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Article
Publication date: 25 September 2019

Muhammad Amin, Jianfeng Wu and Md Ziaul Haque

Integrating social network theory with signaling theory, the purpose of this research is to examine the impact of corporate political connections and executive’s…

Abstract

Purpose

Integrating social network theory with signaling theory, the purpose of this research is to examine the impact of corporate political connections and executive’s international experience on Chinese firms initial public offerings (IPOs) performance in the USA.

Design/methodology/approach

This study used Securities Data Company (SDC) New Issues database to identify all Chinese firms that went public in the USA between 2003 and 2014. Consistent with previous research, IPO firms excluded from the sample include merger or acquisitions, spin-offs and initial stage listed firms. The final sample size is of 142 Chinese foreign IPOs in the US markets.

Findings

This study finds that firms with political connections perform significantly poor than firms without political connections. It shows that US stock markets react to the signals of political connections of Chinese foreign IPOs. In response, the Chinese foreign IPOs can signal international work experience of top executives to US investors. The results show that the executives’ international work experience has significant positive relationships on foreign IPO performance of Chinese firms. Moreover, this study finds that the interaction between corporate political connections and international experience pursues positive effects on the performance of foreign IPOs.

Originality/value

This research intends to extend the knowledge of how corporate political connections and international work experience affects the performance of Chinese firms attempting to access US capital markets. To date, scholars have not investigated the influence of corporate political connections on the amount of capital raised by foreign IPOs.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 12 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

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Article
Publication date: 3 April 2020

Chusheng Chen, Yun Zhan, Changjun Yi, Xue Li and Yenchun Jim Wu

This study investigates the effect of psychic distance (PD) on outward foreign direct investment (OFDI) by multinational firms originating in emerging economies and the…

Abstract

Purpose

This study investigates the effect of psychic distance (PD) on outward foreign direct investment (OFDI) by multinational firms originating in emerging economies and the moderating effect of firm heterogeneity on this relationship.

Design/methodology/approach

An empirical analysis based on a negative binomial regression model is conducted using OFDI data from 2008 to 2017 on companies listed on the Shanghai and Shenzhen Stock Exchanges in China, an emerging economy.

Findings

The results suggest a U-shaped relationship between PD and OFDI by firms in emerging economies. Both executive foreign experience and state ownership negatively moderate the U-shaped relationship between PD and OFDI.

Practical implications

Emerging economies should encourage and guide multinational firms in engaging in OFDI and emphasize the advantages and disadvantages of PD for multinational firms. Additionally, non-sate-owned firms should recruit those who have a foreign education to provide support for OFDI by firms in emerging economies. Multinational firms should determine investment locations by consulting with executives with foreign experience to improve their ability to engage in OFDI.

Originality/value

This study combines macro and micro perspectives and integrates PD and firm heterogeneity into the same model with a sample of multinational firms originating in China. The findings support the existence of a PD paradox, which helps to enriching the theory on foreign direct investment.

Details

Management Decision, vol. 58 no. 7
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 29 October 2020

Kiattichai Kalasin

This study aims to examine how senior foreign executives in a top management team catalyse strategic change in firms that originated from emerging markets (EMs). It…

Abstract

Purpose

This study aims to examine how senior foreign executives in a top management team catalyse strategic change in firms that originated from emerging markets (EMs). It further examines the moderating effects of organisational size and uncertainty avoidance (UA) on the positive relationship between senior foreign manager and strategic change in an organisation.

Design/methodology/approach

The panel data econometrics and multilevel analyses were adopted to run the model. The author tests hypotheses on 263 emerging market firms (EMFs), originating from nine EMs.

Findings

Empirical results reveal that senior foreign managers are active agents who can promote and implement strategic change in an organisation. They possess a different set of values, knowledge and experiences that can trigger strategic change. In addition, firm size and UA weaken the relationship between senior foreign manager ratio and strategic change of a firm..

Practical implications

This study indicates that recruiting committees of EMFs should consider hiring senior foreign managers to foster a higher degree of strategic change. Nevertheless, firm size and UA may impose implementation difficulties for senior, foreign managers. As a result, the focal firm should be flexible and open to change.

Originality/value

This study aims to contribute to strategic change and top management team internationalisation literature by promoting the role of senior foreign managers and national culture on strategic change.

Details

Review of International Business and Strategy, vol. 31 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

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Article
Publication date: 29 March 2013

Anna A. Łupina‐Wegener

The purpose of this paper is to shed light on challenges faced in human resource (HR) integration in subsidiary mergers of western corporations in Poland. The paper seeks…

Abstract

Purpose

The purpose of this paper is to shed light on challenges faced in human resource (HR) integration in subsidiary mergers of western corporations in Poland. The paper seeks to investigate the central themes in HR integration in terms of the role of the HR function and the implications for the local workforce.

Design/methodology/approach

A qualitative method research design was adopted with semi‐structured formal and informal interviews, participant observation, and secondary/primary data analysis.

Findings

Findings provide insights into the challenges of integrating the subsidiaries of western corporations based in transition economies and why problems might emerge from the collaboration between local and foreign managers. Specifically, the analysis suggests that a success of the HR integration might be particularly at stake in circumstances of a low HR power in a subsidiary and a low multiculturalism of the foreign investor.

Research limitations/implications

The main study limitation concerns the fact that investigations concerned perspectives of local managers. It would be interesting in future research to observe the HR processes as perceived by both local executives and foreign parent decision‐makers.

Practical implications

The paper's findings may help managers and change agents to understand the specific challenges to HR integration of subsidiary mergers.

Originality/value

The results shed light on HR integration in subsidiaries of corporations from western economies based in emerging or developing regions. Specifically, in circumstances of a low HR power in a subsidiary and a low multiculturalism of the foreign investor, officially proclaimed friendly mergers may turn to hostile takeovers and drastic changes risk implemention without a clear understanding of the local context. Then, HR integration risks having a dysfunctional impact on the workforce and consequently, failing to deliver expected synergies and, in the long‐term, cause M&As failure.

Details

Journal of Organizational Change Management, vol. 26 no. 2
Type: Research Article
ISSN: 0953-4814

Keywords

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Article
Publication date: 13 April 2012

Cathy H.C. Hsu, Zhaoping (George) Liu and Songshan (Sam) Huang

This study aims to discover how the patterns and effects of managerial ties differ among state‐owned, domestic private, and foreign firms.

Abstract

Purpose

This study aims to discover how the patterns and effects of managerial ties differ among state‐owned, domestic private, and foreign firms.

Design/methodology/approach

Data were collected through in‐depth interviews with 15 top executives of economy hotel chains headquartered in five cities in China. The typical qualitative data analysis procedures, such as voice‐recording, transcribing, coding, and pattern‐matching, were strictly followed.

Findings

Results indicate that managers in firms of different ownership types use different network tie combinations and differ in the extent to which they can benefit from managerial ties. For example, entrepreneurs in state‐owned enterprises thought strong ties were more important than weak ties and political ties were more important than business ties, while those in domestic private firms and firms founded by Chinese using foreign funding benefited more from business ties.

Originality/value

The study contributes to both entrepreneurship and social network theories by summarizing different patterns of managerial ties and exploring the rationales for the variance. It also provides evidence for understanding the important roles played by executives' network ties in the entrepreneurial processes. Entrepreneurs in the Chinese hospitality industry may use the findings to direct organization resources to more productive managerial ties and manage their network ties efficiently in the dynamic environment of a transitional economy.

Details

International Journal of Contemporary Hospitality Management, vol. 24 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 31 July 2008

José María Cubillo‐Pinilla

The purpose of this paper is to analyze the transference of managerial skills from the multinational corporation (MNC) to local companies related to the exporting process…

Abstract

Purpose

The purpose of this paper is to analyze the transference of managerial skills from the multinational corporation (MNC) to local companies related to the exporting process. In particular, small‐ and medium‐sized companies.

Design/methodology/approach

A local productive system was selected, involved in the manufacturing of lighting systems for automobiles (main and auxiliary headlamps and rear lighting), and made up of small‐ and medium‐sized companies led by a single MNC which contracts out to the local industry. The analysis includes both suppliers to the multinational as well as non‐suppliers.

Findings

This paper shows that the existence of knowledge transfer of intangible resources and the existence of organizational learning are associated with the nature of the vertical network in a system of suppliers, and a horizontal network with an industrial agglomeration. The volume of knowledge transferred depends on the quality of the channels of communication which exist within the network, the geographical proximity, the frequency of exchange of ideas in the network, and the spatial proximity, among others.

Originality/value

This paper identifies the key factors that influence the performance of the knowledge transfer into MNC supplier's networks.

Details

International Journal of Commerce and Management, vol. 18 no. 2
Type: Research Article
ISSN: 1056-9219

Keywords

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Article
Publication date: 1 June 2003

You‐Il Lee and Michael Hobday

The Korean Government wishes to transform the nation into a Northeast Asian business hub. Following economic crisis, there are attempts to move the economy towards a new…

Abstract

The Korean Government wishes to transform the nation into a Northeast Asian business hub. Following economic crisis, there are attempts to move the economy towards a new market‐oriented paradigm of economic growth based on foreign direct investment (FDI) and market friendly transparent corporate governance, replacing the old model of the developmental state, involving intimate and opaque business‐government relations, which has dominated Korean policy for at least three decades. This paper presents findings from 37 interviews conducted with senior executives of foreign companies and various chambers of commerce in Korea. The paper offers new insights into the critical and often invisible issues which need to be confronted and successfully resolved for the transformation of Korea. In providing a critical analysis, the paper examines alternative interpretations of the hub concept, key advantages offered by Korea, the main barriers to becoming a hub, competition from other locations and draws lessons for government policy makers.

Details

Management Decision, vol. 41 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 1 February 2005

Jan Selmer

Joint ventures remain the largest group of foreign‐invested enterprises in China. Given the high level of potential conflict, this paper examines whether Western…

Abstract

Purpose

Joint ventures remain the largest group of foreign‐invested enterprises in China. Given the high level of potential conflict, this paper examines whether Western expatriates in joint ventures benefit from cross‐cultural training.

Design/methodology/approach

A mail questionnaire targeted business expatriates assigned by Western firms to joint ventures and other types of organisations in China.

Findings

Results show that training had a weak positive association with work adjustment for expatriates in joint ventures, but no relationship with work adjustment for Western managers in other types of operations.

Research limitations/implications

Data were collected through a self‐report questionnaire and a cross‐sectional approach was applied. However, the scale measuring sociocultural adjustment may have some potential problems.

Practical implications

This paper emphasises the work context in China when training expatriate candidates. Alternatively, individuals should be selected with recent positive experiences of the host country and work task at hand. Such experience could be regarded as a perfect substitute for cross‐cultural training

Originality/value

The distinction between different organisational contexts in assessing the effect of cross‐cultural training constitutes a novel approach. The study contributes to the literature on the effectiveness of cross‐cultural training of business expatriates in general and the impact of their organisational setting in particular. It is important to notice that the improved adjustment covers the very reason for the foreign assignment, the work duties of the expatriate manager.

Details

Personnel Review, vol. 34 no. 1
Type: Research Article
ISSN: 0048-3486

Keywords

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Article
Publication date: 1 March 1992

I.S. Demirag

The rapid development of multinational companies (MNCs) has resulted in the need for accounting systems which function to report, evaluate and control international…

Abstract

The rapid development of multinational companies (MNCs) has resulted in the need for accounting systems which function to report, evaluate and control international operations and their managers' effectiveness. While the problems surrounding the evaluation and control of domestic firms remain the same for MNCs' parent company managers, the question of which country's currency should be used in the evaluation process represents additional complexities for them. The choice is essentially either that of the parent company currency or the currency of the foreign subsidiary. Parent company managers may also use both of these currencies, but it is likely that this choice will result in different decisions regarding the performance of foreign operations (see Demirag, 1987,1987a, 1987b). The aim of this paper is to critically review the theoretical and empirical literature on the use of parent and/or foreign subsidiary accounting information used by multinational companies in the evaluation of their foreign subsidiary operations and managers. In doing so, the paper addresses the following two questions. First, to what extent is translated information, untranslated information or both types of information significant in the evaluation of foreign subsidiary operations and their managers' performance in MNCs? Second, what are the major contextual variables which influence MNC foreign currency accounting practices in performance evaluations?

Details

Managerial Finance, vol. 18 no. 3
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 1 February 1998

Abbas J. Ali, Abdel Aziz Taqi and Robert C. Camp

In international business, the customers' perception is vital for marketing and strategic planning. This study is designed to address the perceptions of managers in Kuwait…

Abstract

In international business, the customers' perception is vital for marketing and strategic planning. This study is designed to address the perceptions of managers in Kuwait of the national environments of Japan, Germany, and the U.S. and the prospect of global leadership for each nation. Sixty‐four major Kuwaiti firms participated. The results indicate that Japan is perceived to offer the most conducive business environment for effective global competition. In addition, participants believe that Japan will surpass the U.S. economically and technologically in the near future. Nevertheless, the results show that U.S. based firms are perceived to be more adaptable to changing world conditions and that they do a better job of attracting the best human resources than German or Japanese based firms.

Details

Competitiveness Review: An International Business Journal, vol. 8 no. 2
Type: Research Article
ISSN: 1059-5422

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