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Article
Publication date: 17 May 2022

Haiyan Li, Manman Wang and Ruihan Zhang

This study examines the effect of cross-border network ties of returnee entrepreneurs on the foreign market diversity of their ventures. The study further investigates how…

Abstract

Purpose

This study examines the effect of cross-border network ties of returnee entrepreneurs on the foreign market diversity of their ventures. The study further investigates how two cross-cultural competencies (global mindset and cultural intelligence) moderate this effect.

Design/methodology/approach

A sample of 135 returnee entrepreneurial ventures from China was used to test the hypotheses.

Findings

This study finds that returnee entrepreneurs tend to enter into a wide range of culturally different country groups when returnee entrepreneurs have strong cross-border network ties. Moreover, global mindset and cultural intelligence function as complements in strengthening the effect of the cross-border network ties on foreign market diversity.

Originality/value

The authors contribute to both returnee entrepreneurship and foreign market entry literature in two ways. First, by examining the effect of cross-border network ties on foreign market entry, the authors add new and important insights into the role of social networks in the pre-internationalization phase. This is useful in understanding the internationalization process of new ventures founded by returnees, which have not been fully understood in returnee entrepreneurship literature. Second, by examining the moderating roles of global mindset and cultural intelligence, the authors enhance the understanding of the extent to which cross-border networks can be valuable in foreign market entry.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 9 January 2007

Caroline Firstbrook

The aim of this paper is to discuss the trend towards cross‐border mergers and acquisitions (M&A) and review best practices for successful cross‐border M&A transactions

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Abstract

Purpose

The aim of this paper is to discuss the trend towards cross‐border mergers and acquisitions (M&A) and review best practices for successful cross‐border M&A transactions (and how they differ from executing national deals).

Design/methodology/approach

The objectives are achieved through a review of four best practices for successful planning, implementation and execution of cross‐border deals. Also, a March 2006 Accenture/Economist Intelligence Unit survey is used which highlights trends towards cross‐border deals and common pitfalls in the successful execution of deals – in particular the difficulties in addressing cultural issues and local due diligence.

Findings

The paper finds that executives believe in their M&A strategy but doubt their organizational ability to successfully implement and execute and to realize financial gains and cross‐border deals offer a different mix of opportunities and risks, which need to be understood and managed if the deals are to be successful. The key to success lies in understanding exactly what makes cross‐border deal making different, and in developing the skills needed to create value.

Practical implications

There are four key drivers of success in cross‐border M&A: start with a clear and compelling strategy – the most successful cross‐border acquirers begin with a clear view of both the role that cross‐border acquisitions will play in their strategy and the type of companies best equipped to fill that role; do your homework – the greatest risks in cross‐border transactions arise from the failure to understand the culture, regulatory structure or competitive environment – and sometimes all three considerations – in the target market; value your new people – regardless of the rationale for the acquisition, a key asset – many would argue the most important one – in a cross‐border acquisition is people; and execution, execution, execution – successful execution begins early – in some cases, long before the deal is done.

Originality/value

A recent survey (Accenture/Economist Intelligence Unit, March 2006) shows for the first time that among global M&A deals, cross‐border transactions now exceed domestic transactions – and this trend is likely to continue. Yet for many c‐level executives, the prospect of acquiring or merging with a company in an unfamiliar market is daunting – and cross‐border M&A is considered more difficult than executing on domestic deals. This paper is intended to give c‐level executives practical, hands‐on advice for conducting cross‐border M&A as well as publicizing survey results specifically on the cross‐border M&A trend.

Details

Journal of Business Strategy, vol. 28 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 8 April 2022

Yilin Zhang, Changyuan Gao and Jing Wang

This study aims to explore the relationship between financing constraints and the innovation performance of Internet enterprises in the cross-border innovation cooperation…

Abstract

Purpose

This study aims to explore the relationship between financing constraints and the innovation performance of Internet enterprises in the cross-border innovation cooperation network. The study also analyzes the moderating effect of the location of the cross-border innovation cooperation network.

Design/methodology/approach

The authors selected patent data, related transaction data and other data of A-share listed companies on Shanghai and Shenzhen stock exchanges from 2014 to 2019. The generalized moment estimation method of instrumental variables (IV-GMM) method was used to analyze the relationship between financing constraints and the innovation performance of Internet firms and the moderating effect of the cross-border innovation cooperation network location. The threshold value of the moderating effect of the network structure hole was calculated with the threshold model.

Findings

The empirical results show a significant inverted U-shaped relationship between financing constraints and the innovation performance in the cross-border innovation cooperation network of Internet enterprises. Network centrality positively moderates this relationship. There is a threshold for the adjustment effect of network-structural holes, and the adjustment intensity of structural holes changes before and after the threshold.

Originality/value

This study provides a new perspective for Internet firms in innovation cooperation networks to alleviate the negative impact of financing constraints on innovation performance. The inverted U-shaped relationship between financing constraints and the innovation performance of Internet enterprises is in two stages. The moderating range of network centrality and the structural hole besides the threshold of the moderating effect of a structural hole are detailed.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 25 February 2022

Zhenkuo Ding, Man Hu and Sheng Huang

The purpose of this paper is to examine the influence of bilateral political relations on the completion stage premium of cross-border mergers and acquisitions(CSPCMA) and…

Abstract

Purpose

The purpose of this paper is to examine the influence of bilateral political relations on the completion stage premium of cross-border mergers and acquisitions(CSPCMA) and the moderating roles of cultural distance, trade openness and the nature of firm ownership for this relationship.

Design/methodology/approach

Based on a sample of 401 cross-border mergers and acquisitions (M&A) conducted by Chinese companies from 1995 to 2019 in the Statistical Data Center (SDC), this article used weighted least squares (WLS) to empirically test the impact of bilateral political relations between countries on the CSPCMA.

Findings

The better the target country of entry’s bilateral political relations with China, the lower the premium of the transaction price paid by Chinese companies at the completion stage of cross-border M&A. Among the moderators, the study found cultural distance positively moderates the relationship between bilateral political relations between countries and CSPCMA. The degree of trade openness of the target country negatively moderates the relationship between bilateral political relations between countries and CSPCMA. The negative relationship between bilateral political relations between countries and CSPCMA is stronger when the acquirer is a state-owned enterprise (SOE).

Originality/value

The findings of this study not only add to the knowledge about the relationship between bilateral political relations and corporate cross-border M&A premiums, but also have managerial implications for Chinese corporate managers to sustainably reduce corporate cross-border M&A premiums.

Details

Cross Cultural & Strategic Management, vol. 29 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 24 March 2022

Zelin Tong, Fang Ma, Haowen Xiao, Perry Haan and Wenting Feng

The purpose of this research is to explore how experienced scarcity affects home country consumers' attitudes toward the firm engaging in cross-border philanthropy by…

Abstract

Purpose

The purpose of this research is to explore how experienced scarcity affects home country consumers' attitudes toward the firm engaging in cross-border philanthropy by analyzing perceived distributive justice as a mediating variable. This research also investigates the moderating factor of this effect to identify practical strategies for managers.

Design/methodology/approach

This research conducted one survey (Study 1) and three experiments (Studies 2–4) by manipulating scarcity to provide robust evidence for the influence of experienced scarcity on consumer perception of the company conducting cross-border philanthropy.

Findings

This paper provides empirical insights about the significant negative effect of experienced scarcity on consumer attitudes toward the firm engaging in cross-border philanthropy. It proposes that home country consumers with high versus low experienced scarcity show lower perceived distributive justice for cross-border philanthropy, which generates less favorable attitudes toward the firm. To alleviate the negative impact of experienced scarcity on consumers' perceptions of corporate reputation, providing donation amount comparisons between home and foreign countries has a significant moderating effect.

Practical implications

This paper provides several suggestions for marketers seeking cross-border philanthropy to improve consumers' attitudes toward the firm.

Originality/value

This paper enriches the literature on corporate social responsibility in the domain of cross-border philanthropy and explains contradictory findings on consumers' attitudes toward corporate cross-border philanthropy. Moreover, this study makes meaningful contributions to the scarcity and justice literature.

Details

International Marketing Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 24 February 2022

Xuhui Wang, Bo Zhao and Jiaqi Chen

As Chinese imported cross-border e-commerce has entered a stage of rapid development, the problem of consumer shopping risk is increasingly prominent and the crisis of…

Abstract

Purpose

As Chinese imported cross-border e-commerce has entered a stage of rapid development, the problem of consumer shopping risk is increasingly prominent and the crisis of consumer trust is intensified. The theory of establishing consumer trust in traditional online shopping can no longer meet the need of cross-border context.

Design/methodology/approach

The researchers used the methods of network logs and grounded theory. The data collection and analysis are conducted on consumer comments from Tmall Global, NetEase Koala and JD Worldwide in the product comment area. This article explored and extracted the moderating variables of consumer perceived risk and cross-border characteristics in cross-border e-commerce. Based on the theory of “perceived risk – consumer trust – consumer purchase decision – making,” this article deduced mechanism of consumer dynamic trust based on the whole process of cross-border e-commerce transaction.

Findings

In the prepurchase, purchase and postpurchase stages of cross-border e-commerce transactions, consumers' perceived cognitive risk, transaction risk and utility risk are moderated by the cultural distance, geographical distance and institutional distance caused by the cross-border transaction subjects. On this basis, the preinfluence factors of trust in each transaction stage are synthesized to respectively influence the establishment of cognitive trust, emotional trust and behavioral trust, so as to affect consumers to make the order payment, confirm receipt and praise repurchase decisions. At the same time, with the advance of prepurchase, purchase and postpurchase transactions in cross-border online shopping, consumer trust presents a dynamic evolutionary path of “cognitive trust – emotional trust – behavioral trust.”

Originality/value

This article expands the application context of the theory of consumer rational behavior from traditional online shopping to the context of cross-border online shopping and expands the scope of interpretation of the theory of consumer rational behavior. This article also supplements the theoretical gaps in the dynamic evolution of consumer trust in cross-border online shopping, enriches the decision-making process model of consumers in the context of cross-border online shopping and provides new ideas for follow-up research.

Details

Journal of Contemporary Marketing Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-7480

Keywords

Book part
Publication date: 3 August 2011

Tak Kee Hui and Ho-Fuk Lau

This chapter introduces a conceptual framework which links consumers' demographic characteristics with their attitudes toward major shopping area attributes (the push/pull…

Abstract

This chapter introduces a conceptual framework which links consumers' demographic characteristics with their attitudes toward major shopping area attributes (the push/pull factors), as well as their motivations toward cross-border shopping. It is built on the extant literature of outshopping, cross-border shopping, and consumer switching behavior. It has been tested with data collected from 485 Hong Kong residents. A nonparametric approach will be used to analyze the data. Findings of this study show that “age” and “education” characteristics are good indicators for most of the macrofactors (shopping area attributes). As for microfactors (motivational factors), “age” and “gender” are the best indicators. Results of this study also confirm previous findings that demographic characteristics of consumers affect their cross-border shopping behavior. Low prices on products and good services are the most important pull-factor attracting cross-border shopping. It further reveals that a higher percentage of cross-border shoppers are from lower income families, having only secondary education level, and in the age category of 30–49. Implications for retailers, governments, and tourism-related institutions are discussed.

Details

Advances in Hospitality and Leisure
Type: Book
ISBN: 978-0-85724-769-8

Keywords

Book part
Publication date: 8 February 2021

Daniel Michniak and Marek Więckowski

The Polish–Slovak borderland is a mountainous area with extraordinary natural conditions for tourism development. The main aim of this chapter is to analyze theoretical

Abstract

The Polish–Slovak borderland is a mountainous area with extraordinary natural conditions for tourism development. The main aim of this chapter is to analyze theoretical aspects of a relationship between transport and tourism and to assess selected changes in cross-border transport that have influenced tourism in Polish–Slovak tourism regions. We have tried to answer the questions on changes in transport infrastructure (based on the analysis of the cross-border projects) and public transport (based on the analysis of timetables of the cross-border public transport connections) in the borderland during the last 30 years and to answer the question whether these changes are in accordance with the sustainable development goals. The Polish–Slovak border is seen as a barrier to transport. The increasing cross-border movement of people and goods through Polish–Slovak border after 1989 required the opening of new border crossings and the construction of new cross-border transport infrastructure. Investments to the road infrastructure have led to using of individual automobile transport. Public transport is currently of marginal importance in cross-border transport. The three cross-border rail lines are in poor technical condition, and plans for their modernization are uncertain. Bus transport has been limited on two tourist-oriented lines in the central part of the borderland. In terms of the structure of the use of means of transport, therefore, no change in trends should be expected and most of the incoming people will continue to cross the Polish–Slovak border by their own means of communication. What is worrying, in the future, in the absence of modernization of the railway infrastructure and no organizational measures, there will be a further decline in the importance of public transport in relation to individual road transport.

Details

Sustainable Transport and Tourism Destinations
Type: Book
ISBN: 978-1-83909-128-5

Keywords

Article
Publication date: 13 January 2022

Arindam Das

A key characteristic for a family firm, preservation of socioemotional wealth, may appear to be at conflict with the concept of organizational diversity. The authors…

Abstract

Purpose

A key characteristic for a family firm, preservation of socioemotional wealth, may appear to be at conflict with the concept of organizational diversity. The authors investigate how organizational diversity, captured through heterogeneity in ownership structure, diversity in the senior management team, interfaces with the concept of the socioemotional wealth of family businesses in an emerging economy, when these firms pursue inorganic growth strategies.

Design/methodology/approach

Drawing on the concepts of socioemotional wealth, behavioral agency theory and bifurcation bias, the authors develop perspectives on how ownership structure, family influence in executive management and institutional shareholding influence a family firm's internationalization strategies captured through propensity to pursue cross-border M&A – an activity that may threaten the preservation of socioemotional wealth. The authors also explore the role of business group affiliation, another organizational diversity construct, and contingent parameters like past financial performance and export intensity in this study. The authors take pooled data over 15 years, involving 346 large firms from India, which are family-controlled, to carry out the study.

Findings

The authors’ empirical analysis shows that family stake in the company and family members' presence in the executive team negatively influence the propensity to pursue cross-border M&A activities. A firm's affiliation to a business group moderates these negative relationships. On the other hand, the presence of institutional shareholders, positive past financial performance and export intensity positively influence cross-border M&A propensity.

Originality/value

The results establish that family businesses' attempts to preserve socioemotional wealth may come at the cost of promoting organizational diversity.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Book part
Publication date: 14 November 2014

Yaqoub Alabdullah and Stephen P. Ferris

This study uses cross-border mergers as a test of the ability of foreign directors to provide effective strategic advising. We find that firms with foreign directors on…

Abstract

This study uses cross-border mergers as a test of the ability of foreign directors to provide effective strategic advising. We find that firms with foreign directors on their boards are more likely to engage in cross-border mergers, pursue a higher number of cross-border mergers, and invest more in those mergers. We further determine that firms with foreign directors are more likely to undertake nondiversifying mergers, enjoy friendly mergers, and acquire privately held targets. Moreover, we find that firms with foreign directors have higher announcement period returns and pay less for their cross-border targets.

Details

Corporate Governance in the US and Global Settings
Type: Book
ISBN: 978-1-78441-292-0

Keywords

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