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Article
Publication date: 21 September 2015

Michael W. Hansen and Wencke Gwozdz

The purpose of this paper is to examine the evolution in subsidiary performance and the factors influencing this performance based on a unique database of approximately 800…

1637

Abstract

Purpose

The purpose of this paper is to examine the evolution in subsidiary performance and the factors influencing this performance based on a unique database of approximately 800 multi-national company (MNC) subsidiaries in developing countries. Developed-country multi-national companies (MNCs) are increasingly establishing subsidiaries in developing countries. The potential gains are high; however, so are the risks. While the issue of subsidiary performance should be at the heart of any international business (IB) enquiry into MNC activity in developing countries, surprisingly little research has examined this issue.

Design/methodology/approach

Based on a comprehensive literature review of the IB performance literature, it is hypothesized that subsidiary performance essentially is shaped by five clusters of factors: location, industry, MNC capabilities, subsidiary role and entry strategy. These factors’ ability to explain variance in subsidiary performance is tested through a multiple regression analysis.

Findings

MNC subsidiary performance in developing countries has improved enormously in recent decades. Especially, MNC capability and subsidiary role-related factors appear to explain variance in performance, while location factors appear to have less explanatory power. This suggests that strong MNC capabilities and organization can make MNCs succeed regardless of location.

Practical implications

The key preparatory work for MNCs contemplating entry into developing countries is to carefully scrutinize internal capabilities and organization.

Originality/value

The paper presents a model for explaining variation in subsidiary performance in developing countries specifically. The paper offers unique empirical insights into the state and drivers of subsidiary performance in developing countries.

Details

The Multinational Business Review, vol. 23 no. 3
Type: Research Article
ISSN: 1525-383X

Keywords

Book part
Publication date: 16 August 2014

Anna Kaunonen

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have developed…

Abstract

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have developed based on the knowledge and cultural context of the Western world. Several researchers note that national culture may have an impact on international industrial buyer-seller relationships. Including culture in the models is highly important, especially as the business environment is increasingly more global and different countries have different business cultures. The goal of this paper is to define the most suitable industrial buyer-seller relational process models for describing relationships in various contexts. The paper includes a through literature review and a single case study in order to reach this objective. A new state theory model evolved during the research. It consists of two beginning states: searching and starting; four purely middles states: constant/static, decline, growth, and troubled; and a purely end state: termination. The state of dormant/inert is both a middle state and an end state, that is, when the relational actors are not in contact does not mean that the relationship has ended, but instead, for example, new legislation may have been implemented, which requires the actors to evaluate their relationship and its future. A relationship goes through the two beginning states in the order mentioned above, but after that, any state may occur.

Details

Advances in Business Marketing & Purchasing
Type: Book
ISBN: 978-1-78190-858-7

Keywords

Article
Publication date: 16 January 2017

Wenxue Lu, Zhi Li and Siqi Wang

Justice, although well developed in the organisational field, has not been given adequate attention in the area of construction project dispute negotiations. Based on previous…

1537

Abstract

Purpose

Justice, although well developed in the organisational field, has not been given adequate attention in the area of construction project dispute negotiations. Based on previous studies, the purpose of this paper is to more elaborately discuss whether each dimension of justice (distributive, procedural and interactional) is important for negotiators to cooperate in construction project dispute negotiation and whether their impact was moderated by the completeness of construction contract.

Design/methodology/approach

A survey of 164 prime negotiators from different construction projects was conducted. A stepwise multiple regression was employed to test the impact of each dimension of justice, and then a moderated multiple regression model was used to test the moderating effect of contract completeness.

Findings

The results indicated that, while distributive justice is related to cooperative behaviours, the impact of procedural justice and interactional justice also have great impact, and even more significantly related to cooperative behaviours. Moreover, while contractual obligatoriness positively moderates the relationship between procedural justice and cooperative behaviours, the term specificity negatively moderates the relationship between procedural and interactional justice and cooperative behaviours.

Research limitations/implications

First, the authors aimed to test the effect of justice on cooperative behaviours in construction dispute negotiations originally, but did not determine whether their relationship is mediated by any other factors. Second, contractual governance was chosen as the moderator; other factors may also influence behaviours in project dispute negotiations.

Practical implications

First, project dispute negotiators should not focus their attention solely on the distribution of the negotiation issues. For a cooperative approach, negotiators should also give strong consideration to whether their offers reflect procedural justice and whether their opponents are being treated fairly. Second, while contractual design may affect the frame surrounding the negotiations to help negotiators achieve an integrated outcome, they should give more attention to certain forms of justice.

Originality/value

In contrast to previous studies, the authors defined all three forms of justice in project dispute negotiations, and by adding all three forms of justice into the model, the authors attempted to investigate whether distributive, procedural and interactional justice were all related to cooperative behaviours in project dispute negotiations and to ascertain the extent to which each form of justice is important. Furthermore, the authors explored variations in the importance of each form of justice in negotiations under different contractual conditions.

Details

Engineering, Construction and Architectural Management, vol. 24 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 21 September 2023

Chun-Ping Yeh, Yi-Chi Hsiao and Sebastian Gebhadt

The existing research on institutional distance implicitly posits the monotonic effect of contextual differences on the multinational enterprise (MNE) behaviors (e.g. entry mode…

Abstract

Purpose

The existing research on institutional distance implicitly posits the monotonic effect of contextual differences on the multinational enterprise (MNE) behaviors (e.g. entry mode, research and development (R&D) investment and subsidiary reverse knowledge transfer). Namely, MNEs from the same home to the same host countries are thought to have homogenous perceptions on the institutional influences and thus behave similarly. However, the authors argue that MNEs, due to their different performance aspirations in host countries, will have heterogenous perceptions on such contextual influences and thereafter behave differently.

Design/methodology/approach

Drawing on the behavioral theory of the firm and employing a unique sample comprised of 140 Chinese MNEs' foreign direct investments (FDIs) in Taiwan in 2017, the authors developed and tested the hypotheses.

Findings

The authors found that the emerging-market MNEs' (EMNEs’) perceptions of higher local institutional difficulties will be strengthened when their local performances are below their aspiration levels, making them more risk-taking. Nevertheless, EMNEs' local experiences and local equity-based partnerships will mitigate such negative perceptions, mitigating their risk-taking orientation.

Originality/value

The empirical findings make contributes to the international business (IB) literature by extending knowledge on the determinants and conditions of the heterogeneity in EMNEs' behavioral orientations when in face of the same institutional distance. The authors also provide managerial implications by showing that EMNEs' firm-specific resources (i.e. local experience and local equity-based partnership) will alter their perceptions of local institutional difficulties, leading to different behavioral orientations.

Details

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

Keywords

Article
Publication date: 8 June 2015

Luo Lu, Hui Yen Lin, Chang-Qin Lu and Oi-Ling Siu

The moderating roles of personal resources in the Job Demands-Resources (JD-R) model are relatively rarely examined, especially in non-western countries. The purpose of this paper…

Abstract

Purpose

The moderating roles of personal resources in the Job Demands-Resources (JD-R) model are relatively rarely examined, especially in non-western countries. The purpose of this paper is to investigate the moderating effect of a personal resource (i.e. intrinsic work value orientation) on the relationships between job demands, job resources, and job satisfaction among a large sample of Chinese employees from both mainland China and Taiwan.

Design/methodology/approach

Structured questionnaire survey was carried out to collect data from 402 employees in mainland China and 306 employees in Taiwan.

Findings

The authors found that intrinsic work value orientation amplified the negative relationship between work constraints (a job demand) and job satisfaction. Meanwhile, intrinsic work value orientation strengthened the positive relationship between autonomy (a job resource) and job satisfaction.

Originality/value

This is one of the few studies that explored the role of personal resources in the JD-R model. One unique contribution of the study is that the authors extended the JD-R model to include the intrinsic work value orientation as a resourceful work value for Chinese employees in two major Chinese societies. Based upon the findings, the authors suggest that personal resources such as work value orientation should be taken into account in the research of the JD-R model. Managerial implications of the findings are also discussed.

Details

International Journal of Workplace Health Management, vol. 8 no. 2
Type: Research Article
ISSN: 1753-8351

Keywords

Article
Publication date: 20 April 2020

Hang Wu and Jin Chen

Extant research has integrated ambidexterity perspective into international business studies and calls for emerging market multinational enterprises (EM MNEs) to implement…

Abstract

Purpose

Extant research has integrated ambidexterity perspective into international business studies and calls for emerging market multinational enterprises (EM MNEs) to implement exploration and exploitation activities simultaneously in foreign markets. However, less attention has been paid to empirically test whether and how international ambidexterity can benefit the innovation performance of EM MNEs. Based on the data of international manufacturing firms in China, this paper explores the relationship between international ambidexterity and innovation performance and investigates four contingency factors of top management team (TMT): two external resource accumulation elements (i.e. TMT business ties and TMT political ties) and two internal resource integration elements (i.e. TMT contingency rewards and TMT social integration).

Design/methodology/approach

The author conducts multiple hierarchical linear regression analysis to test the hypothesis by collecting survey data from 227 MNEs from several Economic Development Zones located in Zhejiang province in China.

Findings

The results show that international ambidexterity is positively related to innovation performance, and the international ambidexterity–innovation performance relationship is amplified when TMTs build strong ties with external business partners and political departments, when EM MNEs link top managers' income to team collective performance and create a highly social integrated TMT.

Originality/value

The results contributes to answer the question that how well EM MNEs will succeed and enrich the context specificity of international ambidexterity. The findings also help us better understand the inconsistent empirical findings in organizational ambidexterity by uncovering the contingency role of several TMT attributes.

Details

Baltic Journal of Management, vol. 15 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 17 February 2012

Luo Lu

The aim of this research is to examine attitudinal correlates of older adults' (aged 60 and above) intentions to continue working in older age.

2446

Abstract

Purpose

The aim of this research is to examine attitudinal correlates of older adults' (aged 60 and above) intentions to continue working in older age.

Design/methodology/approach

Structured questionnaires combined with home interviews were used to collect data from a sample of community older people (n=289) in Taiwan.

Findings

The study found that positive attitudes towards aging held by older people themselves and perceived subjective norm were related to stronger intentions to continue working in older age, as predicted by the Theory of Reasoned Action, in addition, more positive daily personal experiences with non‐older people enhanced intentions to continue working in older age through fostering more positive attitudes towards aging, as predicted by the contact hypothesis. Finally effects of some known demographic correlates of aging and work were also demonstrated in the structural model, namely, age, sex, current employment status, and personal health were all associated with intentions to continue working in older age.

Originality/value

This is the first study in Taiwan testing hypotheses derived from well‐established social psychological theoretical models explaining links between attitudes and behavioral intentions of working in older age with a non‐Western (Chinese) sample. The results highlight the importance and urgency of more concerted research to inform public and organizational policies to facilitate continued employment and better management of careers of older adults in an aging developing society.

Details

Career Development International, vol. 17 no. 1
Type: Research Article
ISSN: 1362-0436

Keywords

Article
Publication date: 1 February 2024

Miao He

This paper examines how firms respond to local government’s environment initiatives through textual analysis of government work reports (GWRs). This study aims to provide insights…

Abstract

Purpose

This paper examines how firms respond to local government’s environment initiatives through textual analysis of government work reports (GWRs). This study aims to provide insights into how firms strategically respond to government’s environmental initiatives through their disclosure and investment practices.

Design/methodology/approach

This study uses a textual analysis of GWRs from China’s provinces. The frequency and change rate of environmental keywords in these reports are used as a measure of the government’s environmental initiatives.

Findings

This study finds that environmental disclosure scores in environmental, social and governance (ESG) reports increase with the frequency or change rate of environmental keywords in provincial GWRs. This effect is more pronounced for non-state-owned enterprises, firms in highly marketized provinces or those listed in a single capital market. However, there is no significant relationship between firms’ environmental investments and government initiatives, except for cross-listed firms in provinces with consistently high frequency of environmental keywords in their GWRs.

Practical implications

The findings indicate that government environmental initiatives can shape firms’ disclosure behaviors, yet have limited influence on investment decisions, suggesting that environmental disclosure could potentially be opportunistic. This underscores the need for more effective strategies to stimulate firms’ environmental investments.

Originality/value

This study provides valuable insights into the differential impacts of government environmental initiatives on firms’ disclosure and investment behaviors, contributing to the understanding of corporate environmental responsibility in the context of government initiatives.

Details

Journal of Global Responsibility, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2041-2568

Keywords

Book part
Publication date: 23 November 2017

Palitha Konara and Vikrant Shirodkar

The possibility of institutional distance exerting an asymmetric effect on the entry strategies of multinational enterprises (MNEs) has attracted recent scholarly attention. In…

Abstract

The possibility of institutional distance exerting an asymmetric effect on the entry strategies of multinational enterprises (MNEs) has attracted recent scholarly attention. In this context, we re-examine the relationship described by Hernandez and Nieto (2015) on the effect of the direction of regulatory institutional distance on MNEs’ choice of entry mode in host countries. We extend this research by (1) focussing on the context of emerging markets and (2) accounting for a greater variety of MNEs as well as institutions by including both large and small firms, and a larger set of home and host countries. In contrast to Hernandez and Nieto’s study, we find that, in the context of emerging markets, institutionally distant MNEs are more likely to choose the full-ownership mode when they originate from an institutionally stronger country in comparison to the host (emerging) country, and they are more likely to choose the joint-ownership mode when they originate from an institutionally weaker country. We discuss our findings with respect to Hernandez and Nieto’s study, which explores this relationship more generally (i.e. beyond emerging-market contexts), however in the context of small and medium enterprises.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

Keywords

Book part
Publication date: 20 January 2014

Ruby P. Lee, Xinlin Tang and Xitong Guo

The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters and their…

Abstract

The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters and their foreign subsidiaries, thus, becomes particularly crucial in navigating host country environmental uncertainties. Despite its criticality, how foreign subsidiaries can benefit from effectively managing knowledge remains unclear. This study examines the extent to which market and technological turbulences influence two specific knowledge management platforms, knowledge transfer and knowledge codification, and subsequently, market responsiveness of foreign subsidiaries. Results from a survey of 140 foreign subsidiaries in China show that knowledge transfer and knowledge codification serve as two important platforms to mitigate the effects of environmental turbulence on local market responsiveness.

Details

International Marketing in Rapidly Changing Environments
Type: Book
ISBN: 978-1-78190-896-9

Keywords

11 – 20 of over 5000