Knowledge recontextualization by returnee entrepreneurs: The dynamic learning perspective

Effective knowledge recontextualization is key to successful knowledge transfer in cross-cultural context. This paper explores how returnee entrepreneurs in Vietnam learn to recontextualize their overseas knowledge while establishing new ventures back in their home country. Our dynamic learning process model suggests that (1) in the pre-founding phase, an interactive vicarious learning and intuitive learning mechanism enables returnees to make sense of overseas knowledge; (2) during the founding phase, blended learning mechanism – the balancing act between market response versus market imposing - helps returnees manage the paradoxical cross cultural tension, importantly (3) in the growth phase, the cycling between unlearning and relearning helps them discard, select and recreate new knowledge in the pursuit of sustainable entrepreneurial growth. The study advances the literature on knowledge recontextualization by clarifying key underpinning learning mechanisms essential for ensuring “effectiveness” outcomes. It also contributes to the work on returnee entrepreneurship and entrepreneurial learning by demonstrating how international entrepreneurs learn overtime to thrive in a conflicting cultural context.     

Role of overseas ethnic and non-ethnic ties and firm activity in the home country in the internationalization of returnee entrepreneurial firms

Using a sample of 210 Chinese returnees' entrepreneurial firms, we examined how the overseas ethnic and non-ethnic ties of the returnee entrepreneurs affected their firms' internationalization in the returnees' former host countries. We found that both types of overseas ties were correlated with increased levels of internationalization and they interact positively. We then investigated whether the impacts of overseas ethnic and non-ethnic ties on firm internationalization were moderated by the length of the firms' domestic operations. We found that longer domestic operations were correlated with increased positive impacts of overseas ethnic ties, but decreased positive impacts of overseas non-ethnic ties on firm internationalization. These findings indicate that the returnees' host country ties and firm activity in home country had joint effects on returnee entrepreneurial firms seeking to internationalize their businesses.     

Cultural values and innovation: The mediating role of entrepreneurial learning capacity

Although both cultural values and innovation are widely acknowledged as collective embodiments of individual values and assets, little is known about the mechanisms through which cultural values influence the likelihood of innovation by some entrepreneurs rather than others. We argue that institutional pressures arising from cultural values affect entrepreneurial learning capacity which in turn impacts innovation activities. Our multi-level analysis of entrepreneurs from 19 countries between 2006 and 2011 suggests that entrepreneurial learning capacity serves as a mediator through which entrepreneurs maximize the innovation-related benefits of cultural values to their businesses.     

Digitalization,institutions and new venture internationalization

This study examines the effect of digitalization on the internationalization of new ventures and further investigates the influence of a home country's presence of institutional voids and digital infrastructure on the extent of internationalization by new ventures, with the prediction that a home country's institutional voids and a weak digital infrastructure strengthen the positive relationship between new ventures' digitalization and internationalization. Applying multilevel modeling on a sample of more than 6000 entrepreneurs from 62 countries the study offers empirical support for these predictions. The findings are robust to alternative specifications. Entrepreneurs using the internet to sell their products and services are more likely to focus on customers in foreign markets when they face institutional voids and a lack of digital infrastructure in their home countries. The study contributes as follows: From a theoretical view, it provides a better understanding of the boundary conditions of the digitalization-new venture internationalization linkage. From a practical perspective, the findings of the study suggest the complementary roles of institutional voids and digital infrastructure at home to help entrepreneurs grow domestically and facilitate their internationalization.     

Return Migration and Decontamination After the 2011 Fukushima Nuclear Power Plant Disaster

Return migration is key to community recovery from many disasters. Japanese governments have conducted radiation decontamination efforts in the Exclusion Zone designated after the 2011 Fukushima nuclear disaster in order to encourage this outcome. Little is known, however, about the factors that influence post-disaster migrants to return, and, if people are relatively unresponsive to decontamination, then the costs of promoting recovery may exceed the benefits. We exploit a unique survey of Fukushima evacuees to determine the factors that influence their decision to return after a disaster. Location-specific capital characteristics, such as housing tenure and the extent of property damage, are estimated to be strong factors. The radiation dose rate of the home location is found to be a statistically significant factor for intent to return, but its effect is small. We also found that households with various other characteristics were noncommittal about the return option and likely to defer their decisions, which implies that “return” and “not-return” are asymmetric. Our simulation analysis found that the number of returnees encouraged by this decontamination was 12,882, less than 8% of the total evacuees, while the decontamination cost per returnee was 3.36 million USD. This result implies that the government could have improved the well-being of evacuees at a lower cost by policies other than decontamination.     

The micro-foundations of industrial diversification through foreign acquisitions: The multifaceted role of CEO experience

This paper examines the micro-foundations of cross-border industrial diversification strategies. We study the impact of observable CEO experience attributes on the propensity to acquire foreign target firms in unrelated (versus related) industries. Our findings, based on a sample of UK-based firms that engaged in cross-border acquisitions between 2010 and 2016, support an inverted U-shaped relationship between life experience of the CEO and the likelihood of engaging in unrelated foreign acquisitions. Further, we find that CEOs' broad-based work experience, across countries or industries, is associated with a higher propensity to engage in unrelated foreign acquisitions. Finally, CEOs’ education experience in MBA-type qualifications is associated with a preference for related foreign acquisitions. We discuss the theoretical implications of these findings and outline directions for future research in the context of micro-foundations in international business, strategic leadership, and upper echelons theory.     

The impact of national culture and social capital on corporate social responsibility attitude among immigrants entrepreneurs

Although significant attention has been given to the phenomenon of immigrant entrepreneurship, little is known about the adoption of corporate social responsibility (CSR) in immigrant firms. Beyond the traditional social, cultural and regulatory challenges in the last years immigrant entrepreneurs have had to cope with the wide growing interest towards CSR, with raising expectations about firm’s environmental and social behaviors. This study provides initial insights on this topic by studying the effect of social capital and national culture on the immigrant entrepreneur’s attitude to adopt CSR in three areas: social, health and safety and environment. Sixty semi-structured interviews were conducted among immigrant entrepreneurs in the Italian Province of Milan; the first one for number of immigrant entrepreneurs. Data collected were analyzed through OLS regression. Findings shows that power distance and individualism/collectivism have a negative relation with all the three CSR areas, while uncertainty avoidance is negatively related only to environmental effort. We find out a robust relation between national culture and environmental and social practices and the health and safety area. The study concludes with practical implications and suggestions for future research. The paper is one of the first studies that address the topic of CSR among immigrant entrepreneurs. Understanding the commitment of this firms is relevant for the debate around CSR and SMEs, mainly because immigrant entrepreneurs are increasing their relevance in the developed countries.     

Liability of foreignness and membership in a regional economic group: Analysis of the European Union

This study examines the performance of foreign vs. domestic firms in a regional economic group. In particular, we focus on host country and foreign-owned firms in the European Union. Results provide evidence of a liability of foreignness—foreign-owned firms underperform host country firms. However, there is also evidence that liability of foreignness can vary across countries, and that foreign firms can overcome the liability of foreignness in some host countries, even industrialized ones. The results show the moderating effects of the host country and home country environments on the relative performance of foreign firms. Lastly, the results reveal that foreign-owned banks from highly competitive home countries underperform foreign firms from less competitive home countries.     

Untangling the commonalities and differences between domestic cross-regional experience and international experience in shaping speed of internationalization

Prior studies have paid attention to the influence of domestic experience on internationalization, for which domestic experience primarily refers to the accumulation of internationalization knowledge from industrial peers or partners at home. We argue that the commonalities and differences between international experience and domestic cross-regional experience have not been fully incorporated in previous frameworks in the literature. Thus, in untangling the commonalities, we purposively differentiate domestic experience into two dimensions, i.e., repetition-based experience and diversity-based experience, to investigate the contingent role of making domestic cross-regional investments in shaping the relationship between international experience and the speed of internationalization. We expect that these two dimensions of domestic experience will moderate the relationship between international experience and the speed of internationalization in a different way. More specifically, repetition-based experience has a negative moderating effect while diversity-based experience has a positive moderating effect. Further, considering the differences between international investments and domestic investments, we expect that the joint impacts of international experience and domestic cross-regional experience on internationalization speed are contingent on whether firms have sufficient resources to support multiple learning or whether institutions between the home country and foreign country is similar enough for cross-context application. We expect that financial slack and institutional distance between prior foreign entries' country and the home country play significant three-way moderating roles in setting boundaries for the relationship between domestic experience and international experience. Based on the analysis of 302 Chinese publicly listed firms from 2001 to 2014, the dynamic panel data regression results support our hypotheses. Overall, our simultaneous consideration of commonalities and differences between domestic investments and international investments sheds light on how MNCs learn from both international and domestic investments to speed up their foreign expansions.     

Transnational diaspora entrepreneurship in emerging markets: Bridging institutional divides

Transnational diasporan entrepreneurs are migrants and their descendants who establish entrepreneurial activities that span the national business environments of their countries of origin and countries of residence. We explore how business incubators contribute to the economic development of emerging markets by organizing their programs to bridge the institutional divides that transnational diaspora entrepreneurs face when establishing their multi-territorial ventures in these markets. Drawing on qualitative fieldwork conducted in the Netherlands during 2007, we present the case study of IntEnt, an incubator providing services exclusively to transnational diasporan entrepreneurs. We apply Bergek and Norrman's (2008) assessment framework to this case, examining IntEnt's goals, model (selection, business support, and mediation activities), and outcomes. Employing Eisenhardt's case-based theory development approach (1989), we then leverage case findings to generate theory about the institutional challenges faced by transnational diaspora entrepreneurs and the role that incubators can play in helping these entrepreneurs overcome these challenges.     

THE LIMITS OF CAREER CONCERNS IN FEDERALISM: EVIDENCE FROM CHINA

Performance‐based promotion schemes in administrative hierarchies have limitations. Chinese provincial leaders, despite facing strong career concerns, make different policy decisions depending on their career backgrounds. Provincial party secretaries who have risen from low to high positions within the province they govern (“locals”) spend a higher share of budgetary resources on education and health care and invest less in construction infrastructure than party secretaries who have made their most significant career advancements in other provinces (“outsiders”). Identification comes from variation in central leadership and term limits. As the promotion mechanism rewards infrastructure investments, locals are less likely to be promoted at the end of the term. We explore various mechanisms and provide evidence that the difference between locals and outsiders is not driven by knowledge or experience. Several pieces of evidence suggest that locals cater to low‐level provincial elites, who helped them rise to power. Thus, local career trajectories limit the power of career concerns by fostering competing allegiances.     

海外子公司内外部网络的知识获取对企业绩效的影响研究

本文以在华韩国企业为对象分析了从母公司获取的知识和本地获取的知识对海外子公司绩效的影响.研究结果发现,从母公司获取的知识和本地商务知识对子公司绩效有直接的正向影响,但本地制度知识对子公司绩效没有显著影响.此外,从母公司获取的知识和本地制度知识对子公司绩效有互补效应,但是从母公司获取的知识和本地商务知识的交互效应对子公司绩效有负向影响.这说明,从母公司获取的知识、本地商务知识和本地制度知识对海外子公司绩效都有重要影响,但是各自所发挥不同的作用.     

The Pursuit of Productivity

This study names a pantheon of entrepreneurs and managers who have introduced a range of far‐reaching productivity innovations throughout modern history. The thread tying together all of the innovations, in whatever sector of the economy one examines, is the theory of swift, even flow. The study argues why swift, even flow explains the power and long‐lasting nature of these innovations and why other factors thought by some to affect productivity fall short.     

The Role of Operational Capabilities in Enhancing New Venture Survival: A Longitudinal Study

We investigate relationships between operational capabilities and new venture survival. On the basis of operations management and entrepreneurship literature, we develop a contingency framework of operational capabilities especially appropriate at different life phases of a new venture's evolution. We expect that in the first years of a new venture's life, entrepreneurs should emphasize high inventory turnover to preserve working capital, support customer responsiveness, and aid firm adaptability. As new ventures grow, entrepreneurs should emphasize internal working capital generation via larger gross margins to support production ramp‐up. Later, new venture entrepreneurs should emphasize employee productivity to buttress sustainable volume production. We analyze a 6‐year longitudinal sample of 812 Swedish manufacturing new ventures using a gamma frailty‐based Cox regression. The findings show that specific operational capabilities, while always supporting new venture survival, have exceptional influence in specific new venture life phases. The three hypotheses are confirmed, suggesting that higher inventory turnover, gross margin, and employee productivity further increase new venture survival likelihoods, respectively, in the venture's start‐up, growth, and stability phases. This suggests a phased‐capabilities approach to new venture survival. This study contributes to operations management and entrepreneurship theory and practice, and sets a foundation for future research on operations strategy for new ventures.     

International offshoring of services: A parity study

Conventional wisdom suggests that firms engage in international offshoring of services primarily to reduce wage costs associated with a given service activity. Drawing on international business research on the costs of doing business abroad (CODBA), liability of foreignness (LOF), and institutional theory, we investigate the factors that contribute to the location choices for services offshoring activity, including wage differentials between the home and host countries. We find that consistent with a parity perspective but contrary to conventional expectations, a country is more likely to be a destination of services offshoring as the average wage of a country increases. We also find that education level and cultural similarity are significant drivers of offshoring location choices, again consistent with a parity perspective. This study contributes to debates about the economic impact of services offshoring by showing that firms locate offshoring facilities in destinations that are closer in wages to the home country and those with higher education levels and cultural similarity.     

The ebb and flow of identity: How sustainable entrepreneurs deal with their hybridity

The identity of sustainable entrepreneurs progresses and is primed by certain identity dimensions, including society, community, or competition as their frames of references, their social motivation, and their self-evaluation. Because sustainable entrepreneurs aim to achieve the goals of generating profit and create social and/or ecological value at the same time, they experience two types of tensions: one that concerns social and ecological and the other with an extension of economic aspects. To leverage these, we find identity shifts dependent on the tension sustainable entrepreneurs’ experience, activating a certain combination of identity dimension. Building on 29 case studies with European sustainable entrepreneurs, the study investigates the dynamic role of entrepreneurial identity, thereby informing about fluid hybrid identity conflict management strategies. This adds to theory on entrepreneurial identity that has widely found multiple, yet coherent entrepreneurial identities and conflict management strategies.     

The dynamics of local and interactive effects on innovation adoption: The case of electronic commerce

Innovation adoption is determined not only by the opportunities and constraints resulting from organizations’ characteristics (local effects), but also by reaction to the adoption of their interdependent and referable others (interactive effects). This study examines the dynamics of innovation adoption by considering both local and interactive effects in early adopters relative to later adopters, and then investigates the electronic commerce adoption as an empirical example. Analysis results show that the crucial stimulating effects in the early market are focused on the nature of innovations, while those in the later market are concentrated on the practical implementation issues of innovations.     

The social constitution of knowledge integration in MNEs: A theoretical framework

The goal of this article is to present a theoretical framework for a better understanding of knowledge integration in multinational enterprises (MNEs). It is argued that the enormous body of mainstream contributions from the field of International Business has largely failed to consider the transformational nature, the micro-foundations, and above all the social constitution of knowledge integration. Mainly drawing on and combing two sociological theories – Scandinavian Institutionalism and Structuration Theory – this paper contributes to an alternative understanding on knowledge integration in MNEs. In this view, knowledge integration is seen as dialectic transformation, constituted by human actors and embedded in social systems. It is argued that if we wish to understand knowledge integration, we need to ask on the micro-level, how specific actors are differently affected and able to shape such processes based on their social-systemic positioning.     

The Origin and Role of Trust in Local Policy Elites’ Perceptions of High‐Voltage Power Line Installations in the State of Arkansas

The debate over an installation of high‐voltage power lines (HVPLs) has been intense, particularly in northwest Arkansas. Detractors claim that the installation will negatively affect both the natural environment and the local economy, which contains a large tourism component. By contrast, those in favor of installing HVPLs claim that the installation is necessary in order to reliably support the increasing demand for electric power. Using original data collected from a recent statewide Internet survey of 420 local policy elites in Arkansas, this article focuses on two key aspects. First, we examine how local policy elites’ perceptions of risks versus benefits of HVPL installation in their communities are influenced by their levels of trust toward information provided by various sources (e.g., energy industry, environmental groups, and government). Second, we utilize cultural theory to explain how the cultural worldviews of policy elites––specifically, egalitarianism, individualism, hierarchism, and fatalism––shape these levels of trust and HVPL benefit‐risk perceptions, while controlling for other factors claimed by previous literature, including levels of knowledge on energy‐related issues and demographic characteristics. In general, our analysis indicates that policy elites’ value‐oriented formation of HVPL benefit‐risk perceptions is partially due to the influence cultural values have on trust in information sources. We conclude this article by discussing broader implications for the origin and role of trust in policy elites’ decisions throughout the policy‐making process.     

Public Perception of Climate Change: The Importance of Knowledge and Cultural Worldviews

The importance of knowledge for lay people's climate change concerns has been questioned in recent years, as it had been suggested that cultural values are stronger predictors of concern about climate change than knowledge. Studies that simultaneously measured knowledge related to climate change and cultural values have, however, been missing. We conducted a mail survey in the German‐speaking part of Switzerland (N = 1,065). Results suggested that cultural worldviews and climate‐related knowledge were significantly related with people's concern about climate change. Also, cultural worldviews and climate‐relevant knowledge appeared important for people's willingness to change behaviors and to accept climate change policies. In addition, different types of knowledge were found to have different impacts on people's concern about climate change, their willingness to change behaviors, and their acceptance of policies about climate change. Specifically, causal knowledge significantly increased concern about climate change and willingness to support climate‐friendly policies. We therefore concluded that risk communication should focus on causal knowledge, provided this knowledge does not threaten cultural values.