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Article
Publication date: 21 August 2019

Armando Borda Reyes, William Newburry, Jorge Carneiro and Carlos Cordova

This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct…

Abstract

Purpose

This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) (both in total as well as in regional flows) and also examine the moderating effect of trade openness on that relationship. Latin America is an ideal study context for this purpose because of the relative homogeneity of its countries, which reduces confounding effects and increases comparability.

Design/methodology/approach

This paper uses longitudinal panel regression models with moderation effects. Secondary data were gathered on IFDI (per country and per country-sector), OFDI (total per country and region-targeted per country) and on trade openness from 11 Latin American countries.

Findings

IFDI in natural resources is positively associated with OFDI in both overall total flows and regional flows. The effect of IFDI in manufacturing has a consistent negative effect on total OFDI. IFDI in services has positive effects on total OFDI. Additionally, trade openness moderates positively the relationship between total IFDI and both total OFDI and regional OFDI. As a consequence, the authors found evidence suggesting that the relation between IFDI and OFDI in Latin America is positively moderated by trade openness.

Originality/value

The authors explored the nature of the impact of IFDI on the capacity of the recipient country to compete abroad as expressed by its OFDI flows. Specifically, they elucidated whether trade openness can be considered a suitable mechanism for home country firms to leverage potential spillovers provided by foreign entrants.

Details

Multinational Business Review, vol. 27 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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Article
Publication date: 10 August 2018

Alvaro Cuervo-Cazurra, Jorge Carneiro, Diego Finchelstein, Patricio Duran, Maria Alejandra Gonzalez-Perez, Miguel A. Montoya, Armando Borda Reyes, Maria Tereza Leme Fleury and William Newburry

This paper aims to analyze how emerging market firms upgrade their capabilities by focusing on “uncommoditizing strategies” that enable them to achieve levels of…

Abstract

Purpose

This paper aims to analyze how emerging market firms upgrade their capabilities by focusing on “uncommoditizing strategies” that enable them to achieve levels of international competitiveness beyond the comparative advantages of their home countries and serve markets with premium pricing, quality and reputation of products.

Design/methodology/approach

In this paper, the authors studied 18 Latin American companies across six countries. Latin America represents an ideal setting because many of these countries have traditionally developed using natural resource endowments, and their firms have tended to rely on these in their internationalization. To facilitate the analysis of each case and the comparisons across cases, the authors used the same analytical framework for the companies, identifying the sources of differentiation and cost efficiency strategies that enabled these firms to upgrade their capabilities and compete on the basis of premium pricing, quality and reputation.

Findings

The analysis identified a general framework that represents an abstraction of the actions taken by these companies over time. The proposed model consists of three main elements used to pursue uncommoditizing strategies: tropicalized innovation, global efficiency and coordinated control.

Originality/value

Recent research on emerging market firms has shown interest in how these firms upgrade their capabilities. This paper contributes to this stream of research by providing an overarching framework that not only bridged previous narrower studies but also explained how firms can develop uncommoditizing strategies to upgrade their capabilities. Further, this paper helps managers by providing a comprehensive yet succinct overview of the main strategies that they can use to help their firms to achieve international competitiveness.

Details

Multinational Business Review, vol. 27 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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Article
Publication date: 12 September 2016

Dina Abdelzaher and William Newburry

Today, we are witnessing a wave of multinational corporations who seek to be recognized for being environmentally conscious, which can become a source of competitive…

Abstract

Purpose

Today, we are witnessing a wave of multinational corporations who seek to be recognized for being environmentally conscious, which can become a source of competitive advantage. But how many of them actually have the policies in place to achieve this? Drawing from the strategy literature, this paper aims to argue that firms who seek to achieve green reputation must align their policies in a way to achieve this goal.

Design/methodology/approach

This paper presents a framework that discusses the key elements of the corporate environmental management process, and then empirically examines the impact of green policy on green reputation among Fortune 500 US firms.

Findings

The findings support a positive significant relationship between green policy and green reputation, with environmental performance to partially mediate this relationship. Insights from this study highlight the importance of focusing on company-level green policy for building green reputation as well as for discriminating across the flux of corporations that all claim to be environmentally conscious or green.

Research limitations/implications

First, the study is limited by the unavailability of environmental performance data at the subsidiary level, which, if incorporated, would yield a better specified model. Second, to strengthen the causal relationships examined in the models, time-series analyses would likely be useful. Third, other informal measures that could be incorporated can include other forms of corporate verbal communications, which include 10K reports as well as shareholder letters.

Practical implications

Given the increased flux of firms that are racing to be known as environmentally conscious firms, one can benefit from the use of an internal mechanism that can discriminate between rhetoric and action. Therefore, when differentiating between firms’ environmental consciousness, investors and key stakeholders should investigate more internal environmental firm policies, because they are likely to be more indicative of their actions.

Originality/value

This study uses a quantified assessment of companies’ actual environmental footprints, drawing from a cross-sector sample within the manufacturing industry. The secondary data used in this study are combined from a number of prominent data sources in corporate social responsibility/environmental management literature.

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Abstract

Details

Global Aspects of Reputation and Strategic Management
Type: Book
ISBN: 978-1-78754-314-0

Abstract

Details

International Journal of Emerging Markets, vol. 11 no. 2
Type: Research Article
ISSN: 1746-8809

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Book part
Publication date: 10 August 2016

Abstract

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

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Book part
Publication date: 16 July 2019

Abstract

Details

Global Aspects of Reputation and Strategic Management
Type: Book
ISBN: 978-1-78754-314-0

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Article
Publication date: 18 April 2016

Jun Wu, Anshu Saxena Arora and Amit Arora

Ambient advertising is a unique, intimate and non-traditional form of communication between the product and the consumer; and uses all physical and environmental elements…

Abstract

Purpose

Ambient advertising is a unique, intimate and non-traditional form of communication between the product and the consumer; and uses all physical and environmental elements leading to stronger customer engagement. The purpose of this paper is to explore the innovations in ambient advertising including flash mob dancing, use of structures, posters, props, bus tickets, supermarket floors, shopping carts, bank receipts, animals, and other strange and unusual venues in developed economies (e.g. the USA) vs emerging economies (e.g. India).

Design/methodology/approach

The research proposes relationship strength (R)-inherent drama (I)-prodigious execution (P) or R-I-P conceptual framework to measure ambient advertising and delves into the R-I-P constructs of ambient advertising.

Findings

The results of Study 1 demonstrate that consumers’ global consumption orientation positively influences their attitudes toward ambient advertising. Results from Studies 2 and 3 exhibit interesting comparisons of innovations in ambient advertising between the USA and India; which improves understanding of globalization of ambient advertising in both developed and emerging economies. Relationship strength (R) between the product and the customer strengthens ad believability in both developed and emerging economies; while inherent dramatic surprise (I) displays contrasting results for developed and emerging economies. Prodigious execution (P) results in ad irritation for developed economies while it has no impact for emerging economies.

Research limitations/implications

Overall R-I-P constructs of ambient advertising strengthen brand and ad attitudes and purchase intentions. The research has strong implications for advertising innovations in the USA vis-à-vis India, and demonstrates stronger implications of advertising internationalization across developed and emerging economies.

Originality/value

The research is valuable in the context of emerging and developed economies of the world with respect to ambient advertising. The research explores the trends in ambient advertising and develops measures for testing perceptions of consumers in various world markets toward ambient advertising. The world economies exhibit varying levels of acceptance and appreciation to the global emerging advertising trends, and this presents a huge challenge to the companies worldwide.

Details

International Journal of Emerging Markets, vol. 11 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

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Article
Publication date: 18 April 2016

Luis Alfonso Dau

The purpose of this paper is to combine notions from the POST Model of Economic Geography and Learning Theory from International Business to study how firms may enhance…

Abstract

Purpose

The purpose of this paper is to combine notions from the POST Model of Economic Geography and Learning Theory from International Business to study how firms may enhance their responsiveness to institutional processes and changes through different forms of international learning. Focussing on one form of institutional changes, namely pro-market reforms, the paper analyzes how firms may boost the potential benefits from such changes through international strategies that increase their access to knowledge spillovers and absorptive capacity. These strategies include international product diversification, enhancing innovation capabilities, informal institutional exposure, accumulated internationalization knowledge, and overall experiential knowledge.

Design/methodology/approach

The hypotheses are tested using generalized least squares models with AR(1) panel-specific autocorrelation and heteroskedasticity correction. Based on the preliminary analyses performed in these studies, the author also executes a Hausman test, Bartlett’s test, and James/Alexander’s test. The results of these analyses indicate that the use of random effects is appropriate; that moderating effects are present; and that multivariate analyses using these moderators are suitable, respectively.

Findings

The results indicate that pro-market reforms have a positive and significant effect on the profitability of firms from developing countries. Furthermore, they provide support for the positive moderating effects of international product diversification, innovation capabilities, informal institutional exposure, accumulated internationalization knowledge, and overall experiential knowledge. Together, these findings suggest that through their international strategic decisions, MNEs can enhance their access to knowledge and become more responsive to institutional changes in their home market.

Research limitations/implications

This paper contributes to the economic geography literature by linking the POST Model with the classification of types of knowledge from Learning Theory. The paper analyzes how characteristics of place, organization, space, and time play a different role for each of the three basic types of knowledge that is relevant for international firms: institutional, business, and internationalization. Furthermore, the paper contributes to the literature on reforms and firm profitability by delving deeper into the moderating effect of strategic decisions on the relationship between reforms and firm performance. This allows us to have a deeper comprehension of how various sources of international learning may enhance the responsiveness of firms to institutional changes.

Originality/value

The paper provides several important contributions to the international strategy literature. First, it contributes to Learning Theory by combining it with the POST Model of Economic Geography to study how each of the three sources of knowledge (and their subcomponents) can be further broken down into factors of place, organization, space, and time. Second, it contributes to the literature of institutional change by studying how knowledge acquired through vastly different means can provide firms with sources of competitive advantage over other local competitors when responding to institutional changes in their home market. Third, it contributes to the literature on reforms and profitability by studying five novel moderators of this relationship.

Details

International Journal of Emerging Markets, vol. 11 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

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Article
Publication date: 18 April 2016

Felipe Mendes Borini, Sidney Costa and Moacir de Miranda Oliveira Junior

– The purpose of this paper is to determine the antecedents of reverse innovation.

Abstract

Purpose

The purpose of this paper is to determine the antecedents of reverse innovation.

Design/methodology/approach

Data were collected through an online survey administered using telephone assistance and sent to the 1,000 largest (in terms of revenue) foreign subsidiaries in Brazil. The responding companies numbered 167. For the data analysis, the authors chose the statistical technique of structural equation modeling.

Findings

The paper shows that reverse innovation is related to headquarters’ support, autonomy, and integration. Specifically, the authors consider the power of strategic integration between headquarters and subsidiaries as one of the important antecedents of reverse innovation.

Practical implications

Integration has an important role to reverse innovation. In order to stimulate integration, the executive of a subsidiary can make such efforts as invest in the mechanism of the relationship and exchange knowledge with headquarters. For example, it is recommended to encourage travel to the headquarters to more accurately align perceptions of parent and subsidiary executives and to utilize expatriates from headquarters to provide knowledge to subsidiaries about the main processes of the company and to promote subsidiary innovations.

Originality/value

Literature contains some articles discussing and relating some cases of reverse innovation. However, this paper shows the organizational structure necessary for reverse innovation.

Details

International Journal of Emerging Markets, vol. 11 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

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