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We build on the resource-based view and extend entry mode research by focusing on firms’ intention to transfer different resources from the parent firm to its overseas subsidiary. In line with our hypotheses, we find that parent firms that plan to transfer high levels of intangible resources to their foreign subsidiaries tend to choose wholly owned subsidiaries, while firms that intend to transfer high levels of tangible resources tend to choose international joint ventures. Moreover, we find that these relationships are moderated by institutional distance. We test our hypotheses using unique primary data from a sample of 128 foreign subsidiaries in the People’s Republic of China. Our results have important theoretical implications for international business strategy research as they develop further existing entry-mode theories.

In this chapter I argue that the distance research in international business studies is at a turning point, not in terms of its popularity, nor the quantity of articles published, but rather, in terms of the types of issues that are explored. Past distance research has largely been conducted at the level of the firm and/or the market – that is, linking national-level measures of distance with specific firm behaviors and outcomes. However, the seminal paper by Shenkar (2001) represents a shift in focus that is only just beginning to gain traction. This shift involves stepping back and beginning to unpack the black box we call ‘distance’ by exploring the micro-level mechanisms involved. In essence, it is about digging deeper in multiple aspects, to understand when, why and how distance matters in the international business (IB) context. These are issues that until now have typically been neglected. A metaphor borrowed from the social psychology literature, known as Coleman’s Boat, is used as a vehicle to explain the key issues involved in this shift and the opportunities for future research.

Learning through international strategic alliances is usually influenced by dispersed locations and cultural difference between the countries of the two firms. This research highlights the importance of contextual factors on learning through international strategic alliances. Based on an empirical study of 271 alliances, our findings reveal that successful alliance learning not only depends on the partner’s openness to share knowledge but also relies on the firm’s capacity to identify and absorb such knowledge. Institutional differences between the countries from where partner firms originate are considered to hinder the alliance learning by decreasing the firm’s absorptive capacity and by enhancing knowledge ambiguity. However, our research suggests that frequent direct communication and high levels of mutual trust and reciprocal commitment between partner firms positively moderate the noxious effects of institutional differences on the alliance learning process.

Ever since the publication of the original Jegadeesh and Titman (1993) study, momentum effect has been tested vigorously to validate its pervasiveness for different time periods and across different markets. In spite of numerous out-of-sample tests, there is one apparent alibi – little research has been devised for steady increasing of Shari’ah compliant stocks.

This study is to examine the momentum strategy returns in a global Shari’ah compliant stock setting.

It finds strong presence of stock momentum returns for Pakistan and Malaysia. And the momentum returns are neither driven by industry momentum nor by the small size stocks. Though no momentum profits are found for the portfolios formed by global Shari’ah compliant stocks, this seems to be largely due to return reversal for the small size Shari’ah compliant stocks.

The strong presence of momentum profits for relatively large Shari’ah compliant stocks is a desirable trait as it indicates that the momentum trading strategies are practical and implementable.

This chapter examines the development of accounting thought and practices in China with the purpose of illustrating its relevance to current accounting policies and practices. The review indicates that changes in accounting in China did not usually occur completely and easily. Over the past three decades, while Chinese accounting has gradually moved toward the Anglo-American model, convergence has presented unique features in China. For example, the review suggests that the accounting reforms in China have been heavily government-driven and that uniform accounting systems still remain. Chinese regulators maintain a cautious attitude toward the application of fair value and professional judgment, which are essentially the center of the Anglo-American accounting system. Furthermore, Chinese accounting regulators have a different view of business combinations from the IASB and have developed alternative accounting methods for those transactions. China’s departure from IFRS reflects its politico-economic context and essentially challenges the IASB’s goal of achieving international accounting convergence. China’s approach to internationally acceptable practices is likely to have implications for the effectiveness of the imported ideas.

The Covid-19 pandemic has continued to place intense economic and social strains on global economies and families. While rising poverty and unemployment have been worsened by the crisis, small businesses are under increasing pressure to manage burgeoning uncertainties and the corresponding economic and social challenges. No doubt, the deleterious effects of the crisis has intensified pressure on small business leaders to sustain their role in delivering responsible services.

Scholars argue that in crises, like Covid-19, the values of small business leaders are placed under scrutiny. Despite laws and regulations guiding ethical leadership especially in business, there exist challenges that are complex and not easy to address, and the pandemic situation further adds to them. The implication is that small business leaders are increasingly associated with accountability problems.

Navigating this period will require strategies for addressing the weaknesses in an existing leadership capacity in the delivery of business services, and successfully implementing ethical standards. This becomes crucial since the pandemic as an added challenge can spur on unethical leadership. The highlights of some of the key elements impacting ethical leadership during crises like Covid-19. This chapter also explores how business leaders can influence responsible behavioural change among employees for them to be creative and innovative. Additionally, an attempt will be made towards assisting small business leaders in finding responsible solutions.

Despite the implementation of the “land for social security” scheme to compensate for land expropriation in rural China, the distribution of social security benefits varies widely both between and within provinces. Why do local officials offer pension compensation in addition to cash payments to some landless farmers and not to others? Using in-depth interviews and survey data, I find that certain attributes of collective demands may signal a threat to social stability, prompting government concessions in the form of welfare benefits. Particularly, among the dispossessed farmers who have engaged in petitions, those who petitioned to higher-level officials were found to be more likely to receive pension benefits than those who have participated in claim-making with a bigger crowd. I propose that in the administrative hierarchy system of cadre evaluation, local officials may perceive public visits and petitions to higher levels of government as more threatening to their career prospects. Moreover, the dilemma between compensation and stability maintenance may also enable local officials to condone strategic targeting rather than collective gathering.

Adaptation of foreign market strategy and its performance outcomes have been among the key research topics in international business and international marketing. The present chapter provides new evidence on the contingent nature of the adaptation-performance relationship. Drawing from the institution-based view, we argue that adaptation increases legitimacy in the foreign market, hence improving foreign market performance. This relationship can be expected to gain importance for higher levels of institutional distance. Conversely, we expect that a successful development of foreign market relationships can be an alternative way of gaining legitimacy. These statements are supported with quantitative data from 284 firms and qualitative evidence from 8 firms.

Purpose – This chapter analyzes the relation between normative and cultural-cognitive institutional distance and the international entry forms of SMEs. We also examine the interaction effect of each of these distances and the regulatory development of the destination on entry mode choice.

Methodology/approach – This chapter deals with a multilevel analysis of a database of European SMEs containing information on different locations and three entry forms: exports; collaborative modes and direct investment.

Findings – The results indicate that greater levels of normative distance increase the likelihood of using collaborative forms in SMEs. Similarly, the findings also show that the preference for collaborative forms grows as the cultural-cognitive distance increases. In both cases, the study finds a positive moderating effect of regulative institutions on these relations.

Originality/value of chapter – The chapter contributes to the literature by separately considering informal institutional dimensions such as normative and cultural-cognitive distances, as well as examining how the regulatory development of the destination may moderate these relations. Additionally, the study sheds light in the development of the literature on SMEs, both by using the institutional theory to explain the internationalization of these firms and providing a more complete picture of their entry modes.