Search results

1 – 10 of over 25000
To view the access options for this content please click here
Book part

Desislava Dikova, Ahmad Arslan and Jorma Larimo

We investigate the effect of distance – political, economic, cultural and spatial, on developed-economy multinational enterprises’ (MNEs’) ownership decisions in…

Abstract

We investigate the effect of distance – political, economic, cultural and spatial, on developed-economy multinational enterprises’ (MNEs’) ownership decisions in cross-border (CB) acquisitions. We start with the premise that distance discourages full and majority ownership in CB acquisitions, and further investigate the moderating role of distance-reducing factors. We examine how the relationship between distance and acquisition ownership decision is moderated by firm-specific characteristics, such as firm size, general international experience, and specific host country experience. Our data sample consists of 1,041 CB acquisitions under taken by Finnish MNEs in 58 countries during the time period 1990–2010. We find substantial support for all our hypotheses and conclude that the negative effects of distance on CB acquisition equity stake are positively moderated by the three firm-specific resources but their individual importance is conditional on the host country type (developed or emerging).

Details

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

Keywords

To view the access options for this content please click here
Article

Anders Pehrsson

Establishment of wholly owned subsidiaries in a foreign market is central to international marketing because sole ownership and high commitment facilitate firm's marketing…

Abstract

Purpose

Establishment of wholly owned subsidiaries in a foreign market is central to international marketing because sole ownership and high commitment facilitate firm's marketing in the local market. Drawing on knowledge-based theory, this study extends the current understanding of firm's sequential establishments of wholly owned subsidiaries in a host country.

Design/methodology/approach

Swedish firms' establishments of wholly owned subsidiaries in Germany, the United Kingdom and the United States were analyzed using a longitudinal approach.

Findings

A firm's broad international experience is associated with an acquisition in any phase, while mode experience and value-adding experience are associated with postinitial acquisitions. There is no association between mode experience and greenfield investments.

Research limitations/implications

Knowledge-based theory explains a firm's choice of establishment mode when establishing in the same host country. Effects of marketing experiences are due to the establishment mode and different experiences explain choices for initial and postinitial establishments.

Practical implications

In choosing between a wholly owned subsidiary in terms of an acquisition or a greenfield investment, for a foreign establishment the firm is advised to consider the impact of marketing experiences and establishment phase.

Originality/value

Research is needed on how experiences affect choices between foreign establishment modes where the firm is the sole owner. This study is the first to focus on the choice between wholly owned subsidiaries in terms of acquisitions and greenfield investments, and the impact of experience and phase of establishment in a particular host country.

Details

International Marketing Review, vol. 37 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article

Diego Quer, Laura Rienda, Rosario Andreu and Si Miao

The conventional wisdom suggests that the lack of prior host country-specific experience and a higher institutional distance deter multinational enterprises (MNEs) from…

Abstract

Purpose

The conventional wisdom suggests that the lack of prior host country-specific experience and a higher institutional distance deter multinational enterprises (MNEs) from entering a foreign country. However, past studies report that Chinese MNEs show an unconventional risk-taking behavior choosing foreign locations, where they have no prior experience or there is an increased institutional distance. Drawing on the institutional theory, the purpose of this paper is to argue that Chinese Government official visits to the host country may act as a risk-reduction device, thus providing an explanation for such an unconventional behavior.

Design/methodology/approach

The authors develop two hypotheses regarding how Chinese Government official visits moderate the impact of host country-specific experience and institutional distance on the location choice of Chinese MNEs. The authors test the hypotheses using a sample of investment location decisions by Chinese MNEs in Latin America.

Findings

The authors find that government official visits mitigate the lack of firm’s prior host country experience. However, only high-level government visits reduce institutional distance.

Originality/value

The authors contribute to the international business literature by analyzing how home country government diplomatic activities may pave the way of host country institutional environment for foreign MNEs from that home country. In addition, the authors provide an additional explanation for the unconventional risk-taking behavior of Chinese MNEs. Finally, the authors also contribute to a better understanding of the decision-making process of emerging-market MNEs entering other emerging economies.

Details

Cross Cultural & Strategic Management, vol. 26 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

To view the access options for this content please click here
Book part

Yi Wang and Jorma Larimo

In this study, we analyze the general effect of acquirers’ ownership strategy on the survival in foreign acquisitions. Furthermore, we attempt to address five potential…

Abstract

In this study, we analyze the general effect of acquirers’ ownership strategy on the survival in foreign acquisitions. Furthermore, we attempt to address five potential moderating effects: international, regional, target country experience, cultural distance, as well as host country development. The developed hypotheses are tested on a sample of 1,345 acquisitions made by 174 Finnish firms in 59 countries during 1980–2005. The results indicate that in general WOS increases the probability of survival of foreign acquired units. We further find that the impact of WOS on the survival of foreign acquired units is contingent upon cultural distance and host country development but not on the experience of buying firms.

Details

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

Keywords

Abstract

Details

Internationalization of Firms: The Role of Institutional Distance on Location and Entry mode
Type: Book
ISBN: 978-1-78714-134-6

Abstract

Details

Internationalization of Firms: The Role of Institutional Distance on Location and Entry mode
Type: Book
ISBN: 978-1-78714-134-6

To view the access options for this content please click here
Book part

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

To view the access options for this content please click here
Article

Rizwan Tahir

This study aims to empirically explore how mentoring can help Western expatriates before, during and after the overseas assignment in the United Arab Emirates (UAE).

Abstract

Purpose

This study aims to empirically explore how mentoring can help Western expatriates before, during and after the overseas assignment in the United Arab Emirates (UAE).

Design/methodology/approach

This qualitative study is built on 20 in-depth interviews with Western expatriates currently working and living in the UAE.

Findings

This study demonstrates that expatriate mentoring is an important area largely unexplored in the literature. The results establish that host-country mentors are fundamentally responsible for helping expatriates to develop common problem-focused coping tactics, whereas home-country mentors predominantly address emotionally focused coping tactics during the pre-departure and repatriation phase of the expatriation process.

Research limitations/implications

Over 30 years’ worth of research literature was searched within the following major databases: ABI/INFORM, ERIC and PsycINFO. These databases contained articles, mainly in English, of limited scope, i.e. more academic than practical. This may have led to the omission of some expatriate mentoring approaches applied in practice by human resources managers, especially in countries where English is not the first language.

Practical implications

Mentors in both the host and home countries are crucial in assisting and supporting expatriates in developing constructive coping strategies that enhance the likelihood of a successful expatriation experience.

Originality/value

There is insufficient research in expatriate mentoring, which this study aims to address by focusing on Western expatriates in the UAE, a vibrant Arab, Muslim country whose local business environment is very different from that of China, Europe and the USA, which have been the main focus of prior research.

Details

Journal of Workplace Learning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-5626

Keywords

To view the access options for this content please click here
Article

Katharina Laufs, Michael Bembom and Christian Schwens

Using arguments from the upper echelons perspective this paper aims to examine the impact of CEO characteristics on small and medium-sized enterprises’ (SMEs’) equity…

Abstract

Purpose

Using arguments from the upper echelons perspective this paper aims to examine the impact of CEO characteristics on small and medium-sized enterprises’ (SMEs’) equity foreign market entry mode choice and how these associations are jointly moderated by geographic experience of the firm and host-country political risk.

Design/methodology/approach

The empirical analysis draws on data gathered from German SMEs testing triple-interaction effects between CEO’s age, firm tenure and international experience, geographic experience of the firm (organizational level), and host-country political risk (environmental level).

Findings

Empirical findings validate that the influence of CEO’s age and firm tenure on SME foreign market entry mode choice varies by managers’ level of managerial discretion (i.e. latitude of action) as determined by the SME’s geographic experience and the level of political risks prevailing in the foreign market.

Practical implications

Empirical findings help SME owners and managers to understand how CEO’s age and firm tenure are related with individual’s risk-taking behavior and information-processing demands and how these contingencies vary by the context in which the individual CEO is nested.

Originality/value

This study contributes to the growing body of literature focussing on SME foreign market entry mode choice by emphasizing the important role of CEOs in the decision to internationalize. More specific, this study contributes by an examination of the interactive effect of CEO’s age, firm tenure and international experience, geographic experience of the firm and host-country political risk and, therefore, emphasizes the context and boundary conditions under which the association between CEO characteristics and foreign market entry mode choice is more or less pronounced.

Details

International Marketing Review, vol. 33 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article

Laura Guerrero and Luciana Turchick Hakak

A dark side of global mobility is that many immigrants have negative work outcomes. Studies have analyzed the antecedents to poor work outcomes from the immigrants’ point…

Abstract

Purpose

A dark side of global mobility is that many immigrants have negative work outcomes. Studies have analyzed the antecedents to poor work outcomes from the immigrants’ point of view or from that of host country nationals. The purpose of this paper is to propose a relational model, which applies terror management theory to address how the economic mobility beliefs of immigrants and host country nationals interact and how these different combinations of beliefs affect the self-esteem of immigrants.

Design/methodology/approach

This theoretical model considers the impact of the social interactions between immigrants and host country nationals when immigrants’ mortality is salient.

Findings

In hostile environments that make immigrants’ mortality salient, lack of confirmation of immigrants’ beliefs about economic mobility from host country nationals can lead to a decrease in immigrants’ self-esteem and therefore to negative work outcomes.

Practical implications

As the number of immigrants grows, so do concerns about their ability to contribute to the economy. Lack of confirmation of their beliefs in a context in which their mortality is salient, is likely to lead to lower self-esteem and perhaps other negative outcomes.

Originality/value

This paper is the first, to the authors’ knowledge, to use terror management theory to advance our understanding of the outcome of a lack of confirmation from host country nationals of immigrants’ beliefs on economic mobility under conditions of mortality salience.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 7 no. 2
Type: Research Article
ISSN: 2049-8799

Keywords

1 – 10 of over 25000