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1 – 10 of 634Shuang Hu, Saileshsingh Gunessee and Chang Liu
Chinese multinational enterprises’ (MNEs) unprecedented, aggressive cross-border mergers and acquisitions (CBMAs) have led to several studies examining Chinese CBMAs, which…
Abstract
Purpose
Chinese multinational enterprises’ (MNEs) unprecedented, aggressive cross-border mergers and acquisitions (CBMAs) have led to several studies examining Chinese CBMAs, which importantly has also led to some degree of “theorising”. This study aims to undertake a “non-theoretical” fact-finding exercise before any theorising and empirical “causal” examination for a better understanding of the phenomenon (the rise of Chinese CBMAs).
Design/methodology/approach
This study uses a “stylised facts” approach which documents “empirical regularities” concerning Chinese CBMAs and thus guides new research questions.
Findings
Several facts are documented. Firstly, both the value and frequency of Chinese CBMAs are catching up to greenfield investments, with CBMA deals being larger in scale but lower in frequency. Secondly, Chinese CBMAs show a global reach away from the regional orientation of their early years. Thirdly, Chinese MNEs are possibly transforming their value chain with industrial upgrading as an aim. Fourthly, Chinese “full” acquisitions of targets have surged, especially in OECD countries, suggestive of Chinese MNEs’ “radical” acquisition approaches.
Originality/value
The gathered facts lend support to the view of the need for such fact-finding exercises to explicate and shed “new” light on the phenomenon (beyond our “current” views/beliefs). An understanding of the underlying trends beyond bare facts can also identify new knowledge, which can in turn provide new directions for research.
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Yu Jia, Yongqing Ye, Zhuang Ma and Tao Wang
This study aims to verify the respective and interactive effects of subnational formal and informal institutions (i.e. legal effectiveness and social trust) on foreign firm…
Abstract
Purpose
This study aims to verify the respective and interactive effects of subnational formal and informal institutions (i.e. legal effectiveness and social trust) on foreign firm performance, and further identify the contingent factor (i.e. institutional experience) that moderates these relationships.
Design/methodology/approach
Drawing on the institutional-based view, this study develops several hypotheses that are tested using a comprehensive dataset from four main data sources. The authors’ unit of analysis is foreign firms operating in China. The authors ran ordinary least squares (OLS) regression model to investigate the effects. A series of robustness tests and endogeneity tests were performed.
Findings
The results show that both legal effectiveness and social trust at subnational level positively affect foreign firm performance respectively. Legal effectiveness and social trust at subnational level have complementary effect in promoting the performance of foreign firms. Foreign firm's institutional experience in target region of emerging economies host country strengthens the positive impact of subnational legal effectiveness on performance, but weakens the positive impact of subnational social trust on performance.
Practical implications
It is important to fully understand the impact of heterogeneous institutional environments of subnational regions in emerging economies on foreign firm performance, which would help foreign firm make a more suitable secondary choice decision of investment destinations at the subnational regional level.
Originality/value
First, drawing on institutional-based view, the authors incorporate the subnational formal and informal institutional factors to investigate their impacts on foreign firm performance by switching the attention from national level to subnational level in emerging economy host countries. Second, this research furthers existing studies by bridging a missing link between both subnational formal and informal institutional environments and foreign firms' outcomes. Third, the authors prove that the model of subnational formal and informal institutions in influencing foreign firms' performance is contingent on their institutional experience in target subnational region of emerging economy host country.
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Jiapeng Wu, Dayu Gao, Cheng Xu and Yanqi Sun
This paper aims to investigate the influence of the regional business environment on local firm innovation, considering various dimensions such as administrative, financial and…
Abstract
Purpose
This paper aims to investigate the influence of the regional business environment on local firm innovation, considering various dimensions such as administrative, financial and legal environments.
Design/methodology/approach
Multiple regression analysis is employed to analyze archival data for firms listed on Chinese stock markets.
Findings
We find that the optimizations of the administrative and financial environments positively affect firm innovation, whereas the legal environment does not exert a similar impact. Our analysis also reveals that the business environment’s optimization significantly influences innovation in firms that are small, non-state-owned and operating in high-tech industries. Furthermore, the business environment acts as a moderating variable in the relationship between firm innovation and firm value.
Research limitations/implications
This study contributes to a more comprehensive understanding of institutional-level determinants of firm innovation, highlighting the nuances of the legal environment and the importance of context-specific analysis, especially in emerging markets like China.
Practical implications
Developing countries can significantly enhance firm innovation by improving the business environment, including the optimization of administrative and financial systems, reducing transaction costs and ensuring capital supply. Tailored legal frameworks and alternative institutional strategies may also be explored.
Social implications
This study explicitly emphasizes the governmental role in promoting firm innovation, shedding light on policy formulation and strategic alignment with local administrative policies.
Originality/value
To the best of our knowledge, this paper is the first to explore the relationship between the business environment and firm innovation using World Bank indicators in an emerging market context, providing novel insights into the unique dynamics of legal, financial and administrative sub-environments.
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Liridon Kryeziu, Besnik A. Krasniqi, Mehmet Bağış, Vjose Hajrullahu, Genc Zhushi, Donika Bytyçi and Mirsim Ismajli
This study aims to examine the impact of regulatory, normative and cultural cognitive institutions and firm and individual factors on entrepreneurial behavior.
Abstract
Purpose
This study aims to examine the impact of regulatory, normative and cultural cognitive institutions and firm and individual factors on entrepreneurial behavior.
Design/methodology/approach
Using the quantitative research method, the authors collected data from 316 micro, small and medium enterprises (MSMEs) in Kosovo, a transition economy, through a cross-sectional research design. The authors performed exploratory factor analyses, correlation and regression analyses on the data using SPSS 26 and STATA software.
Findings
The research findings indicate that, within transition economies, normative and cultural-cognitive institutions have a positive impact on entrepreneurial behaviors. The authors could not determine the effect of regulatory institutions on entrepreneurial behavior. The authors also discovered that young firms are more inclined toward entrepreneurial behavior than older firms, and micro firms display a stronger entrepreneurial behavior than small firms. Furthermore, family businesses showed a greater tendency for entrepreneurial behavior than nonfamily firms. Interestingly, when the rational decision-making interacts with regulatory institutions, the effect on entrepreneurial behavior is negative.
Research limitations/implications
This study employed a cross-sectional approach to investigate the influence of macro, meso, and micro-level factors on entrepreneurial behavior within a transitioning community across three industries. Future studies could replicate these findings within comparable institutional contexts, employing longitudinal studies that include additional variables beyond those considered in our present study.
Practical implications
Considering the importance of MSMEs for a country’s economic and sustainable development, the authors provide some policy implications. The authors recommend managers carefully evaluate the information gathered while they decide and also increase their capabilities concerning digitalization, which is crucial for their firm’s survival, growth and sustainable competitive advantage.
Originality/value
This paper contributes to the literature and shows and analyses entrepreneurial behavior at institutional (macro), firm-level factors (meso) and managers' rational decision-making (micro), providing evidence from a transition community.
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Hui Zhang and Shaoheng Li
This paper examines the direct and indirect effects of CEO intellectual capital on sustainable growth of small and medium-sized enterprises (SMEs) in China.
Abstract
Purpose
This paper examines the direct and indirect effects of CEO intellectual capital on sustainable growth of small and medium-sized enterprises (SMEs) in China.
Design/methodology/approach
It adopts a quantitative approach based on 3,474 unbalanced panel data in 836 Chinese listed SMEs from 2008 to 2017.
Findings
The findings reveal a significant positive relationship between CEO intellectual capital and sustainable growth of SMEs. The findings also reveal that dual innovation (exploitative innovation and exploratory innovation) has a partial mediating effect on the relationship.
Practical implications
It further provides an original contribution to identifying and testing the mediating effect of dual innovation on the relationship between CEO intellectual capital and sustainable growth of SMEs.
Originality/value
In contrast to most of the extant literature, which considers intellectual capital as a whole at the organizational level or focuses on employee intellectual capital, this paper highlights the role of CEO intellectual capital for SMEs’ growth. It provides an original contribution to identifying and testing the mediating effect of dual innovation on the relationship between CEO intellectual capital and sustainable growth of SMEs.
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Ahmed Nazzal, Maria-Victòria Sánchez-Rebull and Angels Niñerola
This study introduces a comprehensive bibliometric analysis of the foreign direct investment (FDI) literature by multinational corporations (MNCs) focusing on emerging economies…
Abstract
Purpose
This study introduces a comprehensive bibliometric analysis of the foreign direct investment (FDI) literature by multinational corporations (MNCs) focusing on emerging economies to identify the most influential authors, journals and articles in FDI research and reveals the fields' conceptual and intellectual structures. The purpose of this paper is to address these issues.
Design/methodology/approach
The study analyzed 533 articles published between 1974 and 2020 in 226 academic journals indexed in the Web of Science (WoS) and Scopus databases. We used the R language for statistical computing to map author collaboration, co-word and develop a conceptual and intellectual map of the field.
Findings
The results show that, although the FDI literature has many authors, few dominate the field. The International Business Review (IBR) and International Journal of Emerging Markets (IJoEM) are the main sources of the publications. Moreover, bibliometric laws show that our dataset follows the Lotka law of scientific productivity and Bradford law of scattering, identifying the core journals. Finally, FDI by MNCs in emerging economies research is divided into four sub-research themes related to (1) FDI determinants, (2) entry mode, (3) MNCs and FDI performance and (4) the internationalization process.
Originality/value
The current article provides several starting points for practitioners and researchers investigating FDI. It contributes to broadening the vision of the field and offers recommendations for future studies.
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Qinghua Xia, Qing Zhu, Manqing Tan and Yi Xie
Innovation ambidexterity is crucial for fostering growth and gaining a competitive advantage in small and medium enterprises (SMEs). Previous research indicates that achieving a…
Abstract
Purpose
Innovation ambidexterity is crucial for fostering growth and gaining a competitive advantage in small and medium enterprises (SMEs). Previous research indicates that achieving a balance between exploration and exploitation is a multifaceted phenomenon occurring across various levels. This paper aims to examine the influence of individual, organizational and institutional factors on the ambidextrous innovation of Chinese niche leaders using a configurational perspective.
Design/methodology/approach
This study uses secondary data collected from 69 Chinese niche leaders in the new equipment manufacturing industry. The authors use fuzzy-set qualitative comparative analysis to investigate how owner openness, age, digitization, the formal institutional environment and the informal institutional environment jointly influence innovation ambidexterity.
Findings
By using fuzzy set analysis, this study categorizes combinations of interdependent factors that promote innovation ambidexterity. In particular, the authors pinpoint three configurations that foster high innovation ambidexterity and two configurations that lack such high levels of innovation ambidexterity. The analysis results suggest that innovation paradoxes in SMEs are linked to a nested system comprising leadership, organizational factors and the institutional environment.
Originality/value
This study elucidates the mechanism of innovation ambidexterity through a configurational perspective. This research proposes and validates a framework that enables SMEs to develop ambidextrous innovation capabilities, thereby integrating organizational ambidexterity theory and shedding light on the intricately complex nature of innovation ambidexterity.
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Amir Ghazinoori, Manjit Singh Sandhu and Ashutosh Sarker
The purpose of this study is to examine how formal and informal institutions play a role in the Iranian context in shaping corporate social responsibility (CSR) policies and…
Abstract
Purpose
The purpose of this study is to examine how formal and informal institutions play a role in the Iranian context in shaping corporate social responsibility (CSR) policies and practices.
Design/methodology/approach
Using a multiple case-study approach combining comparative and cross-sectional methods with semi-structured interviews, primary data was collected from eight corporations that actively participated in CSR activities in Iran. A microanalysis approach was used to examine the meanings and dynamics in the data. Through thematic analysis and pattern-matching techniques, the authors separately examined the roles of formal and informal institutions. Cross-case analysis was used to highlight the cases’ similarities and differences.
Findings
This study demonstrates that both formal and informal institutional structures exist in Iran and that both types influence CSR. This study also shows that informal institutions (such as personal values, culture, religion, traditions, charity and philanthropy) play a more explicit role than formal institutions (such as legal regulations and laws) in shaping CSR adoption policies and practices. The results indicate that, among institutions linked to CSR, formal and informal institutions are complementary and potentiate each other in Iran. Nevertheless, compared to formal ones, informal institutions play a more prominent role in shaping CSR policies and practices.
Research limitations/implications
The authors recognize that, although the eight corporations are large, and although they interviewed their key personnel, they do not claim that these findings are generalizable, owing to the qualitative nature of the study and the small number of selected corporations.
Originality/value
This study makes relevant theoretical and empirical contributions. First, it contributes to the growing body of CSR literature that highlights the necessity of linking informal and formal institutions. Although the CSR literature lacks research on informal institutions in developing economies, researchers have yet to push forward and explore how the CSR adoption process works in developing economies that have influential informal institutions.
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Rongxin Chen and Tianxing Zhang
In the global context, artificial intelligence (AI) technology and environmental, social and governance (ESG) have emerged as central drivers facilitating corporate transformation…
Abstract
Purpose
In the global context, artificial intelligence (AI) technology and environmental, social and governance (ESG) have emerged as central drivers facilitating corporate transformation and the business model revolution. This paper aims to investigate whether and how the application of AI enhances the ESG performance of enterprises.
Design/methodology/approach
This study uses panel data from Chinese A-share listed companies spanning the period from 2012 to 2022. Through a multivariate regression analysis, it examines the impact of AI on the ESG performance of enterprises.
Findings
The findings suggest that the application of AI in enterprises has a positive impact on ESG performance. Internal control systems within the organization and external information environments act as mediators in the relationship between AI and corporate ESG performance. Furthermore, corporate compliance plays a moderating role in the connection between AI and corporate ESG performance.
Originality/value
This paper underscores the pivotal role played by AI in enhancing corporate ESG performance. It explores the pathways to improving corporate ESG behavior from the perspectives of internal control and information environments. This discussion holds significant implications for advancing the application of AI in enterprises and enhancing their sustainable governance capabilities.
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Zifeng Wang, Dezhu Ye and Tao Liang
This paper empirically investigates the relationship between financial availability and crime by measuring it across five dimensions: banking, securities, insurance, private…
Abstract
Purpose
This paper empirically investigates the relationship between financial availability and crime by measuring it across five dimensions: banking, securities, insurance, private lending and digital inclusive finance.
Design/methodology/approach
The study utilizes 2011–2017 data from prefecture-level cities as a representative sample. Moreover, these findings remain robust after addressing endogeneity through the use of the historical distance between cities and the railroad network as an instrumental variable.
Findings
The findings demonstrate a significant negative relationship between financial accessibility and crime rates. Heterogeneity exists in the inhibitory effect of different types of financial accessibility on crime, with banking finance exhibiting a stronger inhibitory effect compared to private lending. Areas affected by natural disasters and infectious diseases exhibit a stronger inhibitory effect of financial accessibility on crime rates, particularly in areas with severe shocks of natural disasters and epidemics. This effect is attributed to the low financing threshold and easy access to private lending, which plays a more effective role than bank finance when people face extreme risks.
Practical implications
There should be stricter regulations imposed on private lending markets and the introduction of more rational legislation aimed at guiding a healthy development within these markets; such measures serve as effective and complementary means for individuals from all walks of life to access credit financing.
Social implications
The regulation of financial resources by the government should always prioritize ensuring the accessibility of financial policies to cater to the needs of the majority population.
Originality/value
This study is for the first time in an emerging economy context, the causal relationship between financial accessibility and crime. To provide a more comprehensive measure of financial accessibility in a region, this paper proposes a five-dimensional methodology.
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