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Article
Publication date: 11 November 2010

Linghui Tang and Len J. Trevino

This paper investigates the impact of information and communication technology (ICT) on the spatial dispersion of FDI. Using a gravity model, we find that geographic distance…

Abstract

This paper investigates the impact of information and communication technology (ICT) on the spatial dispersion of FDI. Using a gravity model, we find that geographic distance remains negative for bilateral FDI activities and ICT advances in source countries have no statistically significant impact on outward FDI. However, ICT advances in host countries have a positive moderating effect on the relationship between distance and FDI. In other words, although ICT does not change the regional orientation of MNEs, it has increased the ability for a country to attract FDI by increasing its attractiveness as an FDI destination in a region.

Details

Multinational Business Review, vol. 18 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 22 March 2013

Linghui Tang and Brian Fitzsimons

The purpose of this paper is to investigate recent labor unrest in China's automobile industry and the implications for the debate on the future of the country's labor relations…

8590

Abstract

Purpose

The purpose of this paper is to investigate recent labor unrest in China's automobile industry and the implications for the debate on the future of the country's labor relations and cost competitiveness.

Design/methodology/approach

Using data between 1999 and 2007, the authors examine how differences in work organizations in China, Germany, Japan and the USA affect wages in the automobile industry.

Findings

It is found that market forces play a more prominent role in Germany and the USA than in China and Japan and the difference is attributed to cultural, economic, political, and regulatory factors in each country.

Originality/value

This paper is one of the first that uses systematic data to conduct comparative analysis of labor relations in the automobile industry.

Details

Competitiveness Review: An International Business Journal, vol. 23 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 27 April 2012

Linghui Tang

The purpose of this paper is to examine whether the direction of cultural distance in individualism, power distance, uncertainty avoidance, and masculinity affects bilateral…

4945

Abstract

Purpose

The purpose of this paper is to examine whether the direction of cultural distance in individualism, power distance, uncertainty avoidance, and masculinity affects bilateral foreign direct investment (FDI) activities.

Design/methodology/approach

Panel data that include bilateral FDI between 21 OECD countries, and for FDI from these OECD countries to 14 non‐OECD countries between 1980 and 2000 were used. In addition, hypotheses were tested by using Hofstede's cultural dimensions for FDI between 1980 and 1989 and then by applying the GLOBE (Global Leadership and Organizational Behavior Effectiveness) cultural indices for FDI between 1990 and 2000.

Findings

It was found that difference in individualism between two countries encourages FDI while difference in power distance discourages FDI. In addition, based on Hofstede's cultural scores, the direction of cultural distance matters when a host and a source country differ in uncertainty avoidance and masculinity. However, the finding is mixed with the GLOBE cultural measures.

Research limitations/implications

In this paper, the aggregation of human behavior theory is relied on to develop a theoretical framework. This type of analysis is valid as long as the companies involved are homogenous. Even if multi‐national companies are heterogeneous, the author believes that a bounded rationality is needed to add some discipline and substance to a more comprehensive but less structured analysis/experience at the individual or firm level.

Practical implications

The paper's findings indicate that a complementary relationship exists for FDI between collective and individualistic countries and difference in power distance discourages FDI. In addition, the direction of cultural distance matters for uncertainty avoidance and masculinity. Therefore, it is not always true that companies should shun countries that are culturally different from their home country when making FDI decisions.

Originality/value

The paper makes several contributions to the extant literature. First, the paper responds to the critique by Shenkar, by applying separate rather than the composite cultural distance in empirical research. Second, the paper suggests that cultural distance is not equal to cultural incongruence. Third, this paper is one of the first that uses a sample size that is similar to the number of countries in Hofstede's original study in 1980. Finally, in response to the stability criticism towards Hofstede's framework, this paper tests the cultural impact on FDI by applying both the Hofstede and GLOBE cultural scores.

Article
Publication date: 25 July 2023

Junkai Wang, Baolei Qi and Yaoxiang Nie

With increasing environmental issue and problems, this study aims to explore how the female directors' foreign experience and corporate green commitment in emerging economics like…

Abstract

Purpose

With increasing environmental issue and problems, this study aims to explore how the female directors' foreign experience and corporate green commitment in emerging economics like China from 2008 to 2020.

Design/methodology/approach

The authors draw data of all ‘A’ share listed firms listed on Shanghai and Shenzhen stock exchanges from 2008 to 2020 from the renowned Chinese database China Stock Market and Accounting Research (CSMAR). The study's data collection start from 2008, because data about green commitment are not available on CSMAR before 2008 and final year is 2020 because data about green commitment is available at the time of data collection. After dropping observations with missing data, the study's final sample contains 20,255 firm year-observations. Finally, in accordance with prior studies, the authors classified enterprises according to the “China Securities and Regulatory Commission” (2012) to categorize firms.

Findings

The authors find that female directors' foreign experience enhances the green commitment in Chinese listed companies. In additional analysis, the authors find this relationship is more pronounced when one or more foreign directors. The study's findings are robustness to different economic techniques and alternative measure of dependent variables and endogeneity concerns. Overall, the study's findings show that female directors with foreign experience transmit environmental and sustainable knowledge and practices to Chinese companies.

Originality/value

First, the authors believe that this is the first study to analyze the impact of the overseas experience of female directors on corporate green commitment. Most previous studies have examined the influence of the presence of female directors or different attributes such as age, education and independence of female directors on board decisions, in order to protect the interests of multiple stakeholders (Elmagrhi et al., 2019; He and Jiang, 2019; McGuinness et al., 2017). This study finds that, in addition to other different attributes, the foreign experience of female directors also has a significant role in promoting corporate green commitment. By pushing corporate green commitment, these women directors leverage their experience in advanced economies abroad to add to the Chinese government's environmental and sustainability goal of achieving net zero carbon by 2060. As such, this is one of the first studies to highlight the experiences of female directors in transferring environmental and sustainability practices to Chinese companies. Second, the authors add to the literature by integrating two important board perspectives, such as gender diversity and the impact of foreign experience on corporate green commitment. Previous research has explored the presence or absence of female directors on board or foreign experience. However, this study adds to the literature by introducing important attributes of the influence of female directors' foreign experience on decision making. Third, this study provides evidence on the impact of foreign independent directors on the board. The authors document foreign independent directors enhance the relationship between female directors' foreign experience and corporate green commitment. The study's findings complement previous research by Liang and Renneboog (2017), showing that female directors with foreign experience transfer advanced levels of environmental and sustainable practice knowledge to Chinese companies.

Details

Employee Relations: The International Journal, vol. 45 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

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