European Journal of International Management
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European J. of International Management (100 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.
Associations in transition: the business of Russian civil society
by Ekaterina Ivanova, Marco Maier, Michael Meyer
Abstract: What characteristics of professional and business associations determine their organisational activities in the context of Russias stage of transition? While research on associations in management and non-profit literature remains undertheorised and fragmented, professional and business associations not only constitute a significant component of the Russian nonprofit sector, but also contribute to the institutional infrastructure of the emerging market economy. This paper investigates the influence of organisational determinants on the relative importance of advocacy, community building, and service delivery within professional and business associations. Data for this study were collected from 215 associations throughout Russia. The study verifies multifunctional nature of associations and confirms that advocacy remains the highest priority activity for associations embedded in the transitional environment. Applying the Dirichlet regression, the study finds that organisational size and a specific agency type positively influence community building function. Moreover, our findings indicate that compulsory membership negatively affects service delivery and community building functions, whereas presence in social media has a positive effect on both of these functions fulfilled by Russian associations.
Keywords: multi-functionality; professional and business associations; compositional data; Dirichlet regression; Russia.
Managing change in transnational companies: does cultural distance matter?
by Kurt Matzler, Andreas Strobl, Ellen Krill
Abstract: Employees commitment to change is an important prerequisite for change management success. We test how direct managers transformational leadership and top management communication impact employees commitment to change and how, in a transnational organisation, these relationships are moderated by cultural distance. We measure cultural distance using GLOBE (Global Leadership and Organizational Behaviour Effectiveness Research) dimensions. The results of the study in a German technology company (939 employees, operating in 30 countries) show that transformational leadership and top management communication are positively related to affective and normative commitment to change. Cultural distance positively moderates the direct managers transformational leadershipaffective commitment relationship and reduces the influence of top management communication on normative commitment to change.
Keywords: organisational change; transformational leadership; top management communication; cultural distance; GLOBE.
Managing political risk in the oil and gas industry in a developing economy: the case of BP in Angola
by Adalberto J. S. Fernandes, Alfredo Jimenez, Johannes Marcelus Kraak, Dimitrios Tsagdis
Abstract: Drawing on a case research methodology, this paper analyses political risk for oil firms in the Republic of Angola. The dramatic fall in oil prices, coupled with the existing social inequalities, have substantially increased the risk of political instability, macroeconomic instability, regulatory changes and social dissent. These factors are exacerbated by the actions and, in some cases, inaction of the government and other political players. By focusing on a specific case firm, BP, we analyse the organisational processes used by this European firm to manage political risk in Angola and compare it with an existing framework for political risk management. We conducted semi-structured interviews with political risk management professionals within the firm and a review of corporate documents provided by the firm to ensure the qualitative analysis achieves more consistent results. Despite having a political risk management culture embedded in their strategies and plans, our findings show that political risk management is not completely developed yet.
Keywords: political risk; developing economy; Angola; oil and gas sector; organisational processes; country risk.
Psychic distance and FDI in Turkey: the role of industrial development and religion
by Alfredo Jimenez, Mesut Eren, Secil Bayraktar
Abstract: Our paper analyzes the critical role of psychic distance on Foreign Direct Investments (FDI) in an emerging economy, Turkey. Our results demonstrate that two psychic distance dimensions are significant when analysing FDI flows from OECD countries. First, psychic distance in industrial development has a positive effect, namely, greater industrial development distance between the investor country and Turkey increases FDI flows. Second, psychic distance in religion plays a negative role whereby greater distance between the investor country and Turkey reduces FDI flows. In addition, home country Gross Domestic Product (GDP) and European Union (EU) membership positively affect foreign investments in Turkey. By contrast, and as expected, geographic distance has a negative effect.
Keywords: psychic distance; foreign direct investment; emerging economies; Turkey; OECD countries.
Organisational innovativeness of international new ventures: evidence from Swedish firms
by Jan Abrahamsson, Vladimir Vanyushyn, Håkan Boter
Abstract: This paper scrutinises how and to what purpose international new ventures (INVs) of various development stages and formation types innovate organisational structures and routines in comparison with other internationally active firms in Sweden. We show that INVs place more emphasis on reorganising their external relationships than other internationalised firms and that INVs primarily aim their reorganisation efforts at furthering their ability to enhance innovative output. Coupled with the fact that INVs report higher rate of new to the market innovations than other internationalised firms, we conclude that INVs retain their innovative focus over time and, irrespective of their formation type, continuously advance their networking capabilities. We propose that dynamic innovation-advancing relational capability as a characteristic that is unique to the INVs as a group of firms.
Keywords: international new ventures; innovation; community innovation survey; organizational innovation; internationalization; dynamic capabilities; Sweden.
The use of market analytics in the recruitment of high potentials in the pharmaceutical industry
by Jan Posthumus, Gil Bozer, Joseph C. Santora
Abstract: This article aims to contribute to the growing body of literature on the use of market data, as well as the use of segmentation and targeting instruments, in the recruitment of high potentials. The grounded theory approach (GTM) within the contingency theory framework was used to explore the key contextual factors that influence segmentation and targeting. Corporate HR professionals and executive recruiters from European and US-based pharmaceutical companies (n = 15) were interviewed for this study. We found that a company's need for certain groups of high potentials (e.g., clinical development professionals), the scarcity of certain valuable employee groups, and HR personnel's capabilities and attitudes are key determinants of the implementation of analytical instruments, such as market analysis, segmentation and targeting. We provide theoretical implications coupled with practical implications for HR practitioners concerned about meeting targets for the recruitment of talent. Finally, based on our findings, we provide specific recommendations to be addressed in future research.
Keywords: contingency framework; data analytics; grounded theory method; high potentials; pharmaceutical industry; recruitment; segmentation; targeting.
How individual value structures shape smart shopping experience and brand choices: an international perspective
by Mónica Gómez-Suárez, Myriam Quinones, María Jesús Yagüe
Abstract: This study explores the extent to which smart shopping, and particularly its effect on consumer attitudes towards store brands and national brands, is influenced by consumers cultural values. Our conceptual model, based on Schwartzs value framework, was tested with a survey that sampled 1,272 shoppers from six countries (USA, UK, France, Germany, Italy and Spain). According to the results, the values that individuals acquire in their cultural environment significantly influenced their smart-shopper self-concept. Additionally, there were cross-country differences in consumers value frameworks. As expected, smart shoppers self-concept influenced their attitude towards both store brands and national brands, but was less influential in the formers case. These results have important implications for international marketing scholars and practitioners, especially regarding strategic aspects such as segmentation, positioning, and major communication strategies.
Keywords: consumer behaviour; cross-country; culture; individual values; smart shopper; brand attitude; store brand; private label; national brand; structural equation modelling; confirmatory factor analysis.
Are bank advertisement appeals adapted to local culture? - Lessons from multinational banks present in Romania and Hungary
by Mónika Anetta Alt, Zsuzsa Săplăcan
Abstract: The European Single Market is challenging marketing managers decisions at each EU enlargement for it is known that culturally adapted advertisements are more effective than those that are not adapted, but it is less known how advertisements from different industries should be adapted. This study presents our findings on how multinational banks have dealt with the 2007 EU enlargement in terms of their advertisement appeal adaptation to Romanian and Hungarian cultures. The aim of this paper is to identify relevant cultural dimensions for bank advertisement appeal adaptation. The research is based on 785 unique print advertisements, published between 2006 and 2014 in national newspapers, belonging to eight banks operating in both countries. Content analysis based on Pollays 42 appeals reveals 11 representative appeals for banks. The most frequently used advertising appeals in the banking industry in both countries are informational ones and are related to masculinity and power distance dimensions. The cultural adaptation of messages is more visible in transformational appeals and it is reflected mainly in the cultural dimension with the highest differences among countries, namely individualism/collectivism.
Keywords: international advertising; adaptation; cultural dimension; appeal; bank; Romania; Hungary.
Exploring the effects of subsidiary interdependence on the performance of global product launches
by Alexander Mohr, Marc Van Unen, Fernando Fastoso, Can Tihanyi
Abstract: We explore the effects of subsidiary interdependence on global product launch performance using a case-study design combining quantitative and qualitative data collected from subsidiaries participating in the global launch of a new drug by a major pharmaceutical multinational enterprise. The study combines pre-launch survey data on subsidiary interdependence with post-launch quantitative performance data to select eight of 67 subsidiaries involved in a global product launch. We also analyse information gathered through in-depth interviews with 19 subsidiary managers to explore various facets of the relationship with their headquarters and other subsidiaries. Our findings suggest that the positive effect of interdependence on global product launch success varies with subsidiaries involvement in decision-making, with the division of labour and responsibilities, and with the existence of cognitive, relational and structural social capital. Based on our findings, we present several propositions regarding the effects of subsidiary interdependence on the success of global product launches.
Keywords: global product launch; subsidiary interdependence; launch performance; social capital; case-study approach.
Roles and strategies of foreign MNE subsidiaries in New Zealand
by Muhammad Mustafa Raziq, Gabriel Benito, Paul Toulson, Omer Farooq Malik, Mansoor Ahmad
Abstract: This study examines the roles and strategies of foreign-owned subsidiaries in New Zealand, with the aim to develop an improved classification of subsidiaries of multinational enterprises (MNE). Previous research has proposed a range of subsidiary classifications, indicating various ways in which subsidiaries can be distinguished. There are, however, still concerns that critical contingencies, such as the subsidiary development capacity and its own strategy, remain ignored. This study addresses these gaps by drawing on network theory to develop a novel and overarching subsidiary classification framework. Based on the framework, it empirically derives a three-part subsidiary classification: entrepreneurial, constrained autonomous, and constrained. The empirical classification is based on data from 429 foreign subsidiaries in New Zealand. Implications for theory, public policy, and management practice are made.
Keywords: subsidiary role; subsidiary strategy; subsidiary development; subsidiary classification; MNE management structure.
Integrating intrinsic motivation into the relationship between product design and brand attachment: a cross-cultural investigation based on self-determination theory
by Faheem Gul Gilal, Jian Zhang, Rukhsana Gul Gilal, Naeem Gul Gilal
Abstract: Previous marketing investigations have broadly predicted brand attachment by linking extrinsic motives. However, intrinsic motives of attachment have been surprisingly disregarded in the literature. To address this gap, this study integrates intrinsic motivation into the relationship between product design and brand attachment. To this end, we studied individuals from three countries, and the self-determination theory was found to generalise across individuals from Pakistan, South Korea, and China. The effects of three product design dimensions on each form of psychological need satisfaction and the subsequent brand attachment were greater for Pakistanis than for Koreans and Chinese. In particular, relatedness satisfaction was found to be a stronger driver of brand attachment for Pakistanis and Chinese than for Koreans, whereas autonomy satisfaction was found to more promising at explaining consumer attachment to brands for Koreans than for Chinese. Competence and relatedness satisfaction failed to capture brand attachment for Koreans. Finally, implications for theory and practice are discussed.
Keywords: product design dimensions; brand attachment; intrinsic motivation; psychological need satisfaction; self-determination theory.
Demerged multinational enterprises: a study of post-demerger international strategies
by Wouter Merkestein, Johan Lindeque
Abstract: Demerged Multinational Enterprises (DMNEs) that emerge with an independent corporate status after a demerger from a parent multinational enterprise (MNE) are unique firms with a great variety of post-demerger strengths, weaknesses and international strategic responses. This paper adopts a firm-level internalisation theory approach to MNE strategy to empirically explore the characteristics and post-demerger strategies of four focal case DMNEs. Five years of post-demerger data from annual accounts, newspaper articles and databases were analysed. Analysis of the strategic responses of the four DMNEs has allowed a typology that distinguishes four DMNE types to be proposed. This typology explains the international strategies of DMNEs by the degree of post-demerger strategic dynamism that is possible and the need to address the quality of the firm specific advantages endowed to the DMNE in the demerger.
Keywords: multinational enterprise; demerger; demerged multinational enterprise; post-demerger; international strategy typology.
Intertwining the individual and organisational experience: asymmetries of cross-cultural knowledge sharing, networking and learning
by Raija Pini Kemppainen, Nigel Holden
Abstract: The aim of this research is to explore the connection between the individual and organisational experiences of cross-cultural knowledge sharing, networking and learning. A qualitative research design was devised with three Nordic technology companies and significant players in the international market: Kone, Nokia and Yara. The data collection took place through semi-structured interviews of 15 senior managers. Our research suggests that knowledge sharing, networking and learning at the individual and organisational levels form asymmetric and parallel, but not completely separate, universes. Individual and organisational experiences of knowledge management (KM) take different forms, functions and foci. The research also emphasises the centrality of individual managers for successful KM. The most effective cross-cultural managers express the importance of active communication in sharing, experience satisfaction in international networking and learn to discern cross-cultural complexities. Our findings have implications for organisational theory, highlighting the significance of the level of analysis in cross-cultural activities. The results introduce a perspective for international managerial practices: a need to harness the individual experiences in cross-cultural knowledge management for the benefit of organisational goals.
Keywords: knowledge management; cross-cultural; multinational corporation; international business; knowledge sharing; networking; learning.
When foreignness becomes a liability: the effects of flawed institutional environments on foreign vs. domestic firm performance in emerging markets
by Tilo Halaszovich
Abstract: Weak institutions in emerging markets expose foreign firms to increased liabilities of foreignness. At the same time, foreign firms have firm-specific advantages compared with those of their domestic competitors. Based on a holistic perspective of the institutional environment in emerging markets, the present study explored the conditions under which the institutional environment prevents foreign firms from fully exploiting these advantages. The article proposes measures of institutional logics to capture the fundamental institutional structures in emerging markets and firm-specific abilities to control its flawed environment. To test our assumptions, we used data from the World Bank Enterprise Survey on 12,782 firms from 35 emerging markets. The results confirm that complex environments affect firm performance negatively, both for domestic and foreign firms, but the liabilities of foreignness exceed the firm-specific advantages of foreign competitors only in the most complex environments.
Keywords: liabilities of foreignness; institutional environment; institutional logics; FDI; emerging markets; firm performance.
How does multimedia word of mouth influence consumer trust, usefulness, dissemination and gender?
by Haibin Zhang, Chikako Takanashi, Steven Si, Guoqing Zhang, Lei Wang
Abstract: Multimedia word of mouth represents unofficial information produced by consumers. It is composed of multimedia files and text and has significant influence on consumers behaviour. This study explores the interactive relationship of trust and perceived usefulness using the two-stage least squares method. A model based on two dimensions of trust theory and two dimensions of dissemination intention tests how gender-based differences in multimedia word of mouth influence consumer trust and information dissemination. The partial least squares method is used to analyse gender differences based on experimental data. The same data are used to conduct a fuzzy-set qualitative comparative analysis to confirm the results. The results indicate that trust and usefulness can enhance each other. Additionally, womens perceived usefulness of word of mouth is greater than that of men, particularly in the online environment. Finally, trusts influence on offline dissemination intention is more pronounced for men than for women.
Keywords: consumer review; information dissemination; multimedia review; gender difference; qualitative comparative analysis.
Foreign direct investment drivers and establishment mode choice of emerging-market MNEs: the role of state ownership
by Diego Quer, Laura Rienda, Rosario Andreu
Abstract: Drawing on an institutional perspective, this study analyses how state ownership affects the relationship between foreign direct investment (FDI) drivers and establishment mode choice of emerging-market multinational enterprises (EMNEs). We argue that state-owned EMNEs encounter stronger institutional pressures in technology-and natural resource-rich countries derived from concerns about takeovers of local companies. Moreover, in low-growth markets, state-owned EMNEs do not always behave as pure profit-maximisers since they are usually subject to home government institutional influences and pursue policy goals. For these reasons, we hypothesise that their choice between acquisitions and greenfield investments differs from that of privately-owned EMNEs. Our analysis of 643 FDIs undertaken by Chinese companies confirms that state-owned EMNEs are less likely to choose acquisitions in host countries with a higher technology and natural resource endowment. However, the relationship between host market growth and establishment mode is not influenced by state ownership.
Keywords: establishment mode; EMNEs; FDI drivers; state ownership.
Factor analysis of SMEs entering foreign markets: the case of Taiwanese SMEs in Vietnam
by Kuei-Ying Hsu, Hsin-Pin Fu, Arthur Lin, Tsung-Yin Ou
Abstract: Internationalisation is an important issue for firms, especially small and medium enterprises (SMEs). Compared with large enterprises, SMEs possess limited internationalisation experience and face unknown risks owing to limited resources. However, if SMEs understand the determinants for entering into a foreign market and their relative importance, they could deploy their relatively limited resources optimally and maximise the success of entering the global market. Through literature review, this study proposes a three-level factor hierarchical table of SMEs entering foreign markets based on the dynamic capabilities framework. Through expert questionnaires, factor weights were obtained by using a fuzzy analytic hierarchy process (FAHP), and the advantages of the VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method were then used to objectively identify six critical success factors (CSFs): customer orientation, host countrys interfunctional productivity coordination, alignment of product/service with host country, competitor orientation, and open-mindedness. These six factors map the key path for SMEs to enter foreign markets and four practice implications are proposed. The results can be used as reference for Taiwanese SMEs to optimise their decision-making and resource allocation processes for entering into foreign markets.
Keywords: SMEs; entering foreign market; CSF; FAHP; VIKOR.
An experiment of institutional change in the ecosystem of entrepreneurship: easing sanctions against Iran
by Elham Kalhor, Shayegheh Ashourizadeh, Thomas Schøtt
Abstract: The ecosystem of entrepreneurship includes institutions, notably the market with its arrangements, such as the extent of the market and availability of opportunities. In Iran, extent and opportunities were limited by severe sanctions until 2015, when sanctions were eased by what is known as the nuclear agreement. This institutional change invites the hypothesis that easing sanctions entailed an expansion of entrepreneurship. This hypothesis is tested as a natural experiment, comparing entrepreneurial pursuits before and after the agreement, using the annual survey of adults and entrepreneurs in Iran conducted by the Global Entrepreneurship Monitor, complemented by in-depth interviews. Pre- and post-agreement comparisons show increases in peoples opportunity perceptions, intention to become entrepreneurs, and entry into entrepreneurship. Entrepreneurs became increasingly pulled by opportunity and decreasingly pushed by necessity and increasingly export-oriented, and expectations for growth of businesses increased. These findings contribute to understanding how institutional change in the ecosystem of entrepreneurship can change entrepreneurial pursuits.
Keywords: entrepreneurship; opportunity; growth; ecosystem; experiment; institutional change; sanctions; Iran.
Do work-related values of physicians predict their preferred employers characteristics in a job choice scenario? Results from an Austrian pilot study
by Christoph Augner, Christa Stückler
Abstract: The physicians' job market has turned from an employers' market to an applicants' market. However, little is known about the motives and values that are relevant to how physicians decide to choose an employer. The objective of this study was to identify relevance and relationship of and between work-related values of physicians and preferred characteristics of employer before the background of Person-Organization (P/O)-fit theory (Cable & Judge, 1996). We developed a questionnaire study that was administered to physicians employed by an Austrian hospital corporation. Age was the best predictor of workplace-related characteristics of the employer. Furthermore, we found that hedonism as a work-related value subscale best predicted preference of work-life-balance-related characteristics of the employer. Performance-related characteristics of the employer were best predicted by career orientation of the physicians. This pilot study contributes knowledge to the relatively scarce evidence of how physicians choose their employer.
Keywords: physicians; human resources; health care; health economics.
Which organisational capabilities matter for SME export performance?
by Antonella Zucchella, Roger Strange, Serena Mascherpa
Abstract: As a result of the increasing tendency towards a global economy, international business involvement is becoming particularly relevant for smaller companies. Exporting constitutes the most popular, quickest and easiest way for many small firms to internationalise. The aim of the paper is to provide a comprehensive picture of the determinants of SME export performance, by investigating the potential relationship between organisational capabilities and both objective and subjective measures of performance. Based on the literature review and mainly embedded in the resource-based view of the firm, we uncover a collection of organisational capabilities that are especially salient to these firms and their growing international involvement. The suggested conceptual model is tested with a sample of Italian exporting SMEs using regression analysis. The results show that entrepreneurial and innovative capabilities are the most influential antecedents of both objective and subjective measures of international performance. Finally, we discuss the managerial implications of our findings.
Keywords: organisational capabilities; SME internationalisation; export performance; international entrepreneurship.
Cultural affinity and its effects on internationalisation: an empirical investigation on Taiwanese banks
by Hsiang-Hsi Liu, Wang-Chiang Ko
Abstract: This study examines cultural affinity as a novel role in country-institution specific factors and its effects on the degree of internationalisation (DOI) of Taiwanese banking firms. The empirical results indicate that, after considering the cultural affinity factor, estimated coefficient effects of firm age at home country, advertisement intensity, outward direct investment of Taiwanese manufacturing industry, relative interest rate, relative per capita GDP and cultural affinity/liking have positive effects on the DOI of Taiwanese banks. Cultural distance and global financial crisis have negative effects on the DOI of Taiwanese banks. Overall, the effects of country-specific factors influencing the DOI for Taiwanese banks are higher than firm-specific factors. We hope our empirical results may provide government and management decision makers with guidance when considering cultural issues and interacting or expanding into international markets.
Keywords: cultural affinity; degree of internationalization; banking industry; country-institution factors.
Discourse on corporate social responsibility in external communication of agricultural enterprises
by Jolita Vveinhardt, Egle Stonkute, W?odzimierz Sroka
Abstract: The aim of the research is to evaluate the practices of corporate social responsibility in Lithuanian agricultural enterprises after the analysis of the communicative messages. The methods of analysis and synthesis of academic literature on CSR and rural development, method of analysis of the content were used during the research. The analysis of the information published on the web pages and public reports of the enterprises operating in Lithuania showed that corporate social responsibility in enterprises operating in the field of agriculture is revealed only episodically and is more typical of the enterprises of foreign capital and listed companies. It turned out that the understanding of social responsibility is still too narrow and confined to environmental protection, legal responsibility, as well as support for communities and non-governmental organizations. The relative absence of corporate social responsibility explicitly communicated by agricultural enterprises could be treated as a simple mistake of corporate communication.
Keywords: health-related quality of life; corporate social responsibility; agriculture; sustainable development; stakeholders; communication; qualitative research.
Research on compatibility strategy of ride-hailing platform
by Ke Lu, Jing Zhou, Xiaowei Lin
Abstract: In this paper, the compatibility strategy of a ride-hailing platform is analysed based on two-sided market theory. The basic model is constructed by considering the utility function of traveller and driver. Then two situations of compatibility model are extended based on basic model. In situation 1, the cross-platform cost is afforded by traveller. In situation 2, the cross-platform cost is afforded by driver. The equilibrium price and profit of both situations in compatibility model are analysed. Moreover, the factors of average waiting time and drivers commission rate are also introduced in order to reflect the characteristic of ride-hailing service. Finally, the results from the basic model and compatibility model with two situations are analysed and compared. The main results indicate that the equilibrium price charged to travellers in situation 1 is always higher than that in situation 2, while the price charged to drivers in situation 1 is always lower than that in situation 2. Moreover, the ride-hailing platforms that afford the cross-platform cost can earn more profit. And the relationship between drivers commission rate, average cost per transaction and equilibrium price, and total profit also depends on the probability that travellers choose to make cross-platform transactions
Keywords: ride-hailing platform; compatibility; two-sided market; urban transport.
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.
Serial acquirers' strategy in the telecommunications sector: integration or indigestion?
by Julio Navio-Marco, Marta Solorzano, 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 acquirers 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, a neural network and clustering techniques are used to study the serial acquirers 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 postmerge 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.
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.
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 organizational competencies. This paper explores the direct contributions of scenario planning to strategic flexibility and complexity. A structural equation modeling (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 and strategic complexity.
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.
Negotiating international strategic alliances: success and failures - some closing thoughts
by Michael Jeive, Raymond Saner
Abstract: The aim of this thematic issue is to deepen the current understanding of the negotiation process of strategic alliance negotiations through the application of a multi-lens approach in which selected theories and models were applied to specific cases to gain richer insights into the business case, the negotiation process and to identify lessons for future negotiators of strategic alliances. Negotiation theory, trust theory and business diplomacy are applied to a range of strategic alliance negotiations including private sector M&A, negotiations between governments, and cross-sectoral alliance negotiations between private sector actors and other actors such as regulatory agencies.
Business diplomacy and international strategic alliances
by Raymond Saner
Abstract: Many of the pressures that internationally active enterprises have to face are related to social issues in management rather than the traditional business of international strategic management. Some of these pressures are linked to non-state actors who can engender conflicts between states and between states and enterprises, often with significant economic impact and can play a powerful role in promoting either the resolution or renewal of conflict Both companies and government agencies must take this into account in the event of a conflict. Business diplomacy can greatly help prevent a sliding into an impasse of a strategical alliance negotiation and if already in the process of negotiation, business diplomacy competence can help a company face multi-stakeholder issues and multi-actor negotiations which are often part of complex strategic alliance negotiations.
Keywords: business diplomacy; non-state actors; strategic alliances; multi-actor and multi-stakeholder negotiations.
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.
Home country institutions and export behaviour of SMEs from transition economies: the case of Russia
by Tatyana Tsukanova
Abstract: This study examines the relationship between home country institutional environment and export behaviour of small and medium-sized enterprises (SMEs) from transition economies. It is argued that perceived institutional challenges in home country may explain significant differences in exporting among firms. By focusing on Russia, as a context of transition economy, it is empirically tested how the perceived tax and financial barriers define export propensity of SMEs, and whether corruption concerns can play a role of a moderator and navigate firms export activities. Data on 3,136 Russian SMEs provide strong support for the effects of the perceived institutional dimensions on firms propensity to export. The results offer a more fine-grained picture of institutional environment by contributing to the extant literature and show that the impact of home country institutions is dependent on the subjective perception which plays an important role in shaping export behaviour of Russian SMEs. The implications are discussed.
Keywords: export behaviour; export propensity; home country environment; institutions; perception; Russia; SMEs; transition economies.
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.
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; emotional exhaustion; depersonalization; reduced personal accomplishment; organisational commitment; affective commitment; normative commitment; continuance commitment; accountants.
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 improve the likelihood of spillover towards brands from the same region. When PD is high, a brand scandal is more likely to spill over 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 spill over, 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.
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 Meki?, 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, Ezra Memili, Lakshmi Iyer, Izabela Koladkiewicz, 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.
Impact of internal additional compensations policy on revenues in cross-sectoral SME environment
by Sanja Todorovic, Mladen Radisic, Aleksandar Takaci, Jelena Borocki, Jana Kliestikova
Abstract: A contemporary business practice attributed to the small and medium-sized enterprises (SMEs) reflects rather ad-hoc employees compensation policies. In this study, we investigate whether cross-sectoral differences exist with respect to the additional compensation performance on the sample of IT (information technologies) and non-IT small firms coming from an emerging market in Europe. The central research includes systematic statistical analysis of the relations between additional compensations performance (both material and non-material) and revenues growth for more than 60 SMEs. We conclude that cross-sectoral differences of additional compensation impact on revenues growth are evident. IT SMEs are more likely to experience year-to-year revenues growth when they perform additional compensation towards their employees, and they execute non-material additional compensation more frequently. However, variables observing employee category receiving an additional compensation and funding spent for additional compensation did not show considerable statistical significance with respect to impact on revenue growth for both observed sectors.
Keywords: additional compensation; SMEs; revenues growth; Fisher's exact test.
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.
Applying a trust lens to the study of international strategic alliance negotiations
by Michael Jeive
Abstract: In the context of international strategic alliances, negotiation is not limited to the process of reaching an initial agreement, but is also a central tool in the successful implementation and joint value creation phases In a context where neither party has the power to enforce values on the other, the process of negotiating values and managing expectations brings the structures of the working relationship into sharp focus illuminating the ongoing process whereby agreed or accepted behavioural values emerge and begin to underpin the collaborative endeavour Following a brief cultural diversion to show how the trust lens can illuminate the development of alliance culture, the paper provides an overview of key recent literature on the conception of trust and trust development before returning to a discussion of trust and negotiation and especially of the strategic alliances The paper indicates a new approach to studying the development of behavioural and system values
Keywords: strategic alliances; negotiation; trust; interpersonal trust; system trust; process trust; trust development; values.
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.
The Alliance of Small Island States during the COP 18 negotiations
by Arshad Ali, Seraina Engert, Corinne Geiger, George Londob, Steve Rubin
Abstract: This article provides an analysis of a multi-actor negotiation in the context of the United Nations Framework on climate Change Convention (UNFCCC) and describes the negotiation of the Alliance of Small Island States (AOSIS) during the UNFCCC negotiations in 2012 in Doha. Despite the fact that the AOSIS states have a significant power disadvantage compared to the main industrial countries, the group of small island states was able to influence the negotiation process considerably. The authors describe the alliance building of the AOSIS group thereby contributing to the understanding of alliance building in multi-actor negotiations such as the UNFCCC.
Keywords: Alliance of Small Island States; multilateral negotiations; COP 18; UNFCCC.
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.
Fair value and mispricing: how domestic earnings transparency of listed firms leads to global financial stability
by Yanni Zhang, Qamar Farooq, Luguang Zhang, Xuan Liu, Yunhong Hao
Abstract: Corporate governance and earning transparency have gained the abundant attention of accounting researchers worldwide. Based on the A-share listed companies in Shanghai and Shenzhen stock markets from 2001 to 2016, this study explores the impact of earnings transparency and changes in fair value of the 2017 Chinas new edition of accounting standard on stock mispricing. The results show that: (1) Earnings transparency is negatively correlated with stock mispricing, and the higher the transparency of earnings disclosed in financial statements, the lower the level of stock mispricing; (2) The new accounting standards introduced in 2007 follow up the trend of the unification of global accounting standards, and the new accounting standards can moderate the effect of earnings transparency on stock market mispricing. (3) One of the changes directly related to accounting earnings in the new accounting standards is the presentation of changes in fair value gains and losses.
Keywords: global financial stability; earnings transparency; stock market mispricing; heterogeneous beliefs; investors attention.
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.
AstraZeneca vs. Pfizer
by Patrizia Wien-Nicolini, Asja Hot, Matthias Mählitz, Roman Stegmüller
Abstract: The PfizerAstraZeneca case shows how an acquisition target can successfully repel an attempted takeover by engaging with positively disposed stakeholders and managing communications and the news agenda The company communicated clearly, consistently and powerfully throughout the process and could benefit from a natural, if temporary, coalition of interests between the UK scientific establishment, unions, and a significant portion of the media. In the end, they were able to persuade enough major shareholders to support their vision and reject Pfizers offer. AstraZeneca presented themselves as a local champion, a cornerstone of Britains high-tech industry, a key investor, valuable employer and in general, a standard bearer for the high-tech, value-added industry that was at that time being actively championed by the UK Government. At the same time, they characterised Pfizers approach as an example of greed-driven capitalism most clearly demonstrated by their interests in the tax conversion possibilities.
Keywords: AstraZeneca; Pfizer; acquisition; takeover; stakeholder management; negotiation; strategy; defence; communication.
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, Mohammad Reza Sanaei, Niloufar Khosravi Rad, Rostam Derakhshan
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.
The role of job embeddedness: a moderator for justice and citizenship behaviour in the workplace
by Kuo-Tai Cheng
Abstract: The study draws insights from the theory of job embeddedness as a theoretical extension to explain employees' experiences of organisational justice and citizenship behaviour. Data were collected from 120 full-time employees, via a three-wave collection procedure in order to ameliorate the bias of common method variance. The analysis confirmed the moderating effect of job embeddedness on the relationship between organisational justice and organisational citizenship behaviour; that is, when the justice is deficient, people with higher job embeddedness still demonstrate citizenship behaviour. Unlike previous studies this research found that procedural justice did not contribute to citizenship behaviour, whilst distributive, interpersonal and informational justice did affect citizenship behaviour.
Keywords: job embeddedness; employees; organisational justice; organisational citizenship behaviour.
MNEs' corporate social responsibility: an optimal investment decision model
by Won-Yong Oh, Kyoung Jin Choi, Young Kyun Chang, Moo-Kyeong Jeon
Abstract: Based on an assumption that corporate social responsibility (CSR) is an investment decision, we provide a theoretical model that suggests how multinational enterprises (MNEs) should optimally invest in CSR. Our model proposes the optimal timing (when) and level (how much) of CSR investment with an economic calculation of expected return and payoff uncertainty of CSR in local markets. We also specify various multi-level factors (i.e. individual, organisation, industry, and institution) that may affect the investment structure. Our model suggests that MNEs' CSR decisions can be understood as a strategic investment seeking the optimal economic outcomes depending on the expected return and payoff uncertainty in each foreign affiliate. This study contributes to the literature by integrating research streams that have been polarised over the issue of the necessity of CSR for MNEs, and by offering a more complete understanding of how MNEs should invest in CSR.
Keywords: CSR; corporate social responsibility; optimal investment; expected return; payoff uncertainty; multi-level perspective.
Using expatriates for adapting subsidiaries' employment modes to different market economies: a comparative analysis of US subsidiaries in Germany, the UK and Switzerland
by Johannes Meuer, Marlies Kluike, Uschi Backes-Gellner, Kerstin Pull
Abstract: Because the extent to which multinational companies (MNCs) benefit from foreign subsidiaries depends on how effectively MNCs manage their foreign subsidiaries' workforce, the international management literature has long focused on how MNCs transfer Human Resource Management (HRM) practices. However, the literature has only vaguely dealt with institutional differences between host and home countries, often simplifying these differences under the umbrella of institutional or cultural distance. This article investigates how MNCs use expatriates to adjust subsidiaries' employment modes to different market economies. We define employment modes as bundles of HRM and industrial relations (IR) practices implemented at the firm level and examine the employment modes of 76 subsidiaries of US MNCs in a coordinated market economy (Germany), a hybrid market economy (Switzerland) and a liberal market economy (UK). Our results reveal substantial differences in the expatriation strategies of MNCs that depend not only on the international focus of the MNC but also on the differences in IR between the parent and subsidiary's environment. Our findings qualify the role of expatriates in adjusting subsidiaries' employment modes to different market economies and highlight the boundary conditions of integrating HRM with IR practices in the management of foreign subsidiaries.
Keywords: expatriation; international human resource management; industrial relations; varieties of capitalism; fsQCA.
The influence of competences and institutions on the international market orientation in foreign-owned subsidiaries
by Sven Dahms
Abstract: The international market orientation of foreign-owned subsidiaries, defined here as the importance of markets supplied outside their host country, can, and often does, play a vital role for managers as well as policy makers. This paper investigates how multilevel corporate competences and institutional differences stand to influence international market orientation and performance among firms. Our research is based on a survey of subsidiaries located in the mid-range, emerging economy of Taiwan. The results are analysed using SEM-PLS method. We found that competences that emerge from the subsidiary itself and competences from multinational enterprise networks serve to enhance; whereas, competences emerging from headquarters' operations can have an adverse effect on international market orientation. Institutional differences add to the overall complexity through direct and moderating effects. This study indicates that the competence-based view of the firm can be enriched with insights from institutional theory in order to expand our understanding of subsidiary development located in emerging economies and also with their international market orientation in particular.
Keywords: foreign-owned subsidiaries; multinational enterprises; emerging economies; SEM-PLS; international market orientation; institutional theory.
International entrepreneurship: a critical review of the research field
by Hugo Baier-Fuentes, Esther Hormiga, Paloma Miravitlles, Fabio Blanco-Mesa
Abstract: This study provides a comprehensive review of the International Entrepreneurship (IE) literature and analyses its evolution in relation to the criticisms made by previous reviews. For this purpose, 272 articles published in 20 journals indexed in the Journal Citation Report for the 1989-2015 period were analysed in depth. The results reveal that researchers have increasingly worked to address these criticisms. Nevertheless, these efforts have not been sufficient since theoretical difficulties that prevent a better understanding of the IE field continue. Therefore, this study conducts a critical discussion of these difficulties: the disparity between IE definitions, the terminological disparity between rapidly internationalising firms, and the inclusion of studies that compare entrepreneurship at the national level between countries. Finally, to improve understanding and enable further progress in IE research, recommendations and a roadmap for future research are proposed.
Keywords: international entrepreneurship; international new ventures; born global; comparative entrepreneurship; literature review.
Expatriate academics and perceptions of organisational support
by Jodie-Lee Trembath, Zaza Nadja Lee Hansen
Abstract: Research on Perceived Organisational Support (POS) rarely focuses on the potential gap between employee perceptions versus the support the organisation purports to offer. An understanding of this may provide greater insight into the interventions a university should be making if it hopes to improve retention of its expatriate academics. By analysing qualitative responses to a written questionnaire, this paper explores the perceptions of organisational support held by 163 expatriate academics employed at a large international Danish university, and compares these perceptions with the support the university claims to offer. Our study reveals that, in the case of expatriate academics, even extensive offerings of organisational support can be insufficient if the existence and specific benefits of the support are not adequately communicated, and if the academics do not trust the source of the support on offer. Theoretical and practical implications are discussed.
Keywords: expatriate academics; IHRM; international human resource management; higher education management; POS; perceived organisational support.
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.
Special Issue on: Research Methods in International Management
by Nuno Fernandes Crespo, Diana Aurélio
Abstract: We investigate the relevance of both the characteristics of entrepreneurs and those of firms as determinants of new international ventures. Our investigation is built on the knowledge-based view and upper-echelons theories. Using data from a cross-sectional survey of 4,193 new ventures, domestic and international, we combine the net effects from structural equation modelling (SEM) with the combinatorial effects from a fuzzy set qualitative comparative analysis (fsQCA). The findings show that the characteristics of both the firms and the entrepreneurs are relevant to a new venture becoming international. The fsQCAs results show that both high and low values for the entrepreneurs personality characteristics influence new ventures going international.
Keywords: international entrepreneurship; domestic new ventures; international new ventures; entrepreneur’s personality; entrepreneur’s demographics; firm’s characteristics; fsQCA.