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1 – 10 of 188Antonios Georgopoulos, Eleftherios Aggelopoulos, Elen Paraskevi Paraschi and Maria Kalogera
In an environment of intensive global mobility, this study aims to investigate the performance role of staffing choices within diverse MNE subsidiary strategies. Incorporating the…
Abstract
Purpose
In an environment of intensive global mobility, this study aims to investigate the performance role of staffing choices within diverse MNE subsidiary strategies. Incorporating the integration-responsiveness (IR) framework with a contingency perspective, this study proposes that the performance success of distinct MNE subsidiary strategies depends on staffing choices. This study argues that performance differences of staffing choices such as assigned expatriates, self-initiated expatriates, former inpatriates and host-country nationals derive from their different knowledge/experience advantages regarding the intra-firm environment and local market conditions.
Design/methodology/approach
The study utilizes a unique sample of 169 foreign subsidiaries located in Greece that faced the outbreak of the COVID-19 pandemic (in 2020). For robustness reasons, this study also captures the imposition of capital controls (in June 2015).
Findings
This study finds important mediating performance effects of a diversified human resource portfolio across distinct subsidiary strategies in difficult times. Integration strategy tends to use more assigned expatriates, locally responsive strategy tends to utilize more host-country nationals, whereas multi-focal strategy favors self-initiated expatriates and former inpatriates, with positive subsidiary performance effects accordingly. So, staffing policies that are suitable to balance the needs of Human Resource Management (HRM) portfolio differ from strategy to strategy. Moreover, this study finds that managing HRM diversity is crucial in turbulent times.
Originality/value
While the empirical evidence has been predominantly accumulated from large economies, largely neglecting performance effects of MNE subsidiary staffing in crisis contexts, the analysis sheds light on a small open economy (i.e. the Greek context) emphasizing rapidly environmental deterioration. The findings extend existing theorizing on international performance and HRM management by providing an integrative conceptual framework linking integration-responsiveness motivated strategies with distinct groups of high-quality human resources under contingency considerations, so creatively synthesizing largely fragmented IB and HRM research streams. The study provides valuable insights into the performance role of non-conventional staffing choices such as self-initiated expatriates and former inpatriates, given that relevant studies examine either exclusively expatriates or compare expatriates with host country nationals, reaching inconclusive results.
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Armando Borda, Carlos Cordova and Juan Carlos Leon
The learning outcomes are as follows: students will identify the reasons for a firm to internationalize and its specific internationalization entry mode; students will distinguish…
Abstract
Learning outcomes
The learning outcomes are as follows: students will identify the reasons for a firm to internationalize and its specific internationalization entry mode; students will distinguish how to follow the client and how physic distance strategies work; students will analyze a host country’s external environment using the PESTEL framework, and they will analyze the international strategies followed by a multinational enterprise using the integration-responsiveness framework as well.
Case overview/synopsis
The authors explore the case of DICOMA Corporation, a Costa Rican multinational enterprise with presence in five countries. Adrian Sanchez, who is Dicoma’s president, needs to craft an international strategy to increase the international sales in the foreign markets where the firm operates. The company may follow two paths. On the one hand, Dicoma can adopt the strategy of following its major clients to expand overseas, which will lead to the opening of operations in more countries, but making the foreign sales highly dependent on these types of partnerships. This has been so far the path pursued by Dicoma in its international expansion. On the other hand, Dicoma can opt to focus on increasing commitments in the existing international markets where it already has operations by capturing new clients in those locations but scarifying the potential business opportunities to enter into other countries in partnership with its major clients.
Complexity academic level
Post-graduate early stage business students enrolled in programs such as Master of Business Administration, Master of Management, Master of International Business, executive education programs, among others.
Supplementary materials
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Subject code
CSS 5: International Business.
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Warren Stanley Patrick, Jatinder Kumar Jha and Kumari Gargee Sharma
This study aims to review all frameworks of strategic international human resource management (SIHRM) published between 1990 and 2022 to ascertain their relevance in the current…
Abstract
Purpose
This study aims to review all frameworks of strategic international human resource management (SIHRM) published between 1990 and 2022 to ascertain their relevance in the current context with a focus on methodologies and theories in the post-pandemic era.
Design/methodology/approach
In this study a pool of 69 papers published in 16 journals was considered for full-text evaluation using a set of relevant keywords and pre-defined inclusion/exclusion criteria.
Findings
The number of qualitative research papers is the highest (90%) and theoretical perspectives are dominated by research-based (17%), institutional (17%) and SIHRM (14%) theories that emphasize competitive advantage, resource dependence and multiple SIHRM frameworks.
Research limitations/implications
This research incorporates dominant theoretical perspectives and methodologies within an integrated SIHRM framework which accommodates the post-pandemic era.
Practical implications
The integrated SIHRM framework reinforces the alignment of multiple contexts, dimensions, models and proportions to enable effective decisions for mitigating the current crisis and future research.
Originality/value
This research integrated a hybrid model of SIHRM by aligning the relevant existing SIHRM frameworks, which management can choose from to leverage the benefits that distributed remote work in an international context and decide what is most suitable for their businesses as they prepare for the future.
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I am honored to receive the Booz Allen Hamilton/strategy+business Eminent Scholar Award in International Management. I am even more honored to follow in the footsteps of such…
Abstract
I am honored to receive the Booz Allen Hamilton/strategy+business Eminent Scholar Award in International Management. I am even more honored to follow in the footsteps of such distinguished previous recipients of the AOM-IMD (Academy of Management-International Division) Distinguished Scholar Award as: John Child, Christopher Bartlett, Sumantra Ghoshal, John Dunning, and Yves Doz. Like them, I shall reflect here on my past contributions to scholarship, and then use this work as a building block for the major part of this paper, which is on the need for new and relevant theory in the field of international management.
Kashef A. Majid and Hari Bapuji
The purpose of this paper is to examine how the location of a firm’s headquarters and component sourcing impact a firm’s responsiveness in a product-harm crisis in local market.
Abstract
Purpose
The purpose of this paper is to examine how the location of a firm’s headquarters and component sourcing impact a firm’s responsiveness in a product-harm crisis in local market.
Design/methodology/approach
The authors collected data on 1,251 vehicle recalls from 12 manufacturers, six in the USA, three in Germany, and three in Japan. All of the recalls occurred in the USA between 2002 and 2010. The time the product was first released into the marketplace was used as the starting point while the time the recall was initiated (if at all) was used to record the probability of the product recall over time. Specifically, a survival analysis with an accelerated failure time model was employed to examine the speed with which a product is recalled. The authors examined the impact of foreign composition using information provided by the American Automobile Labeling Act, which lists the proportion of each vehicle that is composed of domestic parts (USA/Canada) and foreign parts. Organizational characteristics (i.e. size, market share, assets, net income, and reputation) and recall size (i.e. number of affected vehicles) that might have an effect on time to recall were controlled for.
Findings
The authors found that firms headquartered outside the local market would take longer to issue a product recall than firms that were headquartered in the local market. Firm headquartered outside the local market can reduce the time taken to recall by sourcing parts from the local marketplace, rather than from abroad. Interestingly, even local firms are affected by the location of component sourcing, such that they take longer to issue a recall if they sourced parts from abroad.
Originality/value
Research in international marketing has examined the benefits of integration to firms, but has not studied the risks of integration. By highlighting the challenges of managing institutional differences and integration difficulties, the authors show that location of headquarters and the location from where components are sourced have an effect on firm responsiveness in product-harm crises. Further, the authors build on the global supply chain management literature that has shown the effect of upstream activities (i.e. foreign production) on downstream activities (i.e. product quality). Specifically, the authors show that upstream activities can not only affect product quality, but also the ability of firms to respond to those product qualities in a timely fashion.
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This paper explores how key insights from highly cited and well-used frameworks that describe the strategies and structures of MNCs are reflected in the international…
Abstract
This paper explores how key insights from highly cited and well-used frameworks that describe the strategies and structures of MNCs are reflected in the international configurations of US MNCs. After reviewing existing frameworks that highlight different MNC choices regarding the integration, responsiveness, and dispersion of firm value chain activities, I perform a cluster analysis on a comprehensive and confidential database of US MNCs. The results reveal five configurations which both support the importance of key insights from existing frameworks while at the same time highlighting underexplored configuration characteristics, like the low levels of integration in US MNCs, the global sourcing arrangements for accessing foreign inputs and distribution, different approaches to regional expansion, and the limited geographic expansion of US MNCs pursuing product diversification. I argue that these underexplored characteristics suggest directions for future research to better reflect the international configuration choices of MNCs.
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Hwy‐Chang Moon and Min‐Young Kim
The main purpose of this paper is to introduce a comprehensive model explaining the global expansion of firms and to find out viable strategies for firms to survive global…
Abstract
Purpose
The main purpose of this paper is to introduce a comprehensive model explaining the global expansion of firms and to find out viable strategies for firms to survive global competition.
Design/methodology/approach
Through the critical review over existing literature, this study first introduces a new framework explaining the global expansion of firms at the level of functional activities in the value chain, and then empirically tests the predictions of the new framework with data in the motor industry.
Findings
Empirical findings confirm the new model's predictions. First, each function in the value chain has a unique way of global expansion: the global strategy is suitable for the production function, while the multidomestic strategy is applicable to the marketing function. Second, each function follows a dynamic path of global expansion from domestic to transnational via either global or multidomestic, according to the innate characteristics of corresponding function. Finally, the degree of global expansion of a firm is positively correlated with its financial performance.
Research limitations/implications
Focusing on developing a new framework on global expansion, this study utilizes a rather small number of data and, therefore, requires readers' discretion when interpreting the results of statistical analyses.
Practical implications
With the dynamic diversification‐coordination model, managers can recognize the level and characteristics of their firms' global expansion, not only at the firm level but also at the functional level. This allows managers to establish a global strategy tailored to each function, thus reconciling possible conflicts generated from different interests among different functions in the firm.
Originality/value
First, this article introduces a new perspective of analyzing the global expansion of firms by shifting the level of analysis from the firm level to the functional level where the new framework can reconcile the constant debates on globalization. Second, this article suggests an intuitive and theory‐based index measuring the degree of global expansion of firms.
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– The purpose of this paper is to clarify how Chinese multinationals perceive factors affecting the integration-responsiveness (I-R) framework.
Abstract
Purpose
The purpose of this paper is to clarify how Chinese multinationals perceive factors affecting the integration-responsiveness (I-R) framework.
Design/methodology/approach
This study extends quantitative and conceptual studies that have clarified and assessed the underlying factors that influence multinational enterprises’ (MNEs) international business strategy choices relating to global integration and local responsiveness with the use of cross-level and in-depth interviews. Top management perceptions from nine Chinese MNEs with operations in Australia are detailed.
Findings
The study obtains empirical evidence on applying the I-R framework in the context of MNEs from emerging markets. Also the hybrid factors affecting both integration and responsiveness synchronously have been confirmed by Chinese multinationals.
Research limitations/implications
As a cross-sectional study, the paper focuses on senior executives’ perceptions on factors affecting the I-R framework. This analysis would be enriched by melding these perspectives with extensive secondary data on the companies concerned to assess the ratings assigned.
Originality/value
When studying factors affecting global integration and local responsiveness prior studies have centred on multinationals from advanced economies and/or their subsidiaries in emerging markets. This concentration leaves unclear the relevance of developed country centred findings to MNEs from emerging markets and their subsidiaries in advanced economies, and the demonstration of how emerging markets MNEs perceive factors affecting the I-R framework.
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Matevž Rašković, Maja Makovec Brenčič and Marko Jaklič
The purpose of this paper is to systematically describe the evolution of Bartlett and Ghoshal's transnational typology within an appropriate historical context, and to…
Abstract
Purpose
The purpose of this paper is to systematically describe the evolution of Bartlett and Ghoshal's transnational typology within an appropriate historical context, and to additionally review key antecedent works of other authors who contributed to its evolutionary nature.
Design/methodology/approach
The paper presents a comprehensive review of the literature by combining an evolutionary perspective with a Chandlerian business history approach.
Findings
The paper shows how Bartlett and Ghoshal's transnational solution concept was developed in light of the global economic changes of the 1970s and 1980s, as well as the managerial and strategic challenges faced by US MNCs. It shows how the transnational solution concept should not be seen as a single work, but rather the outcome of an academic discourse which lasted over a decade. The review of Bartlett and Ghoshal's stream of work since the mid 1980s also shows how the transnational solution concept developed gradually into its present form and through the integration of several antecedent concepts.
Originality/value
This paper describes not just the actual evolution of Bartlett and Ghoshal's transnational typology, but also systematically identifies and analyzes key antecedent works by other authors. This analysis has been overlooked and is at the same time key to the understanding of their typology. The employed evolutionary and business history perspectives within this paper are new to the international management literature. They should be especially valuable for graduate students and scholars who employ Bartlett and Ghoshal's typology, or anyone who wishes to understand the Zeitgeist of the time articulated by this seminal work, which will soon celebrate its 25th anniversary.
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This qualitative case study research describes the human resource management (HRM) practices of four leading Indian information technology (IT) subsidiaries located in Mexico. The…
Abstract
Purpose
This qualitative case study research describes the human resource management (HRM) practices of four leading Indian information technology (IT) subsidiaries located in Mexico. The purpose of this study is to understand the implementation of these practices from the global integration-local responsiveness perspective.
Design/methodology/approach
This study adopts a qualitative multiple case-design approach to compare HRM themes across multiple cases. This research was conducted with HRM leaders from December 2011 through August 2012. This research involved interviews with 50 per cent of the population of Indian IT companies in Mexico. The interviews were tape-recorded and transcribed to maintain the rigor of the research. This study also followed other guidelines to maintain validity and reliability in research.
Findings
The results indicate that each function has to be considered independently because of contextual factors. Recruitment and compensation are usually localized as cultural norms, and local laws dictate following domestic practices. Performance management and professional development follow the guidelines from the headquarters as these companies seek standardization of work-related behaviors among their global employees.
Practical implications
This study provides preliminary guidelines for global IT practitioners who may be interested in doing business in Mexico. This paper also details challenges and guidelines for IT multinationals planning to establish in Mexico as articulated by the respondents.
Originality/value
This can be considered a pioneer research, as no other research papers (either qualitative or empirical) have explored the HRM practices of Indian multinational subsidiaries in Mexico. This paper thus provides a preliminary step in understanding this cross-cultural literature in emerging markets.
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