Cross-border acquisition performance of emerging market multinational enterprises: The moderating role of state-ownership and acquisition experience

This paper draws on the resource-based view and organizational learning theory to analyse the moderating role played by state ownership and acquisition experience in the performance of emerging market multinational enterprises (EMNEs). We contribute to the evolving literature on state-owned EMNEs by identifying various post cross-border acquisition (CBA) strategies, which have an impact on the performance of such firms that differs for the one they have on privately owned EMNEs. We test our hypotheses by performing a panel regression analysis on a large firm-level dataset spanning 43 emerging markets over the 2006–2015 period. Overall, our findings point at an inverted U-shape relationship between diversification through CBAs and firm performance. More specifically, this concave relationship is greater when the diversification occurs in developed countries, as opposed to emerging ones. Furthermore, there is evidence that state-ownership and EMNE acquisition experience moderate these relationships both in domestic and foreign markets, albeit with different intensities.     

The impact of service R&D on the performance of Korean information communication technology small and medium enterprises

In recent years, research and development (R&D) in the service industry has attracted a great deal of attention from both academia and industrial firms. However, compared to the manufacturing sector, little research exists on the implications of R&D for the financial and/or non-financial performance of firms in the service industry. The purpose of this study is to examine the impact of service R&D on the performance of information communication technology (ICT) firms. We identify five categories of R&D activities and investigate their impact on the financial and non-financial performance of 100 ICT firms, with a focus on small and medium enterprises (SMEs) in South Korea. We postulate positive relationships between R&D efforts and a firm's performance. However, the findings only partially support our hypotheses; unexpected results demonstrate that the presence of R&D management negatively influences a firm's performance. We present detailed statistical results and discuss the implications of the study.     

Global innovation performance: Strategic challenges for multinational corporations

In the emerging knowledge economy many companies are forced to access globally dispersed technological and market knowledge to maintain their competitive advantage. A conceptual model is presented to analyze the relationship between the globalization of the innovation function and firm performance. Longitudinal data from 10 multinational companies are used to support the proposed model. The analysis concludes that the relationship between global innovation reach and firm performance is concave and time lagged. The results suggest the strategic importance of globalization decisions. The managerial implications are structured in five distinctive strategic challenges to successfully manage global innovation.     

Opportunity and opportunism: The expatriation practices of Indian information technology multinational corporations

Although effective International Human Resource Management during an international assignment constitutes a significant factor in ensuring success of an expatriate assignment, there has not been much research that studies the expatriation practices associated with the global delivery model that has come to be identified with global outsourcing. The purpose of this paper is to understand the expatriation practices of Emerging Market Multinational Corporations (EMNCs) in the Indian IT sector, by examining the experiences of Indian IT workers sent to work on international client projects in a western country. We have used qualitative semi-structured interviews with 47 Indian IT expatriates from Indian IT MNCs working at client sites in Australia. We find that there is inadequate attention paid to expatriation both prior to emigration and while workers are overseas and employed at client sites. Such human resource shortcomings may be inherent in the global delivery model that is an important feature of Indian IT business. The implications of these findings are discussed in the paper.     

Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers

This paper seeks to address the fundamental question of how much we can modify and enhance the ownership–location–internalization (OLI) Model of multinational enterprise (MNE) formation to reflect the new evidence of MNE latecomers from the developing countries. The evidence of three longitudinal cases from China suggests that the traditional OLI and the newly proposed linkage–leverage–learning (LLL) Model of MNE formation can be readily integrated within a content-process framework of MNE evolution so as to better explain all types of MNE from both the developed and the developing countries.     

信息技术战略价值及实现机制的实证研究

为研究信息技术战略价值及其实现机制,基于企业资源观、竞争战略理论和核心能力理论,构建了信息技术资源、信息技术应用能力、战略层面的信息系统能力、环境动态性和企业绩效之间关系的研究模型,应用结构方程模型对233家中国企业的调查问卷进行数据分析和模型拟合.研究结果表明信息技术资源和信息技术应用能力都无法直接影响企业绩效,其战...     

Knowledge transfer practices in multinational corporations in China's information technology industry

Abstract

The goals of this study were to explore existing practices used to facilitate knowledge transfer in MNCs in the information technology industry in China, and to investigate the frequency of use and the influence of each practice on knowledge transfer. In addition, this study examined which types of knowledge could be transferred by a given practice. The study used a two-stage method that included two surveys. The first survey was designed to develop an inclusive list of knowledge transfer practices. Thirty-three practices were identified in the first survey. The second survey found: 1) the frequency of use and the influence on knowledge transfer varied from one practice to another; 2) MNCs frequently used those practices with higher influence on knowledge transfer; 3) certain practices are better suited in transferring certain types of knowledge.     

Corporate governance and accountability in multinational enterprises: Concepts and agenda

The objective of this editorial article is twofold: (1) to develop a conceptual foundation that defines corporate governance and accountability in MNEs and (2) to present issues for future research on the ground of this conceptual foundation. Despite recent attention and greater efforts to understand MNE corporate governance and accountability using multiple disciplines, a cohesive and integrated foundation to define them and their interrelationships is still lacking. Even among submissions to this special issue, there is no one article that conceptualizes all of these issues. To fill this void, this article explains what constitutes corporate governance and accountability in an MNE; we address what elements the concepts entail, how they differ from domestic firms and in what ways governance and accountability are mutually facilitative. This article also discusses several major research issues that have strong implications for MNE governance and accountability design.     

The unending embrace: Raymond Vernon, multinational enterprises, and national governments

In this article commemorating Raymond Vernon, I make no attempt to summarize his expansive work on the nature and prospects of multinational enterprises (MNEs). Rather, I discuss three forces — rivalry, uncertainty, and time — that Vernon accentuated in his explanations of the behavior of MNEs. I then make brief observations about Vernon and methodology. Subsequently, I speculate on the following question: A hundred years from now, what single idea will Vernon be remembered for? Acknowledging the product cycle as a leading contender, I nominate and discuss (under the moniker “the unending embrace”) another candidate, one that dwells on the undulating tension between MNEs and governments. I conclude by flagging for future research some questions that that central idea raises.     

战略柔性与竞争绩效:环境动荡性的调节效应

作为一种特殊的竞争能力,战略柔性日益成为驱动企业竞争绩效的战略要素,因而备受 关注. 通过对前人研究成果进行回顾和总结,重点探讨战略柔性与核心能力、企业竞争绩效之 间的关系以及环境动荡性所扮演的特殊中介角色,并运用来自中国企业的调研数据,利用基于 偏最小二乘法(partial least square) 的结构方程模型(SEM) 验证了不同类型的环境动荡性在战略 柔性与企业竞争绩效之间的关系中的调节效应.     

International alliance commitment and performance of small and medium-size enterprises: The mediating role of process control

Improving alliance performance is a critical issue that both managers and researchers have attempted to resolve. Recently scholars have suggested that firms can use alliance commitment and process controls to improve alliance performance. Yet research has only found weak support for these direct effects. In this paper we examine the mediating role of process controls on the relationship between alliance commitment and alliance performance. When tested on samples of SMEs we find support for our theoretical predictions. We then discuss the managerial implications of using commitment and process controls in SME international alliances.     

Strategic planning for small and medium-sized enterprises: The COMPASS project

The paper introduces a methodology and a set of software tools designed to support the definition and implementation of enterprise strategies particularly for small and medium-sized enterprises SMEs . The COMPASS method and tools support a stepwise refinement of basic strategic options and a simulation-based evaluation taking into account the objectives the SME has given itself. They assist in the derivation of detailed project plans, and they help monitoring the success of the chosen strategy. Inexperienced users can taken advantage of the built-in knowledge and experience in the field of strategic planning which reflects the actual state of the art in economic science. The paper describes the method and tools which were developed in the ESPRIT project 6617 COMPASS, and discusses their strong and weak points in the light of experience gained during test applications in three SMEs.     

The international training of expatriates in Western subsidiaries of emerging multinational enterprises: A knowledge-based perspective

There is a considerable gap in academic theoretical literature about the international training of expatriates in multinational enterprises (MNEs). While the majority of research has focused on developed (Western) multinationals operating in developing countries, very limited research has been conducted on emerging multinational enterprises (EMNEs) operating in developed countries and the expatriates who work in them. In this study, we explore the international training of expatriates in Indian MNEs from the information technology industry operating in Australia to examine how they provide training to their expatriate staff who are sent on international assignments. We collected qualitative data in the form of multiple case studies via interviews with senior executives based in the Australian subsidiaries. Our findings reveal that Indian IT MNEs provide a variety of centralised training programmes for their managerial and technical expatriates and use training as a key instrument to leverage and transfer home country knowledge to their Australian subsidiaries. We also found that each stakeholder involved in the training process plays a distinct role in the knowledge transfer process, which allows Indian EMNEs to integrate the training with their people-centred business model to deliver IT services in host countries.     

信息技术投资降低搜索成本对市场的均衡分析

根据产品空间差异模型 ,应用博弈论的均衡理论 ,分析了在销售商不进行合谋或没有市场垄断力量的情况下 ,销售商投资信息技术以后 ,引起消费者搜索成本降低对销售商产生的不同影响 :销售商无论作为个体还是整体 ,其利润收益值都降低 .但是 ,对信息技术投资力度大并使消费者搜索成本降低得更多的销售商 ,则可扩大市场占有率和提高市场竞争力 ,因此销售商具有投资激励 .分析了销售商在降低搜索成本后的对应策略 .搜索成本降低尽管减少了销售商利润 ,但能提高消费者和整个社会的福利水平 .分析了当消费者搜索成本降低到极限时 ,市场处于一种最优的古典竞争均衡状态 ,价格等于边际成本 ,销售商利润为零 ,消费者占有完全剩余 .分析和解释了信息技术生产率悖论问题     

Local, regional, or global? Geographic orientation and relative financial performance of emerging market multinational enterprises

We extend the regional/global strategies literature by analyzing the relative performance of emerging market (EM) multinational enterprises (MNEs) based on their geographic orientation. We develop a framework showing that firms adopt three geographic orientations—local, regional, and global—and test our framework with the market penetration strategies (sales) of 701 MNEs from 28 EMs during 2000–2006. Our analysis shows that distinguishing among these three geographic segments is important, as not all of these geographic segments enhance firms’ financial performance relative to their industry: a combination of local and global orientations enhances while regional orientation reduces the relative financial performance of EM MNEs.     

Sustaining competence creation in the multinational enterprise: The role of piloting in subsidiaries

While competence-creating subsidiaries have been widely acknowledged as a source of new capabilities for the multinational enterprise (MNE), less is known about how such subsidiaries continually renew their capabilities to sustain their competence-creating role over time. In this paper, we bring together theories of capability lifecycles and subsidiary capability to explore multiple case studies of competence-creating subsidiaries in the information and communications technologies (ICT) sector. We find that to sustain their competence creation over time, subsidiaries engage in what we call piloting: a fast-moving cycle of practices recognising opportunities and trends, innovating competences in response, and surrendering those competences that are expected to become ‘commoditised’ and obsolete to enable subsidiary repositioning and renewal. Our main contribution is to advance theory on competence-creating subsidiaries by revealing piloting as a mechanism for MNE strategic renewal. We also build on theories of subsidiary evolution by identifying how subsidiaries voluntarily surrender commoditising activities to allow resource flexibility for competence creation.     

The impact of corporate sustainability performance on information asymmetry: the role of institutional differences

This paper empirically investigates whether corporate sustainability performance (CSP) affects information asymmetry (IA) for European firms listed in the STOXX Europe 600 from 2002 to 2013. We find a significantly negative effect of CSP on IA. By exploiting institutional differences between the European countries, we determine that the negative effect of CSP on IA is more pronounced in liberal market economies compared to coordinated market economies, thus pointing to a substitutive effect of CSP and economic coordination. Further, the impact is greater in countries with stricter disclosure requirements. In such countries, there is generally a greater appetite for company-specific information. However, disclosure requirements fulfil this need only partially because they concentrate on the corporate governance dimension of corporate sustainability. Hence, information on the social pillar especially matters to investors in a complementary manner and drives the overall effect. Our study contributes to the literature on the positive capital market effects of CSP by showing the proposed effect in European capital markets and the institutional determinants of its strength.     

The mediating effects of leader integrity with transparency in communication and work engagement/performance

We examined in a 3-month longitudinal study how leader behavioral integrity relates to individual follower work engagement, and how that relationship, in turn, connects to performance. We hypothesized that ratings of leader behavioral integrity would mediate the relationship between leader transparent communication and follower work engagement, which would also have a positive relationship with performance. We tested our hypotheses using data collected from military cadets (n = 451), who each rated their respective leader. Our findings show that followers who rated their leaders as exhibiting more transparent communication at Time 1, also rated themselves as more engaged in their work role at Time 2 (3 weeks later), and that their perceptions of leader behavioral integrity mediated that relationship. Follower engagement also positively related to third-party ratings of follower performance at Time 3 lagged 3 months. We discuss the implications of these findings for research on leader integrity, authenticity, follower engagement, and performance.