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We study the performance attributes of an international production form that is designed for success in an increasingly global marketplace‐global product design and development. We find that firms elicit higher returns from their global product development when they compete in strategic complements than when they compete in strategic substitutes. These firms are most likely to compete in strategic complements if they have higher free cash flows, but are most likely to compete in strategic substitutes if they are more dominant in their industry. Importantly, global product development reduces cost largely via variable cost reduction. Moreover, we find that global product development contributes to the firm’s growth potential when pursued in conjunction with high multinationalism, aggressive competitive strategy, and high cost saving.

Driven by the anticipated global stagflation, this straightforward yet novel study examines the cost of inflation as a macroeconomic factor by investigating its influence on stock market growth. Thus, this paper aims to examine the impact of inflation on the probability of initial public offering (IPO) withdrawal decision.

The paper employs a large dataset that covers the period January 1995–December 2019 and comprises 33,536 successful or withdrawn IPOs from 22 nations with various legal and cultural systems. This study applies a probit model utilizing version 15 of Stata statistical software.

This study finds that inflation is substantially and positively correlated with the likelihood of IPO withdrawal. Results of this study show that the IPO withdrawal decision increases up to 90% when the inflation rate climbs by 10%. Multiple robustness tests provide consistent findings.

This study's implications are important for researchers, investment banks, underwriters, issuers, regulators and stock exchanges. When processing IPO proposals, investment banks, underwriters and issuers must consider inflation projections to avoid negative effects, as demonstrated by the findings. In addition, regulators and stock exchanges must be aware of the detrimental impact of inflation on competitiveness in attracting new listings.

To the best of the authors’ knowledge, this study is the first to present convincing evidence of a major relationship between IPO withdrawal decision and inflation.

Today, governments and foreign‐based corporations acknowledge their mutual interests. This is a shocking turnabout for many leaders in business and government. Not long ago, multinationalism was under heavy attack.

This paper deals with the patterns of relationship that develop among the parent companies in Japan and their overseas subsidiaries. It attempts to offer a totally new view by constructing a three‐fold model to examine the existing relationship on an organizational, strategic and informational level. The model is linked and seen under the light of the means of formal control applied. Formal control has always taken a second role to the research of Japanese management accounting techniques. This is even more obvious when we investigate the issue of formal control. Culture usually becomes the center of attention when it comes to Japanese management. This research attempts to give a careful look to this usually underrated and overlooked issue. Thus, based on the multidimensional model constructed the formal means of control applied are examined.

The springboard theory for multinational enterprises and the upward spiral model address the expansion of emerging countries’ multinational enterprises (MNEs) abroad as a set of resource-building stages. This paper aims to analyze this model by qualifying knowledge flows in three domains: learning effects, transfer flows and global connections.

The authors use 2018 data from the ORBIS database to identify evidence concerning the springboard MNE (SMNE) phenomenon. The authors select MNE firms from 93 emerging economies with presence in 71 developed and 93 developing countries. In addition, the authors differentiate between the levels of technological intensity of emerging market MNEs’ sectors.

The results highlight the existence of learning processes taking place in subsidiaries and feeding back into parent firms, as well as the existence of capability transfer from home to host units.

The main contribution is the addition of empirical evidence on the SMNE and specifically the upward spiral model, considering the micro-level and the productivity differences between parent firm and subsidiaries.

Summarizes three theories on the value of multinational companies: internalization, imperfect capital markets and managerial objectives (agency costs); and reviews a comprehensive selection of previous studies of the effects of multinationality and international diversification on firm value. Believes that globalization makes this an important area and suggests some avenues for further research.

Purpose – Study the role of sovereign wealth funds (SWFs) as an example of foreign and politically connected large shareholders, and their impact on firm value.

Methodology/approach – Use a sample of SWF large U.S. investments where SWFs intend to actively engage with management to analyze not only whether but also why SWF investments outperform the market in both the short- and long term from the perspective of internationalization, political connections, and corporate governance.

Findings – Foreign and politically connected large investors, like SWFs, improve firm value through the provision of SWF domestic market access and government-related contracts. In the short run, the market welcomes SWF investments in expectation of potential monitoring and internationalization benefits. In the long run, the target firms’ degree of internationalization and Tobin's q increase substantially after SWF investments. The increase in q is directly related to the number of government-related contracts granted by SWF countries.

Social implications – SWF investment benefits appear to outweigh the costs for firm value and shareholders. The results point to the benefits of large and foreign investors for shareholders.

Originality/value of paper – This is the first work to provide evidence on how foreign government-related shareholders can affect firm value.

This study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an empirical model to test whether deglobalization exists in the world economy. The consequences of deglobalization are discussed.

Various measures for deglobalization are introduced for monitoring the deglobalization of a country, and statistical measures are reported. The research framework for deglobalization and empirical models are suggested. The relationship between deglobalization and globalization is being modeled using three KOF globalization indexes: economic, political and societal. This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.

Deglobalization has been found empirically since the global financial crisis. Deglobalization is estimated by the decreasing trend of import share in a country's gross domestic product and is influenced by manufacturing imports, country's income divide and political globalization. Both economic and societal globalizations have negative influence on deglobalization. Deglobalization is more apparent in developed countries than in developing countries, and the deglobalization trend will continue in diverse formats.

This study limits the use of few variables to test the antecedents of deglobalization. Another study can be done to extend preceding variables and estimate the consequences of deglobalization, which may segregate the globalization effect. The international business executive should understand the complexity of deglobalization and consider business benefits and risks to be encountered.

This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.

Although the concept of culture as a means of control seems to be rather vague and ambiguous, no one can deny its importance, especially in the case of the Japanese multinational companies and issues linked to their control over overseas segments. Cultural control has always occupied a central position, not only in terms of the relationship between Japanese parent companies and their subsidiaries, but also in anything that has to do with the interaction of Japanese management accounting with the rest of the world. This paper offers a fresh view on the issue by building a multinational model and then looking into the effect of this type of control on the relationship between the Japanese parent companies and their overseas subsidiaries. This approach is expected to identify a new angle of looking into the issue and provide insight for further, more dynamic rather than static frameworks in future research.

Who can forget Bhopal? The December 1984 catastrophe claimed more than 2,850 lives and left tens of thousands injured. Yet, despite these tragic consequences, Indian Prime Minister Rajiv Gandhi withheld his criticism of Union Carbide Co. Instead, he acknowledged the positive contributions of multinational corporations (MNCs) and suggested that their influence would increase, not decrease, in India. Gandhi said, “We would like foreign businesses to help in the goal of building a new, dynamic, and self‐reliant economy.”