Search results

The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country.

This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada.

This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain.

We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.

The purpose of this paper is to conduct an independent analysis of all existing geographic profiling software packages to determine if any one is more accurate than the others or if any of the software systems are any more accurate than simple spatial distribution strategies at locating the home base of serial offenders.

An analysis was conducted of all existing geographic profiling software as well as three spatial distribution methods of profiling. Differences in accuracy were assessed using four different methods; dichotomous profile accuracy, simple error measurement, profile error distance, and average top profile area.

Results indicate that not only are the different profiling software systems no more accurate than the spatial distribution control methods, but that accuracy in general was marginal at best. In addition results indicated that certain crimes, such as commercial robbery, were particularly difficult to profile and that the number of crimes in a series was not by itself a good indicator of success of a profile.

The paper shows that future research needs to focus more on determining how various factors such as city type, crime type, road network and spatial aspects of a crime series (dispersion and search area) impact profiling accuracy. In addition future research should also endeavor to determine whether these advanced strategies are substantially more accurate than other simple profiling strategies such as human prediction. Finally, future research should also seek to examine geographic profiling in a real world setting and how geographic profiling impacts the success of open investigations.

Practically, this study casts doubt not only on the overall accuracy of profiling strategies in predicting the likely home location of an offender, but also on whether probability strategies are substantially better than spatial distribution strategies.

This research was the first to independently analyze all of the existing geographic profiling systems against control methods for the purpose of determining the accuracy of these different methods.

This study aims to investigate the determinants of herd behavior in online hotel service evaluations, focusing on the cultural and geographic distance characteristics of customers.

On the basis of 381,462 TripAdvisor reviews of hotels in the USA written by more than 100,000 customers from 92 countries, this study uses the empirical analysis to explore the collective roles of cultural distance, geographic distance and hospitality experience on herd behavior in online hotel ratings.

Cultural and geographic distances between customers and product and service locations positively affect herding and these two effects are substitutable. The hospitality experience of customers attenuates the impacts of distances on herding. These results are robust for multiple hotel service ratings.

Findings help hotels understand perceptual biases of customers on hotel services under the social influence and consequently develop effective marketing strategies to boost hotel revenues and increase profitability.

The research contributes to hospitality and online review literature by understanding how cultural and geographic distances shape online hotel service evaluations under the root of the uncertainty of decision-making and the observation of others’ behavior. The research also contributes to the distances in international business literature by deepening the understanding of the substitution and heterogeneity of distance effects. Methodologically, a time-varying and monotonously increasing variable is constructed to depict customers’ hospitality experience. The extensive data volume ensures the generalizability of our results.

The purpose of this paper is to examine whether geographical distance or economic distance offers greater diversification benefits in the UK office market.

The real estate investment data for this study come from the Investment Property Databank analysis “UK Quarterly Key Centres Q2 2015”. The author measures the geographical distance between the City of London and 27 local authorities (LAs) by road distance. The author used the market size and employment structure of the LAs relative to the City of London to calculate economic distance.

The results show that LAs that are classified on their economic distance show significant negative office rental growth correlations with the City of London. In contrast, geographical distance shows no relationship. Results are consistent for the overall sample period and for various periods.

Spatial diversity is a fundamental tenet of real estate portfolio management and the results here show that it is better to diversify by across office markets in the UK using the economic attributes of LAs rather than the physical distance between locations.

This is one of only two papers to explicitly examine whether economic distance or geographical distance leads to significantly lower rental growth coefficients between locations in office markets and the first in the UK.

The purpose of this paper is to investigate the extent to which the geographical location of and thus the geographical distance between buyer and supplier impact on the efficacy of purchasing practices (i.e. strategic purchasing management, tactical purchasing management, relational purchasing management) in terms of operational performance.

The authors utilise cross-country data collected through the International Purchasing Survey group across a variety of countries and industry sectors. The authors conduct exploratory factor analysis to assess construct validity and regression analysis to test the varying effects of purchasing practices on operational performance. The authors split the sample to compare potential differences in the efficacy of purchasing practices between buyers and suppliers through geographical characteristics.

The results indicate that the efficacy of purchasing practices does indeed vary depending on differences in geographical location. Specifically, the authors identify that in cases where the buyer and supplier are located in the same country tactical and relational purchasing tools have a positive impact on operational performance. However, in cases where they are situated in different countries none of the purchasing tools seems to significantly improve operational performance.

Research that has taken a cross-country perspective on the efficacy of supply chain practices is surprisingly sparse. Since most supply chains are becoming more and more global it is important to consider the geographical location of the supply chain members when assessing the performance benefits of supply chain practices such as purchasing tools. Thus, the authors introduce and test the concept of geographical distance on the efficacy of purchasing practices at the dyadic level. To test the implications of geographical distance for purchasing practices the authors use a large-scale cross-country survey.

With this chapter, we seek to shed light on the question how headquarters (HQ) can cope with geographic distance and effectively transfer relevant knowledge to their subsidiaries. By constructing a mediating model, we aim at disentangling the effects of geographic distance on the relevance of HQ knowledge to their subsidiaries, via the creation of a shared context between HQ and their subsidiaries. We tested our hypotheses using partial least squares based structural equation modelling on a sample of 124 European subsidiaries. We did not find a significant direct relationship between geographic distance and HQ knowledge relevance. Yet, we found support for our mediation hypotheses that geographic distance makes it more difficult for HQ to establish a shared normative and operational context, but that both dimensions of shared context can help HQ to transfer relevant knowledge to their subsidiaries. We contribute to the research on knowledge flows in multinational corporations (MNC) by investigating knowledge relevance directly rather than knowledge flows as such. We also advance our understanding of shared context in HQ-subsidiary relationships by showing that shared context comprises an operational and a normative dimension. Moreover, we contribute to social learning theory in basing our reasoning on the idea that shared practices and social relationships help overcoming distance to manage knowledge transfer more effectively. Finally, we add to the research of distance in international business by conceptualizing space, organizational context and knowledge transfer in one comprehensive model.

The purpose of this paper is to explore the importance to international trade of impediments related to, first, geographic distance, such as freight and other costs related to the movement of physical goods, and second, “psychic distance”, such as the costs and difficulties of transferring and interpreting the information necessary to effect international transactions.

The paper highlights that psychic distance perceptions between countries are not symmetric and that both exporters’ and importers’ perceptions are important. The empirical analysis covers international trade in three categories of goods among 25 major trading nations for the period 1962-2008, employing structural equation modeling, incorporating the mutual interdependence of the distance measures.

Exporters’ perceptions are more important for trade in differentiated products than for standardized goods, which conversely are more strongly influenced by those of importers. Over time, the impact of both types of psychic distance has declined due to the dramatic improvements in communication and information technologies of recent decades. International markets have thereby become increasingly transparent, facilitating the matching of geographically proximate buyers and sellers in order to minimize transportation costs. These changes fundamentally affect the competitive landscape both for firms that seek to market their goods and services internationally and for domestic firms that face new and more intense competition from foreign rivals.

The paper employs simultaneously a statistical methodology novel to the field and – for the first time in the literature – asymmetric measures of psychic distances as perceived by importers and exporters, respectively. Applying the methodology to different categories of goods demonstrates long-term trends in the differential impact of geographic and psychic distances.

Digital transformation misalignment refers to disparities in digital transformation levels between suppliers and buyers across the production and operation process. It has negatively affected supply chain stability. However, the existing research concerning the economic consequences has not been adequately addressed. Therefore, this paper aims to investigate whether such digital transformation misalignment increases supplier financial risk and to identify the factors influencing this relationship.

This paper examines binary combinations of suppliers and buyers listed on China’s A-share market between 2011 and 2021. This group constitutes a sample to empirically test the influence of digital transformation misalignment on the supplier’s financial risk, as well as the moderating effect of the geographical and organizational distances.

The paper’s findings demonstrate that digital transformation misalignment has indeed a significant increase in the supplier’s financial risk. Moreover, the impact is more intense when the geographical or organizational distance between the supplier and the buyer is relatively large.

The existing literature rarely explores the potential risks arising from digital transformation misalignment between supply chain partners. Therefore, this paper fills a notable gap as it is the first to study the impact of digital transformation misalignment on the supplier’s financial risk and the specific applied mechanisms. The contribution significantly improves the field of corporate digital transformation, particularly, within the context of supply chain management.

The purpose of this study is to analyse the role of relational power/dependent asymmetries and symmetries in shaping socially responsible supply chain management, whilst also examining how these issues are moderated by geographical distance between buyer and supplier.

The study draws on data from 339 buyer‐supplier relationships, and the authors use a set of regression models to test their hypotheses.

Joint dependency positively influences socially responsible supply chain management, whilst supplier power constrains it. Both joint dependency and buyer power become increasingly important determinants of socially responsible supply chain management as geographic distance increases.

Further work is needed to examine the conditions under which organisations will exercise their power advantage or their joint dependence position to improve socially responsible processes in the supply chain, as there may be situations where the buyer chooses not to exercise their power positions.

The authors' results indicate that jointly dependent relationships create the best conditions for socially responsible supply chain management, but they also find that supplier power advantage can constrain such initiatives.

This is the first paper to systematically analyse the implementation of socially responsible supply chain management, within a model that considers power a/symmetric positions of the buyer‐supplier relationship, and the role of geographical distance as a moderating influence on these power positions.

This study aims to investigate the impacts of geographical proximity on social capital development through the inter-relationship between three social capital dimensions (structural, relational and cognitive dimension) and the knowledge sharing between small- and medium-sized enterprises (SMEs). The authors empirically test a main hypothesis that the mechanism of social capital development that subsequently results in tacit knowledge sharing is different for SME buyer-supplier partners across their different geographical distances.

Multiple-group analysis in structural equation modeling (SEM) was conducted to test the research hypotheses using data collected from approximately 200 SMEs in Thailand’s food industry.

At a great geographical distance, the structural dimension impacts the cognitive dimension only in an indirect way through a relational dimension, which subsequently leads to knowledge sharing between SME buyer-supplier partners. At close geographical proximity, while the indirect impact of structural dimension on cognitive dimension through a relational dimension is still presented as it is in a great geographical distance, structural dimension has a positive and direct impact on the cognitive dimension as a complementary way to jointly reinforce knowledge sharing between SME partners. Among distant SME partners, the relational dimension shows a stronger impact on the cognitive dimension. In contrast, the direct influence of structural, relational and cognitive dimensions on knowledge sharing is identical, regardless of geographical distance.

The managers of SMEs can design their network-building approach in such a way that different location partners can enhance knowledge sharing. Policymakers could consider these results as a guideline when imposing SME development policies and geographical cluster policies in emerging economies.

This study provides empirical evidence that demonstrates how geographical proximity between SME partners in an emerging economy influences their social proximity through the lens of social capital development mechanism and thus leads to knowledge sharing between them.