Search results

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

How should a multinational corporation (MNC) from a mature democracy deal with the human rights issues in a country with a poor human rights standard? The paper aims to discuss these issues.

The authors develop a mathematical model to depict MNC's behavior in response to human rights violations in the host country.

The authors show that, first, in a country with a high level of human rights abuses, a firm will have to lower its human rights standards to survive; but, second, a collective effort by all firms is essential to improve the human rights conditions in the host environment; and third, a firm's human rights practices may have a multiplicative effect that can significantly affect the momentum of human rights development in a host country.

This study is one of the first attempts to provide a theoretical framework on the issue of MNCs and human rights in host countries.

The purpose of this the paper is to review the motives for internationalization to clarify previous arguments and provide a theory-driven classification.

The authors build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation of existing resources or exploration of new resources, and a psychology-driven search for better host country conditions or avoidance of poor home country conditions.

These two dimensions result in four internationalization motives: sell more, in which the company exploits existing resources at home and obtains better host country conditions; buy better, in which the company exploits existing resources abroad and avoids poor home country conditions; upgrade, in which the company explores for new resources, and it obtains better host country conditions; and escape, in which the company explores for new resources and avoids poor home country conditions.

This theory-driven classification provides predictive power for future analyses of internationalization motives.

The paper aims to examine the locational determinants of the internationalization flows of high-tech start-ups. It also provides a picture of the current patterns of internationalization of high-tech start-ups, through a map of the most attractive countries in terms of inbound and outbound internationalization flows.

The empirical data have been obtained from a cross-country survey on internationalized high-tech start-ups operating in the ICT and electronics sectors. To explore the determinants of the intensity of internationalization flows of high-tech start-ups between a pair of countries, this study adopts a modified gravity model.

Results highlight that USA, UK and China are the most competitive countries in terms of inbound flows. This paper obtains evidence that internationalization flows of high-tech start-ups are motivated by the sourcing of host country locational advantages, identified by the strength of the legal and regulatory framework, the availability of VC financing, the innovation potential and the strength of IPR protection.

This paper adds to the international business literature in two ways. First, it provides a picture of the current patterns of internationalization for high-tech start-ups through a map of the most attractive countries in terms of inbound and outbound internationalization flows. Second, this research is an empirical attempt to understand the relationship between internationalization patterns of high-tech start-ups and attractiveness of host countries. To date, the authors are unaware of any other study that has examined the extent to which the internationalization flows of high-tech start-ups are affected by host country conditions in a cross-country context.

This paper examines how the institutional distance between immigrants' country of residence and country of origin, as well as the regulative and normative aspects of institutions in immigrants' country of residence, social context variables and individual psycho-behavioural factors, condition immigrants' entrepreneurial motivation (i.e. mainly by necessity, by a combination of necessity and opportunity, or mainly by opportunity), which is in contrast to the previous literature on immigrant entrepreneurship that mainly focuses on micro-level factors.

By using hierarchical linear regression models to test our hypotheses, the authors analyse 468 first-generation immigrant entrepreneurs settled in 31 European countries using data from the European Working Conditions Survey (6th EWCS; Eurofound, 2015 database) combined with other datasets to derive the macro-level variables (i.e. the Doing Business Project; Hofstede et al., 2010).

The authors find that distance in the normative aspects of institutions harms entrepreneurial opportunity motivation. At the same time, however, opportunity motivation is likely to benefit from both the normative aspects of institutions that reduce locals' opportunity motivation and the distance in the regulative aspects of institutions.

This article analyses immigrant entrepreneurship in Europe, which has been under-examined in the extant literature, and takes into account the micro-, meso- and macro-level factors affecting the entrepreneurial motivation of immigrants in Europe. This analysis responds to the need already highlighted by previous research to include not only micro-level factors but also meso- and macro-level factors in the analysis of immigrant entrepreneurship (Aliaga-Isla and Rialp, 2013).

Purpose – Taking a configurational perspective, this study explores if there are different market entry strategies used and if there are ideal configurations of subsidiary strategy in different types of foreign countries.

Methodology – The study is based on a sample of 238 subsidiaries of German companies that are located in 38 different countries. Capturing many different facets of the subsidiary strategy, the configuration of top performers in different environments is identified. With a ‘fit as profile deviation’ approach, it is investigated whether the strategy of the top performers indeed constitutes an ideal strategy.

Findings – The host countries of the subsidiaries can be clustered in four types: BRICs, Eastern Europe, Western Europe and the USA. Chosen market entry modes differ significantly between those four host country types. The top performing subsidiaries in each of the country types have distinct strategy patterns. However, deviation from the strategy profile of the top performers only explains the lower performance of subsidiaries in country types BRICs and Eastern Europe. Performance differences between subsidiaries in Western Europe and the USA cannot be explained with the variables captured in this study.

Research limitations/implications – Taking a configurational approach on subsidiary strategy proves to be a promising path to create new insights. But subsidiary strategy pattern alone is insufficient to explain performance in two country types. Thus, other influence factors must be investigated. Furthermore, the study did explore subsidiary strategy patterns with a cluster analysis, without ex ante hypotheses about the patterns. Hence, further studies are needed to re-investigate these patterns.

This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging markets. Favorable changes in the host government policies, market demand, firm strategy, and infrastructural conditions are hypothesized to influence the MNCs’ decision to increase resource commitments during a crisis. The hypotheses are tested with data collected in a survey of 82 MNCs during the recent Argentine financial crisis (late 2002). While all the above variables are considered by the respondents as generally important reasons for increasing resource commitments during a crisis, only favorable changes in government policies significantly influence MNCs’ decisions to change the level of resource commitments during the Argentine financial crisis. The research, managerial implications, and policy‐making implications are discussed.

Previous work in international business largely disregards the interplay between home-country conditions and firms’ geographical diversification – implying that, regardless of indigenous conditions, firms can modify their domestic performance (which the authors measure in terms of change in firms’ domestic productivity) merely by diversifying into international markets. The authors contest this view and argue that diversification does not substitute for home-country conditions. Rather, it moderates the baseline impact of home-country conditions on indigenous firms’ domestic performance. The purpose of this study is to describe these mechanisms and empirically examine their implications for indigenous firms’ performance.

The authors investigate the above model based on a 20-year longitudinal analysis of 600 observations involving telecommunication incumbents from 65 countries. They control for possible reverse causality between firms’ international diversification (and other firm-specific factors) and their domestic performance, and conduct several robustness checks.

The authors find – as hypothesized – that international diversification moderates the baseline performance impact of different home-country attributes in different ways. Such diversification does not have a uniform moderating effect on home-country attributes. In other words, the baseline effects of home-country conditions are altered as indigenous firms become more internationalized.

Theoretically, this work bridges the micro- and macro-level arguments that interweave strands from the competitive strategy and national competitive advantage literatures. By unpacking diversification’s role vis-à-vis the effect of upstream (home-country) conditions on firm performance, the authors attempt to shed light on the mechanisms that help (or hinder) indigenous firms’ performance. Empirically, this study helps to reconcile seemingly opposite views about whether and, if so, how much home-country conditions shape indigenous firms’ expansion after they have diversified internationally.

The purpose of this paper is to evaluate multinational enterprises’ (MNEs) performance and impact in contexts beyond their own internal objectives.

Based on an “eclectic” paradigm and the range of motivations, the framework is designed around three layers of evaluation: “efficiency” as static optimisation, “growth and development” as the dynamics of change on a purely economic view; political/economic sphere in terms of the outcomes of “distribution”, and “sovereignty” on the more purely political concern of how MNEs may undermine countries’ policy independence.

MNE and national economies have to use current sources of competitiveness efficiently while addressing the necessity to reinforce and refocus them through time. Within these broad agendas, significant interactions and outcomes reflect a range of contingencies conditioned by both MNE objectives and hosts’ competitive status.

The paper concerns economics and MNE role in globalisation. The paper defines a framework of four generic evaluative issues of MNE performance, which subsume a wider range of important but more niche concerns.

The governance structure of international franchise firms varies from higher control modes, such as wholly owned subsidiaries and joint venture franchising, to lower control modes, such as area development and master franchising. Based on organizational economics, strategic management, and international business perspectives, the purpose of this paper is to use the case study analysis to empirically evaluate an integrative model on the franchisor’s choice of international governance modes.

The study applies qualitative methods, such as in-depth case analysis, to investigate a large set of variables that influence the governance structure decision of the international franchise firm. Specifically, it applies a theory-testing case study with two major competitors in the European automotive rental industry, i.e. Europcar and Sixt. Theory-testing case research is justified by the lack of explanatory research due to the complexity of the franchisor-franchisee relationship phenomena, such as the factors that influence the franchisor’s choice of international governance modes. The investigation of the complex governance structure phenomenon requires a holistic analysis.

The case study shows that environmental, behavioral, transaction-specific, resource-based (system-specific, market-specific, financial resources), and international strategy considerations are important determinants of the governance mode decision of the international franchise firm.

The study responds to the recent call in organizational economics, marketing, strategic management, and international business literature to develop and test a multi-theoretical framework to explain the governance structure of inter-organizational networks, such as franchise networks.

Few previous studies in international franchising have used more than one theoretical perspective to explain the governance structure of the international franchise firm. This study contributes to the theory-testing case study literature by applying a rigorous method of conducting case research. This includes developing a theoretical framework and a systematic research design. A systematic research design requires a holistic analysis by investigating the international franchise governance modes from a variety of theoretical perspectives which are the organizational economics, strategic management, and the strategy-structure perspective.