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Book part
Publication date: 25 October 2014

Katrin Held and Nicola Berg

In developed markets, emerging market multinational enterprises (EMNEs) seem to be more discriminated by host country nationals than foreign developed market multinational…

Abstract

Purpose

In developed markets, emerging market multinational enterprises (EMNEs) seem to be more discriminated by host country nationals than foreign developed market multinational enterprises (DMNEs). They are challenged with host country nationals’ prejudices and face a stigma of being from emerging markets. While literature agrees that EMNEs suffer from additional disadvantages due to their country-of-origin, research fails to identify those factors that may lead to a higher discrimination against EMNEs than against foreign DMNEs.

Design/methodology/approach

Based on institutional theory, we look at institutional-related and resource-related antecedents that have an impact on various forms of direct and indirect discrimination by host country nationals.

Originality/value

Our framework analyzes the crucial differences between host country nationals’ perception of EMNEs and foreign DMNEs and the resulting challenges for EMNEs in the developed world. It enhances our understanding of the importance of institutional environments in explaining differences in host country nationals’ discrimination against foreign MNEs.

Details

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

Keywords

Book part
Publication date: 26 April 2014

Konstantinos Drakos, Ekaterini Kyriazidou and Ioannis Polycarpou

This paper seeks to explain the serial persistence as well as the substantial number of zeros characterizing global bilateral investment holdings. We explore the different sources…

Abstract

Purpose

This paper seeks to explain the serial persistence as well as the substantial number of zeros characterizing global bilateral investment holdings. We explore the different sources of serial persistence in the data (unobserved country pair effects, genuine state dependence, and transitory shocks) and examine the crucial factors affecting the decision to invest in a host country.

Methodology

Based on a gravity setup, we consider investment behavior at the extensive (participation) margin and employ dynamic first-order Markov probit models, controlling for unobserved cross-sectional heterogeneity and serial correlation in the transitory error component, in order to explore the sources of persistence. Within this modeling framework we explore the importance of institutional quality of the host country in attracting foreign investment.

Findings

The data support that the strong persistence is driven by true state dependence, implying that past investment experiences strongly impact on the trajectory of future investment holdings. Institutional quality appears to play a significant role to attract foreign investment.

Research implications

The empirical findings suggest that due to the existence of genuine state dependence, inward-investment stimulating policy measures could have a more pronounced effect since they are likely to induce a permanent change to the future trajectory of inward investment.

Originality

Both the substantial number of zeros and the salient persistence characterizing bilateral investment holdings decision have been previously overlooked in the literature. A study modeling jointly the levels and the selection mechanism could prove a fruitful direction for future research.

Details

Macroeconomic Analysis and International Finance
Type: Book
ISBN: 978-1-78350-756-6

Keywords

Book part
Publication date: 19 April 2017

Shinya Suzuki, René Belderbos and Hyeog Ug Kwon

We examine the determinants of multinational firms’ propensity to conduct R&D activities in host countries, with specific attention to the influence of host countries’ university…

Abstract

We examine the determinants of multinational firms’ propensity to conduct R&D activities in host countries, with specific attention to the influence of host countries’ university research. We consider heterogeneous locational drivers related to the type of R&D activity: basic research, applied research, development for local markets, and development for global markets. Drawing on official survey data on R&D activities by 498 Japanese multinational firms in 24 host countries and estimating two-stage models, we find that the likelihood that firms conduct R&D in a host country is generally increasing in the strength of university research. Conditional on a firm’s R&D presence, university research strength is associated with a greater propensity to conduct (basic) research activities rather than (local) development, while the intensity of host country university–industry collaboration is most strongly associated with applied research. Host country experience and the depth of the firm’s manufacturing presence are also associated higher propensities to engage in research.

Article
Publication date: 3 November 2023

Jie Yu, Changjun Yi and Huiyun Shen

This paper aims to study whether the adoption of an entry mode that fits the social trust level contributes to the improvement of foreign subsidiary performance.

Abstract

Purpose

This paper aims to study whether the adoption of an entry mode that fits the social trust level contributes to the improvement of foreign subsidiary performance.

Design/methodology/approach

The authors used the Probit model, linear regression, strategic fit approach and instrumental variable regression. The sample was made up of 11,095 observations of Chinese multinational enterprises' foreign subsidiaries in 54 countries from 2005 to 2020.

Findings

The results suggest that a host country with a high level of social trust results in fewer difficulties for enterprises in gaining legitimacy, thus foreign subsidiaries are more likely to select the wholly owned entry mode. The results also show that the effect is contingent on the formal institutions of host countries. The results of the mechanism test suggest that social trust influences subsidiaries' entry mode choice by reducing information asymmetry, costs and uncertainty risks. This study further finds that selecting a fit entry mode based on social trust level substantially increases foreign subsidiary performance and this effect is more significant when multinational enterprises (MNEs) are state-owned enterprises (SOEs).

Research limitations/implications

The main limitation of this paper is its only focus on foreign subsidiaries of Chinese MNEs, which may limit the generalizability of research findings.

Originality/value

This paper responds to the call for conducting more research on informal institutions. Findings highlight the critical role of informal institutions in helping foreign subsidiaries in gaining legitimacy in host countries and the essentialness of selecting a fit entry mode based on the informal institutions of host countries for the development of foreign subsidiaries.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 19 May 2023

Jingyu Jia and Ping Wu

State-owned firms play important roles in Chinese cross-border acquisition (CBA) activities. However, compared with private firms, state-owned firms have a lower likelihood of…

Abstract

Purpose

State-owned firms play important roles in Chinese cross-border acquisition (CBA) activities. However, compared with private firms, state-owned firms have a lower likelihood of acquisition completion and take longer to complete a deal. This paper aims to determine why this phenomenon exists and how state-owned firms can overcome the constraints of their identity.

Design/methodology/approach

By integrating organizational learning theory with institutional theory, this paper attempts to answer the research questions from a legitimacy perspective. Employing Chinese CBA data from 1982 to 2014, the authors use a logit model and a random effects model to test the hypothesis.

Findings

The results show that a state-owned identity easily causes legitimacy concerns among host country regulatory agencies; thus, it may result in longer and more uncertain evaluation behaviors, which lead to a lower likelihood of CBA completion and a longer deal duration. Only experience with failed acquisitions can increase CBA completion probability. Furthermore, in very complex decision-making environments, such as that surrounding deal duration, only specific types of experience (i.e. experience of failed international acquisitions) can trigger learning behavior, whereas general experience (i.e. failed acquisition experience) has little influence. Favorable bilateral relationships may not improve the completion rate and efficiency of state-owned firms, but high-quality host country institutions lead to a higher likelihood of CBA completion among state-owned firms; however, this may be not conducive to decreasing the time needed to complete an acquisition deal.

Originality/value

First, by discussing the completion rate and duration of CBAs conducted by state-owned firms and analyzing the factors that influence them, this paper enriches and develops the theory of organizational overseas mergers and acquisitions (M&As). Second, by adopting a legitimacy perspective and integrating institutional theory, the authors theorize how state-owned status influences firms’ M&A completion rate and time and test the hypotheses empirically; thus, this paper improves and deepens institutional theory. Third, by discussing how different types of experience (i.e. successful experience vs failed acquisition experience) influence the acquisition completion rate and duration and how general experience and specific types of experience affect these two dependent variables differently, this paper explains how state-owned firms can learn effectively from experience, contributing to organizational learning theory.

Open Access
Article
Publication date: 24 July 2023

Shahrokh Nikou and Monika Luukkonen

Due to high demand for international talents and skilful workforces, many countries around the world, especially the ageing populations are now looking for new ways and strategies…

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Abstract

Purpose

Due to high demand for international talents and skilful workforces, many countries around the world, especially the ageing populations are now looking for new ways and strategies to attract more international talent. Drawing on push-pull factor theory, integrated with theory of reasoned action (TRA), this research examines international students' intention to stay or to leave the host country after completion of the students' studies.

Design/methodology/approach

A conceptual model has been proposed and evaluated aimed at understanding the factors that influence the decision-making of international students studying in Finland. Data were collected from a sample of 292 international students in Finland and structural equation modelling (SEM) was used to analyse the data and examine the relationships between various constructs in the model.

Findings

The SEM results show that several factors influence students' decision to stay or leave the host country after graduation. Aspects related to host country, institutional and economic factors and social influence (norms) directly impact students' attitude towards staying. In addition, attitude towards staying not only has a direct impact on the intention to stay, but also mediates the relationship between different pulling factors and students' intention to stay in the host country. Moreover, challenges and barriers (such as local language, challenge of finding employment and challenge of assimilating into the community or making friends) have a negative impact on the decision to stay in the host country.

Originality/value

This study uses push-pull theory in the Finnish context, contributing to the growing body of literature on international education policies and practices. The findings highlight the need for a more holistic approach to supporting international students, one that considers the students' unique needs and experiences in the host country and provides the students with the necessary resources and support to succeed.

Details

Higher Education, Skills and Work-Based Learning, vol. 14 no. 1
Type: Research Article
ISSN: 2042-3896

Keywords

Article
Publication date: 24 July 2023

Huating Zhou, Yuwei Hou and Hong Wang

The purpose of this paper is to explore the social responsibility performance’s current situation, influencing factors and mechanisms of multinational companies (MNCs) in China…

Abstract

Purpose

The purpose of this paper is to explore the social responsibility performance’s current situation, influencing factors and mechanisms of multinational companies (MNCs) in China. The paper is based on the MNC’s social responsibility performance factors to find some relevant reasons for unsatisfied performance and on the multiple perspectives such as institutional distance and stakeholders, to provide feasible solutions for MNCs to assume civic responsibility and the high-quality development of the host country.

Design/methodology/approach

The study uses general literature review and empirical analysis to analyze the way and degree of various factors which are affecting the social responsibility of MNC in China, and supplements the deficiencies of previous studies.

Findings

The paper reveals the influencing factors and mechanisms of MNCs’ social responsibility in China through the regression results. In addition, based on Research Report on Corporate Social Responsibility of China (Huang et al., 2013/2019), the paper also summarizes the performance and dynamic changes of MNCs social responsibility in the Chinese market in the past decade.

Originality/value

The paper enriches research on the social responsibility of MNCs in the background of non-western countries, dynamically describes the performance of MNCs’ responsibilities in a 10-year span and solves the problem of inconsistent research conclusions caused by too long time span. The paper also creates the “local enterprise responsibility level” to quantify the development of the host country’s responsibility, and identifies the “responsibility demonstration effect” of state-owned enterprises and private enterprises.

Details

Social Responsibility Journal, vol. 20 no. 3
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 29 June 2023

Alvar Castello Esquerdo, Andrei Panibratov and Daria Klishevich

Drawn from the push–pull perspective, this research aims to identify the determinants of Chinese technology's outward foreign direct investments (OFDI) into the Eurasian region.

Abstract

Purpose

Drawn from the push–pull perspective, this research aims to identify the determinants of Chinese technology's outward foreign direct investments (OFDI) into the Eurasian region.

Design/methodology/approach

The authors argue that contrary to the extant literature, technology-driven OFDI from emerging-market multinationals (EMNEs) do not always seek developed countries, and EMNEs' technology investments in emerging economies are rising indicating that there are factors in these economies that can prove attractive. The authors recognize the influence of the macroeconomic environment and the interaction of home and host-country institutional contexts that influence the location choice of EMNEs technology-driven OFDI into other emerging economies, mediated by the industry sector and firm's ownership structure. The authors test our hypotheses using a sample of 1,656 observations of Chinese MNEs' tech-investments in the Eurasian region from 2005 to 2019.

Findings

The study results indicate that bilateral diplomatic relations pave the way of the host-country institutional environment for Chinese MNEs uncovering the role of the Chinese government as an OFDI facilitator. This study also unveils a lower technology level of the Chinese MNEs' investments in the Eurasian region connoting an interest in market opportunities exploitation through their existing technologies – through its comparative advantage in the global markets – rather than strategic assets acquisition aiming at augmenting their technological capabilities. This trend is similar to that of other major foreign direct investment (FDI) source countries.

Originality/value

This research contributes to a better understanding of the characteristics and the location choice of technology investments from EMNEs into other emerging economies that have received scant attention in the literature. In addition, it extends the institutional theory by analyzing how home-country institutions, through bilateral diplomatic relations, may smooth the host country institutional environment for home-country MNEs' foreign investments and contributes as well to the debate on the applicability of the existing theoretical framework in the case of emerging-market MNEs.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 1 April 2002

Tim Mazzarol and Geoffrey N. Soutar

Examines the factors motivating international student choice of the host country. It describes a “push‐pull” model motivating the student’s desire to seek overseas education and…

45168

Abstract

Examines the factors motivating international student choice of the host country. It describes a “push‐pull” model motivating the student’s desire to seek overseas education and influencing the decision process in selection of a final study destination. Drawing on the findings from research studies undertaken in Indonesia, Taiwan, China and India, the paper examines the factors influencing host country selection and additional research that examines the factors influencing choice of final host institution. Based on these findings the paper argues that economic and social forces within the home country serve to “push” students abroad. However, the decision as to which host country they will select is dependent on a variety of “pull” factors. After drawing together the findings, the paper then examines the implications for governments and education institutions seeking to recruit international students.

Details

International Journal of Educational Management, vol. 16 no. 2
Type: Research Article
ISSN: 0951-354X

Keywords

Article
Publication date: 20 April 2023

Susan Dun and Hatim Rachdi

This paper aims to evaluate the FIFA requirement that World Cup host nations make alcohol available at World Cup stadia because of its sponsorship agreement with Anheuser-Busch…

Abstract

Purpose

This paper aims to evaluate the FIFA requirement that World Cup host nations make alcohol available at World Cup stadia because of its sponsorship agreement with Anheuser-Busch. This paper suggests a framework that FIFA should use in evaluating potential host nations to address the ethical implications of alcohol at the World Cup, especially considering the recent Qatar 2022 World Cup, the first to be held in an Islamic Country.

Design/methodology/approach

Using historical analysis of recent World Cups and guided by the Culture-Centered Approach (Dutta, 2008) and stakeholder analysis literature, this paper examines the ethical dilemmas host nations have faced because of FIFA’s insistence on alcohol sales at World Cup stadia.

Findings

The analysis suggests that a three-step process of host country assessment, stakeholder mapping and negotiation would enable the discovery of potential ethical conflicts and thus their negotiation to mitigate the ethical conflicts FIFA’s preexisting sponsorship agreements create for some World Cup host nations, especially Islamic countries.

Research limitations/implications

While the framework is conceptual and has not been tested, the components from which the authors draw are well established. The application to mega events sports hosting negotiations is an original contribution. The interdisciplinary nature of the framework also provides a contribution to the research field.

Practical implications

Application of the framework would enable FIFA and host countries to negotiate mutually agreeable conditions and avoid placing host nations in ethically compromising situations, which is especially timely as FIFA expands into Islamic countries. Its utilization would provide a Halal environment for World Cups hosted in Islamic and perhaps other, countries.

Social implications

FIFA’s commitment to alcohol at World Cups should be questioned. FIFA should not expand this dangerous practice of associating sports with alcohol. Female fans may feel safer, as occurred in Qatar 2022.

Originality/value

This paper's framework uniquely combines communication and strategic management literature and applies it to mega sports events in an original way that would lead to more ethical and culturally contextualized World Cups rather than reifying the alcohol–sport nexus.

Details

Journal of Islamic Marketing, vol. 15 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

21 – 30 of over 39000