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Article
Publication date: 17 August 2023

Patrik Vaněk

This paper aims to explore the ambiguity and limitations of measuring firm-level multinationality (FLM) using theoretical and empirical comparisons of existing methods. The paper…

Abstract

Purpose

This paper aims to explore the ambiguity and limitations of measuring firm-level multinationality (FLM) using theoretical and empirical comparisons of existing methods. The paper puts forward a list of five key aspects that collectively serve as a tool for researchers to select the most appropriate method for future research and as a basis for the future development of methods.

Design/methodology/approach

Firstly, the author reviews existing methods of measuring FLM and consolidates findings into five key aspects. Secondly, the author uses the aspects to compare existing methods theoretically, and subsequently, the author groups them into three distinct streams. Thirdly, the author compares existing methods across a sample of the 35 largest European MNEs by sales in 2020 to identify and demonstrate the ambiguity and limitations of these methods.

Findings

The author identifies the five key aspects of measuring FLM: framework, aggregation, segmentation, metrics and indicators. Using empirical comparison, the author empirically confirms the limitations highlighted in the literature and shows the differences and inconsistencies among methods, which cause confusion rather than clarity in the extant literature. Additionally, the author emphasises that three distinct streams further drive the debate on the regional/global nature and present further limitations of methods not mentioned in the literature to date.

Originality/value

This paper provides the most comprehensive review of the existing literature on FLM, resulting in five novel aspects of measuring FLM. The analysis of a sample of 35 European firms demonstrates and identifies the ambiguity and limitations of FLM-measuring methods.

Article
Publication date: 28 July 2023

Le Xu

Research on the organizational ramifications of chief executive officer (CEO) greed remains scarce. This study intends to fill this gap by examining the impact of CEO greed on an…

Abstract

Purpose

Research on the organizational ramifications of chief executive officer (CEO) greed remains scarce. This study intends to fill this gap by examining the impact of CEO greed on an important yet risky corporate strategy, corporate tax avoidance (CTA). Drawing on upper echelons theory, the authors argue that greedier CEOs tend to engage in more CTA. The relationship is weaker when CEOs experienced economic recessions in their early career and stronger when CEOs are endowed with equity ownership of their respective firms.

Design/methodology/approach

The authors test the hypotheses with data from US public firms from 1997 to 2008 and employ the ordinary least square regression analysis to analyze the hypothesized relationships. The authors also test the robustness of the results by performing the two-stage least square regression and propensity score matching analyses.

Findings

The findings lend broad support to all the hypotheses. The authors find that greedier CEOs tend to engage in more CTA by paying lower corporate taxes. The impact of greed on CTA is attenuated when CEOs are recession CEOs and is exacerbated when CEOs own large numbers of firm shares.

Originality/value

This paper contributes to the upper echelons research by investigating a novel executive personal characteristic, greed, and its negative impact on an important organizational outcome. This paper also contributes to the growing tax research that recognizes the important role executives play in shaping corporate tax strategies.

Details

Journal of Strategy and Management, vol. 17 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 26 March 2024

Brent Burmester

This is a response to “Taming wicked problems”, a paper recently published in CPOIB in which modern slavery is framed as a wicked problem. The purpose of this study is to convey…

Abstract

Purpose

This is a response to “Taming wicked problems”, a paper recently published in CPOIB in which modern slavery is framed as a wicked problem. The purpose of this study is to convey the author’s appraisal of its contribution to policymaking regarding modern slavery in global supply chains.

Design/methodology/approach

The author engages in a discursive review of “Taming wicked problems”, taking inspiration from its perceived strengths and weaknesses to expand on the problem of modern slavery as a challenge to international business (IB) researchers.

Findings

“Taming wicked problems” is welcomed as a provocative contribution to modern slavery research in IB, although it is perceived to give too little critical attention to the problem of modern slavery itself.

Research limitations/implications

This is, by design, a subjective assessment of the treatment of modern slavery and policy from the perspective of an IB researcher who has previously studied the phenomenon without a wicked problem framing.

Practical implications

Modern slavery is a serious problem for IB scholars, as they have failed to extrapolate it from their analysis of international business strategy. This paper is intended to advance the disciplinary defence of vulnerable workers exploited to the ultimate benefit of MNEs.

Social implications

IB must engage critically with international business strategies that heighten the risk of human rights violations. The persistence of modern slavery disadvantages all persons in employment.

Originality/value

This paper seeks to better define the offense implicit in modern slavery so to inform critical IB research into its causes and deterrence.

Details

Critical Perspectives on International Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 2 April 2024

Ryuta Ishii

It is important for an exporting manufacturer to motivate its foreign channel partners to sell and promote its products. An excellent way to motivate such foreign channel partners…

Abstract

Purpose

It is important for an exporting manufacturer to motivate its foreign channel partners to sell and promote its products. An excellent way to motivate such foreign channel partners is to give them exclusive territories. Unfortunately, there is a lack of knowledge regarding the determinants of territorial exclusivity. This study aims to investigate the relationship between organizational culture and territorial exclusivity and the moderating role of firm size in this relationship.

Design/methodology/approach

Survey data were collected from manufacturing small and medium-sized enterprises (SMEs) in Japan. To test the hypotheses, a regression analysis was conducted using the ordinary least squares technique.

Findings

Empirical evidence shows that the cultural values of collectivism and uncertainty avoidance influence territorial exclusivity; collectivist exporters are likely to use territorial exclusivity, whereas exporters with high uncertainty avoidance are not likely to use it. Furthermore, the larger the firm size, the smaller the impact of cultural values on territorial exclusivity; this suggests that large SMEs do not rely on their organizational culture to make decisions about exclusive territories.

Originality/value

The export marketing literature emphasizes the advantages of exclusive territories. By contrast, the channel management literature suggests that exclusive territories also have disadvantages. As exclusive territories have both advantages and disadvantages, it is crucial to answer the following question: What kinds of exporting manufacturers grant exclusive territories to their foreign channel partners? By addressing this question, this study contributes to a better understanding of export channel strategy.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 13 February 2024

Liang-Hung Lin and Yu-Ling Ho

This study aims to examine the effect of exploratory innovation offshoring on the level of hierarchical control and how this effect is moderated by transnational and dynamic…

Abstract

Purpose

This study aims to examine the effect of exploratory innovation offshoring on the level of hierarchical control and how this effect is moderated by transnational and dynamic environments.

Design/methodology/approach

This study draws on a sample of 148 Taiwanese multinational enterprises to examine their governance decisions on foreign investments.

Findings

Findings show that the more innovation offshoring is exploratory, the higher the level of hierarchical control will be used by multinational enterprises (MNEs) and that transnational and dynamic environments have different moderation effects on the positive exploratory innovation offshoring-hierarchical control relationship.

Research limitations/implications

This study has two theoretical implications. First, this study extends the concept of complexity from a transaction attribute level (problem) to an environmental level (transnational environment) and finds that exploratory innovation offshoring and transnational environments interactively impact governance choices. Second, this study distinguishes between two sources of technological uncertainty – uncertainty due to transaction-level attributes (exploratory innovation offshoring) and external environments (dynamic environments) and finds that exploratory innovation offshoring and dynamic environments interactively impact governance choices.

Practical implications

The practical implication of this study lies in the simultaneous consideration of exploratory innovation offshoring and transnational/dynamic environments, which will allow international decision-makers to adjust/select the governance forms most appropriate for speedy responding to and handling environmental changes.

Originality/value

This study employs the theoretical perspectives of transaction cost economics (TCE) and resource-based view (RBV) to analyze and discuss the impact of operational environments – transnational and dynamic environments – on MNEs’ decisions on the governance structure for a given innovation offshoring.

Details

Management Decision, vol. 62 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 29 January 2024

Hanyang Ma, Jingjie Zou and Hailiang Zou

This study aims to explore the internationalization of multinational enterprises (MNEs) from China and aims to examine the relationship between Chinese MNEs’ duration of…

Abstract

Purpose

This study aims to explore the internationalization of multinational enterprises (MNEs) from China and aims to examine the relationship between Chinese MNEs’ duration of internationalization and export intensity, and the contingent roles of the home country government.

Design/methodology/approach

By extending the springboard theory with institutional and cost-benefit analyses, the authors elaborate a two-phase framework of internationalization to explain how Chinese MNEs develop their international business under the influences of the home country government. Furthermore, the authors apply the Heckman two-stage method based on a panel data set of 19,994 firm-year observations of Chinese listed firms in 2008–2018 to test the hypotheses.

Findings

The research findings demonstrate an inverted U-shape relationship between the duration of internationalization and the export intensity of MNEs from China. The export intensity of MNEs from China increases during the initial phase of internationalization, and decreases during the subsequent. A further study reveals that the inverted U-shape of Chinese non-SOEs is steeper than that of SOEs, and this moderating effect is more salient after the Belt and Road Initiative. These results highlight the influence of the home government through state ownership and policies on the inverted U-shaped relationship.

Originality/value

This study helps to refine the understanding of Chinese MNEs’ global expansion by addressing time as an explicit dimension and revealing the mechanism of state ownership and the home country governmental policy in the dynamic internationalization process.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Book part
Publication date: 29 January 2024

Mujeeb Saif Mohsen Al-Absy

Businesses are now under more pressure from society, legislatures, and other stakeholders to act responsibly since there is a deeper understanding of how businesses affect society…

Abstract

Businesses are now under more pressure from society, legislatures, and other stakeholders to act responsibly since there is a deeper understanding of how businesses affect society globally. Whether a company environmental policy is actively pursued or passively approved, boards are ultimately in charge of it. Hence, the aim of the study is to investigate the influence of the board of directors’ characteristics, namely board size, meetings, independence, gender diversity, and qualification, on environmental disclosure. The study covers all listed manufacturing companies in Saudi Arabia and Bahrain for the years 2018–2022. The study expects that the board of directors’ characteristics should have a significant impact on enhancing the environmental disclosure. The finding of the study will add a vital contribution to the literature as it is the first study to be conducted in a developing country, such as Bahrain, where no study has yet been conducted there. The finding will help different parties, for example, policy makers, regulators, and shareholders as well as managers on the effect of the board of directors on the level of high quality in environmental disclosure that will build a good reputation for companies.

Details

Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application
Type: Book
ISBN: 978-1-80455-973-4

Keywords

Article
Publication date: 30 January 2024

Tien Dung Luu

This study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.

Abstract

Purpose

This study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.

Design/methodology/approach

The study sample comprised 96 small and medium-sized exporting enterprises (SMEs) in Vietnam. The data is analysed using multiple regression analysis (MRA), Hayes' process model and fuzzy-set qualitative comparative analysis (fsQCA).

Findings

The results indicate that GD significantly negatively affects EP. In this dilemma, the export market orientation (EMO) and digital transformation positively moderated the relationship between GD and EP, such that the negative effect of GD on EP was weaker when EMO and digital were stronger.

Originality/value

This initial study contributes significantly to international business theories and practices, which reveal the role of GD via firm digital capacity and EMO in thriving SMEs’ EP. This study might grant new insight into international business and a critical approach to addressing the new insights small firms may face in a fragile but technologically advanced world.

Details

Marketing Intelligence & Planning, vol. 42 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 14 November 2023

Wensong Bai, Mikael Hilmersson, Martin Johanson and Luis Oliveira

The authors seek to advance the understanding of small- and medium-sized enterprise (SME) internationalization at the regional level and examine the role of home market…

Abstract

Purpose

The authors seek to advance the understanding of small- and medium-sized enterprise (SME) internationalization at the regional level and examine the role of home market institutions in this process.

Design/methodology/approach

The authors analyze hypotheses with data from SMEs in five country markets and from the Global Entrepreneurship Monitor. A cluster analysis establishes the regional diversification patterns (based on regional diversification scope, speed and rhythm) and a multinomial regression tests the effect of home market institutions on their adoption.

Findings

The results offer a refined picture of SME regional diversification by revealing three patterns: intra-regionally focused firms, late inter-region diversifiers and early inter-region diversifiers. They also suggest that the adoption of these patterns is determined by SMEs' home market institutions.

Originality/value

The authors develop a nuanced understanding of SME internationalization by building upon and expanding the regionalization rationale in the internationalization patterns literature. Additionally, the authors address the acknowledged, yet rarely investigated, country-level determinants of internationalization patterns.

Details

International Marketing Review, vol. 41 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 9 January 2024

Kaitlyn DeGhetto

There is an extensive research stream devoted to evaluating host country political risk as it relates to foreign investment decisions, and in today’s geopolitical climate, this…

Abstract

Purpose

There is an extensive research stream devoted to evaluating host country political risk as it relates to foreign investment decisions, and in today’s geopolitical climate, this type of risk is becoming increasingly salient to business leaders. Despite notable advancements related to understanding the importance of government-related risk, inconsistent conceptualizations and findings remain. Thus, the purpose of this paper is to offer a comprehensive overview of how host country political risk has been conceptualized, measured and studied in relation to multinational enterprises' (MNEs’) investment decisions. After reviewing the relevant literature, five major aspects of non-violent (government type, public corruption, leadership change) and violent (armed conflict, terrorism) political risk were identified. The organization and review of each aspect of political risk provide insights on fruitful directions for future research, which are discussed.

Design/methodology/approach

To identify research articles on political risk and foreign investment, 13 leading management and international business journals were searched using relevant keywords (January 2000 to January 2023). Moreover, reviewing articles from these journals led to locating and reviewing additional relevant articles that the authors cited. Keyword searches were also conducted on Google Scholar and Web of Science in an effort to identify relevant articles outside of the 13 targeted journals.

Findings

Both violent and non-violent aspects of host country political risk have been studied in relation to MNEs' investment decisions. Specifically, five major aspects of host country political risk were identified (government type, public corruption, leadership change, armed conflict and terrorism). Although the general consensus is that risk related to the government often creates obstacles for MNEs, conceptualizations, measures and findings in prior research are not uniform.

Originality/value

This paper provides a comprehensive overview of host country political risk and foreign investment. In doing so, the aspects of political risk are identified, organized and overviewed.

Details

Cross Cultural & Strategic Management, vol. 31 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

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