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Article
Publication date: 27 May 2014

Qiang Zhang

Viewing business groups as institutionally embedded agents, the purpose of this paper is to theoretically addresses the distinctions between institutional embeddedness renewal and…

Abstract

Purpose

Viewing business groups as institutionally embedded agents, the purpose of this paper is to theoretically addresses the distinctions between institutional embeddedness renewal and overembeddedness, and empirically analyzes the proposed effecting mechanisms in the context of China.

Design/methodology/approach

The paper predicts the specific performance effects accompanying the collective and local processes governing systematic institutional embeddedness phenomena, and examine the proposed hypotheses using a real experimental setting of Chinese business groups during the period of enterprise reform and stock market liberalization, employing data on 38 business groups in the textile industry from 2000 to 2008.

Findings

The results of the econometric analysis support an optimistic view that business groups can strategically renew their embeddedness even in the late stages of market-oriented institutional transition as in China. Specifically: first, the positive effect of the self-enhancing isomorphic pressure around both the new and the old institutions implies the relative dominance of systematic institutional embeddedness renewal within business group communities; second, at the local level, institutional strategies promoting the market orientation of adopted organizational forms bring about not only positive but also negative effects, suggesting the need to manage a simultaneous significant risk of overembeddedness.

Originality/value

The paper establishes an institutional strategy framework to predict potential effects associated with systematic institutional embeddedness phenomena, such as institutional embeddedness renewal and overembeddedness, in the context of market-oriented institutional transition.

Article
Publication date: 30 September 2020

Cristina Doritta Rodrigues, Felipe Mendes Borini, Muhammad Mustafa Raziq and Roberto Carlos Bernardes

This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D…

Abstract

Purpose

This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D) capacity. Furthermore, it examines whether these relationships are mediated by subsidiary product and process innovation, and whether institutional distance plays a moderating role in the relationship between subsidiary innovation and R&D capacity.

Design/methodology/approach

The authors draw on survey data from 130 foreign subsidiaries operating in Brazil and test their model using variance-based structural equation modeling.

Findings

Results suggest that subsidiary (product and process) innovation fully mediates the relationships between: subsidiary external embeddedness and R&D capacity; and institutional distance and subsidiary R&D capacity, such that the relationship is positive in case of the former and negative in case of the latter. The relationship between subsidiary product and process innovation and R&D capacity is positive and stronger at lower levels of institutional distance.

Originality/value

The research ignores the underlying mechanisms of the external embeddedness and institutional distance relationship with subsidiary R&D capacity. Furthermore, institutional distance based on formal governance aspects and their impacts on subsidiary innovation and R&D capacity are rarely investigated. This paper contributes with regard to these aspects.

Details

Journal of Knowledge Management, vol. 24 no. 10
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 27 December 2021

Uǧur Yetkin and Deniz Tunçalp

This paper aims to review the immigrant entrepreneurship literature to locate how researchers consider embeddedness to home and host countries beyond the “embedded” or “not”…

Abstract

Purpose

This paper aims to review the immigrant entrepreneurship literature to locate how researchers consider embeddedness to home and host countries beyond the “embedded” or “not” dichotomy.

Design/methodology/approach

The paper conducts a systematic literature review. The authors found 106 articles in the Scopus and Web of Science databases, using a structured search and selection protocol.

Findings

Few articles perceive embeddedness openly as a gradual phenomenon. However, articles in the review use different approaches for considering relative levels of embeddedness, such as depth of social ties. In addition, some articles take a dual perspective or make multi-contextual comparisons to acknowledge immigrant entrepreneurs’ embeddedness levels. These articles emphasise embeddedness as a gradual phenomenon to understand the complexity of immigrant entrepreneurs’ contextualisation better. Based on the review, the paper develops a model, considering embeddedness as an emergent result of the immigrants’ engagement with spaces, networks, markets and institutions of a given home or host context. It also accounts for the dynamic interaction between contextual factors as embeddedness levels change.

Research limitations/implications

The paper has located all relevant papers in the used databases. However, the systematic review protocol naturally limits its scope. Nevertheless, the developed model based on the review helps researchers develop a more comprehensive understanding of embeddedness and possibly ask novel questions.

Social implications

This paper can help policymakers improve their policies for the progressive social integration of immigrants, as it helps consider different embeddedness levels.

Originality/value

Researchers mainly consider individuals’ embeddedness as either “embedded” or “not.” However, we can also understand embeddedness at various levels, e.g. partial, increasing/decreasing and gradual. Significant changes occur in the embeddedness of individuals during immigration. Additionally, contextual relations intertwine immigrants’ entrepreneurial activity over time. The paper reviews embeddedness in the immigrant entrepreneurship literature, searching beyond the dichotomic use of embeddedness. Then, it develops a theoretical understanding of embeddedness levels.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 17 no. 3
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 8 December 2022

Nicolas Li, Dhruba Borah, Jihye Kim and Junzhe Ji

This study investigates the role of transnational mixed-embeddedness when transnational entrepreneurial firms (TEFs) become internationalized. First-generation immigrant…

Abstract

Purpose

This study investigates the role of transnational mixed-embeddedness when transnational entrepreneurial firms (TEFs) become internationalized. First-generation immigrant entrepreneurs who maintain business arrangements in their home and host countries own TEFs. In many cases, they internationalize from emerging economies to advanced economies. Nevertheless, this study focuses on TEF cases that internationalize from an advanced to an emerging economy, which prior transnational entrepreneurship studies have largely overlooked.

Design/methodology/approach

This research uses a qualitative approach based on six TEF case studies from Canada and the UK venturing into China to explore TEFs' internationalization.

Findings

The case studies explore the elements that constitute TEFs' cognitive and relational embeddedness—two main types of embeddedness—in home and host countries and how TEFs exploit such embeddedness for their internationalization. The results suggest that high levels of transnational mixed-embeddedness help TEFs reduce resource and institutional distance barriers in home countries, thereby assisting their internationalization. A framework that visualizes the role of transnational mixed-embeddedness in TEFs' internationalization and novel categorizations of transnational mixed-embeddedness is proposed.

Originality/value

Although there has been a growing demand for research on the emergence of internationalized smaller firms, there have been few empirical efforts on TEFs' internationalization. It is still unclear how TEFs internationalize differently than homegrown entrepreneurial firms. This study fills this gap in transnational entrepreneurship literature by examining the influence of transnational mixed-embeddedness on TEFs' internationalization.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 1 January 2013

ChunLei Yang and Sven Modell

The purpose of this paper is to explore how performance management practices are implicated in the exercise of power with particular reference to the ability of individual…

3041

Abstract

Purpose

The purpose of this paper is to explore how performance management practices are implicated in the exercise of power with particular reference to the ability of individual managers to balance between more or less institutionalized conceptions of performance while pursuing organizational change.

Design/methodology/approach

The paper builds on a longitudinal field study in a Chinese local government department conducted over a period of six years.

Findings

Recent reforms in the Chinese government sector have resulted in an incomplete shift between moral‐ and merit‐based conceptions of performance. The focal manager in this analysis initially balanced successfully between these conceptions of performance whilst pursuing a degree of organizational change, but was ultimately transferred as the power relationships forged through her manoeuvring were radically reversed. Whilst this balancing act was facilitated by the simultaneous embeddedness of the manager in both conceptions of performance, she experienced growing difficulties in maintaining such a position as a means of nurturing critical power relationships.

Research limitations/implications

The empirical analysis underscores the importance of examining institutional embeddedness as a multi‐layered phenomenon constituted by institutionalized expectations as well as internalized values and beliefs of individual actors. The varying degree of alignment of these constituent elements of embeddedness has important implications for the ability of managers to balance between diverse conceptions of performance and effect change and the configuration of power relationships.

Originality/value

In contrast to much previous research on performance measurement and management the paper analyzes power as a dynamic and relational concept. The study also sheds new light on the notion of institutional embeddedness by underlining its multi‐layered nature and how this gives rise to potential value conflicts among individual actors.

Details

Accounting, Auditing & Accountability Journal, vol. 26 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Book part
Publication date: 25 July 2008

Rhonda L.P. Koster

Towns and cities across Canada face rapidly changing economic circumstances and many are turning to a variety of strategies, including tourism, to provide stability in their…

Abstract

Towns and cities across Canada face rapidly changing economic circumstances and many are turning to a variety of strategies, including tourism, to provide stability in their communities. Community Economic Development (CED) has become an accepted form of economic development, with recognition that such planning benefits from a more holistic approach and community participation. However, much of why particular strategies are chosen, what process the community undertakes to implement those choices and how success is measured is not fully understood. Furthermore, CED lacks a developed theoretical basis from which to examine these questions. By investigating communities that have chosen to develop their tourism potential through the use of murals, these various themes can be explored. There are three purposes to this research: (1) to acquire an understanding of the “how” and the “why” behind the adoption and diffusion of mural-based tourism as a CED strategy in rural communities; (2) to contribute to the emerging theory of CED by linking together theories of rural geography, rural change and sustainability, and rural tourism; and (3) to contribute to the development of a framework for evaluating the potential and success of tourism development within a CED process.

Two levels of data collection and analysis were employed in this research. Initially, a survey of Canadian provincial tourism guides was conducted to determine the number of communities in Canada that market themselves as having a mural-based tourism attraction (N=32). A survey was sent to these communities, resulting in 31 responses suitable for descriptive statistical analysis, using Statistical Package for the Social Sciences (SPSS). A case study analysis of the 6 Saskatchewan communities was conducted through in-depth, in person interviews with 40 participants. These interviews were subsequently analyzed utilizing a combined Grounded Theory (GT) and Content Analysis approach.

The surveys indicated that mural development spread within a relatively short time period across Canada from Chemainus, British Columbia. Although tourism is often the reason behind mural development, increasing community spirit and beautification were also cited. This research demonstrates that the reasons this choice is made and the successful outcome of that choice is often dependent upon factors related to community size, proximity to larger populations and the economic (re)stability of existing industry. Analysis also determined that theories of institutional thickness, governance, embeddedness and conceptualizations of leadership provide a body of literature that offers an opportunity to theorize the process and outcomes of CED in rural places while at the same time aiding our understanding of the relationship between tourism and its possible contribution to rural sustainability within a Canadian context. Finally, this research revealed that both the CED process undertaken and the measurement of success are dependent upon the desired outcomes of mural development. Furthermore, particular attributes of rural places play a critical role in how CED is understood, defined and carried out, and how successes, both tangible and intangible, are measured.

Details

Advances in Culture, Tourism and Hospitality Research
Type: Book
ISBN: 978-1-84950-522-2

Article
Publication date: 14 October 2013

Rocio Llamas-Sanchez, Victor Garcia-Morales and Inmaculada Martin-Tapia

– This paper aims to examine how Spanish local councils respond to changes in their institutional context by implementing a sustainable practice: Local Agenda 21 (LA21).

1186

Abstract

Purpose

This paper aims to examine how Spanish local councils respond to changes in their institutional context by implementing a sustainable practice: Local Agenda 21 (LA21).

Design/methodology/approach

This paper uses the institutional approach to explain the factors influencing the adoption of LA21. It develops a series of hypotheses about how specific institutional factors affect the town and city councils that have implemented an LA21, as well as the differences between local councils with high versus medium implementation levels.

Findings

The analysis reveals some institutional factors that explain the process of institutional change, the outcomes of LA21, and the differences between local councils.

Research limitations/implications

Only one respondent from each local council completed the questionnaire. The authors tested for common method bias and did not find it to be present.

Practical implications

From a more practical point-of-view, the authors consider LA21 to be an effective instrument for improving both the sustainability of towns and the management of local councils.

Originality/value

The paper proposes institutional theory as a perspective that can explain change in organizations. The main value of the research lies in its identification of the factors affecting the process of change and the outcomes of implementing a sustainable practice like LA21.

Details

Journal of Organizational Change Management, vol. 26 no. 6
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 18 July 2022

Ying Teng, Eli Gimmon, Sibylle Heilbrunn and Shenyi Song

This study explored the mediating effect of political embeddedness on the relationship between gender and performance of private enterprises in the emerging economy of China…

Abstract

Purpose

This study explored the mediating effect of political embeddedness on the relationship between gender and performance of private enterprises in the emerging economy of China. Political embeddedness is examined in terms of personal characteristics of owners and their firm.

Design/methodology/approach

Secondary data were collected from the Chinese Private Enterprises Survey for the years 2002, 2006, 2014 and 2016 using responses to identical questions. Tobit models were implemented to examine hypotheses related to the gender gap. A bootstrapping approach was applied to examine hypotheses related to mediation through political embeddedness.

Findings

The gender effect on enterprise performance was found to be partially mediated by political embeddedness at the personal level and even more strongly by political embeddedness at the firm level, which is beyond the well-known mediation effect of bank loans.

Research limitations/implications

The Chinese sample, in which guanxi plays a significant role with respect to women-led firms, may limit the generalizability of the findings to other emerging economies.

Practical implications

Given the mediating effects on firm performance of political embeddedness at the personal and firm levels, women business owners in China should pursue political involvement, possibly with the support of policymakers and mentors.

Originality/value

The relationship between businesswomen and political embeddedness is underexplored. This study innovates by applying the gender lens to the notion of political embeddedness and extending the construct of personal political embeddedness to the firm level.

Details

International Journal of Emerging Markets, vol. 19 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 10 July 2021

Eli Gimmon, Ying Teng and Xiaobin He

This study aims to present multi-layered embeddedness and explore the main and interaction effects of political embeddedness on the performance of private enterprises in China…

Abstract

Purpose

This study aims to present multi-layered embeddedness and explore the main and interaction effects of political embeddedness on the performance of private enterprises in China. This study tests multi-layered embeddedness through interaction effects between three layers, namely, political, territorial and inter-firm embeddedness. Political embeddedness is related at the personal and the firm levels.

Design/methodology/approach

The authors used secondary data of four non-panel waves (2002, 2008, 2010 and 2016) of large samples having identical questions based on the Chinese private enterprises’ survey. The accumulated number of business owners’ responses is a total of 10,686.

Findings

The main effects of each of the layers of embeddedness showed a positive influence on enterprise performance consistently and unchanged over time which fits the Chinese Guanxi regardless of the immense macro-economic transition. However, unexpectedly some interactions showed negative significant effects on performance.

Practical implications

First, business owners should be aware of the specific contribution to the performance of political embeddedness at both the firm level and the personal level. Second, the pursuit of exercising simultaneously several layers of embeddedness may be detrimental to company performance. This study provides generalizable lessons regarding different embeddedness layers beyond the context of China’s transition economy.

Originality/value

First, the authors extend political embeddedness to the firm level whilst in previous research this construct had been mostly related to the personal level. Second, building on the resource-based view and redundant resources the authors present the disadvantage of “over-embeddedness” as related to multi-layered embeddedness which has been understudied.

Details

Chinese Management Studies, vol. 16 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

Book part
Publication date: 8 June 2012

Kai Xu and Michael A. Hitt

This chapter contributes to the existing literature on institutional theory and international business research by integrating the concepts of polycentrism and institutional

Abstract

This chapter contributes to the existing literature on institutional theory and international business research by integrating the concepts of polycentrism and institutional learning to examine how MNEs from emerging economies invest in developed countries. We argue that equity-based market entry modes and non-equity-based modes create different needs for learning about economic, regulatory and political institutions; entry modes with or without local partners lead to different levels of institutional embeddedness and institutional learning speeds. Finally, the content of institutional knowledge also determines its transferability and adaptability. We emphasize the importance of recognizing the integrated nature of economic, regulatory and political institutions from a polycentric perspective and discuss their change in different situations.

Details

Institutional Theory in International Business and Management
Type: Book
ISBN: 978-1-78052-909-7

1 – 10 of over 7000