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Article
Publication date: 7 June 2021

Nitin Pangarkar and Natasha Pangarkar

This study aims to propose a framework to help firms craft value-creating strategies for multiple stakeholders.

Abstract

Purpose

This study aims to propose a framework to help firms craft value-creating strategies for multiple stakeholders.

Design/methodology/approach

The study uses an inductive methodology based on analysing strategies for two exemplar companies, namely, Starbucks and Wagestream. Key insights about how value creation by these companies for multiple stakeholders led to their superior performance, as well as generalizable lessons from the exemplar companies, were identified.

Findings

The study finds that the performance of the two exemplar companies can be explained effectively through the framework.

Research limitations/implications

The framework proposed in the study requires a large amount of data about the value created for different stakeholders. Because the framework is comprehensive, managers need to aggregate different dimensions and varied data which can lead to manipulation or misuse by self-serving managers who wish to make their own strategies or performance look good.

Practical implications

The study identified specific actionable ideas that organizations can undertake to enhance the value they create for their various stakeholders.

Originality/value

The study is the first to develop an actionable framework that can be used by companies to craft strategies based on creating or enhancing stakeholder value. The framework is flexible with regard to application in different country, industry or organizational contexts.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

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Article
Publication date: 31 August 2020

Nitin Pangarkar

This paper aims to develop a generalizable framework for acquisition performance.

Abstract

Purpose

This paper aims to develop a generalizable framework for acquisition performance.

Design/methodology/approach

This paper attempts to simulate a controlled experiment by examining the strategies and performance of the same acquired company under different acquirers. The inductive methodology is used to derive a generalizable framework about the key factors impacting the performance of the acquired firm.

Findings

This study finds that the acquired firm’s performance is better when the environment is munificent and the acquirer uses an appropriate level of integration. Several antecedents of each of these dimensions were identified.

Research limitations/implications

Because the inferences are based on a small sample, the study’s framework needs to be tested in other settings and possibly empirically tested in larger samples to improve its generalizability.

Practical implications

Every year, corporations around the world spend large sums of capital on acquisitions and significant managerial resources on integrating the acquired firms, with decidedly mixed results. The framework proposed in the paper can help managers to improve the performance of their acquisitions.

Originality/value

Unlike prior studies that have quantitatively analysed mixed samples of acquisitions and often arrived at inconclusive results, this study uses the inductive approach based on a few case studies to derive a framework that can be applied across industries. The framework accounts for the key industry and transaction-related contingent factors that can influence the performance of acquisitions under varied circumstances.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

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Article
Publication date: 4 November 2020

B. Elango and Nitin Pangarkar

This study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies…

Abstract

Purpose

This study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies by emerging market firms.

Design/methodology/approach

This study is based on a dataset of 23,256 observations on firms from 32 countries spread over 11 years (2006–2016). Since only some firms undertake exports, the Heckman procedure is used to control for sample self-selection. In the first stage, we predict which firms will choose to export, and, in the second stage, we examine the factors driving the choice made by firms involved in exports between direct and indirect exports strategies.

Findings

The analyses reveal that firms are more likely to choose direct exports when institutional harshness is high and when they are from countries with low uncertainty avoidance. We also find that the strength of the relationship between institutional harshness and the choice of direct exports is moderated at high levels of uncertainty avoidance.

Research limitations/implications

While this study's empirical models account for many firm-level factors as well as home country differences discussed in the literature, we acknowledge there could be other temporal, firm or country idiosyncratic factors not included in our analysis driving the key choices examined in the paper.

Originality/value

This study makes three contributions to exporting literature. First, it highlights the drivers of the choice between direct and indirect exports. This choice is an important facet of exporting strategy and has received scant attention in prior IB research. Second, it demonstrates how the choice between direct and indirect exports is impacted by the degree of the home country's institutional harshness and uncertainty avoidance. Third, it offers insights on how the interaction of formal and informal home market institutional factors influences export strategy.

Details

International Marketing Review, vol. 38 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

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Article
Publication date: 19 February 2018

Nitin Pangarkar

The purpose of this paper is to investigate whether new store locations by two incumbent supermarket chains in Singapore were consistent with a preemptive strategy.

Abstract

Purpose

The purpose of this paper is to investigate whether new store locations by two incumbent supermarket chains in Singapore were consistent with a preemptive strategy.

Design/methodology/approach

The methodology involved collecting store location data and using a geographical technique (Thiessen polygons) for inferring the existence of a preemptive strategy.

Findings

The analyses revealed that while NTUC Fairprice’s (the dominant incumbent) new store location strategy was consistent with a preemptive strategy, the second ranked player’s (Cold Storage) was not. Being the dominant incumbent, NTUC Fairprice had the incentive (protect its dominant position) as well as ability (scale, low costs and a merchandise mix that appealed to the mass market) to adopt a preemptive strategy. Cold Storage, on the other hand, lacked both the incentive (appeal to the narrow expatriate segment) and the ability (scale or low costs) to follow a preemptive location strategy.

Research limitations/implications

The analyses did not distinguish between the opening of large vs small stores because the data on store sizes were not available. The analyses focused on an earlier time period because the implementation of the analytical technique (construction of polygons) was more feasible during the timeframe.

Practical implications

The paper identifies conditions under which it may be appropriate for firms to follow a preemptive strategy.

Originality/value

The paper adopts a highly appropriate methodology (Thiessen polygons) that takes into account the locations of own as well as competitor’s stores for analyzing the new store locations by supermarket chains. The paper’s conclusions about the conditions under which preemptive strategies are likely to be adopted can be useful to future researchers as well as managers.

Details

Journal of Strategy and Management, vol. 11 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

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Article
Publication date: 17 June 2009

Nitin Pangarkar and Lin Yuan

In this study, we examine the location strategies (e.g., developing versus developed countries) of Chinese multinational firms (Pantzalis 2001). We argue that domestic…

Abstract

In this study, we examine the location strategies (e.g., developing versus developed countries) of Chinese multinational firms (Pantzalis 2001). We argue that domestic firm‐specific ownership advantages of a firm, in the form of larger size and higher degree of diversification, will induce internationalization into developed countries rather than into developing countries. We also predict that internationalization into developed countries will help performance, but internationalization into developing countries will hurt performance. Based on an analysis of data on 154 Chinese‐listed MNCs from 1992 to 2002, we find support for our predictions.

Details

Multinational Business Review, vol. 17 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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Article
Publication date: 17 June 2009

Tao (Tony) Gao and Talin E. Sarraf

This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in…

Abstract

This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging markets. Favorable changes in the host government policies, market demand, firm strategy, and infrastructural conditions are hypothesized to influence the MNCs’ decision to increase resource commitments during a crisis. The hypotheses are tested with data collected in a survey of 82 MNCs during the recent Argentine financial crisis (late 2002). While all the above variables are considered by the respondents as generally important reasons for increasing resource commitments during a crisis, only favorable changes in government policies significantly influence MNCs’ decisions to change the level of resource commitments during the Argentine financial crisis. The research, managerial implications, and policy‐making implications are discussed.

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Article
Publication date: 1 March 2000

Nitin Pangarkar

Mergers represent a common means of restructuring assets. The existing literature on mergers, however, has a strong bias towards viewing firms' decisions as outcomes of…

Abstract

Mergers represent a common means of restructuring assets. The existing literature on mergers, however, has a strong bias towards viewing firms' decisions as outcomes of comprehensively rational processes. In this study, we propose two alternative explanations regarding mergers, namely strategic momentum and bandwagons. Both these explanations incorporate factors such as incomplete information, cognitive simplifications by managers and principal-agent issues. Bandwagon theories argue that firms will tend to imitate their close rivals regardless of whether such imitation is value-enhancing or not. Strategic momentum theory argues that firms tend to continue with strategies they have implemented in the past. Based on an exhaustive sample of acquisitions, domestic as well as international, undertaken by 43 large pharmaceutical firms based in the triad region over a period of 15 years, we find robust support for the bandwagons Mergers represent a common means of restructuring assets. The existing literature on mergers, however, has a strong bias towards viewing firms' decisions as outcomes of comprehensively rational processes. In this study, we propose two alternative explanations regarding mergers, namely strategic momentum and bandwagons. Both these explanations incorporate factors such as incomplete information, cognitive simplifications by managers and principal-agent issues. Bandwagon theories argue that firms will tend to imitate their close rivals regardless of whether such imitation is value-enhancing or not. Strategic momentum theory argues that firms tend to continue with strategies they have implemented in the past. Based on an exhaustive sample of acquisitions, domestic as well as international, undertaken by 43 large pharmaceutical firms based in the triad region over a period of 15 years, we find robust support for the bandwagons explanation. We do not find unequivocal support for the strategic momentum explanation.

Details

International Journal of Organization Theory & Behavior, vol. 3 no. 1/2
Type: Research Article
ISSN: 1093-4537

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Book part
Publication date: 11 November 2014

Naveen Kumar Jain, Nitin Pangarkar and Yuan Lin

Research on international experience notes its positive influence on subsequent international expansion by firms. We test this relationship in the context of the Indian…

Abstract

Purpose

Research on international experience notes its positive influence on subsequent international expansion by firms. We test this relationship in the context of the Indian software industry whose offerings, unlike many other services, are storable implying that delivery can be separated from production.

Design/methodology/approach

We analyzed the domestic expansion of a sample of publicly listed Indian software firms over the period 2000–2009 with help of Poisson regression.

Findings

We find that even internationally experienced Indian software firms might prefer to expand domestically because of limited financial and managerial resources and concerns about diluting their cost advantage. The storable and separable nature of software services will support this strategy of serving clients remotely. The domestic expansion of assets will, however, be slower for firms with the highest level of industry accreditation. It will also be slower if there are institutional pressures in the form of rivals locating development centers near clients in developed countries.

Originality/value

Our results demonstrate that international experience alone is not sufficient for firms to expand overseas.

Details

Emerging Market Firms in the Global Economy
Type: Book
ISBN: 978-1-78441-066-7

Keywords

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Article
Publication date: 20 July 2015

Naveen Kumar Jain, Nitin Pangarkar, Lin Yuan and Vikas Kumar

The purpose of this paper is to examine the inter-firm variation in the opening of international global development centers (GDCs), in a high commitment entry mode, by…

Abstract

Purpose

The purpose of this paper is to examine the inter-firm variation in the opening of international global development centers (GDCs), in a high commitment entry mode, by Indian software firms as a function of their past performance, degree of internationalization, possession of a valuable resource in the form of CMMI Level 5 certification and rivals’ establishment of GDCs.

Design/methodology/approach

The authors draw on the organizational learning theory, the resource-based view and the strategic behavior theory to analyze the variation in the number of GDCs opened by 32 leading Indian software firms between 2000 and 2009.

Findings

The authors find that strong past performance of Indian software firms leads to the establishment of a greater number of GDCs. The authors further demonstrate that non-financial resources, such as the possession of CMMI Level 5 certification, positively moderate the above relationship.

Research limitations/implications

The research is conducted in the context of a single industry and a single home country. The authors also focus on a subset of firms (large, listed firms) in the industry. The authors recommend future research to examine other knowledge-intensive industries.

Practical implications

An increasing number of Indian software firms and other emerging market firms wish to locate close to their overseas customers by choosing a high commitment entry mode. The research suggests that, prior to internationalizing, managers should build up critical and relevant resources through deployment of high commitment entry modes.

Originality/value

The research has many unique aspects including a rigorous model development, a robust empirical approach as well as an interesting empirical context. The authors believe that the results will be useful to academics and practitioners alike.

Details

The Multinational Business Review, vol. 23 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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Book part
Publication date: 2 September 2009

Nitin Pangarkar, Jie Wu and Long Wai (Rico) Lam

This chapter examines the acquisition of assets (real estate) and companies in the Chinese real estate industry. We propose a nuanced view of state ownership (beyond state…

Abstract

This chapter examines the acquisition of assets (real estate) and companies in the Chinese real estate industry. We propose a nuanced view of state ownership (beyond state being the largest shareholder) and argue that firms with a combination of state and private ownership may be in a unique position to acquire real assets. We conduct an analysis of the growth and funding of the industry for the period and also analyze the successful acquisitions in the industry over 2004–2007. Our analysis is supportive of the nuanced view about state-owned enterprises (SOEs) and their advantageous position for acquiring real estate assets from the government. Our analysis also sheds light on the two-stage marketization process in the Chinese real estate industry where SOEs endowed with real estate assets are sold to non-SOEs.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84855-781-9

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