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Article
Publication date: 29 September 2023

Kiattichai Kalasin

This study aims to examine the role of returnee managers that can affect the strategic-divestment decision of emerging-market firms (EM firms). Drawing on arguments from the upper…

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Abstract

Purpose

This study aims to examine the role of returnee managers that can affect the strategic-divestment decision of emerging-market firms (EM firms). Drawing on arguments from the upper echelons theory and international human resource mobility perspectives, this study aims to propose that returnee managers influence corporate divestitures when the business outlook is negative. In addition, this study aims to examine the interplay between returnee managers and CEOs, whose characteristics can foster or undermine the efforts of returnee managers to engage in corporate divestments.

Design/methodology/approach

This study examines 278 firms from nine emerging economies. The negative binomial regression was employed to estimate the model. In the robustness checks, the logistic regression was adopted to confirm the earlier findings.

Findings

The empirical results support the notion that returnee managers strengthen the relationship between firm performance and divestments. Because of the limited liabilities of foreignness and outsidership, returnee managers can gain social trust and credibility through communication and social interaction. Furthermore, the results provide mixed support for the moderating effect of CEO characteristics on the performance–divestment relationship.

Practical implications

This study reveals that returnee managers are a great asset for EM firms that aim to find synergies and upgrade their capabilities through asset reconfiguration, which is an essential activity of emerging market firms to integrate themselves into the global competition. Meanwhile, CEO characteristics can foster (through their education level) or hinder (due to their age) divestment attempts, influenced by returnee managers.

Originality/value

This study explores an understudied phenomenon in international business (IB): strategic divestment of EM firms. The literature that examines strategic divestment and corporate refocusing in emerging markets is extremely limited. Furthermore, this study explores the novel topic that intersects the international business (IB) and international human resource management (IHRM) research areas. Specifically, this study investigates the impact of returnee managers on strategic divestments.

Details

Journal of Global Mobility: The Home of Expatriate Management Research, vol. 12 no. 1
Type: Research Article
ISSN: 2049-8799

Keywords

Article
Publication date: 31 May 2023

Pettis Kent, Enno Siemsen and Xiaofeng Shao

This paper enhances our understanding of how national culture impacts manufacturing performance (assembly speed, consistency between teams, etc.) during a production process…

Abstract

Purpose

This paper enhances our understanding of how national culture impacts manufacturing performance (assembly speed, consistency between teams, etc.) during a production process move. The authors also investigate the efficacy of co-location as a strategy to enhance knowledge transfer from one organization to another.

Design/methodology/approach

To study the impact of national culture on production process moves, the authors develop and employ a team-based behavioral experiment within and between an individualist society (the United States) and a collectivist one (China). The authors also examine the impact of co-location on knowledge transfer effectiveness within and between these two unique cultures.

Findings

Interestingly, co-location has little impact on the performance of US recipient teams. Without co-location, Chinese recipient team performance lags significantly behind the US teams. However, firms can overcome these knowledge transfer challenges by co-locating source and recipient team members. These results suggest that firms should assess the national cultural context when considering co-location to manage their production move. There are contexts where co-location may be incredibly useful to facilitate an effective knowledge transfer (e.g. collectivist cultures like China) and contexts where this approach may not be as valuable (e.g. individualistic cultures such as the United States).

Originality/value

This research contributes to the academic literature in several ways. First, while past research demonstrates that national culture can be an essential barrier to information and knowledge sharing, this paper extends these findings showing that co-location may effectively overcome this barrier. After the authors offer and test the merits of co-location, they also establish the boundary conditions of this approach by showing that the effect of co-location on knowledge transfer is contingent on the cultural context. This contribution enhances our understanding of the relationship between national culture and knowledge sharing and has implications for managers developing approaches to transfer knowledge between cultures. Second, the authors develop and execute a novel cross-country experimental design. While cross-country experiments have been done before (e.g. Ozer et al. 2014, Kuwabara et al. 2007, etc.), it is still rare to see such experiments due to them being “technically difficult and costly” (Ozer et al. 2014, p. 2437). This research not only offer insights into how teams of people from individualist and collectivist societies send, receive and comprehend production knowledge. It also documents how these teams convert this knowledge into production results.

Details

International Journal of Operations & Production Management, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

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