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Article
Publication date: 16 January 2020

Cristina Villar, Ramón Javier Mesa and Jose Plà Barber

This paper analyzes the available literature on export spillovers from foreign direct investment (FDI) and their effects on domestic firms’ export activities. The purpose of this…

Abstract

Purpose

This paper analyzes the available literature on export spillovers from foreign direct investment (FDI) and their effects on domestic firms’ export activities. The purpose of this paper is to advance our knowledge of whether export spillovers from FDI exist, and if so if they differ according to the institutional context of the targeted markets (developed vs emerging markets).

Design/methodology/approach

Drawing from the pioneering work of Aitken et al. (1997), the authors develop a meta-analysis using a selection of 73 studies for the period 1997–2018, including a wide range of developed and emerging markets.

Findings

The meta-analysis confirms a high probability of finding positive effects when studying the different types of spillovers. The authors also show that the type of export spillover depends on the institutional context. Spillovers drive a complementary effect which generates more direct commercial links between domestic firms and foreign multinationals for advanced economies, whereas for emerging markets the nature of the spillover generates a competition/imitation effect that pressures domestic firms to be better inserted into foreign markets. In emerging markets, local governments play a fundamental role in accompanying the local industry, not only with investments in infrastructure and training of human capital but also in the configuration of an institutional environment that favors this type of indirect linkages. In developed countries, two business strategies are particularly important as catalytic axes of competitive upgrading at the international level: cooperation agreements between domestic and foreign firms and integration. These processes of concentration are necessary to compete globally, and therefore, governments should promote this type of strategies.

Originality/value

The study offers an original classification of the different types of spillovers based on the different channels through which MNE help local firms to improve their export performance and shows which specific spillover is associated with the different level of country development. These results have important implications in terms of theory development and managerial and policy implications.

Details

International Journal of Emerging Markets, vol. 15 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 10 November 2014

Jose Pla-Barber, Cristina Villar and Fidel León-Darder

The purpose of this paper is to address foreign market entry mode as a way to enhance firm’s knowledge base, providing new insights into traditional explanations of entry mode…

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Abstract

Purpose

The purpose of this paper is to address foreign market entry mode as a way to enhance firm’s knowledge base, providing new insights into traditional explanations of entry mode choice for soft services. The authors offer an alternative knowledge-based approach to assess foreign investment decisions by considering the role of resource-augmenting (direct investment) and resource-exploiting strategies (licenses). In addition, the authors untie the type of experiential knowledge, i.e., host country and mode experience, to analyze its interactions with environmental uncertainties such as cultural distance.

Design/methodology/approach

Based on a customized database of the Spanish Global Hotel industry covering practically all foreign entries until 2012, the authors use regression analysis to test the proposal.

Findings

The authors demonstrate how in hotel chains (a) cultural distance influences the use of high resource-augmenting modes, due to both the difficulties in transferring the knowledge to third parties but also the imperative need of learning from local markets and (b) how strong brands tend to use resource-augmenting modes in their first steps abroad as a strategy to achieve a minimum level of resource basis to exploit it in a later stage.

Originality/value

The findings question the appropriateness of prior assumptions from traditional internationalization process theories for soft services MNE and provide an alternative approach to assess entry mode choice in this context.

Article
Publication date: 1 May 2006

José Pla‐Barber and Alejandro Escribá‐Esteve

Recent studies are trying to adapt the explanation of the internationalisation process to new environmental conditions. This paper aims to offer evidence of the existence of a…

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Abstract

Purpose

Recent studies are trying to adapt the explanation of the internationalisation process to new environmental conditions. This paper aims to offer evidence of the existence of a group of firms that use a speeded‐up internationalisation process.

Design/methodology/approach

Cluster analysis and logit regressions are used on a sample of 271 Spanish export firms.

Findings

The results obtained support the claim that substantial differences do exist between fast and gradual internationalising firms. The firms included in the more international active group are characterised by: a proactive attitude on the part of managers with regard to internationalisation activities, a strategy based on marketing differentiation advantages and strong relationships with clients and suppliers, which encourage or facilitate their international activities.

Practical implications

The results may favour reflection upon what are the most important factors for achieving an active, international strategy and how to respond to these demands. The stimulation of relationships between firms will reduce the uncertainty associated with the risks of foreign operations and increase the international competitiveness of firms.

Originality/value

From a politics perspective the research suggests several ways to stimulate the acceleration of the internationalisation process.

Details

International Marketing Review, vol. 23 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 7 October 2014

Jesús C. Peña-Vinces, Francisco J. Acedo and José L. Roldán

The purpose of this paper is to develop a theoretical model for evaluating the international competitiveness of small and medium multinational enterprises (SMNEs) located in Latin…

Abstract

Purpose

The purpose of this paper is to develop a theoretical model for evaluating the international competitiveness of small and medium multinational enterprises (SMNEs) located in Latin American developing countries.

Design/methodology/approach

Industrial economics and international business theories were linked for establishing the firm international competitiveness model. Literature on each variable determining of firm competitiveness is reviewed and the linkages between them are discussed.

Findings

The use of a global strategy is one of the most important factors to compete abroad. Domestic environment and national industry might help its use. Human resources background of staff working within the SMNEs affects the global strategy as well.

Practical implications

SMNEs should be more taken into account as they are the main generators of the economic development of countries and, consequently, foster the progress of underdeveloped countries through creating jobs.

Originality/value

This study is one of the pioneers in developed a model for evaluating the international competitiveness of firms based on developing countries of Latin America. Researchers and professionals will count on a theoretical tool for evaluating the Latin American international competitiveness in global contexts. Additionally we include the full survey for testing the competitiveness model.

Article
Publication date: 7 January 2020

José López Rodríguez and Bill Serrano Orellana

The purpose of this paper is to investigate the effects of firms’ general and specific human capital on the export propensity and intensity.

Abstract

Purpose

The purpose of this paper is to investigate the effects of firms’ general and specific human capital on the export propensity and intensity.

Design/methodology/approach

The resource-based view of the firm provides the theoretical background to examine export performance. Empirical analysis is carried out using a national representative sample of Spanish manufacturing firms and employing Logit and Tobit models. Export performance is evaluated in a dual way, as export propensity and export intensity. In relation to human capital a distinction is made between general and specific human capital.

Findings

The results shown that differences exist in the effect of general and specific human capital. While the firms’ general human capital (education of the firm’s employees) affects both export propensity and intensity, only some dimensions of specific human capital (employees’ experience at the workplace) affects export propensity and intensity but no the employees’ training. Moreover, the firms’ general human capital generates greater changes than the effect of specific human capital on the export behavior.

Originality/value

This paper extends a line of research underexplored in the literature by analyzing the effect of organizational human capital on the firm’s export performance; moreover, it is the first study for Spanish manufacturing firms; the distinction between general and specific human capital enhances our comprehension of the human capital as a determinant of export performance. In relation to the specific human capital, besides training, we add a new variable related to experience at the workplace.

Details

Baltic Journal of Management, vol. 15 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 10 January 2020

Juan M. Gil-Barragan, José A. Belso-Martínez and Francisco Mas-Verdú

Given the unresolved question about which causal conditions contribute to accelerated internationalization among small and medium enterprises (SMEs) from weak institutional…

Abstract

Purpose

Given the unresolved question about which causal conditions contribute to accelerated internationalization among small and medium enterprises (SMEs) from weak institutional environment, this paper aims to combine theoretically relevant antecedents of domestic networks relationships (weak or strong domestic ties) and decision-making logic (effectuation or causation) to explore the configurations that are the most promising for explaining accelerated internationalization.

Design/methodology/approach

This study uses fuzzy-set qualitative comparative analysis (fsQCA) to examine the accelerated internationalization of 33 contrarian cases of SMEs located in weak institutional environment. The data set has been collected through in-depth interviews with managers in Colombia (21 cases) and Peru (12 cases). Building on the findings, an integrative model for accelerated internationalization is presented.

Findings

The authors found that the combination of weak domestic ties and effectuation logic accelerated the internationalization of SMEs with fewer resource constraints. In contrast, strong domestic ties and causation behavior lead to accelerated internationalization of SMEs with greater resource constraints. They propose a model to help enrich the existing literature about the causal configurations for achieving accelerated internationalization in SMEs from weak institutional environment.

Originality/value

The contribution of this study is to provide empirical evidence to address three shortcomings in the literature. First, the mixed results regarding the impact of strong and weak domestic ties and decision-making logic in the accelerated internationalization of SMEs; second, the limited research on domestic networks; and third, the scarce investigation in weak institutional environment, where the emphasis on constrained resources is higher.

Details

European Business Review, vol. 32 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 1 June 2023

José Piñera-Salmerón, Raquel Sanz-Valle and Daniel Jiménez-Jiménez

This paper aims to contribute to the understanding of the relationship between innovation and export performance by examining the effect of different types of innovation on export…

Abstract

Purpose

This paper aims to contribute to the understanding of the relationship between innovation and export performance by examining the effect of different types of innovation on export performance and testing the assumption underlying most studies in the field that competitive advantage mediates this relationship.

Design/methodology/approach

From the literature review, this paper proposes a research model that is estimated using a sample of 200 Spanish exporting manufacturing companies. Data for this study were collected with an ad hoc questionnaire, and the partial least squares structural equation modeling technique was chosen to analyze the data.

Findings

The results show that there is a positive relationship between product and business process innovation and export performance and that competitive advantage mediates this relationship, but only when it is based on costs, not on differentiation.

Originality/value

This paper provides evidence that product and business process innovation are positively related to export performance and that competitive advantage mediates these relationships, but only when the advantage is low cost. Unexpectedly, this paper finds that differentiation is neither related to export performance nor explains the relationship between innovation and export performance.

Details

Multinational Business Review, vol. 31 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 21 December 2022

Dina Abdelzaher, Jose De la Torre and Skylar Rolf

In today’s ever-increasing context of volatile, uncertain, complex and ambiguous market conditions, the shifts of countries’ protectionist policies toward inward Foreign Direct…

Abstract

Purpose

In today’s ever-increasing context of volatile, uncertain, complex and ambiguous market conditions, the shifts of countries’ protectionist policies toward inward Foreign Direct Investment (FDI), and an increased gap between headquarters’ (HQ) and subsidiaries’ perspectives on what makes business sense, it has become apparent that challenges toward foreign expansion are becoming more severe and require a multidimensional dynamic approach. The authors draw from orchestration theory, dynamic capabilities literature and previous literature on dimensions of internationalization [specifically, density, geographic distance and degree of diversity of the multinational corporation (MNC) subsidiary network] to argue that firms must enhance their orchestration capability. In doing so, this study aims to highlight the nuances of orchestrating a three-dimensional (3D) conceptualization of MNCs’ international configurations.

Design/methodology/approach

The authors analyzed the patterns of configurations that are adopted by MNCs. This sample was made up of the international configuration of 78 Fortune 500 MNCs consisting of 3,318 foreign subsidiaries. Furthermore, the authors examined the impact of different configurations of the 3Ds on firm performance using ordinary least squares regression analysis.

Findings

While the research did indicate that the sample MNCs adopted the sample configurations of the three internationalization dimensions more frequently than others, the authors found that orchestrating MNCs with an international configuration characterized by high density, low geographic distance and low internetwork scope diversity had a positive impact on firm performance.

Practical implications

While international expansion is often motivated by financial performance or market/resource gains, it is also impacted by the firm’s dynamic capability profile. Thus, as MNCs seek to continue to expand globally, they must assess and, if needed, develop their management team’s orchestration capability, which includes effectively determining how the addition or removal of a subsidiary will impact the density, geographic distance and diversity dynamics of the MNC’s international configuration. Finally, the management team needs to be able to devise plans to respond to the potential challenges associated with each of these dimensions.

Originality/value

The contribution of this study includes bringing a dynamic capabilities lens to the extant international business literature examining the multinationality and performance relationship by highlighting the importance of an MNC’s process orchestrating capability that is needed for firms to effectively manage increasingly complex subsidiary networks. It also conceptually explains and empirically supports that some configurations are likely to yield higher returns than others, which can act as a guide for firms as they are seeking to expand in more geographically distant as well as diverse sectors. Furthermore, this study highlights the need for a multidimensional simultaneous approach to the examination of internationalization to performance relationship. Finally, it highlights the tradeoffs that MNCs must address across the orchestration of the three internationalization dimensions using a dynamic capabilities theoretical lens that acknowledges the differences in perspective that exist between HQs and subsidiaries.

Details

Review of International Business and Strategy, vol. 33 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 2 September 2014

Jorge Cruz-González, Pedro López-Sáez, José Emilio Navas-López and Miriam Delgado-Verde

– The aim of the paper is to identify the different directions of external knowledge search and to investigate their individual effect on performance at the firm level.

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Abstract

Purpose

The aim of the paper is to identify the different directions of external knowledge search and to investigate their individual effect on performance at the firm level.

Design/methodology/approach

The empirical study is based on survey data gathered from two distinct informants of 248 large- and medium-sized high-tech manufacturing Spanish firms. In dealing with concerns on simultaneity and reverse causality, perceived time-lags among dependent and independent variables were introduced. Quantitative methods based on questionnaire answers were used.

Findings

Findings reveal six distinct external search patterns and indicate that, while market sources such as customers and competitors are positively associated with performance, knowledge acquired from general information sources, other firms beyond the core business and patents and databases have no significant effect. Moreover, knowledge obtained from science and technology organizations and from suppliers displays an inversed U-shaped effect on firm performance.

Research limitations/implications

Conclusions can only be generalized to high-tech manufacturing firms from developed countries and, although well-established methodological procedures were followed, the nature of the study remains cross-sectional. Yet, an important implication emerges from this work: more openness to external knowledge is not always better. It is necessary to carefully evaluate the potential gains and pains of each type of partner and source.

Practical implications

This research provides guidance to managers about how to shape their companies’ inter-organizational networks, i.e. the specific external agents on which they should focus, as well as the efforts they should devote to each of these key partners.

Originality/value

By considering distinct directions of external knowledge search instead of a single dimension, the paper contributes to shed some more light to the mixed results reported by the scarce empirical studies that have investigated the effect of openness towards external knowledge on performance at the firm level.

Details

Journal of Knowledge Management, vol. 18 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 10 September 2021

Rodrigo Garza Burgos, James P. Johnson and Misty L.L. Loughry

This paper aims to investigate organizational learning (OL) at the individual, group and organizational levels in service and manufacturing firms in Mexico to determine if there…

Abstract

Purpose

This paper aims to investigate organizational learning (OL) at the individual, group and organizational levels in service and manufacturing firms in Mexico to determine if there are differences in how OL operates or in the link between OL and firm performance.

Design/methodology/approach

The authors surveyed experienced managers from 1,093 Mexican firms across a range of service and manufacturing industries, using the Strategic Learning Assessment Map (Bontis et al., 2002).

Findings

Organizational learning processes (OLPs) were highly similar in service and manufacturing firms and OL had a strong positive association with performance in both types of firms. OLPs at the individual level had a slightly greater impact on performance for service firms.

Research limitations/implications

The results provide further evidence of the strong link between OL and firm performance. There were no significant correlations of firm size or age with the OLPs or firm performance. However, the micro-companies that constitute 95% of Mexican firms were under-represented in the sample.

Practical implications

OLPs are equally important in manufacturing and service firms and across developed and developing economies. Therefore, OL should pervade all organizations. Managers should create cultures that encourage employees to produce new ideas and share those ideas with peers and supervisors through both formal and informal communication processes.

Social implications

The findings indicate that the individual employees’ contributions to OL are the main driver of the impact of OLPs on firm performance and that individual-level learning processes are even more relevant for service firms than for manufacturing firms. As value co-production takes place simultaneously at the moment of the service delivery/service consumption, the individual learning stock is fundamental for enhanced firm performance.

Originality/value

The authors believe this to be the first large-scale study to compare OLPs in manufacturing and service firms across industries in a major emerging market.

Details

Journal of Knowledge Management, vol. 26 no. 7
Type: Research Article
ISSN: 1367-3270

Keywords

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