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In this study, the authors examine acquirers’ selection of legal advisors for mergers and acquisitions (M&A) transactions. The authors first confirm the importance of their own prior experience and imitation within this context. Then, the authors propose and find that firms with less experience in performing M&A deals place more emphasis on imitating others while firms with more experience with a particular legal advisor focus less on others’ experience with this advisor. The authors further find that when they imitate, firms selectively, rather than broadly, imitate others by focusing on their industry or state peers. The authors present corroborating evidence for these hypotheses through analyzing a matched sample of acquirer – legal advisor pairs developed from an initial dataset of 29,398 domestic and cross-border acquisitions performed by US firms between 2000 and 2010.

Our study explores the performance implications of deviations in managers’ perceptions of “cultural distance” – one of the most important concepts in International Business research – when expanding into foreign markets. Despite much research on “cultural distance,” few researchers have paid attention to the effect of deviations in managers’ perceptions of cultural distance on firm performance. This is important since managers formulate strategies for responding to the environment based on their perceptions of the firm’s environment. These perceptions, however, do not always coincide with actual environmental characteristics. Therefore, formulating strategies based on inaccurate data may result in erroneous forecasts, missed opportunities and, ultimately, business failure. We explore this empirically by comparing managers’ perceptions of cultural distance to export markets of Swedish SMEs to cultural distance measures based on secondary data and relate deviations of perceptions to the performance of these SMEs. Our results show that the larger the deviations of managers’ perceptions of cultural differences from “actual differences” as expressed in Hofstede scores on cultural dimensions, the lower the performance expressed in firms’ sales. The implications of the study are discussed.

We argue that voice – the sound that people produce when they speak – is an important resource for entrepreneurs, especially when they are pitching to potential investors. We integrate evidence from entrepreneurship, social psychology and linguistics to show that the voice can be regarded both as a tool for entrepreneurs to utilize and as a vital source of information allowing listeners to make judgements about the speaker and their message. To better understand how the voice may be used and interpreted in investment pitches, we develop a model of the relationship between the entrepreneurial voice and investor judgments. Voice depends on entrepreneurs’ characteristics including gender and communication goals but can be utilized to express emotions (purposefully or not) and signal qualities such as competence and trustworthiness. How potential investors interpret these displays depends on cultural expectations and stereotypes. Our review illustrates that female entrepreneurs may find it more difficult to persuade investors due to their naturally higher voice pitch and bias against speech patterns prevalent among young women. We highlight directions for future research exploring the voice as a unique cultural resource for entrepreneurs.

We study the relationship between firms’ top management teams (TMT) and internationalization complexity. We consider the effect of three different sets of TMT characteristics – international business orientation intensity, education intensity, and team diversity – on three different and increasingly complex facets of internationalization - international markets intensity, international operations intensity and international country diversity. We argue that more international, highly-educated and diverse TMTs are better able to face the complexity derived from international competition. The results of our empirical analysis show that TMTs having foreign managers or managers with international experience are more likely to be in charge of firms facing higher international operations intensity. Conversely, more educated and more diverse TMTs are associated with complexity deriving from international diversification.

As the developing nations grow and experience rapid institutional transformation, research has begun to investigate the roles of culture, cognition and institutional context on entrepreneurship and innovation. This chapter aims to advance the entrepreneurial cognition literature by juxtaposing entrepreneurial effectuation, domain-specific expertise and ambiguity. By conducting a qualitative study of Chinese high-tech domestic and returnee entrepreneurs, the authors propose a spectrum between causation and effectuation and argue that the entrepreneur’s perceived level of ambiguity may better explain differing logic orientations among entrepreneurs, contributing to our understanding of entrepreneurial cognition. The authors theorize that (1) individual actors and the level of institutional development jointly comprise the entrepreneur’s logic orientation; (2) the level of perceived ambiguity mediates the strategy adopted by high-tech entrepreneurs; (3) the entrepreneur’s logic orientation can be regarded as a continual spectrum from effectuation to causation. Finally, the logic orientation concept is applied to the context of cross-border mergers and acquisitions (M&A) from a process perspective and the implications and fit of logic orientation with the stages of cross-border M&A are discussed.

Prior research on international diversification has focused primarily on multinational enterprises (MNEs) from developed economies, such as the U.S. and other developed nations. As an increasing number of MNEs are now located in emerging economies, new theoretical frameworks are needed to better understand the motivations of these MNEs to diversify internationally. This paper contributes to the theory development of MNEs by examining the characteristics of international diversification by business groups from emerging economies. Using the resource-based view (RBV) of the firm and organizational learning theory, we suggest that the international diversification motives of business groups from emerging economies vary by host country context. Business groups from emerging economies are more likely to enter developed economies (rather than other emerging economies) when their primary aim is exploring new resources and capabilities, and more likely to enter other emerging economies (rather than developed economies) when their primary aim is to exploit existing group resources and capabilities. We also suggest that these motives influence business-group performance. We identify two important moderators of these relationships: product diversification and social capital. Because of the importance of the business-group organizational form in emerging economies, understanding business-group international diversification may lead to improved MNE theory.