutions and OFDI. By applying both keyword co-occurrence and content analysis, our review showed that the main researches are distributed into five sub-fields: government support, location choice, market strategy, political institutions, and specific advantages. This article not only maps studies, but also shows underexplored research streams and how each one impacts the IB studies. Additionally, our study can help develop future studies by pointing out research gaps.
Keywords: institutional theory; OFDI; bibliometrics; review; determinants; entry mode; location choice; ownership; international trade; qualitative content analysis.
Ethics of retailer and customer citizenship behaviour in e-commerce: the role of perceived reputation and identification
by Quang Ngo Van, Zhi Yang
Abstract: The main purpose of this research is to examine the influence of the ethics of online retailers on consumer citizenship behaviour (CCB), and the role of perceived reputation and customerretailer identification (CRI) in this relationship as well. This research collected data from a survey with the participants who had online purchase experiences. Finally, 318 valid and usable questionnaires collected are tested by applying partial least squares (PLS) approach. The results showed that the ethics of online retailers have both direct and indirect influences on CCB through the mediating effect of consumer perceived reputation. Especially, CRI positively moderates the relationship between the ethics of online retailers and CCB. This is among the first researches that focus on the importance of ethics in terms of significant effects on customer perceived reputation and CCB.
Keywords: perceived ethics; perceived reputation; customer citizenship behavior; customer-retailer identification; e-commerce.
Investigation of earnings management based on unique country samples
by Katarina Valaskova, Maria Kovacova, Peter Adamko, Elvira Nica, Tomas Kliestik
Abstract: Earnings management is the use of accounting techniques to produce financial reports that present an overly positive view of corporate business activities and financial position. Earnings management creates financial statements that inflate earnings, revenue, or total assets. This paper describes the basic concepts of the earnings management phenomenon, reviews the mainstream studies and portrays the genesis of earnings models development. The main aim of the paper is to assess the ability of selected earnings models applied in the national environment of Slovakia and Poland to reveal the earnings manipulation and to identify which of them reflect the country specificities more appropriately. The results show that the Jones modified model should be used in Slovakia and the Key model in Poland to detect the earnings management. Moreover, it was revealed that companies in both countries tend to manipulate earnings upwards and verified a difference in earnings manipulation over the years.
Keywords: accounting principles; discretionary and non-discretionary accruals; earnings management; earnings models.
'No saints', 'No sinners': corporate social responsibility impact on occupational embeddedness and corporate brand trust with extrinsic motivation as a moderating construct
by Evans Asante Boadi, Yongan Xu, Josephine Bosompem, Enock Mintah Ampaw, James Agyei
Abstract: Drawing on a conservation of resource theory perspective, this study investigates the effects of corporate social responsibility (CSR) on employees occupational embeddedness and corporate brand trust with the moderating role of extrinsic motivation in these relationships. A sample of 273 subordinate employees drawn from the banking sector in Ghana was analysed using hierarchical regression. The empirical results indicated that: (1) these employees' favourable perception of CSR related positively to their occupational embeddedness and corporate brand trust; and (2) the moderating effect of extrinsic motivation on CSR-occupational embeddedness link was stronger than the CSR-corporate brand trust link. Based on these results, recommendations are made to HR managers on the strategic impact of CSR on employees in times of trust deficit in the service industry and beyond. Recommendations on the extent to which employees can be motivated extrinsically with less compromise on the focus of the work itself are also articulated
Keywords: corporate social responsibility; occupational embeddedness; corporate brand trust; extrinsic motivation; Ghana.
The role of HR best practices of graduate Saudis from foreign universities on the performance of the a mining company.
by Naif Allruwaili
Abstract: This study examines the impact of implementing human resources best practices in hiring Saudi nationals who are graduates from prestigious US and British universities on the performance of Ma'aden Company in terms of technology control, English proficiency and adaptation to globalisation. The study population and sample are national graduates who are working for the Ma'aden Company and who have graduated from US or British universities. The data were collected through a field study (questionnaire) and subjected to statistical analysis using factor analysis. The study highlights the role of Saudi graduates from foreign universities in changing human resource practices as well as improving the performance of the Ma'aden Company.
Keywords: Human resource management; HR best practice; Saudi Arabia national graduates.
Strategic analysis of e-book pricing models in the presence of network externalities
by Linlan Zhang, Lidan Fan
Abstract: In the presence of network externalities, we consider a two-echelon supply chain which consists of a publisher and a retailer, both e-books and physical books are simultaneously sold to consumers in this setting. We analyse pricing strategies of the publisher and the retailer under two different models that are widely used in the real market: agency and wholesale. We find retail prices of both e-books and physical books in the agency model are lower than those in the wholesale model. Our results may explain why retail prices of books in China are much lower than in developed countries to some extent. As Chinese consumers' acceptance of e-books rises, the wholesale model and higher retail price of books maybe the trends in the future e-books industry in China. Further, we identify that e-reader and e-books are complementary.
Keywords: e-book; e-reader; agency model; wholesale model; network externalities.
Offshore manufacturing and firm innovation: the moderating role of technological capabilities
by Francisco García, Lucía Avella, Sandra Valle
Abstract: Scholars have recently suggested that offshoring may favour firm innovation, as it allows firms to gain access to a broad and varied array of information and knowledge sources. However, we still know little about whether some firms are better suited than others to benefit from the learning opportunities that offshoring presents. Therefore, in this paper, we analyse whether and how firm heterogeneity in the form of technological capabilities moderates the impact of offshoring (specifically, intermediate manufacturing offshoring) on firm-level innovation. Using data for 1359 Spanish manufacturing firms from 2006 to 2011, we find that, although both technologically leading and lagging firms apply for more patents and utility models subsequent to offshoring, the positive impact of offshoring on firms innovative output is greater for the former than for the latter. Our results, thus, suggest that firm-specific capabilities play an important role in order to take advantage of the innovation benefits that offshoring may provide.
Keywords: offshoring; offshore manufacturing; innovation; firm heterogeneity; technological capabilities; R&D expenditures; intermediate manufacturing; Spanish manufacturing firms.
Development and fit of HRM over time in foreign subsidiaries: The case of Japanese subsidiaries in Poland
by Fabian Froese, Tomasz Olejniczak
Abstract: Human resource management (HRM) is a critical function in the management of foreign subsidiaries, yet we know little about how it is established and developed over time. This study investigates how HRM develops over time in a foreign subsidiary and how HRM fit is maintained and managed during this process. Based on a longitudinal, in-depth study of twelve Japanese manufacturing subsidiaries located in Poland, we propose a stage model of subsidiary HRM development, delineating changes in various types of HRM fit. Furthermore, we identify internal and external contingency factors (industry, mode of establishment, regional headquarters, and key organizational actors) that influence the development and fit of HRM.
Keywords: human resource management; Japan; Poland; subsidiary; organisational life cycle; fit; stage models.
Economic performance in Spanish sports clubs: entrepreneurial orientation of professional and non-professional teams analysed through fsQCA
by Juan Nunez, Paloma Escamilla, Vicente Prado
Abstract: Sports clubs play an important role in the creation of social value, however, despite the scarcity of studies, analysing the associative sports environment from an economic perspective has an undeniable relevance. The entrepreneurial orientation (EO) has been largely related to the economic performance of the organisation, however, this study has found a difference in sports clubs related to their legal and organizational structure. The analysed sample is composed of 13 non-professional sports clubs and 13 professional sports clubs, using the fsQCA methodology. According to the results obtained, EO has an influence on the economic performance (EP) of sports clubs, with proactivity being the most important dimension and innovation the least important. The highest degree of professionalisation of the club is present in the results for high levels of EP and low degree of professionalisation is present in a result for low levels of EP.
Keywords: entrepreneurial orientation; sports clubs; professional sports club; non-professional sports club; economic performance; professionalisation; proactivity; sports corporation.
The process of the process of internationalisation: cognitive and behavioural perspectives in small ventures
by Bozidar Vlacic, Miguel González-Loureiro, Jonas Eduardsen
Abstract: This paper investigates the internationalisation decision-making process from the perspective of the decision makers cognition. The aim is to advance the theoretical arguments that help explain the heterogeneous patterns of internationalisation for smaller ventures. Our framework includes the four-stage psychological process of decision-making: perception, options, evaluation and choice under the interactive effect of two-cognitive systems, namely experiential (Sys-1) and analytical (Sys-2). Based on interviews with six owners operating small ventures in high-tech industries, we found that accelerated patterns of internationalisation can be associated with increased levels of decision-makers experiential reasoning combined with lower levels of analytical reasoning interventions through the entire decision-making process of internationalising. Conversely, incremental and slower patterns of internationalisation can be associated with increased levels of analytical reasoning and lower levels of experiential interventions. Overall, we supplement the extant approaches to internationalisation with the Dual Process Theory of how individuals process information to make decisions.
Keywords: internationalisation process; dual-process theory; decision-making; managerial cognition; analytical reasoning; experiential reasoning; INV; Uppsala model; earliness; speed of internationalisation.
Institutional learning, cultural differences and the motivation of syndication among cross-border venture capital firms in China
by Xiaoli Wang, Ye Yang, Linlu Tang
Abstract: Along with the globalisation trend, cross-border venture capital (VC) investments in emerging markets have also attracted many scholars' attentions. Confronted with the uncertainties of cultural distance and institutional difference, cross-border VC firms choose syndication as an effective investment strategy to reduce the risk. In this paper, we systematically investigate the motivation of the cross-border venture capitalists to form syndication with local VC firms when they invest in China's venture capital market, i.e. the determinants of their syndication decisions. To our knowledge, we are the first to incorporate cultural distance and institutional learning into the analysis of cross-border syndication decisions, and we believe our research will help investors better understand the foreign VC firms' syndication behaviours under the unique culture and institutional environment of China.
Keywords: cross-border venture capital; syndication; cultural distance; institutional learning.
Impact of family ownership and board gender diversity on financial disclosure: evidence from an emerging country
by Hammad Riaz, Abubakr Saeed, Adeel Mustafa, Muhammad Saad Baloch
Abstract: The study demonstrates the influence of family ownership and board gender diversity on the extent of firms voluntary financial disclosures in case of developing country. Employing data of 181 Pakistani firms for the period 20112018, our results show that family ownership is negatively associated with voluntary financial disclosure. Furthermore, the study also shows that having independent on corporate boards exert positive effect on financial disclosures among family-owned firms and it is further enhanced if there is a significant presence of women directors as independent directors. Our findings persist after employing a battery of robustness tests. Our findings highlight valuable empirical directions for corporate decision makers and policymakers regarding the significance of board gender diversity and voluntary financial disclosure as monitoring mechanisms for lowering the effects of asymmetric information and problems of agency.
Keywords: corporate governance; emerging country; family firms; gender diversity; voluntary financial disclosure.
The impact of innovation on the export activity of 'born global' firms: a configurational approach
by Valeska V. Geldres-Weiss, Joaquín Monreal-Pérez, Peter Hwang, Ana F. Moraga-Pumarino
Abstract: Born global firms have to be innovative to boost their international competitiveness. Using a sample of 744 firms from Chile, we studied the effects of innovation (measured by R&D, product innovation and business model innovation) on firms export activity in the context of born globals. We used a configurational approach (fsQCA) to disentangle the complex relationship between born globals and export performance. The approach is appropriate for examining causal relationships and information asymmetry. With the robustness of fsQCA, we found that there are three configurations that link several born global attributes (mainly young and small firms), together with the three indicators of firm innovation performance (R&D, product innovation and business model innovation), and lead to intense export activity. This may be because these firms, with their shortage of resources, must take advantage of the resources they do have through innovation and achieve high international competitiveness by exporting.
Keywords: born global firms; export activity; R&D; product innovation; business model innovation; configurational approach.
The influence of the multilingual environment on multinational team decision-making processes: a literature review and proposed conceptual model
by Albert Krisskoy, Matevz Raskovi?
Abstract: Following a recent research call by leading authorities in the field of language-related international business (IB) research, we focus on multilingualism in multinational teams (MNTs). We approach multilingualism as an organizational environment (not as a skillset). We explore how the multilingual organizational environment influences decision-making processes within MNTs. We start with a bibliometric literature review which shows to what extent team-level aspects of language and multilingualism have been explored so far in the literature. This is followed by a focused literature review examining the influence of the multilingual organizational environment on decision-making processes within MNTs in a balanced manner (positive and negative outcomes) at both the individual and team level. We present a 2-by-2 multi-level dynamic conceptual model (with positive/negative effects) of multilingual environment phenomena, mechanisms and outcomes focusing on MNT decision-making. We finish with future directions and questions to guide research on multilingualism in MNTs.
Keywords: language; socio-linguistics; the multilingual environment; multinational teams; decision-making; cognition; bibliometric review; literature review; future research.
Serial acquirers' strategy in the telecommunications sector: integration or indigestion?
by Julio Navío-Marco, Marta Solórzano-García, Juan Antonio Vicente-Virseda
Abstract: This article analyses the performance of the serial operations of mergers and acquisitions (M&As) in the telecommunications sector, seeking to understand if the serial M&A strategy leads to stockholder wealth maximisation, and the role of the acquirer's characteristics and its behaviour as an acquirer. After calculating the abnormal returns of telecommunications M&As from 2000 to 2010 and evaluating the long-term value creation/destruction of these operations, neural network and clustering techniques are used to study the serial acquirer's behaviour versus occasional acquirers, to understand the factors influencing the success of the operations and to classify the acquirers into different types. Among other findings, we identify relevant variables that can make the strategy of the serial acquirer successful, and observe signals of indigestion in a certain type of serial acquirer, showing post-merge value destruction. We reflect that the capacity of an organisation to assimilate its previous acquisitions tends to be limited.
Keywords: mergers and acquisitions; serial acquisitions; strategy; value creation; telecommunications; organisational learning; intangibles; CTAR; internationalisation; operators.
Burnout among accountants: the role of organisational commitment components
by Muhammet Sait Dinc, Cemil Kuzey, Ali Haydar Gungormus, Bedia Atalay
Abstract: The purpose of this study is to examine the impact of the organisational commitment components agreed to by accountants with regard to their job burnout dimensions. Using the survey method, 177 responses were collected from accountants in Turkey. A partial least squares structural equation model was constructed to test both the reliability and validity of the measurement as well as the structural model. The results showed that while continuance commitment is an important predictor of emotional exhaustion and depersonalisation, the dimensions of burnout, affective and normative commitment, are negatively associated with depersonalisation and emotional exhaustion types of burnout, respectively.
Keywords: job burnout; organisational commitment; accountants; partial least squares structural equation model.
When brand scandal spills over brands from the same region of origin: moderating role of psychic distance
by Tong Chen, Yifan Tang, Ping Qing
Abstract: Previous studies have documented that brands are vulnerable to negative spillover caused by scandalised brands from the same countries. However, little is known about how individual-level perceived psychic distance (PD) influences the likelihood of spillover occurring. PD refers to individuals' perception of dissimilarities between their home country (or region) and foreign countries (regions). The results from the two experiments indicated that PD improves the likelihood of spillover towards brands from the same region. When PD is high, a brand scandal is more likely to spillover to brands from the same region of origin (ROO) versus those from different ROO. However, when the PD is low, a brand scandal is unlikely to spillover, no matter whether the ROO is the same or not. The results also reveal the moderated mediating role of perceived brand similarity.
Keywords: brand scandal; spillover effect; psychic distance; perceived brand similarity; region of origin; moderating effect.
Exploring the relationship between scenario planning and strategic flexibility and complexity
by Arafet Bouhalleb, Ali Smida
Abstract: An organisation's ability to deal with uncertainty and to adapt to changes is a key strategic capability in dynamic environments. Thus, firms need a flexible planning in order to adapt and survive. Scenario planning is one of the tools that stimulates strategic thinking and offers strategic choices by creating multiple futures. However, little evidence is available about its effects on organisational competencies. This paper explores the direct contributions of scenario planning to strategic flexibility and complexity. A structural equation modelling (SEM) is used to evaluate the causal links between concepts. Data analysis derived from a sample of 108 European manufacturing firms.
Keywords: scenario planning; strategic flexibility; strategic complexity.
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 a direct manager's 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 Organisational Behaviour Effectiveness Research) dimensions. The results of the study in a German technology company (N = 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 manager's transformational leadership-affective 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.
Factor analysis of SMEs entering foreign markets: the case of Taiwanese SMEs in Vietnam
by Kuei-Ying Hsu, Hsin-Pin Fu, Arthur J. Lin, Tsung-Yin Ou
Abstract: Internationalisation is an important issue for firms, especially small and medium enterprises (SMEs), as compared to large enterprises, SMEs possess limited internationalisation experience and face unknown risks due 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 proposed 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). 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; internationalisation; dynamic capabilities; Taiwanese; decision-making; resource allocation.
Do work-related values of physicians predict their preferred employer's characteristics in a job choice scenario? Results from an Austrian pilot study
by Christoph Augner, Christa Stückler
Abstract: Physicians' job market has turned from an employer's market to an applicant's market. However, little is known about the motives and values that are relevant when 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 employers before the background of Person-Organisation (P/O)-fit theory. 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 employers. Furthermore, we found that hedonism as a work-related value subscale best predicted preference of work-life-balance-related characteristics of employers. Performance related characteristics of employers were best predicted by career orientation of physicians. This pilot study contributes more knowledge to the relatively scarce evidence of how physicians choose their employer.
Keywords: physicians; human resources; healthcare; health economics.
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, whereas 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. Hopefully, 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; DOI; degree of internationalisation; banking industry; country-institution factors.
Special Issue on: Value Co-creation in the Course of International Entrepreneurial Opportunity Developme
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
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.