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Purpose – This research aims to understand inter-subsidiary innovation transfers from a subsidiary business network perspective. We examine transfer performance with particular interest in the influence of subsidiary business networks in innovation development stage. The moderating effect of knowledge inputs, that is, external and internal business partners, on transfer efficiency and effectiveness are hypothesized.

Methodology/approach – This study utilizes the data of 129 inter-subsidiary transfer projects from 19 multinational corporations. The empirical analysis specifically examines how and to what extent the development partnership – source of knowledge inputs – affects the efficiency and effectiveness of innovation transfer between subsidiaries.

Findings – The results indicate that the source of knowledge inputs influence transfer performance indirectly, but not directly. The impact is made through the dyadic relationship to the transfer performance. The findings complement the literature on innovation/knowledge transfer by incorporating innovation development into scrutiny and gauging transfer efficiency and effectiveness explicitly.

Value of paper – The empirical evidence highlights the significance of dyadic willingness to both transfer efficiency and effectiveness. Its influence to transfer performance exceeds that of dyadic similarity or previous collaboration experience. The result provides useful managerial implications to MNCs headquarters and subsidiaries. The lack of previous collaboration experience or technical similarity may pose the down side for innovation transfer between subsidiaries. But that should not put off the initiatives to conduct innovation transfers. Such problem could be effectively remedied by strong willingness between the dyad. The resources and support that subsidiaries receive could counteract the hurdle of dissimilarity and unfamiliarity.

Learning through international strategic alliances is usually influenced by dispersed locations and cultural difference between the countries of the two firms. This research highlights the importance of contextual factors on learning through international strategic alliances. Based on an empirical study of 271 alliances, our findings reveal that successful alliance learning not only depends on the partner’s openness to share knowledge but also relies on the firm’s capacity to identify and absorb such knowledge. Institutional differences between the countries from where partner firms originate are considered to hinder the alliance learning by decreasing the firm’s absorptive capacity and by enhancing knowledge ambiguity. However, our research suggests that frequent direct communication and high levels of mutual trust and reciprocal commitment between partner firms positively moderate the noxious effects of institutional differences on the alliance learning process.

Purpose – To investigate the effects of headquarters (HQ) involvement in innovation development and transfer at unit level.

Methodology/approach – We develop a theoretical model that we test on a sample of 71 innovations belonging to 52 business units located throughout Europe, Asia, and the USA. The data were collected by personal interviews and analyzed using the partial least squares (PLS) technique.

Findings – While HQ involvement in innovation development enhances the effects on the unit engaged in the development, it is detrimental to performance of the innovation transfer process. We also find higher HQ involvement in the innovation development process and stronger innovation impact on the subsidiary to be associated with higher HQ involvement in the transfer process.

Research limitations/implications – There is a significant beneficial effect of HQ involvement in the development process in terms of the increased impact of the innovation in the unit, and a harmful influence on the specific performance associated to the transfer process.

Practical implications – HQs will benefit from improved performance if they become more involved in important innovations while limiting their direct engagement in the transfer of “marginal” innovations. It might also be wise for the HQs to rethink their involvement at unit level by separating the development process from the transfer process in their decision framework.

Originality/value of the paper – This is one of the first attempts to empirically connect the processes of innovation development and transfer at unit level in MNCs and to show the implications of HQ involvement in innovation projects at subsidiary level.

Conditional cash transfer (CCT) programs have become widespread in poor countries as a way to alleviate current poverty and provide investments in human capital that improve families’ living conditions in the long-term. The first goal is accomplished when poor families receive money from governments on a monthly basis. The second goal is reached by conditioning the cash transfers on certain behaviors such as children's regular school attendance. However, these programs may also have impacts on time use decisions within beneficiary households, particularly with respect to time spent working. Using data from 2003, we measure the impact of the Brazilian Bolsa Escola CCT program on children's and parents’ labor status using the econometric framework of policy evaluation. Probit regressions and propensity score-matching methods show that this program reduces the probability of work for children aged 6–15, increases school enrollment, and increases mother and father participation in the labor force.

The current study examines the effectiveness of brand integrations in music videos by taking into account the impact of both brand placement characteristics (i.e., brand prominence, valence of artist–brand relationship) and audience characteristics (i.e., artist connectedness).

A 2 (prominence: prominent vs. subtle) by 2 (valence: positive vs. negative) by 2 (connectedness: high vs. low) between-subjects experimental design is used. Each respondent first watched one music video via YouTube in which one branded product was placed either prominently or subtly. To manipulate the valence of the artist–brand relationship respondents were instructed to read a magazine article that revealed either a positive or negative attitude of the artist toward the placed brand. Two hundred twenty young adults participated in this study.

This study shows that prominent placements appear to be beneficial for the attitude toward the integrated brand when an individual is strongly connected to the artist in the music video, while subtle placements are beneficial both when an individual is weakly or strongly connected to the artist. Further, negative celebrity-brand relationships do not seem to affect brand attitudes in a negative way.

Embedding the brand in a music video gives marketers and advertisers the chance to reach consumers in a new, creative way. But this study shows that the advertiser should pay attention to the way in which the brand is integrated. Further, negative celebrity information does not seem to affect brand attitudes in a negative way. This makes the music video a very interesting medium for advertisers.

The current study contributes to previous research on brand placement by investigating the effectiveness of brand placements in music videos and the role of artist connectedness. In addition, the study is original as it includes valence in the model.

In this chapter, the authors study how external knowledge contributes to the innovation results of firms in transition economies. Specifically, the authors distinguish between product and process innovations and identify the geographical origin of external knowledge – from the home country or from abroad. Theoretically, the authors discuss the innovation systems of transition economies and the effects of foreign and national external knowledge on product and process innovations in these under-researched contexts. Using a sample of firms from 19 countries from wave V of the Business Environment and Enterprise Surveys, the authors find that foreign and national external knowledge both contribute to the achievement of product and process innovations. However, the two types of external knowledge exert different effects depending on the innovation outcome analyzed. Firms in transition countries that incorporate foreign external knowledge are more likely to achieve product innovations than those that acquire national external knowledge. In contrast, both types of knowledge are equally useful for achieving process innovations.

This paper examines the effects of foreign aid on emigration and welfare of the remaining residents in an economy producing traded and non-traded goods. There are three distinct types of households: the rich, the poor, and the relatives of emigrants. Donor country's aid is provided to discourage the poor from emigrating. The extent to which it achieves this objective is shown to be an important factor determining the welfare implications of aid for every type of household residing in the economy. The paper also considers the impact of foreign aid on remittance flows and total foreign exchange earnings of the recipient country.

Political risk is a complex phenomenon. This complexity has incentivized scholars to take a piecemeal approach to understanding it. Nearly all scholarship has targeted a single type of political risk (expropriation) and, within this risk, a single type of firm (MNCs) and a single type of strategic mechanism through which that risk may be mitigated (entry mode). Yet “political risk” is actually a collection of multiple distinct risks that affect the full spectrum of foreign firms, and these firms vary widely in their capabilities for resisting and evading these risks. We offer a unified theoretical model that can simultaneously analyze: the three main types of political risk (war, expropriation, and transfer restrictions); the universe of private foreign investors (direct investors, portfolio equity investors, portfolio debt investors, and commercial banks); heterogeneity in government constraints; and the three most relevant strategic capabilities (information, exit, and resistance). We leverage the variance among foreign investors to identify effective firm strategies to manage political risk. By employing a simultaneous and unified model of political risk, we also find counterintuitive insights on the way governments trade off between risks and how investors use other investors as risk shields.