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Article
Publication date: 14 July 2023

Peng Xu and Zichao Zhang

In order to effectively promote the deep integration of artificial intelligence and the real economy and empower real enterprises to improve quality and efficiency, this study…

Abstract

Purpose

In order to effectively promote the deep integration of artificial intelligence and the real economy and empower real enterprises to improve quality and efficiency, this study regards the CEO as a high-end innovation resource and aims to empirically test the impact of scholar-type CEOs on the industrial artificial intelligence (AI) transformation of manufacturing enterprises.

Design/methodology/approach

Grounded on the upper echelons theory, this paper preliminarily selects A-share manufacturing listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange that are affiliated to enterprise groups from 2014 to 2020 as samples. Furthermore, the Logit regression is conducted to analyze the influence of scholar-type CEOs about industrial AI transformation.

Findings

The results show that scholar-type CEO plays a significant role in promoting industrial AI transformation. The parent-subsidiary corporations executives' ties positively moderates the impact of scholar-type CEOs on industrial AI transformation. Further, internal control quality plays a partial mediating role between scholar-type CEOs and industrial AI transformation. Compared with private enterprises, scholar-type CEOs play a stronger role in promoting industrial AI transformation of state-owned enterprises.

Originality/value

First, this paper expands the research related to the influencing factors of industrial AI transformation based on upper echelons theory and clarifies the influencing mechanism of scholar-type CEOs affecting industrial AI transformation from the perspective of executives' behavior. Second, this study further enriches the research framework on the economic consequences of scholar-type CEOs and provides a useful supplement to the research literature in the field of upper echelons theory. Third, this paper is not limited to a single enterprise but involves the management practice of resource allocation within the enterprise groups, further clarifies the internal logic of the decision-making of industrial AI transformation of listed companies within the framework of enterprise groups, providing theoretical reference for the scientific design of the governance mechanism of parent-subsidiary companies.

Details

Industrial Management & Data Systems, vol. 123 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 27 February 2024

Yanxi Li, Delin Meng and YunGe Hu

This study aims to investigate the influence of parent company personnel embedding on the stock price crash risk (SPCR) of listed companies, along with the moderating effect of…

Abstract

Purpose

This study aims to investigate the influence of parent company personnel embedding on the stock price crash risk (SPCR) of listed companies, along with the moderating effect of disparate locations between parent and subsidiary companies and other major shareholders.

Design/methodology/approach

This research empirically tests hypotheses based on a sample of listed subsidiaries in China during the period between 2006 and 2021.

Findings

Our results demonstrate that personnel embeddedness in the parent company significantly alleviates SPCR in subsidiaries. This effect is even more substantial when the parent and subsidiary companies are in different places. However, other major shareholders in the subsidiary company weaken it. Our additional analysis indicates that, relative to executive embeddedness, director embeddedness exerts a stronger effect on the SPCR of the subsidiary. Mechanism examination reveals that the information asymmetry and the level of internal control (IC) within the subsidiary are significant channels through which the personnel embeddedness from the parent company influences the SPCR of the subsidiary.

Originality/value

This study expands the literature on how personnel arrangements in corporate groups within emerging countries influence SPCR. We have extended the traditional concept of interlocking directorates to corporate groups, thereby broadening the understanding of the governance effects of interlocking directors and executives from a group perspective.

Details

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

Keywords

Open Access
Article
Publication date: 30 October 2023

Roger Schweizer, Katarina Lagerström, Emilene Leite and Cecilia Pahlberg

The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation…

Abstract

Purpose

The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation within the MNC. In contrast to the rather scarce previous research, the authors argue that HQ needs to solve the coopetition paradox under the sway of a parenting paradox. Hence, HQ faces a dual paradox.

Design/methodology/approach

Drawing on the literature on HQ’s role during MNCs’ innovation processes, this conceptual paper revisits the previously suggested HQ measures to enable coopetition among subsidiaries. By applying a sheer ignorance perspective, the authors contribute with a more nuanced understanding of the HQ’s role in innovation activities.

Findings

The article identifies four challenges as the HQ faces a parenting paradox that hinders its ability to solve the coopetition paradox: context specificity of subsidiaries’ innovation work, normative expectations of subsidiary managers, potential opportunistic behavior of HQ manager and HQ underestimation of needed resources. The article suggests that HQ needs to become more informed and preferably even embedded in the local innovation networks of its most important subsidiaries and that coopetition should not be managed solely on an HQ level.

Originality/value

Advocating a sheer ignorance perspective, the article pioneers in discussing the role that HQ plays in managing coopetition among subsidiaries in innovation activities.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 25 October 2021

Celia Torrecillas and Bruno Brandão Fischer

The springboard theory for multinational enterprises and the upward spiral model address the expansion of emerging countries’ multinational enterprises (MNEs) abroad as a set of…

Abstract

Purpose

The springboard theory for multinational enterprises and the upward spiral model address the expansion of emerging countries’ multinational enterprises (MNEs) abroad as a set of resource-building stages. This paper aims to analyze this model by qualifying knowledge flows in three domains: learning effects, transfer flows and global connections.

Design/methodology/approach

The authors use 2018 data from the ORBIS database to identify evidence concerning the springboard MNE (SMNE) phenomenon. The authors select MNE firms from 93 emerging economies with presence in 71 developed and 93 developing countries. In addition, the authors differentiate between the levels of technological intensity of emerging market MNEs’ sectors.

Findings

The results highlight the existence of learning processes taking place in subsidiaries and feeding back into parent firms, as well as the existence of capability transfer from home to host units.

Originality/value

The main contribution is the addition of empirical evidence on the SMNE and specifically the upward spiral model, considering the micro-level and the productivity differences between parent firm and subsidiaries.

Details

Competitiveness Review: An International Business Journal , vol. 33 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 27 November 2023

María Isabel Barba-Aragón, Raquel Sanz-Valle and María Eugenia Sanchez-Vidal

The objective of this study is to analyze the process of reverse knowledge transfer (RKT) occurring in multinational companies (MNCs), examining whether headquarters' absorptive…

Abstract

Purpose

The objective of this study is to analyze the process of reverse knowledge transfer (RKT) occurring in multinational companies (MNCs), examining whether headquarters' absorptive capacity and the human resource management (HRM) practices developed by the parent unit influence success.

Design/methodology/approach

The data were collected through a questionnaire completed by the human resource manager of multinational company (MNC) headquarters. The analysis has been carried out on a sample of 115 Spanish MNCs by using structural equation models (SEM).

Findings

The results indicate that a parent firm's absorptive capacity positively influences RKT and that, in turn, this absorptive capacity is greater if headquarters implement certain practices of employee staffing, training, participation and performance appraisal.

Originality/value

This study extends existing research on RKT by examining the absorptive capacity of headquarters. Its main contribution is to provide evidence that MNCs can improve their RKT through HRM practices developed by the parent unit. This is original because most studies on RKT focus on HRM practices used by subsidiaries.

Details

Personnel Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 22 January 2024

Igor Gurkov and Michael J. Morley

This paper aims to present the impact of several likely trajectories of development for global industries, namely, re-shoring, regionalization, diversification and replication…

Abstract

Purpose

This paper aims to present the impact of several likely trajectories of development for global industries, namely, re-shoring, regionalization, diversification and replication, recently identified by the United Nations Conference on Trade and Development, on the evolution of the corporate parenting styles (CPSs) of multinational corporations (MNCs).

Design/methodology/approach

This viewpoint presents a novel view of CPSs as a set of relationships between the corporate centers of MNCs and their subsidiaries, including domestic ones, identifies the most likely connections between anticipated trajectories of development in global industries and the evolution of CPSs of MNCs and outlines directions for further research.

Findings

The anticipated trajectories of the development of global industries may result in changes in prevailing CPSs and lead to the proliferation of previously less common parenting styles. Although many of the anticipated changes in CPSs may be pursued by corporate headquarters (CHQs), a combination of powerful subsidiaries putting bottom-up pressure on CHQs and powerful owners capable of imposing requirements on top management teams and generating top-down pressure may affect the CPSs used by corporations.

Originality/value

The authors connect possible trajectories of development for global industries with the evolution of CPSs of MNCs.

Article
Publication date: 6 October 2023

Junying Liu, Ying Wang and Xueyao Du

Foreign construction subsidiaries play an important role in the global construction market. How to establish and maintain long-term sustainable performance has attracted increased…

Abstract

Purpose

Foreign construction subsidiaries play an important role in the global construction market. How to establish and maintain long-term sustainable performance has attracted increased attention, but only a few studies have considered this issue. The purpose of this study is to explore the relationship between autonomy and the sustainable performance of subsidiaries and to provide support for their management control modes.

Design/methodology/approach

From an institutional logics perspective, empirical research using a questionnaire survey was conducted following the methodological framework of this study. Relevant data were collected from 106 experienced managers of foreign construction subsidiaries, and the hypotheses were tested through a regression model.

Findings

The results show that foreign construction subsidiaries have a high degree of operational autonomy, which tends to strengthen their embeddedness in the host country and improve their sustainable performance. However, the role of strategic autonomy is not found to be significant. The moderation results show that the positive impact between operational autonomy and external network embeddedness is strengthened by institutional distance. Institutional distance has no significant moderating impact on the relationship between strategic autonomy and external network embeddedness, respectively.

Research limitations/implications

Geographical limitations may exist as the survey is focused on the Chinese construction foreign subsidiaries. However, based on an institutional logics perspective, this study discusses the management control mode of foreign subsidiaries, which enriches the antecedents of sustainable performance and can provide an in-depth explanation of the effects of the organizational strategies of multinational construction enterprises.

Practical implications

This study provides beneficial information for the sustainable performance of foreign construction subsidiaries. It will provide detailed guidance to managers located in different institutional environments on optimally promoting the sustainable development of subsidiaries.

Originality/value

This study identifies autonomy as an important antecedent, making it one of the first studies investigating autonomy on the sustainable performance of foreign construction subsidiaries. The findings of this study can contribute to the construction subsidiaries' sustainable performance literature and provide novel, comprehensive knowledge for academia and practice.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 3 February 2023

Igor Gurkov, Sven Dahms and Ivan Shchetinin

The purpose of this study is to investigate strategic tensions arising between corporate headquarters (CHQs) and a subsidiary during disruptive events.

Abstract

Purpose

The purpose of this study is to investigate strategic tensions arising between corporate headquarters (CHQs) and a subsidiary during disruptive events.

Design/methodology/approach

This study adapted a case study approach combined with action research elements in the context of the COVID-19 pandemic. The focal company is an US information technology (IT)-company operating in Russia.

Findings

During the COVID-19 pandemic, some sectors and industries, such as the IT sector, received a unique impetus for development. At the same time, our subsidiary started to develop and implement a set of measures to explore and exploit nascent business opportunities without waiting for the formal approval of “subsidiary initiatives” by the CHQs or regional headquarters (RHQs). The subsidiary was able to postpone the implementation of corporate-wide projects which it saw as not well suited to the host country market at that time.

Originality/value

This study presents subsidiaries not as passive receivers of orders from CHQs or RHQs, but as active partners in the corporate management hierarchy capable to mold effectively certain corporate-wide initiatives and policies.

Article
Publication date: 10 August 2023

Muhammad Mustafa Raziq

This study examines the relationship between subsidiary autonomy and the MNE subsidiary initiative collaboration (i.e. entrepreneurial initiative resource support, the subsidiary…

Abstract

Purpose

This study examines the relationship between subsidiary autonomy and the MNE subsidiary initiative collaboration (i.e. entrepreneurial initiative resource support, the subsidiary seeks and receives from the MNE). It proposes some underlying mechanisms as external embeddedness, and MNE organizational structures to explain the relationship between subsidiary autonomy and the MNE subsidiary initiative collaboration. The study draws on paradox theory arguing how at both the subsidiary and the parent MNE levels certain paradoxes are handled.

Design/methodology/approach

Survey data are collected in a time-lagged fashion from 429 foreign subsidiaries in New Zealand. Data are analyzed using structural equation modeling.

Findings

Results show that the relationship between subsidiary autonomy and the receipt of MNE resource support for initiatives is positive, and this is more likely the case where the subsidiary is managed under simple structures (i.e. subsidiary reports to corporate headquarters, regional headquarters or mandated units) rather than complex structures (i.e. a matrix or a network). Furthermore, an increase in subsidiary autonomy positively influences MNE initiative resource-seeking, and this is more likely the case where the subsidiary is less embedded externally.

Originality/value

The study is one of the first of studies that has applied paradox theory to MNE–subsidiary relationships regarding autonomy and MNE collaboration on initiatives. The study extends research on MNE–subsidiary collaboration on subsidiary initiatives as existing research is limited on this domain. The study contributes by showing how external embeddedness, and the complexity of organizational structures determine the relationship between subsidiary autonomy and MNE subsidiary initiative collaboration.

Details

Cross Cultural & Strategic Management, vol. 30 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 22 October 2021

Liang Wang, Zaiyang Xie, Hongjuan Zhang, Xiaohua Yang and Justin Tan

The literature on how emerging market multinational enterprises (EMNEs) overcome the liability of emergingness/origin has sidestepped a prerequisite for any efforts to overcome…

Abstract

Purpose

The literature on how emerging market multinational enterprises (EMNEs) overcome the liability of emergingness/origin has sidestepped a prerequisite for any efforts to overcome liability, namely, corporate compliance. The authors argue that EMNEs build corporate compliance capability as a knowledge-based firm-specific advantage (FSA) to adapt to institutional norms in advanced economies. In this study, the authors empirically examine the intricate relationships between corporate compliance capability and performance in the US subsidiaries of Chinese firms.

Design/methodology/approach

In this study, the authors use survey data to empirically examine the intricate relationships between corporate compliance capability and performance in the US subsidiaries of Chinese firms.

Findings

The findings reveal a positive relationship between corporate compliance capability and subsidiary performance, as mediated by local financing.

Originality/value

The study suggests that corporate compliance capability helps a subsidiary gain legitimacy, which leads to local resource acquisition and utilization. Corporate compliance capability thus serves as a source of a knowledge-based FSA for EMNEs in developed economies.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

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