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1 – 10 of 82This study focuses on the triadic multilevel psychic distance (MPD) between the firm, target market and bridge-maker and its consequences for firm internationalization…
Abstract
Purpose
This study focuses on the triadic multilevel psychic distance (MPD) between the firm, target market and bridge-maker and its consequences for firm internationalization. Specifically, it spotlights the triadic psychic distance between firms, the levels of psychic distance in the target market (country and business) and the bridge-maker. Therefore, this study examines the triadic MPD among these three entities and its impact on firm internationalization.
Design/methodology/approach
This study uses qualitative and case study research approaches. It is based on 8 case companies and 24 internationalization cases. Secondary data were collected, and interviews with bridge-makers and industry experts were conducted.
Findings
The study found that MPD appeared in the triad. The MPD between firms and markets is related to country-specific differences and business difficulties. The MPD between the firm and the bridge-maker is based on the latter’s lack of knowledge vis-à-vis bridging the firm’s MPD. Finally, the MPD between bridge-makers and the market is based on the former’s lack of knowledge of the home country’s business difficulties.
Originality/value
This is the first study to develop and adopt a triadic multilevel psychic distance conceptualization that provides evidence for and sheds light on the triadic MPD and its effect on firm internationalization. This study identifies the reasons behind triadic MPD in connection to firm internationalization. Notably, firm internationalization is interdependent on the triadic MPD setting between the firm, bridge-maker and target market. It has theoretical value and contributes to the recent advancement in the understanding of MPD in international marketing literature.
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Xi Chen and Hag-Min Kim
The psychic distance often hinders the interaction between cross-border e-commerce (CBEC) and consumers. This paper aims to discuss the issues of psychic distance of consumers in…
Abstract
Purpose
The psychic distance often hinders the interaction between cross-border e-commerce (CBEC) and consumers. This paper aims to discuss the issues of psychic distance of consumers in the CBEC. In addition, it attempts to explain the factors that affect psychic distance from three dimensions of culture, economy and politics and the two different shopping behaviors caused by psychic distance.
Design/methodology/approach
This research incorporates both theoretical and empirical studies. In this study, 249 validated questionnaires were selected from 300 Chinese CBEC consumers by snowball sampling, and the relationship between variables was tested using structural equation model (SEM). This was done through online research, and it is ensured that the data obtained are first-hand information.
Findings
The paper suggests the theoretical model operationalizing CBEC psychic distance and the empirical analysis results show that all the six influencing factors have a positive impact on the psychic distance of consumers. Logistics infrastructure barriers in the economic dimension are confirmed as the major influencing factor, and the significance of the political dimension is relatively small. Based on consumers' uncertainty of various kinds of information, psychic distance subconsciously causes consumers to deviate in the cross-shopping process.
Originality/value
Currently, research on e-commerce mainly focuses on saving trade costs and improving consumer welfare, while research on the internal impact of CBEC on consumers is insufficient. Psychic distance is a new concept in the field of cultural and social research. The originality of this paper is that the concept of psychic distance has been extended from overseas invested enterprises to research with CBEC consumers as the selected object. The obstacles of CBEC have been widely studied, but few are related to the closeness of consumers, or the inner feelings of consumers are ignored. In the context of CBEC, this paper lists the actual external factors and potential threats that may affect consumers' consumption concerns of CBEC from three dimensions. The real emotions of consumers in the face of these difficulties indirectly affect the purchase satisfaction and reduce the purchase desire. Consumer psychic distance is a real phenomenon in cross-border shopping, and it is almost inevitable for these difficulties. On the premise of inevitability, high psychic distance will slow down cross-border shopping in the eyes of consumers.
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Lala Hu, Diana A. Filipescu and Albena Pergelova
The aim of this study is to understand how digital platforms and context-specific characteristics of China – such as swift guanxi – affect opportunities for small and medium…
Abstract
Purpose
The aim of this study is to understand how digital platforms and context-specific characteristics of China – such as swift guanxi – affect opportunities for small and medium enterprises (SMEs) entering this market.
Design/methodology/approach
This study adopts a qualitative approach based on a multiple-case study of Italian SMEs in the wine industry that have activated international activities in China. Primary data consist of 32 interviews with SMEs’ managers, local consumers and other stakeholders involved in firm internationalization.
Findings
The findings of this study highlight that in SMEs’ internationalization, the process of knowledge/learning on digital platforms takes place in a bidirectional way thanks to the interactions among multiple stakeholders, which activate consumer education and knowledge sharing.
Originality/value
While previous research has emphasized firms' knowledge acquisition in the internationalization process, this study incorporates both the consumer perspective and the firm perspective, along with considering interactions with various stakeholders.
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Leonardo Nery Dos Santos, Hsia Hua Sheng and Adriana Bruscato Bortoluzzo
Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose…
Abstract
Purpose
Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose of this paper is to study this type of cost from institutional and regulatory perspectives. The authors argue that these costs decrease when the host country adopts concepts of international regulations that multinationals may be familiar with due to their own home country regulation experience. This prior regulatory experience gives foreign subsidiaries an advantage of foreignness (AoF), which can offset their liability of foreignness (LoF).
Design/methodology/approach
This study compared the returns on assets of 35 domestic firms with those of foreign subsidiaries in the Brazilian energy industry between 2002 and 2021, using regression dynamic panel data.
Findings
The existence of a relationship between the international regulatory norm and the Brazilian regulator has transformed the LoF into an advantage of foreignness to compete with local energy firms. The results also suggest that the better the regulatory quality of the subsidiary’s country of origin, the better its performance in Brazil, as it can reduce compliance costs. Finally, the greater the psychic distance between Brazil and the foreign subsidiary’s home country, the worse its performance.
Research limitations/implications
The research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017).
Practical implications
This research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017). The practical implication is that the relationship between conformity costs, capital budget calculation and strategic planning for internationalization will be related to the governance quality of the home country of multinationals. The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.
Social implications
The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.
Originality/value
This research discuss firm and local regulator tie is one of core competitiveness in host countries (Yang and Meyer, 2020). This study also complements the current institutional and regulatory foreignness studies in emerging economy (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022). Second, prior regulatory experience of multinational enterprise in similar environment can affect its foreign affiliate performance (Perkins, 2014). Third, this study confirms current literature that argues that knowledge and ability to operate in an institutionalized country can be transferred from parent to affiliate. In the end, this study investigates whether AoF persists when host governments improve the governance of their industries.
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ChangSeob Yeo and Vafa Saboori-Deilami
The purpose of this study is to theoretically clarify under which circumstances MNCs should outsource the innovation function. In the globalization era, multinational companies…
Abstract
Purpose
The purpose of this study is to theoretically clarify under which circumstances MNCs should outsource the innovation function. In the globalization era, multinational companies (MNCs) face the challenge of making a strategic decision. They ought to adjudicate upon outsourcing the research and development, i.e. innovation function and bearing the risks of it, or keeping innovation function in house and paying the price of this decision. This decision becomes more crucial when the host country has dissimilar characteristic and high uncertainty compared to the home country.
Design/methodology/approach
This study is among the very first studies that evaluate the issue of outsourcing innovation for MNCs from a transaction cost economics (TCE) theoretical perspective. By setting forward propositions that serve as a guideline for conditions in which MNCs should outsource innovation, this paper contributes to innovation, new product development, global business and, last but not least, to the TCE literature. This study also provides managerial implications and avenues of future research for academicians.
Findings
This study shows that heterogeneity between the home and host country affects the autonomy of the innovation at the host country; this autonomy in turn leads to higher transaction cost, and finally, transaction cost is the main determinant of the decision on whether to outsource the innovation.
Originality/value
This study fills this gap by looking at the problem of outsourcing innovation from a TCE theoretical perspective and, based on an extensive literature review, puts forward a set of propositions that clarify under which circumstances MNCs should outsource the innovation function.
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Arsalan Safari and Ali Salman Saleh
Various barriers discourage small and medium-sized enterprises (SMEs) from entering or expanding their export activities in the international markets, especially SMEs in emerging…
Abstract
Purpose
Various barriers discourage small and medium-sized enterprises (SMEs) from entering or expanding their export activities in the international markets, especially SMEs in emerging markets. The purpose of this study is to look at capacity building to accelerate SMEs’ export performance.
Design/methodology/approach
This study draws on contingency theory and takes a resource-based and market-based view to provide a holistic understanding of the issue. This study uses primary data collected via extensive surveys from active SMEs in three main industrial regions in Vietnam to undertake confirmatory factor analysis and structural equation modeling for quantitative analysis.
Findings
The results confirm and show the significant effects of various determinants on firms’ export performance. These research findings have scientific contribution and significant implications by understanding the effective internal and external export drivers and mediators in an emerging market and enhancing SMEs’ export performance.
Practical implications
This study helps SMEs to improve their export performance by systemizing their decision-making in export activities, improving main export drivers highlighted in this study and developing required training programs for their teams. The outcomes also helps policymakers and regulators to improve the current SME ecosystem in Vietnam through training programs, improving policies, facilitating trades, providing more government assistance etc. The results of this study can be extended to other emerging markets with a similar economic structure and legal system.
Originality/value
Given the need for more work on export performance, this paper develops and tests a holistic conceptual framework that accounts for all aspects of export drivers, and provides a more comprehensive model for examining SMEs’ export drivers. This theoretical framework also incorporates three potential mediators (i.e. innovation strategy, export marketing strategy and business strategy) to investigate the effect of internal and external factors on export performance, highlighting the importance of the mediating effects on SMEs in achieving growth and competing in the international arena.
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Ilan Alon, Indri Dwi Apriliyanti and Massiel Carolina Henríquez Parodi
This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for businesses to…
Abstract
Purpose
This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for businesses to achieve scale with limited resources. International franchising is a mode of entry that allows firms to develop new markets with relatively little risk but also little control.
Design/methodology/approach
Using a systematic approach, the paper identifies all articles in the ISI Web of Science from 1970 to 2018 that includes the term international franchising (in the title, the abstract or keywords) and finds 131 articles. This paper used HistCite software to analyze the bibliometric data.
Findings
Four major research clusters in the international franchising literature are identified. In addition, this study shows a change in research patterns regarding topics, theories and methodologies from the 1970s through 2018. The paper presents the most influential articles, authors and journals.
Originality/value
From the analyzes, this study develops a conceptual framework of international franchising and suggest avenues for future research.
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The purpose of this paper is to introduce narrative distance as a phenomenon that can help create transformative learning experiences (TLEs). Narrative distance is defined as the…
Abstract
Purpose
The purpose of this paper is to introduce narrative distance as a phenomenon that can help create transformative learning experiences (TLEs). Narrative distance is defined as the cognitive or emotional space afforded by indirect communication that invites listeners to make sense of content. In ways similar to a book, movie or play, narrative distance invites participants to draw conclusions for themselves (Craddock, 2002).
Design/methodology/approach
After examining how other fields have discussed concepts related to narrative distance and its affordances, this paper illustrates how this phenomenon can satisfy many of Wilson and Parrish’s (2011) key indicators for TLEs.
Findings
Six principles are offered for incorporating narrative distance into instructional design.
Originality/value
Instructional design has not explored indirect communication that is similar to narrative in any significant way.
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Ashley D. Lloyd, Mario Antonioletti and Terence M. Sloan
China is the world’s largest user market for digital technologies and experiencing unprecedented rates of rural-urban migration set to create the world’s first “urban billion”…
Abstract
Purpose
China is the world’s largest user market for digital technologies and experiencing unprecedented rates of rural-urban migration set to create the world’s first “urban billion”. This is an important context for studying nuanced adoption behaviours that define a digital divide. Large-scale studies are required to determine what behaviours exist in such populations, but can offer limited ability to draw inferences about why. The purpose of this paper is to report a large-scale study inside China that probes a nuanced “digital divide” behaviour: consumer demographics indicating ability to pay by electronic means but behaviour suggesting lack of willingness to do so, and extends current demographics to help explain this.
Design/methodology/approach
The authors report trans-national access to commercial “Big Data” inside China capturing the demographics and consumption of millions of consumers across a wide range of physical and digital market channels. Focusing on one urban location we combine traditional demographics with a new measure that reflecting migration: “Distance from Home”, and use data-mining techniques to develop a model that predicts use behaviour.
Findings
Use behaviour is predictable. Most use is explained by value of the transaction. “Distance from Home” is more predictive of technology use than traditional demographics.
Research limitations/implications
Results suggest traditional demographics are insufficient to explain “why” use/non-use occurs and hence an insufficient basis to formulate and target government policy.
Originality/value
The authors understand this to be the first large-scale trans-national study of use/non-use of digital channels within China, and the first study of the impact of distance on ICT adoption.
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Małgorzata Bartosik-Purgat and Wiktoria Rakowska
The main purpose of the study is to identify the differences and similarities in the communication between B2B participants in cross-cultural environments.
Abstract
Purpose
The main purpose of the study is to identify the differences and similarities in the communication between B2B participants in cross-cultural environments.
Design/methodology/approach
The research methods used in the study are two-fold: the literature analysis is complemented by primary qualitative research conducted in small- and medium-sized enterprises operating in Poland and doing business internationally. The research was focused on two culturally different markets: China and the United States. In the empirical research, the authors used one of the qualitative methods – Individual Depth Interview (IDI).
Findings
General findings showed that the strongest influence of culture was identified among older (+50 years old) business partners. The younger ones are eager to adapt and try to understand others' viewpoints. The research results may be used in creating business communication models in the countries researched for companies that plan to enter both American and Chinese markets.
Practical implications
The results of the study may have useful applied managerial value and be used in cooperation between SMEs' B2B business partners, not only from Poland but also from the whole region of Central and Eastern Europe and the United States and China.
Social implications
The findings may help to understand and communicate with culturally different social groups such as co-workers, students, teachers, etc.
Originality/value
The research presented in the paper covers the gap in the literature because it relates to some new factors (like cultural heritage, age and type of industry) which determine the effectiveness of personal business communication between partners in the international marketplace.
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