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Article

Sven Dahms and Suthikorn Kingkaew

The purpose of this paper is to investigate what role national top management team diversity (TMTD) plays in foreign-owned subsidiary performance. The authors develop a…

Abstract

Purpose

The purpose of this paper is to investigate what role national top management team diversity (TMTD) plays in foreign-owned subsidiary performance. The authors develop a conceptual framework based on the asset bundling model and the neo-configurational perspective to argue that the impact of TMTD on subsidiary performance depends on its conjunction with other assets.

Design/methodology/approach

The authors test our framework on a sample of subsidiaries located in the emerging economies of Thailand and Taiwan. The authors utilise structural equation modelling and fuzzy set qualitative comparative analysis techniques.

Findings

The results indicate that TMTD can contribute and hurt subsidiary performance depending on its bundling with other assets such as organisational network strength, competencies, as well as regional and cultural differences between the home and host country.

Originality/value

This is one of the first studies to empirically test the asset bundling model in the context of national TMTD in foreign-owned subsidiaries using a configurational approach.

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Book part

Alain Verbeke and Jenny Hillemann

We discuss Professor Jean-François Hennart’s key contributions to international strategic management theory, with a special focus on his integrative, 2009 Journal of…

Abstract

We discuss Professor Jean-François Hennart’s key contributions to international strategic management theory, with a special focus on his integrative, 2009 Journal of International Business Studies article, ‘Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets’. In Hennart’s (2009) model, complementary assets co-determine the MNE’s initial entry mode choice and the subsequent evolution of the MNE foreign operations’ governance. Hennart (2009) describes this perspective on MNE governance as one based on asset bundling. We focus on the paper’s conceptual insights and discuss how Hennart’s model of foreign market entry informs managerial practice in the realm of international strategy.

Details

Philosophy of Science and Meta-Knowledge in International Business and Management
Type: Book
ISBN: 978-1-78190-713-9

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Book part

Jenny Hillemann and Alain Verbeke

This chapter discusses the global factory paradigm. We show how mainstream international business (IB) thinking, namely, internalization theory, can guide multinational…

Abstract

Purpose

This chapter discusses the global factory paradigm. We show how mainstream international business (IB) thinking, namely, internalization theory, can guide multinational enterprise (MNE) strategic decision-making in the context of a global factory network.

Methodology/approach

We identify the key assumptions made in the global factory paradigm about the fine slicing of economic activities and the related implications for the ownership status and location of each activity. In order to overcome the global factory paradigm’s relative lack of predictive capacity, as compared to internalization theory, we propose an asset-bundling approach. This approach uses a clear and unambiguous criterion, namely, the tradability of resources (and resource combinations) to determine which sets of activities can best be left to external market contracting or should on the contrary be internalized on the basis of efficiency considerations.

Findings

We describe the enhanced role of developing/transition countries in the functioning of the global economy and show that these countries represent an increasing share of worldwide economic activities. Given this macrolevel development, the global factory, as a complex organizational form governing both internal activities and contracts with external parties, is rapidly gaining in importance. We describe, at the conceptual level, the strengths and weaknesses of the global factory and propose a “decision dynamics” matrix to support global factory, senior managers’ strategies in the realm of ownership status and location.

Research implications

Future research on the MNE should focus on in-depth analysis of firms that embody “global factory”-type characteristics in order to understand better the evolution of this type of company and to capture the close requisite links among the focal firm, external contracting parties, and the broader environment. Such research should also lead to a better understanding of innovative resource combination processes and the transferability of non-location-bound firm-specific advantages (FSAs) across the global factory network.

Practical implications

In the global factory, the MNE head office assumes the role of resource orchestrator and is responsible for key strategic decisions on ownership status and location. Here, the head office must assess critically the operations that are part of the MNE’s value chain and reflect on the firm’s international dispersion of economic activities on an ongoing basis, given a myriad of broad environmental changes and changes in external competitive pressures. Our “decision dynamics” matrix provides a simple but effective managerial tool supporting MNE ownership status and location decisions, but the head office’s capability to make these decisions should not be overestimated.

Originality/value

We explicitly link internalization theory with the global factory paradigm and explore unresolved issues in the relevant literature. Internalization theory prescribes the optimal ownership status and location for each economic activity considered. The theory focuses on the bundling of firm-level resources and complementary ones held by external parties, for each fine-sliced economic activity. It also considers explicitly the nature of the linkages among these activities.

Details

Multinational Enterprises, Markets and Institutional Diversity
Type: Book
ISBN: 978-1-78441-421-4

Keywords

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Book part

Jenny Hillemann and Alain Verbeke

The purpose of this chapter is to demonstrate that sound, mainstream international business (IB) thinking should be applied when assessing the economic opportunities…

Abstract

Purpose

The purpose of this chapter is to demonstrate that sound, mainstream international business (IB) thinking should be applied when assessing the economic opportunities available to multinational enterprises (MNEs) in Bottom of the Pyramid (BOP) markets.

Design/methodology/approach

We describe and evaluate critically the key points made in the BOP literature about the alleged attractiveness of BOP markets, and the alleged strengths of MNEs to penetrate these markets successfully. We revisit the managerial implications from the BOP literature using an internalization theory lens.

Findings

We demonstrate the weak conceptual grounding of conventional BOP thinking, which suggests that MNEs from developed economies should be very entrepreneurial and should systematically serve BOP markets with new products and business models. We also show the fallacy of the idea that a “success template” in one BOP market would be easily replicable in other BOP markets and would allow the MNE to earn economies of scale and scope.

Research implications

IB researchers should start conducting serious studies on the attractiveness of BOP markets for MNEs. They should also analyze seriously the micro-foundations of successful knowledge recombination in BOP markets and the limits to the transferability of success templates. Mainstream IB theory, namely internalization theory, is particularly well equipped to analyze the costs and benefits of entering BOP markets, building upon a comparative institutional logic.

Practical implications

Senior MNE managers should not allow themselves to be blinded by BOP gurus, advocating the alleged great benefits of penetrating BOP markets. BOP markets may be especially challenging international expansion targets for MNEs because of large institutional voids, high uncertainty, high “distance” vis-à-vis the home country market and the difficulties of transferring relevant knowledge from one BOP market to another.

Originality/value

This chapter is the first to show that mainstream IB research can be usefully applied to analyze the “real” attractiveness of BOP markets for MNEs. Comparative institutional analysis is proven to provide substantially more insight to make BOP market penetration work than past guru-talk on BOP markets.

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Book part

Sjoerd Beugelsdijk

Location-specific advantages (LSA) and the liability of foreignness (LOF) are key concepts in international business and management research. To combine these concepts in…

Abstract

Location-specific advantages (LSA) and the liability of foreignness (LOF) are key concepts in international business and management research. To combine these concepts in a systematic framework, I develop a two-by-two matrix focusing on the nature of International Business (IB) research using four key terms: firm, context, comparative and interactive. This framework serves as a heuristic device in describing three main challenges IB scholars face when advancing the role of LOF and LSAs. These challenges relate to our understanding of the nature of relative advantage, to the development of a dynamic (so-called non-ergodic) world view and to the inclusion of the relevant spatial heterogeneity.

Details

Dynamics of Globalization: Location-Specific Advantages or Liabilities of Foreignness?
Type: Book
ISBN: 978-0-85724-991-3

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Article

Tharun Dolla and Boeing Laishram

The performance of public–private partnership (PPP) projects depends on how the project has been structured. The traditional PPP option analysis for structuring project…

Abstract

Purpose

The performance of public–private partnership (PPP) projects depends on how the project has been structured. The traditional PPP option analysis for structuring project scope and size relating to the bundling of functions concerning a single component of the value chain will need to be extended to handle multi-component sectors such as municipal solid waste (MSW) in formulating the project scope. This analysis is currently missing in the extant literature. The paper aims to discuss these issues.

Design/methodology/approach

Through a comprehensive literature review as the methodological backbone, this study develops a testable holistic framework for the procurement of MSW PPP projects that examines how various factors of bundling affect the performance of the PPP projects.

Findings

Using transaction cost economics, agency and auction theories, the review identifies that innovation, maturity, quality specifiability, scope, competition, information asymmetries and transaction attributes have a significant influence on the performance and success of the PPP projects.

Research limitations/implications

Alternative supply chain management possibilities and firm-level organisational ways can be predicted using this framework to strategize the solutions for the municipal infrastructure. Based on this contribution, future research can test the framework to increase the knowledge of bundling theory about how to structure network infrastructure PPP projects.

Originality/value

Studies on how to bundle/unbundle the projects having components of the value chain are in a nascent stage. The present study attempts to extend the body of knowledge on PPP to the complexity of bundling both the functions and components of the value chain in structuring the PPP project scope.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 6
Type: Research Article
ISSN: 1741-0401

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Article

Jelena Petrovic, George Saridakis and Stewart Johnstone

The purpose of this paper is to contribute to ongoing debates regarding the human resource management (HRM)-firm performance relationship. In seeking to provide a more…

Abstract

Purpose

The purpose of this paper is to contribute to ongoing debates regarding the human resource management (HRM)-firm performance relationship. In seeking to provide a more complete picture of the relationship, the paper discusses the existing literature and proposes an integrative framework that draws upon different literatures and multiple theoretical perspectives.

Design/methodology/approach

This review includes nearly 100 research studies published in this field. The review includes papers published in mainstream HRM journals and broader management journals with strong ties to HRM literature. Importantly, the paper also identifies a gap – a missing link – that concerns the importance of incorporating insights from corporate governance (CG) literature when considering strategic HR decision-making.

Findings

A significant contribution of this paper to theory is to propose an integrative framework that conceptualises the elusive relationship between HRM and firm performance, and which draws on different literatures and multiple theoretical perspectives in to offer more holistic insights into the relationship. The paper discusses the implications of the integrative perspective for theory and practice.

Originality value

This paper argues that one of the main stumbling blocks for developing a better understanding of the mechanisms through which HRM creates value in an organisation is the fragmentation of the HRM literature between “HR as practices” and “HR as the department/profession”, as well as a tendency to neglect insights from the CG literature.

Details

Corporate Governance: The International Journal of Business in Society, vol. 18 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

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Article

Giovanni Schiuma and Antonio Lerro

The purpose of this paper is to investigate the role and the relevance of knowledge‐based capital as a strategic resource and a source of regional innovation capacity. The

Abstract

Purpose

The purpose of this paper is to investigate the role and the relevance of knowledge‐based capital as a strategic resource and a source of regional innovation capacity. The paper identifies human, relational, structural and social capital as the four main knowledge‐based categories building the knowledge‐based capital of a region. The role of each knowledge‐based category in determining regional innovation capacity is analyzed. Specifically, the authors discuss the relationships among the knowledge‐based categories and a regional innovation capacity.

Design/methodology/approach

The paper is based on an in‐depth literature review of the knowledge management and regional innovation research stream. The fundamental underlying research questions that have driven the research are: “What are the knowledge‐based capital categories affecting a region's innovation capacity?” and “How do knowledge‐based categories influence regional innovation capacity?”. The paper is conceptual in its nature and aims to delineate a theory‐based framework to drive further empirical research.

Findings

The paper first clarifies the concept of knowledge‐based capital and of regional innovation capacity. These are two key concepts for understanding the role and relevance of the knowledge assets bundles in the creation, development and management of innovation capabilities at regional level. Then the paper explores how knowledge‐based components affect the innovation capacity of a region. This is an issue of great relevance for both theory and practice. From the theory point of view it allows the identification of the main factors characterising the links between knowledge assets and innovation capacity, while from a practical point of view it can provide implications for policy makers for the definition of policies oriented towards the development of regional knowledge asset domains to develop regional innovation capacity.

Originality/value

The paper provides an answer to the need to develop a holistic view of the links between a region's knowledge‐based capital and its innovation capacity. Indeed, most of the studies in the literature have analysed the links between isolated knowledge asset categories and innovation capabilities. The paper, on the basis of a clear definition of knowledge‐based capital and innovation capacity, analyses why regional knowledge foundations make differences in the innovation capacity of regions.

Details

Journal of Knowledge Management, vol. 12 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

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Article

Jordan Moore

This paper proposes and models stock loan lotteries, a financial innovation that improves individual investor welfare. Stock loan lotteries are prize-linked payoffs using…

Abstract

Purpose

This paper proposes and models stock loan lotteries, a financial innovation that improves individual investor welfare. Stock loan lotteries are prize-linked payoffs using securities lending fees.

Design/methodology/approach

This paper solves an existing theoretical model for an investor's utility-maximizing choices with and without stock loan lotteries and compares outcomes.

Findings

Stock loan lotteries motivate prospect theory investors to buy and hold risky assets with high expected returns. Stock loan lotteries improve welfare more for poor investors and improve welfare more in a model with market frictions such as trading costs.

Social implications

Stock loan lotteries increase household savings, leading to greater financial wealth and security in retirement.

Originality/value

This paper proposes a new financial product that improves financial outcomes for individual investors.

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Article

Xin-juan Zhu, Xue Wu, Xin Shi and Bu-gao Xu

The Web 3D virtual display technology for personalized clothing based on Unity3D is studied in this paper. The framework of the technology is described. The development…

Abstract

Purpose

The Web 3D virtual display technology for personalized clothing based on Unity3D is studied in this paper. The framework of the technology is described. The development steps including personalized clothing design and modeling, interaction and virtual display technology based on Unity3D are given out. The purpose of this paper is to provide a feasible technical route and support for the virtual display for the customized products.

Design/methodology/approach

The paper opted for an exploratory study using the open-ended approach of grounded theory, including the Web 3D virtual display technology for personalized clothing based on Unity3D.

Findings

A feasible technical route for the virtual display of the customized products is provides in this paper.

Originality/value

This paper fulfills a software and has practical use.

Details

International Journal of Clothing Science and Technology, vol. 29 no. 3
Type: Research Article
ISSN: 0955-6222

Keywords

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