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Article
Publication date: 16 September 2022

Andrei Panibratov, Olga Garanina, Abdul-Kadir Ameyaw and Amit Anand

The authors revisit the traditional OLI paradigm with the objective to allocate politics within the set of internationalization advantages by building on the political strategy…

Abstract

Purpose

The authors revisit the traditional OLI paradigm with the objective to allocate politics within the set of internationalization advantages by building on the political strategy literature. The authors outline the specific role of political advantage that facilitates and propels the international expansion of state-owned multinational enterprises (SOMNEs) from emerging markets.

Design/methodology/approach

A conceptual paper which explains the role of political advantage in the internationalization of SOMNEs. The authors expand the scope of the OLI to capture the impact of firms' home governments' policies and relationships with host countries which are leveraged by SOMNEs in their internationalization.

Findings

The authors define political advantage as a new type of advantage which depends on and is sourced from external actors. The authors argue that P-advantage is a multifaceted and unstable part of POLI composition, which is contingent on political shifts and may be leveraged by various firms. The authors also assert that political capabilities have limitations in sustaining political advantage, which may be compensated via enhancing the political activity of firms.

Originality/value

The authors conceptualize the POLI-advantages paradigm for the internationalization of SOMNEs by proposing that in addition to the traditional ownership, location, and internalization advantages, firms can capitalize on their political advantage to enter markets where internationalization might have been difficult without their political connections.

Article
Publication date: 20 September 2022

Kader Sahin, Ekrem Tatoğlu, Kubra Mert, Tuğba Kaplan and Ismail Golgeci

This paper aims to investigate the internationalization motives behind location choice among emerging country business groups (EBGs) and the way in which institutional factors…

Abstract

Purpose

This paper aims to investigate the internationalization motives behind location choice among emerging country business groups (EBGs) and the way in which institutional factors affect Türkiye’s foreign direct investment (FDI).

Design/methodology/approach

This study develops a multi-perspective framework that integrates the ownership, location and internalization (OLI) paradigm (Dunning and Lundan, 2008) and the linkage, leverage and learning (LLL) model (Mathews, 2006) with neo-institutional theory to explain the internationalization of EBGs. It adopts a multiple-case study research method relying on 14 semi-structured interviews with top executives to explore the internationalization strategy of a set of Turkish BGs.

Findings

This study supports the combination of the OLI paradigm, the LLL model and neo-institutional theory to explain EBGs’ internationalizing behaviors. Turkish BGs have adopted both asset exploitation and asset augmentation internationalization strategies. The institutional legitimacy mechanism moderates the internationalization motives of Turkish BGs, and their host country location choice and normative pressures are more salient than their regulative and cognitive pressures.

Research limitations/implications

This study is based on a sample of EBGs from Türkiye, and this restriction limits the generalizability/applicability of the findings to BGs globally.

Originality/value

Few studies have considered EBGs and their internationalization strategies in the international business field. This paper puts forward an integrated framework for analyzing internationalization and legitimacy in the institutional context of EBGs. This study highlights that BGs bridge institutional voids. Focusing on Turkish BGs helps to answer Granovetter’s Coasian question and contributes to the understanding of emerging countries’ economic development.

Details

International Journal of Emerging Markets, vol. 19 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Expert briefing
Publication date: 8 March 2024

His Communist Party of Nepal (Maoist Centre) now has fewer governing partners. The reconfiguration included cutting ties with Sher Bahadur Deuba’s Nepali Congress, the largest…

Book part
Publication date: 16 May 2024

Mohammad B. Rana and Matthew M. C. Allen

The changing roles of the United Nations (UN) and national institutions have made addressing climate change a critical concern for many multinational enterprises’ (MNEs) survival…

Abstract

The changing roles of the United Nations (UN) and national institutions have made addressing climate change a critical concern for many multinational enterprises’ (MNEs) survival and growth. This chapter discusses how such institutions, which vary in their nature and characteristics, shape firm strategies for climate change adaptation. Exploring different versions of institutional theory, the chapter demonstrates how and why institutional characteristics affect typical patterns of firm ownership, governance, and capabilities. These, in turn, influence companies’ internationalisation and climate-change strategies. Climate change poses challenges to how we understand firms’ strategic decisions from both an international business (IB) (HQ–subsidiary relations) and global value chains (GVC) (buyer–supplier relations) perspective. However, climate change also provides opportunities for companies to gain competitive advantages – if firms can reconfigure and adapt faster than their competitors. Existing IB and GVC research tends to downplay the importance of climate change strategies and the ways in which coherent or dysfunctional institutions affect firms’ reconfiguration and adaptation strategies in a globally dispersed network of value creation. This chapter presents a perspective on the institutional conditions that affect firms’ climate change strategies regarding ownership, location, and internalisation (OLI), and GVCs, with ‘investment’ and ‘emerging standards’ playing a significant role. The authors illustrate the discussion using several examples from the Global South (i.e. Bangladesh) and the Global North (i.e. Denmark, Sweden, and Germany) with a special emphasis on the garment industry. The aim is to encourage future research to examine how a ‘business systems’, or varieties of capitalism, institutional perspective can complement the analysis of sustainability and climate change strategies in IB and GVC studies.

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Keywords

Article
Publication date: 29 February 2024

Yuxiao Ye, Yiting Han and Baofeng Huo

In this research, we explore the adverse impact of foreign ownership on operational security, a critical operational implication of the liability of foreignness (LOF).

Abstract

Purpose

In this research, we explore the adverse impact of foreign ownership on operational security, a critical operational implication of the liability of foreignness (LOF).

Design/methodology/approach

The empirical analysis is based on a multi-country dataset from the World Bank Enterprises Survey, which contains detailed firm-level information from over 8,902 firms in 82 emerging market countries. We perform a series of robustness checks to further confirm our findings.

Findings

We find that a high ratio of foreign ownership is associated with an increased likelihood of security breaches and higher security costs. Our results also indicate that high levels of host countries’ institutional quality and firms’ local embeddedness can mitigate such vulnerability in operational security.

Originality/value

This study is one of the first to uncover the critical operational implication of the LOF, indicating that a high ratio of foreign ownership exposes firms to operational security challenges.

Details

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

Keywords

Article
Publication date: 5 December 2022

Chad Hershock, Michael C. Melville, Jacqueline Stimson and Heather Dwyer

The authors developed online learning modules to train graduate and undergraduate student instructors (GUSIs) on grading and delivering feedback in quantitative disciplines. The…

Abstract

Purpose

The authors developed online learning modules to train graduate and undergraduate student instructors (GUSIs) on grading and delivering feedback in quantitative disciplines. The authors report results from multiple assessments conducted during recent training events at a mid-sized, research-intensive institution and discuss implications for educational development.

Design/methodology/approach

Using pre/post-assessments, the author measured participants' learning gains and skill development. In Study 1, the authors measured learning gains for 109 computer science GUSIs randomly assigned to complete the modules or not. Participants who completed the modules performed significantly better on the post-assessment relative to the control group across all seven module learning objectives aligned with GUSI responsibilities. In Study 2, we iterated on both assessments and modules, replicating Study 1 results for GUSIs from other quantitative disciplines. In Study 3, the authors compared learning gains from online modules to in-person training sessions, focusing on the authentic task of providing written feedback on student work.

Findings

Proficiency improved equally and significantly via both training modalities.

Originality/value

At research-intensive universities, GUSI training can be inconsistent and difficult to scale and rarely assessed via direct measures of outcomes. To the authors’ knowledge, this is the first study to rigorously measure GUSI skill development via authentic assessment tasks such as grading student work and/or providing effective written feedback rather than simply testing knowledge. This study also addresses implications for designing and implementing effective GUSI training at scale.

Details

Journal of Applied Research in Higher Education, vol. 15 no. 5
Type: Research Article
ISSN: 2050-7003

Keywords

Open Access
Article
Publication date: 26 April 2024

Shijie Li

This study considers the “technology creation” characteristic of technical knowledge-intensive business services (T-KIBS) and examines how human capital and intellectual property…

Abstract

Purpose

This study considers the “technology creation” characteristic of technical knowledge-intensive business services (T-KIBS) and examines how human capital and intellectual property rights (IPR) protection affect the location choice of foreign direct investment (FDI) in China for two types of T-KIBS: (1) information transmission, software and information technology (ICT) services and (2) scientific research and technology (SCI) services.

Design/methodology/approach

Our empirical analysis is based on panel data on 22 Chinese provinces from 2009 to 2017. We use the generalized method of moments estimation for the regression analysis.

Findings

FDI in ICT services prefers regions with high human capital, while FDI in SCI services favors regions with good IPR protection.

Research limitations/implications

Future research could use more comprehensive data and qualitative interviews to enhance the findings.

Practical implications

These findings provide a foundation for China’s future policy on attracting FDI into T-KIBS, especially in areas related to human capital and IPR protection.

Originality/value

This study bridges the research gap on the FDI location choice of T-KIBS in China by clarifying the influences of human capital and IPR protection and providing theoretical support for the location choice of T-KIBS FDI.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 20 February 2024

Abebe Hambe Talema and Wubshet Berhanu Nigusie

The purpose of this study is to analyze the horizontal expansion of Burayu Town between 1990 and 2020. The study typically acts as a baseline for integrated spatial planning in…

Abstract

Purpose

The purpose of this study is to analyze the horizontal expansion of Burayu Town between 1990 and 2020. The study typically acts as a baseline for integrated spatial planning in small- and medium-sized towns, which will help to plan sustainable utilization of land.

Design/methodology/approach

Landsat5-TM, Landsat7 ETM+, Landsat5 TM and Landsat8 OLI were used in the study, along with other auxiliary data. The LULC map classifications were generated using the Random Forest Package from the Comprehensive R Archive Network. Post-classification, spatial metrics, and per capita land consumption rate were used to understand the manner and rate of expansion of Burayu Town. Focus group discussions and key informant interviews were also used to validate land use classes through triangulation.

Findings

The study found that the built-up area was the most dynamic LULC category (85.1%) as it increased by over 4,000 ha between 1990 and 2020. Furthermore, population increase did not result in density increase as per capita land consumption increased from 0.024 to 0.040 during the same period.

Research limitations/implications

As a result of financial limitations, there were no high-resolution satellite images available, making it challenging to pinpoint the truth as it is on the ground. Including senior citizens in the study region allowed this study to overcome these restrictions and detect every type of land use and cover.

Practical implications

Data on urban growth are useful for planning land uses, estimating growth rates and advising the government on how best to use land. This can be achieved by monitoring and reviewing development plans using satellite imaging data and GIS tools.

Originality/value

The use of Random Forest for image classification and the employment of local knowledge to validate the accuracy of land cover classification is a novel approach to properly customize remote sensing applications.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

Keywords

Executive summary
Publication date: 5 March 2024

NEPAL: Government infighting will continue

Details

DOI: 10.1108/OXAN-ES285654

ISSN: 2633-304X

Keywords

Geographic
Topical
Book part
Publication date: 16 May 2024

Jean-François Hennart

Why is it that, despite repeated claims that digital-content firms and internet-based businesses can internationalize everywhere almost instantly, many seem unable to profitably…

Abstract

Why is it that, despite repeated claims that digital-content firms and internet-based businesses can internationalize everywhere almost instantly, many seem unable to profitably expand outside their home markets? Why have emerging market firms (EMNEs) caught up with established developed-country multinationals (DMNEs) so much faster than expected? In this chapter, the author argues that the clue to these two puzzles lies in the realization that, contrary to the dominant view in the international business (IB) literature that focuses only on the intangibles exploited by DMNEs and assumes that these firms are free to unilaterally decide on their mode of entry and operation, doing business in a foreign country is only possible if intangibles are bundled with complementary local resources, usually held by local firms. Taking into account these complementary local resources and their owners makes it clear that DMNEs are not always free to choose their entry mode but must enlist the cooperation of local resource owners. The need of digital-content and internet-based firms for local complementary resources also explains why they sometimes experience problems when expanding abroad. Lastly, control of complementary local resources provides EMNEs with a home advantage against DMNEs competing with them in their home market. The author shows how EMNEs can capitalize on this advantage to obtain the intangibles they lack and need. The fact that these advantages are available on efficient global markets, while complementary local resources are not, explains the surprising speed of EMNE catch-up.

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