Governance structure and internationalization of family-controlled firms: The mediating role of international entrepreneurial orientation

Stemming from resource dependence theory this article investigates the mediating role of international entrepreneurial orientation on the relationship between the involvement of non-family members in the firms' governance structure and both pace of internationalization and international performance of family firms. Relying on a sample of 113 German family firms, the theoretical model proposed in the study is tested via structural equation modeling techniques. Our findings suggest that a high involvement of non-family members in governance structure has a positive impact on family firms' pace of internationalization, and that this relationship is mediated by the international entrepreneurial orientation of the firm. The discussion section offers implications for family business and international entrepreneurship literature, as well as practical implications.     

强关系与弱关系: 企业成长的社会关系依赖研究

将企业成长问题与资源依赖理论、社会关系理论相联系,认为社会关系可以为企业成长提供一定的社会资源基础.在理论界已有的"弱关系的力量"和"强关系的力量"假设基础上,提出了强弱关系均是企业成长可以依赖的重要社会关系类型,以及强弱关系重要性受限于企业的结构约束因素和组织因素的影响的假设.基于250个企业样本的实证统计分析结果支持了这些假设.     

Towards a re-conceptualization of firm internationalization: Heterogeneous process,subsidiary roles and knowledge flow

This paper proposes a re-conceptualization of firm internationalization to understand and predict the rapid global expansion of firms since the 1990s, especially those from emerging markets. First, based on a review of existing literature, we re-conceptualize firm internationalization as a heterogeneous process of strategic development of subsidiaries in overseas countries or regions. This re-conceptualization captures the pluralistic character of the process of firm internationalization.Second, we delineate peculiar roles played by subsidiaries in pursuit of multinational enterprise (MNE) headquarters' internationalization strategies. We argue that the HQ's heterogeneous strategies toward overseas subsidiary development define the corresponding roles of subsidiaries, which in turn shape the knowledge-flow patterns within the MNEs. Finally, we link firms' internationalization strategies with different subsidiary roles to generate hypotheses concerning the effect of such links on subsidiary performance. We argue that the proper alignment of HQ's internationalization strategies with subsidiary roles will lead to success of the overseas subsidiaries; by contrast, a mismatch will lead to subsidiary failure. The paper thus contributes to the field of firm internationalization by linking its new conceptualization with the literature on subsidiary roles and knowledge flows in MNEs.     

The constituents of core competencies and firm performance: evidence from high-technology firms in china

This paper, unlike previous studies, focuses on the decomposition of impacts of core competencies on firm performance and the moderating effects of environmental turbulence on the basis of developing structural equation models using the partial least square (PLS) method. By taking a disaggregated approach, the decomposed effects of core competencies on firm performance are examined and the relative influences of all three major constituents of core competencies, marketing competencies, technological competencies and integrative competencies, are studied. Furthermore, this approach helps to avoid the so-called “pitfall” of being vague, tautological, endlessly recursive, and non-operational, for which some studies based on a resource-based view have been criticized. All three constituents are found to have significant influences on firm performance. And these relationships are moderated significantly by environmental turbulence such as market turbulence and technological turbulence, except that market turbulence is found to have no significant moderating effect on the relationship between integrative competencies and firm performance.     

HRM系统、竞争战略与企业绩效关系的实证研究

战略人力资源管理理论认为人力资源管理(HRM)系统和企业竞争战略之间的匹配关系会对企业绩效产生影响.通过类型学和分类学两条主线归纳并总结了关于 HRM 系统及其与企业绩效关系的研究,提出了 HRM 系统、竞争战略与企业绩效关系的假说,并以133家样本企业为研究对象,对理论假说进行了检验.研究发现,采取内部型 HRM 形态的企业的绩效高于采取市场型 HRM 形态的企业;环境特征(产业技术变革、劳动力市场竞争)对 HRM 系统形态与企业绩效关系的调节效应仅得到部分支持,而企业规模的调节效用没有得到支持;企业的竞争战略对人力资源战略选择的影响很小;HRM 系统与竞争战略匹配企业的绩效高于没有匹配企业的假说没有得到支持.最后,对研究结论进行了讨论,分析了其局限性和未来研究建议.     

Enhancing the learning advantages of newness: The role of internal social capital in the international performance of young entrepreneurial firms

In this paper, we draw on social capital theory to explore the role of internal social exchanges in contributing to the international performance of young entrepreneurial firms. We argue that internal social capital embedded within young ventures helps them cultivate international learning effort pertaining to the effective alignment of resources and activities related to their international growth. The empirical analysis, based on a sample of 150 young internationalizing SMEs from India, demonstrates both direct and indirect effects of internal social capital on international performance. Whereas previous research focuses on the importance of social networks with external actors, our study emphasizes internal social capital linked to the underlying learning advantages of newness and opportunity capture and contributes to the literature on early and rapid internationalization.     

The relation between board size and firm performance in firms with a history of poor operating performance

Focusing on a sample of smaller firms with a history of poor operating performance, this paper posits that increases in board size will be associated with better share price performance. Notably, board sizes studied here are, on average, much smaller than those typically studied by prior research. Mostly consistent with predictions, board size is found to be positively correlated with firm value in between-firms tests, and changes in board size are found to be positively associated with annual stock returns. Last, event study results suggest that the market responds favorably to board size increases and unfavorably to large board size decreases. Together, these results identify a setting in which larger board sizes appear to be positively related to shareholder value.     

Human resource development in technology-driven small and medium size firms: case study of a small Korean firm

 The purpose of this study was to suggest a conceptual framework for the dynamic skill formation process based on relevant environments. First, after categorizing the types of task at the work-flow level, such as regular maintenance tasks, nonregular maintenance tasks, regular improvement tasks, and nonregular improvement tasks, this study identified conceptually how these tasks are related to the ways by which individuals learn (single-loop learning/double-loop learning versus OJT and Off-JT). This study also tried to apply the above conceptual model to the Korea context (e.g., Company W) for external validity. Company W is well known among Korean small firms for its innovative human resources management. The study shows that, generally, Company W gained a competitive advantage using the dynamic conceptual model of the skill formation process suggested in this study. OJT, On the job training; Off-JT, off the job training.     

Measuring strategic decision making efficiency in different country contexts: A comparison of British and Turkish firms

This paper compares the relative efficiency of the strategic decision making (SDM) processes of British and Turkish firms. The technique of data envelopment analysis (DEA) is used to measure the relative efficiency of these firms. The evidence obtained by the DEA analysis reveals that the Turkish firms tend to be superior to the British firms in terms of their SDM efficiency. There is a significant difference in scale returns with respect to the country of origin of the firms. The analysis of the improvement potential of inputs indicates that Turkish firms place more emphasis on managing environmental turbulence to enhance their SDM efficiency, while British firms tend to overly focus on the design of an appropriate organizational structure. However, no significant difference was noted between the two groups of firms with regard to the level of resources and effort exerted on formal strategic planning practices. The analysis of output deficits reveals that there is a significant difference between British and Turkish firms in the sources of inefficiency.     

The influence of national culture and institutional voids on family ownership of large firms: A country level empirical study

There is considerable variation across countries in both the extent to which large publicly listed firms are family-owned and the dominance of such family-owned firms in stock markets. The literature presents competing theoretical viewpoints on what influences such country-level variation. On one hand, institutional economists suggest that institutional voids can have a strong influence. On the other hand, cultural sociologists suggest that a country's culture can have a strong influence. One type of institutional void is a lack of institutional norms and regulations needed for monitoring contracts (which can discourage owners from hiring professional agents for top management positions in their firms) and another type of institutional void is a lack of financial credit availability in the country. Cultural dimensions include collectivism (i.e. cohesion within in-groups/families) and power distance (i.e. inequalities in society). This country-level empirical study suggests that both national culture and institutional voids influence family ownership patterns around the world, and that institutional voids moderate the influence of national culture. National culture has a stronger influence when a country has institutional voids; however, the influence of national culture weakens when institutional voids are overcome.     

Equity versus non-equity international strategic alliances involving Danish firms: An empirical investigation of the relative importance of partner and host country determinants

A substantial literature has evolved focusing on the ownership structure of international strategic alliances (ISAs). Most of the relevant studies are theoretical in nature and concentrate on the conceptual factors that influence the choice between equity and non-equity structures. A smaller number of studies provide some empirical evidence on the importance of some of the conceptual factors. The theoretical literature highlights the potential influence of relational capital and transaction costs as determinants of ISA structure; however, there is little empirical evidence on the relative importance of these potential determinants. Moreover, there is only limited and indirect evidence bearing upon the impact of host country governance attributes on ISA ownership structure. In this study, we provide statistical evidence on the importance of potential determinants of governance mode choice for a sample of ISAs involving Danish firms. Our study documents how the determinants of governance mode choice vary in importance depending upon the “quality” of the governance infrastructure of the host country.     

Applying firm attention theory to assess the antecedents of firm participation in regulatory processes

This study applies firm attention theory to explain how factors including regulatory inspection ratings, media coverage of regulatory issues, new regulations, and the political activities of opposing interest groups influence firm participation in regulatory processes. Findings suggest that firm political participation is driven by factors that attract firm attention to political processes as well as by factors that threaten to draw stakeholder attention to political processes and firm operations. These relationships are explored by examining automobile manufacturer participation in National Highway Traffic and Safety Administration rulemaking comment periods.     

The role of trust and contracts in the internationalization of technology-intensive Born Globals

The purpose of this paper is to study the roles of trust and contracts in technology-intensive Born-Global firms (BGs). By definition these firms compete in the area of knowledge and cutting-edge innovation, use external resources, and internationalize at inception or soon thereafter. For entering global markets successfully, these firms typically need partners. However, attracting them requires disclosing critical knowledge, and thus BGs encounter the risk of losing their potential competitive advantage. Their global business environment is very competitive and dynamic, therefore traditional ways of operating may be too time-consuming to manage these risks. Consequently, we argue that for technology-based BGs, the role of trust and contracts are closely intertwined. The paper puts forward three propositions that highlight the roles of trust and contracting for technology-intensive BGs.     

Technological progress and the market value of firms

Is market valuation of corporations affected by events from their product innovation processes? This review shows that such effects can be determined. Whether markets make rational use of the information cannot be established. The surprise element of any information and closeness to market introduction seem to be two important variables that explain the degree of market response. The study concludes with eight statements on what we know and what could or should be investigated in the near future.     

Innovation strategies of Asian firms in the United States

This paper examines the relationship between Asian firms’ technological and non-technological strategies and innovation capability. Particular attention is focused on subsidiaries in the United States (US) with headquarter units in South Korea, Singapore, and Taiwan. Empirical evidence from a sample of 151 subsidiary plants and establishments suggests that Asian firms invest in the US to upgrade their their knowledge base with a view to supporting new product and market-based innovations. The results of an ordered probit regression model of innovation performance suggests that new product development and marketing capability make a significant contribution to increased US patents among Asian firms while applied research is only marginally significant in explaining firms’ innovation capability. The major sources of innovation capability are revolved around a tacit understanding of technology and products than more explicit forms of knowledge. Our empirical findings also suggest that stronger business performance is associated with new product development and marketing capability.     

Uncertainty,flexibility and buffers in the management of the firm operating system

The role that buffers can assume in the management of uncertain situations that can occur in industrial firms is demonstrated. An outline is provided of the various types of buffers with regard to different types of uncertainty faced and to the characteristics of the production system. Although the prevalent scholarly trend is to evaluate buffers as factors which uselessly increase the complexity of the firms operating systems, this work tries to analyse the contributions they offer to the management process. Buffers are considered as alternative and complementary factors to technological flexibility. Technological flexibility is often considered the only competitive means able to face both external and internal uncertainties. The choice to use or not use buffers as a complementary resource or as an alternative to technological flexibility, depends on a comparison of the cost-benefits of the two solutions     

The board advisory tasks in small firms and the event of crises

In this article we examine what affects the board of directors’ involvement in the advice to management, with emphasis on the influence of crises on the board advisory tasks performance. Based on a survey of 881 small Norwegian firms, we analyse responses from CEOs in order to determine whether and to what extent the board is actively involved in the governance process during crises through providing advice. The study has two major contributions to board research in general and research of into small firms in particular. The first is the go beyond the “usual suspects” of board size, CEO duality, and board independence when looking for determinants of board involvement in advice. The second contribution is a clearer understanding of board involvement during crises. Our results show that board member diversity becomes particularly important during crises, since this provides the CEO and firm access to a more diverse pool of competences and experiences. We also find that crises moderate the effects of incentive on the board’s involvement in advice. This evidence sheds new light on the determinants of directors’ involvement in board tasks, suggesting that directors’ incentive to perform certain board tasks vary according to the contingent situation the firm is experiencing.