Search results

1 – 10 of over 4000
Click here to view access options
Book part
Publication date: 23 November 2017

Douglas Dow

In this chapter I argue that the distance research in international business studies is at a turning point, not in terms of its popularity, nor the quantity of articles…

Abstract

In this chapter I argue that the distance research in international business studies is at a turning point, not in terms of its popularity, nor the quantity of articles published, but rather, in terms of the types of issues that are explored. Past distance research has largely been conducted at the level of the firm and/or the market – that is, linking national-level measures of distance with specific firm behaviors and outcomes. However, the seminal paper by Shenkar (2001) represents a shift in focus that is only just beginning to gain traction. This shift involves stepping back and beginning to unpack the black box we call ‘distance’ by exploring the micro-level mechanisms involved. In essence, it is about digging deeper in multiple aspects, to understand when, why and how distance matters in the international business (IB) context. These are issues that until now have typically been neglected. A metaphor borrowed from the social psychology literature, known as Coleman’s Boat, is used as a vehicle to explain the key issues involved in this shift and the opportunities for future research.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

Keywords

Click here to view access options
Article
Publication date: 9 April 2018

Ru-Shiun Liou, Rekha Rao-Nicholson and David Sarpong

Addressing the unique challenge facing emerging-market firms (EMFs) of branding and marketing in their foreign subsidiaries, the purpose of this paper is to evaluate the…

Abstract

Purpose

Addressing the unique challenge facing emerging-market firms (EMFs) of branding and marketing in their foreign subsidiaries, the purpose of this paper is to evaluate the foreign subsidiary’s corporate visual identity (CVI) transitions during the post-acquisition period.

Design/methodology/approach

Data on 330 cross-border acquisitions from five emerging markets, namely, Brazil, Russia, India, China and South Africa (BRICS) are used. The cross-sectional multivariate analyses are used to test the hypotheses.

Findings

Utilizing a sample of worldwide acquisitions conducted by EMFs originated from BRICS, this study establishes that various cross-national distances do not consistently cause the targets to take on the parent’s CVI. While economic distance and formal institutional distance increase the likelihood of an acquired subsidiary’s CVI change, cultural distance decreases the likelihood of CVI change.

Practical implications

Lacking international experience and shaped by national differences between the host and home markets, EMFs often grant foreign subsidiaries substantial autonomy to respond to diverse stakeholder demands in subsidiary branding. Contrary to extant literature, the findings show that some distances are more pertinent to CVI transformation in the subsidiaries than others in the context of the EMFs.

Originality/value

This research shows that the formal institutional distance and economic distance will increase the likelihood of CVI changes in the subsidiaries, whereas, the cultural distance requiring soft skills like the cultural adaptability from the EMFs will decrease the CVI change possibility. The findings presented in the paper have significant implications for future research and strategic application.

Details

International Marketing Review, vol. 35 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Click here to view access options
Book part
Publication date: 21 October 2019

João Neves de Carvalho Santos, Manuel Portugal Ferreira and José Carlos Rodrigues

Research suggests that context matters for MNEs’ international business strategy. MNEs’ strategies vary when different intertwined contexts interact with each other. While…

Abstract

Research suggests that context matters for MNEs’ international business strategy. MNEs’ strategies vary when different intertwined contexts interact with each other. While International Business scholars understand well the influence of the institutional environments on firms’ international strategies and operations, some contextual differences are less understood as is the case involving African countries and firms. In this study we investigate how different institutional contexts and legitimacy challenges combine to impact ownership strategic choices of African firms in their cross-border acquisitions (CBAs). Specifically, we study the influence of the host country institutional development and two institutional dimension distances: administrative distance and knowledge distance. Methodologically, we use a sample of 314 CBAs made by acquirers from 24 African countries in 71 host countries worldwide to test a number of theoretically driven hypotheses. This study contributes to our understanding of how foreign investors from less institutionally developed countries that are more likely to face higher legitimacy barriers use ownership strategies to achieve legitimacy abroad.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

Click here to view access options
Article
Publication date: 7 December 2020

Fatemeh Askarzadeh, Hamed Yousefi and Mahdi Forghani Bajestani

Focusing on the direction of foreign acquisition, this study aims to differentiate the effect of institutional distance on the level of ownership. The authors identify…

Abstract

Purpose

Focusing on the direction of foreign acquisition, this study aims to differentiate the effect of institutional distance on the level of ownership. The authors identify several theoretical and methodological issues that might account for the inconsistencies in the literature and provide remedies accordingly. Specifically, the authors propose perceived institutional distance as a conceptualization of distance that controls for asymmetric uncertainty.

Design/methodology/approach

The authors test the framework with ordinary least squares regression for a sample of 14,192 firm-entries in 115 target countries over 2007–2017.

Findings

The authors find that institutional distance shows a negative effect on equity ownership in all-inclusive global samples, while there are two imbalanced opposite effects if direction is considered. This casts doubt on the validity of studies that ignore direction. The authors suggest that multinational enterprises entering countries with lower-quality institutions tend to perceive more pronounced distance effects than those expanding the other way around. Hence, the authors argue that “perceived institutional distance” better explains the functional role of distance than simple distance.

Practical implications

This study better delineates the link between distance and uncertainty and enhances managerial insights for entry mode selection. For policy-making purposes, the authors also show that improvement in institutional quality has a different effect on foreign resource commitment in developed and developing countries.

Originality/value

To the best of authors’ knowledge, this is the first study that considers both directionality and imbalance in institutional distance and proposes a measure to control for non-linear asymmetric relationship between distance and ownership. The authors extend the institutional theory and show the superiority of perceived institutional distance in predicting ownership implications.

Details

Review of International Business and Strategy, vol. 31 no. 2
Type: Research Article
ISSN: 2059-6014

Keywords

Click here to view access options
Article
Publication date: 10 August 2018

Kevin Au, Stone Han and Hsi-Mei Chung

The purpose of this paper is to contribute a multilevel, cross-national analysis of the role that sociocultural context may play to enrich the understanding of strategic…

Abstract

Purpose

The purpose of this paper is to contribute a multilevel, cross-national analysis of the role that sociocultural context may play to enrich the understanding of strategic renewal in family firms. The authors conceptualize sociocultural context as consisting of firm-level social contexts and national culture, and propose that: heterogeneous social contexts in family firm management, i.e. family CEO and multigenerational involvement, give rise to mindsets that have differential effects on renewal efforts and that the proposed effects are subject to variation due to the moderation of national cultural dimensions of uncertainty avoidance and power distance.

Design/methodology/approach

The authors use unique date set consisting of 959 family firms from 26 countries drawn from a cross-national, quantitative study of family firms.

Findings

The authors found that family CEO is negatively related to renewal across cultures, and this relationship is attenuated by uncertainty avoidance and power distance. In addition, multigenerational involvement is positively related to renewal, and this relationship is enhanced by the two cultural dimensions.

Practical implications

The authors suggest that decision makers examine how different contexts, practices and cognition contribute to overall dominant logics that exist in firm. In doing so, they can evaluate how logics as a whole affect renewal, and also how different parts of the logics play a role. This overall evaluation will afford managers a holistic picture of renewal forces that operate in family firm and allow managers to make precise changes to enhance strategic renewal.

Originality/value

The findings support the contention that there is cultural-dependent countervailing effects on strategic renewal within family firms.

Details

Cross Cultural & Strategic Management, vol. 25 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

Click here to view access options
Article
Publication date: 3 October 2016

Keith J. Kelley

The purpose of this paper is to explore the largely marginalized role of distance or “space” in multinationality and performance (MP) research. It argues that scholars…

Abstract

Purpose

The purpose of this paper is to explore the largely marginalized role of distance or “space” in multinationality and performance (MP) research. It argues that scholars should adopt a more fine-grained, or relativistic approach when studying the link between MP and that conceptualizing multinationality as space may facilitate this.

Design/methodology/approach

By treating space as though it is liability forming, the paper examines frequently contentious research issues in domain of MP research such as: how is multinationality measured; what are the moderating variables; and what is the performance metric appropriate, as a framework to help illustrate the relativistic nature of MP studies.

Findings

The paper illustrates that the choice of distance dimensions, along which the “space” is formed, alters the relationship between MP. Furthermore, this relationship is relative to moderating variables that include among others: when the space is measured (time), point of reference and perspective, the firm’s resources (e.g. human and technological capabilities), and the performance measure considered.

Originality/value

This paper suggests new avenues and approaches toward exploring the effects of multinationality to improve methodological rigor. It identifies several important methodological shortcomings of current and previous research and suggests areas in which current research gaps must be filled to advance this body of knowledge. It introduces the notion of spatial relativism as a concept that will facilitate more fine-grained and contextualized studies.

Click here to view access options
Article
Publication date: 25 October 2011

Hamid Yeganeh

This article aims at offering and validating a theory‐driven conceptualization of the cultural distance index.

Downloads
3560

Abstract

Purpose

This article aims at offering and validating a theory‐driven conceptualization of the cultural distance index.

Design/methodology/approach

First, the cultural distance index is conceptualized, its conceptual properties are discussed, and a generic formula is proposed. Subsequently, the generic formula is applied to Schwartz's and Hofstede's frameworks. Finally, using the new formula the cultural distance is calculated, its robustness is examined, and its advantages over the Kogut and Singh's measure are inspected.

Findings

Through this paper it is found that by considering issues such as cultural dimensions' alignment and their relative weight, it is possible to build a more accurate index of cultural distance. Moreover, based on the generic formula it is understood that collectivism/individualism and power distance in Hofstede's framework and conservatism, egalitarianism in Schwartz's model are important cultural dimensions and account for a considerable weight in the cultural distance index.

Research limitations/implications

The index is based on cultural dimensions and naturally it carries all shortcomings attributed to dimensionalization such as symmetry, linearity, stability and causality. In addition, it can be recognized that while alignment is a legitimate method, it should be interpreted cautiously because cultural dimensions are essentially nebulous concepts.

Practical implications

Researchers may use the proposed index to test the implications of cultural differences for a wide range of cross‐national issues such as joint ventures, entry mode choices, mergers, negotiations, organizational behavior, and technology transfer.

Originality/value

This article offers a novel and theory‐driven approach to building the cultural distance index. Considering the popularity of the Kogut and Singh's index in international business, the paper is of major significance.

Details

Journal of Strategy and Management, vol. 4 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Click here to view access options
Article
Publication date: 25 September 2018

Laura Rienda, Enrique Claver-Cortes, Diego Quer and Rosario Andreu

In recent years, emerging-market multinationals (EMMs) are receiving significant attention in the international business literature. They represent a challenge for the…

Abstract

Purpose

In recent years, emerging-market multinationals (EMMs) are receiving significant attention in the international business literature. They represent a challenge for the conventional wisdom, mainly derived from the behavior of developed-country multinationals (MNEs). The purpose of this paper is to analyze how different cross-national distances, namely cultural, administrative, geographic and economic, may affect establishment mode choice by Indian MNEs.

Design/methodology/approach

Data are collected from 328 outward foreign direct investments carried out by Indian MNEs in 73 countries from 1991 to 2014. A binomial logistic regression analysis is used to test the hypotheses.

Findings

The results show that cultural and administrative distances negatively affect the choice of an acquisition. Moreover, firm size, acquisition experience, host country experience, industry, belonging to the G20 alliance and being a state-owned enterprise also influence establishment mode choice.

Originality/value

This is one of the first studies that investigate the relationship between distances and establishment mode choice by Indian MNEs. The findings suggest that they follow a different behavioral pattern among EMMs, since their internationalization decisions are closer to those of developed-country MNEs.

Details

Management Decision, vol. 57 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Click here to view access options
Article
Publication date: 7 August 2017

Rushiun Liou, Kevin Lee and Scott Miller

Emerging-market multinational companies (EMNCs) utilize cross-border merger and acquisitions (M&As) to acquire strategic assets that compensate for their resource…

Abstract

Purpose

Emerging-market multinational companies (EMNCs) utilize cross-border merger and acquisitions (M&As) to acquire strategic assets that compensate for their resource deficiencies. Therefore, developed markets have become important destinations for EMNCs. Institutional distance constitutes a major source of competitive disadvantage for foreign firms competing with indigenous firms. The purpose of this paper is to examine the ownership pattern of cross-border M&As in the USA, and determine if EMNCs respond to institutional distance differently than advanced-market multinational companies (AMNCs).

Design/methodology/approach

Based on the extant literature in institutional theory as well as internationalization strategy, a quantitative study was carried out. Hypotheses were proposed and tested using fixed effects panel regressions.

Findings

This paper finds that both AMNCs and EMNCs take smaller ownership positions when there is greater cognitive and normative distance. The negative association is stronger for AMNCs than for EMNCs. Further, the larger the regulative distance in the positive direction, meaning a higher level of development in the host market than in the home market, the more AMNCs and EMNCs are led to opt for a higher ownership position, with EMNCs being less influenced by regulative distance.

Research limitations/implications

Though findings are robust and stable, this study is limited to observations that only have US target firms.

Originality/value

By integrating the literature from institutional theory and strategy, this paper offers a clearer understanding and distinction of the acquisition decisions made by EMNCs and AMNCs.

Details

Cross Cultural & Strategic Management, vol. 24 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Click here to view access options
Article
Publication date: 9 May 2016

Chi-Han AI and Hung-Che Wu

External knowledge should not be limited in one zone or level. Researchers have paid more attention to the perspective of multilevel cluster networks. However, little…

Abstract

Purpose

External knowledge should not be limited in one zone or level. Researchers have paid more attention to the perspective of multilevel cluster networks. However, little research has empirically studied the various dimensions of external knowledge. The purpose of this paper is to study different levels of external knowledge, their relation with trade and non-trade interdependence and their relation with different kinds of innovations, namely, exploitation and exploration.

Design/methodology/approach

Both quantitative and qualitative research methods were adopted in this study. In terms of the quantitative research method, data were collected from 168 companies in the Shenzhen Hi-Tech Industrial Park of China using convenience sampling. As for the qualitative research method, a total of 35 interviews were carried out in this study.

Findings

The quantitative results indicate that different levels of external knowledge in the Shenzhen Hi-Tech Park have different effects. First of all, the results indicate that cross-national connections have a positive influence on trade interdependence, which helps firms to produce exploration. Second, cross-regional connections have a positive influence on both trade and non-trade interdependence, which further help firms to create innovative exploitation and exploration. Third, inter-regional connections have a positive influence on non-trade interdependence, which helps firms to increase innovative exploitation. The qualitative result makes a plausible explanation for the quantitative results. The interview results indicate that as the telecommunications industry has so much to do with China’s national security, there are several initiatives of market protection strategies and political interventions, which help firms to form different levels of knowledge flow in Shenzhen.

Research limitations/implications

There are several limitations of this study which primarily relate to the case study method. The results can be contextually generalized to the domestic-oriented cluster in developing countries.

Practical implications

This study has several managerial implications. First, this research ensures that it is important to consider the multilevel nature of external knowledge before starting with the decision-making process of a firm in a cluster. Second, all levels of administrators and managers in a company should investigate what kinds of involvement and innovation are needed and most highly valued for organizational development. Third, the research framework of this study can be applied to understand which level of external knowledge influences organizational performance.

Originality/value

This study is an initial attempt to provide an examination of external knowledge, organizational involvement and innovation performance of an industrial cluster via a mixed method.

Details

Industrial Management & Data Systems, vol. 116 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

1 – 10 of over 4000