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21 – 30 of over 5000Anu Ann Alexander, Shishir Jha and Ashish Pandey
The purpose of this paper is to examine how hybrid organisations combine institutional logics to tackle complex social needs.
Abstract
Purpose
The purpose of this paper is to examine how hybrid organisations combine institutional logics to tackle complex social needs.
Design/methodology/approach
A multiple case study design was followed, and cases were selected using a two-staged sampling process. Using qualitative analysis, the mechanisms through which logics are selected, prioritised and get integrated in the strategies and practices of these organisations are illustrated.
Findings
The study contributes to the literature on hybrid organisations and their ability to address social problems in two important ways. First, the paper reveals through the concept of institutional rationality why market-based organisations emerge to address complex social needs in a complex institutional context. Second, the study demonstrates that there is heterogeneity in how logics are blended externally in their strategies and in how logics are integrated internally within the organisation.
Research limitations/implications
All the cases are selected from India; hence the possibility that the findings are valid only for countries with similar institutional and socio-economic contexts cannot be negated.
Practical implications
The policy implication is that if business organisations should embrace social goals substantively, a regulation in the form of CSR is not enough. Instead, there should be institutional provisions to promote such hybrid organisational forms where alternative logics such as community, profession, etc., are part of the core logics of the organisation.
Originality/value
This study connects the strategic choices of organisations with their institutional logics’ configuration in the Indian context.
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Yoshitaka Okada, Sumire Stanislawski and Samuel Amponsah
In contrast to the MDGs' top-down approach, the SDGs took the bottom-up approach of participants, creating an open space for soliciting their aspirations, efforts, creativity, and…
Abstract
In contrast to the MDGs' top-down approach, the SDGs took the bottom-up approach of participants, creating an open space for soliciting their aspirations, efforts, creativity, and commitment. Inclusive business (IB), identified as the key means to alleviate poverty and inequality in developing countries, undeniably struggles in this space to find new ways of thinking and management to achieve a suitable balance between serving social needs and achieving business sustainability. However, multinational corporations have not yet made significant achievements, due to a biased orientation of including the poor into their system of developed countries' institutions. From a neutral position, not asking who includes or yields to whom, this research project proposes to use the concept of institutional interconnections and its various analytical factors to examine how diverse partners are interconnected to overcome institutional differences. Differences in interconnections are hypothesized to differentiate IB's socioeconomic effects and poverty alleviation.
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Joost Bücker, Erik Poutsma, Roel Schouteten and Carolien Nies
The purpose of this paper is to explain how and why HR practitioners perceive the need to develop international HRM practices to support short-term assignments, international…
Abstract
Purpose
The purpose of this paper is to explain how and why HR practitioners perceive the need to develop international HRM practices to support short-term assignments, international business travel and virtual assignments for internationally operating organizations.
Design/methodology/approach
The authors interviewed 29 HR practitioners from multinationals located in the Netherlands.
Findings
Alternative international assignments seem not to belong to the traditional expatriate jobs, nor to regular domestic jobs and show a liminal character. However, over the last few years we have gradually seen a more mature classification of the Short-term Assignment, International Business Traveler and Virtual Assignment categories and more active use of these categories in policymaking by organizations; this reflects a transition of these three categories from a liminal position to a more institutionalized position.
Research limitations/implications
For this research, only international HRM practitioners were interviewed. Future studies should include a broader group of stakeholders.
Practical implications
International HRM departments should take a more proactive role regarding alternative forms of international assignees. Furthermore, HR professionals may develop training and coaching and consider rewards and benefits that could provide allowances for specific working conditions that are part of international work.
Originality/value
This study is among the first to relate the framework of institutional logic and liminality to explain the why of HR support for alternative international assignees.
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Gregory Jackson and Nikolas Rathert
Multinational corporations (MNCs) utilize corporate social responsibility (CSR) to govern their global economic activities. Yet CSR adoption is influenced by institutional…
Abstract
Multinational corporations (MNCs) utilize corporate social responsibility (CSR) to govern their global economic activities. Yet CSR adoption is influenced by institutional diversity of both home and host countries. This article uses neoinstitutional and comparative capitalism theories to understand how CSR is shaped by different forms of stakeholder salience in diverse institutional contexts. Using data on labor rights CSR adoption by 629 European MNCs, our empirical results indicate that CSR complements institutionalized stakeholder power in home countries, but substitutes for its absence in host countries. Hence, CSR may paradoxically legitimate MNC behavior given both the presence and absence of stakeholder rights.
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Aaron van Klyton, Mary-Paz Arrieta-Paredes, Vedaste Byombi Kamasa and Said Rutabayiro-Ngoga
The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The…
Abstract
Purpose
The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The objectives of this study are (1) to discern between regional and global exporting and (2) to evaluate its policymaking implications.
Design/methodology/approach
Primary survey data were collected from 330 Rwandan SMEs and were analysed using ordered logistic models as an application of the expectation-maximisation iterating algorithm, which was tested for robustness using a sampling model variation.
Findings
The results show that alternative sources of finance are the predominant choice to finance the intention to export within and outside Africa. As the scope of export intentions broadened from regional to global, there was a shift in preferences from less formal to more formal lending technologies, moving from methods like factoring to lines of credit. Moreover, reliance on bank officers became more significant, with increasing marginal effects. Finally, the study determined that government financing schemes were not relevant for SMEs pursuing either regional or global exporting.
Practical implications
Whilst alternative sources of finance predominate the export intentions of Rwandan SMEs, establishing a robust banking relationship becomes crucial for global exporting. Despite this implication, the intention to export should prompt more transparent communication regarding government financial support programmes. There is an opportunity for increased usage of relationship lending to customise support for SMEs involved in exporting, benefiting both the private and public sectors.
Originality/value
This study accentuates how export distance alters SME financing priorities. The results also contribute to understanding how the value of relationship lending changes when less familiar markets (i.e. global exporting) are the objective. Moreover, the study offers a new perspective on how institutional voids affect entrepreneurial financing decisions in LICs.
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Juliano Krug and Christian Falaster
In this study, the authors argue that there is more than meets the eye on the effects over postacquisition performance and diversification. This study aims to propose that the…
Abstract
Purpose
In this study, the authors argue that there is more than meets the eye on the effects over postacquisition performance and diversification. This study aims to propose that the conditions that allow higher returns are dependent on the institutional context. The authors suggest that diversification strategies differ in their impact on postacquisition performance when moderated by the institutional inefficiencies of economies.
Design/methodology/approach
This research is based on a quantitative approach. The authors statistically test the hypotheses based on multiple regression analysis.
Findings
Results show a negative moderating effect of the institutional inefficiencies of the target country on the relationship between the diversification decisions of the firm and its postacquisition performance. So that Latin American firms that perform Cross-border acquisitions with higher degrees of diversification are related to worse performance. However, the degree of institutional inefficiencies negatively moderates this relation, attenuating the negative effects of diversification over performance.
Originality/value
Although past research has shown that economies with high institutional inefficiencies can benefit from higher levels of diversification, no study has considered the impact of the institutional inefficiencies when discussing many economies, to authors’ acknowledgment. The authors provide evidence that, in the case of Latin American firms, diversification reduces performance; however, the degree of institutional inefficiencies negatively moderates this relation.
Objetivo
Neste estudo, argumentamos que há mais do que aparenta sobre os efeitos sobre o desempenho e a diversificação pós-aquisição. Propomos que as condições que permitem maiores retornos dependem do contexto institucional. Sugerimos que as estratégias de diversificação diferem em seu impacto no desempenho pós-aquisição quando moderadas pelas ineficiências institucionais dos países.
Metodologia
Esta pesquisa é baseada em uma abordagem quantitativa. Testamos estatisticamente as hipóteses com base na análise de regressão múltipla.
Resultados
Os resultados mostram um efeito moderador negativo das ineficiências institucionais do país-alvo na relação entre as decisões de diversificação da empresa e seu desempenho pós-aquisição. Assim, firmas latino-americanas que realizam F&As com maior grau de diversificação estão relacionadas a pior desempenho. No entanto, o grau de ineficiências institucionais modera negativamente essa relação, atenuando os efeitos negativos da diversificação sobre o desempenho.
Originalidade
Embora pesquisas anteriores tenham mostrado que economias com altas ineficiências institucionais podem se beneficiar de níveis mais altos de diversificação, nenhum estudo considerou o impacto das ineficiências institucionais ao discutir diversos países. Fornecemos evidências de que, no caso das empresas latino-americanas, a diversificação reduz o desempenho, porém, o grau de ineficiências institucionais modera negativamente essa relação.
Propósito
En este estudio, argumentamos que hay más en los efectos sobre el desempeño posterior a la adquisición y la diversificación de lo que parece. Proponemos que las condiciones que permiten mayores rendimientos dependen del contexto institucional. Sugerimos que las estrategias de diversificación difieren en su impacto sobre el desempeño posterior a la adquisición cuando se ven atenuadas por las ineficiencias institucionales del país.
Metodología
Esta investigación se basa en un enfoque cuantitativo. Probamos estadísticamente las hipótesis con base en análisis de regresión múltiple.
Resultados
Los resultados muestran un efecto moderador negativo de las ineficiencias institucionales en el país objetivo sobre la relación entre las decisiones de diversificación de una empresa y su desempeño posterior a la adquisición. Así, las firmas latinoamericanas que realizan M&A con un mayor grado de diversificación se relacionan con un peor desempeño. Sin embargo, el grado de ineficiencias institucionales modera negativamente esta relación, atenuando los efectos negativos de la diversificación sobre el desempeño.
Originalidad
Investigaciones anteriores han demostrado que las economías con altas ineficiencias institucionales pueden beneficiarse de niveles más altos de diversificación, ningún estudio ha considerado el impacto de las ineficiencias institucionales cuando se analiza de varios países. Proporcionamos evidencia de que, en el caso de las empresas latinoamericanas, la diversificación reduce el desempeño, pero el grado de ineficiencias institucionales modera negativamente esta relación.
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Keywords
- Institution-based view
- Diversification
- Strategy
- Unrelated diversification
- Related diversification
- Institutional inefficiencies
- Visão baseada em instituições
- Diversificação
- Estratégia
- Diversificação não relacionada
- Ineficiências institucionais
- Diversificação relacionada
- Visión institucional
- Diversificación
- Estrategia
- Diversificación no relacionada diversificación relacionada
- Ineficiencias institucionales
This paper aims to explore how established multinational enterprises (MNEs) have responded to the perceived threat from rising power firms by seeking to alter the intellectual…
Abstract
Purpose
This paper aims to explore how established multinational enterprises (MNEs) have responded to the perceived threat from rising power firms by seeking to alter the intellectual property institutional environment in key emerging economies.
Design/methodology/approach
The key place of emerging economies in the efforts of established MNEs to seek patent law change is discussed. Two case studies review developments related to pharmaceutical patents in India and South Africa, highlighting the influence of MNEs in driving policy change and the contested nature of their actions.
Findings
While India and South Africa both present evidence of MNEs seeking to influence pharmaceutical patent laws, distinct differences emerge. In India, most MNE pressure has been in response to the emergence of an active domestic industry and a patent law oriented towards generic entry, while the MNE priority in South African has been geared towards maintaining MNE dominance and a system which leads to generous granting of patents.
Practical implications
Managers and decision-makers seeking to invest in emerging economies must take account of a plethora of institutions present, which may be better suited towards local industrial and consumer interests and may prompt resistance to any established MNE-led attempt at institutional change.
Originality/value
The article offers a comparative perspective on pharmaceutical patent laws in India and South Africa, which have been subject to significant contestation by policymakers, civil society organisations and both rising power and established MNEs. The comparison explores and questions the increasingly widespread “institutional void” thesis in international business.
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Valerie A. Bell and Sarah Y. Cooper
Rarely have studies on the acquisition of knowledge in internationalisation focused on institutional knowledge. The purpose of this paper is, therefore, to investigate the…
Abstract
Purpose
Rarely have studies on the acquisition of knowledge in internationalisation focused on institutional knowledge. The purpose of this paper is, therefore, to investigate the acquisition of this knowledge, and its assimilation and exploitation processes in internationalisation.
Design/methodology/approach
The paper utilises ten longitudinal revelatory case studies built from multiple semi-structured interviews conducted with three different firm types of small- and medium-sized enterprise (SMEs) in the pharmaceutical industry and secondary documents to which the researchers obtained proprietary access.
Findings
The study enhances the conceptual understanding of the institutional learning process in internationalisation by, for the first time, developing a framework to characterise this process. The study explores and identifies multiple types of institutional knowledge required, the sequencing of their acquisition, sources and learning methods utilised. It also discusses transferability of this learning across foreign markets and firms’ absorptive capacity for that knowledge. Regulatory-specific product knowledge, found to be the most important type required, appeared to affect significantly both market selection and mode of entry, and when acquired insufficiently, prevented internationalisation.
Research limitations/implications
While the sample size is relatively small, and sector-specific, the findings were consistent across all the SME firms and firm types. They may also be generalisable to other sectors, firm sizes such as MNEs and types, particularly those which are knowledge-based or highly regulated, given that similar institutional knowledge and processes of acquisition are necessary for firms of all sizes in internationalisation.
Practical implications
International marketing managers will gain valuable insights, based on a framework proven to propel firms to successful internationalisation, upon how to plan, organise, manage and match their institutional knowledge-seeking and learning activities with their firms’ internal capabilities, staffing and other resources in an effective and timely manner.
Originality/value
This study contributes to the conceptual understanding of the institutional knowledge learning process in the internationalisation.
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Dina El-Bassiouny and Peter Letmathe
This paper aims to examine the impact of political uncertainty and instability caused by the 2011 Egyptian revolution on the corporate social responsibility (CSR) practices of…
Abstract
Purpose
This paper aims to examine the impact of political uncertainty and instability caused by the 2011 Egyptian revolution on the corporate social responsibility (CSR) practices of Egyptian firms. The study provides empirical evidence to support the link between political instability, financial performance, stock market uncertainty and CSR in the post-revolution context of Egypt.
Design/methodology/approach
Data on CSR practices in Egypt were collected through a survey of Egyptian firms and content analysis of annual reports from publicly traded firms. The final survey sample consisted of 99 listed Egyptian companies. Structural equation modeling was performed to examine the relationship between the variables of this study.
Findings
The results of the study show that political instability is perceived to have a significant positive effect on the CSR practices of Egyptian firms. The results also reveal that the financial performance of firms is perceived not to be affected by the political instability after the 2011 Revolution as opposed to stock market uncertainty, which is perceived to be significantly affected. However, financial performance and stock market uncertainty have a significant positive influence on the CSR practices of Egyptian firms.
Originality/value
This paper capitalizes institutional theory to capture the complex interactions between organizations and their external institutional environments. Previous studies tackling CSR in unstable political environments in the African context focused on countries with prolonged periods of violent conflict and on more localized forms of conflicts. Yet, little is known about CSR during the occurrence of different types of political instabilities in other African countries.
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Kingsley Obi Omeihe, Amon Simba, David Rae, Veronika Gustafsson and Mohammad Saud Khan
The purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian…
Abstract
Purpose
The purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian context – a developing country in Western Africa. It advances new understanding on how Nigerian entrepreneurs trust in their indigenous institutions such as family ties, kinship, chieftaincy, religion, cooperatives and trade associations to resolve disputes arising from their exporting activities as opposed to dormant formal institutions in their country.
Design/methodology/approach
This exploratory study adopts an interpretive research paradigm, and it utilises a case study strategy. Data collected through observations, archival records and qualitative conversations with 36 exporting Nigerian small and medium-sized enterprises (SMEs) is analysed by utilising a combination of within and cross-case analysis techniques. Doing so enabled an in-depth study of the methods their owner-managers use in order to take advantage of the relationships they established through their long-standing cultural institutions in the place of weak formal institutions in their country.
Findings
Indigenous institutions have evolved to replace formalised institutions within the business environment in Nigeria. They have developed to become an alternative and trusted arbiter for solving SMEs' export issues because of weak/dysfunctional formal institutions in the Western African country. The owner-managers of exporting SMEs perceive formal institutions as representing a fragmented system that does not benefit their export businesses.
Practical implications
The findings demonstrate that there is need for policymakers to consider the role of informal institutions in the Nigerian context. Such an approach is essential given the economic importance and increasing number of SMEs that trade and export their goods through informal structures in Nigeria.
Originality/value
The study indicates that it is not just the void or absence of institutions that exist in a developing country such as Nigeria, but weak/dysfunctional formal institutions have been replaced by culturally embedded informal institutions. Thus, the study provides a new theoretical avenue depicting the concept of trusting in indigenous institutions.
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