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Open Access
Article
Publication date: 30 October 2023

Roger Schweizer, Katarina Lagerström, Emilene Leite and Cecilia Pahlberg

The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation…

Abstract

Purpose

The purpose of this paper is to contribute to the discussion on how multinational company (MNC) headquarters (HQs) can manage the existing coopetition paradox to ensure innovation within the MNC. In contrast to the rather scarce previous research, the authors argue that HQ needs to solve the coopetition paradox under the sway of a parenting paradox. Hence, HQ faces a dual paradox.

Design/methodology/approach

Drawing on the literature on HQ’s role during MNCs’ innovation processes, this conceptual paper revisits the previously suggested HQ measures to enable coopetition among subsidiaries. By applying a sheer ignorance perspective, the authors contribute with a more nuanced understanding of the HQ’s role in innovation activities.

Findings

The article identifies four challenges as the HQ faces a parenting paradox that hinders its ability to solve the coopetition paradox: context specificity of subsidiaries’ innovation work, normative expectations of subsidiary managers, potential opportunistic behavior of HQ manager and HQ underestimation of needed resources. The article suggests that HQ needs to become more informed and preferably even embedded in the local innovation networks of its most important subsidiaries and that coopetition should not be managed solely on an HQ level.

Originality/value

Advocating a sheer ignorance perspective, the article pioneers in discussing the role that HQ plays in managing coopetition among subsidiaries in innovation activities.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

Keywords

Open Access
Article
Publication date: 26 March 2024

Aleksandra Wąsowska and Krzysztof Obłój

We wanted to find out how infant multinationals originating from Poland enact opportunities in Sub-Saharan African (SSA) countries.

Abstract

Purpose

We wanted to find out how infant multinationals originating from Poland enact opportunities in Sub-Saharan African (SSA) countries.

Design/methodology/approach

We conducted a comparative case study of four Polish firms operating in SSA.

Findings

We found that when entering SSA, studied firms employed effectual decision-making logic. Thus, their internationalization was means-driven, serendipitous, partnership-oriented, based on the “affordable loss” principle and focused on shaping opportunities in SSA, rather than predicting, analyzing and planning any firm-specific assets or capabilities.

Originality/value

We illuminated the nature of the means employed in effectual internationalization and the role of partners (“effectual stakeholders”) in this process. Thus, we contribute to a deeper understanding of how infant multinationals navigate extreme uncertainty in the emerging SSA markets.

Details

Central European Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2658-0845

Keywords

Open Access
Article
Publication date: 20 December 2023

Martina Fuchs and Johannes Westermeyer

The purpose of this paper is to explore the scope for action of local human resource managers, who are employed in foreign subsidiaries of multinational companies (MNCs), for…

Abstract

Purpose

The purpose of this paper is to explore the scope for action of local human resource managers, who are employed in foreign subsidiaries of multinational companies (MNCs), for implementing training activities. These managers are situated in relationships to headquarters and the local environment. Related to this is the question whether MNCs contribute to the local skill base by implementing training activities or whether they exploit the existing skill formation system.

Design/methodology/approach

This study focusses on German subsidiaries of MNCs with headquarters in the USA and the UK, France, China and Japan. The study is based on 107 expert interviews with subsidiary managers and representatives of local stakeholder organisations, such as educational organisations, chambers, economic promotion agencies and governmental bodies in Germany.

Findings

The study reveals that headquarters introduce general schemes for training. In addition to these MNC-internal trainings, local managers use their information advantage over headquarters to implement dual training activities.

Research limitations/implications

The training activities of subsidiaries are dependent on the institutional settings of the host country.

Practical implications

Albeit dual training activities are laborious and tie the local managers down for the medium and long term, the future need of the subsidiary for adequately skilled workforce prompts local managers’ engagement in implementing dual training activities.

Social implications

Subsidiaries contribute to the local skill base and do not act in a free-rider position, at least in the German variety of capitalism.

Originality/value

The study deepens insights on distanced relations within and how subsidiaries generate scope for action by using this kind of relationships.

Details

Critical Perspectives on International Business, vol. 20 no. 1
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 27 June 2022

Daniel Tolstoy, Sara Melén Hånell and Nurgül Özbek

The purpose of this paper is to create a model that compares the effects of product content differentiation and service content differentiation on small- and medium-sized…

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Abstract

Purpose

The purpose of this paper is to create a model that compares the effects of product content differentiation and service content differentiation on small- and medium-sized enterprises’ (SMEs) perceived importance of customer reference marketing in foreign markets.

Design/methodology/approach

A theoretical model is developed and tested through multiple regression and mediation analysis, on an effective sample of 188 Swedish SMEs.

Findings

The results show that foreign market business assignments characterized by differentiated services make companies relatively more dependent on relationship learning and customer reference marketing. By contrast, situations of differentiated product content correlate negatively with customer reference marketing.

Practical implications

Reference customers can function as vehicles for international expansion when marketing offerings are complex. The findings imply that in service settings, SMEs need to maintain learning regimes with foreign market customers to effectively use them as references to win new business.

Originality/value

The study applies a service perspective to explain the contingencies of customer reference marketing, particularly in international business settings. The study contributes to international small business literature and research focusing on service–firm internationalization by explaining the marketing mechanisms at play in the internationalization of SMEs. In so doing, the findings can enrich relationship and network perspectives of internationalization and add a missing link to studies on networking and internationalization.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 21 February 2024

Stephanie Moura, Christian Daniel Falaster and Thomas C. Lawton

This study aims to explore how the absorptive capacity of emerging market multinationals (EMNEs) facilitates increased acquirer performance in industry exploration and technology…

Abstract

Purpose

This study aims to explore how the absorptive capacity of emerging market multinationals (EMNEs) facilitates increased acquirer performance in industry exploration and technology exploration cross-border acquisitions (CBAs).

Design/methodology/approach

The research context for this study is Brazilian EMNEs and their CBAs. The final database contains 101 CBAs.

Findings

The authors find that industry exploration strategies negatively affect financial performance, but technology exploration strategies have a positive effect. The acquirer’s absorptive capacity can exacerbate the negative effects, except in instances of technology exploration strategies, where there is a demonstrable benefit from the acquirer’s absorptive capacity.

Originality/value

The study contributes first by providing a more nuanced understanding of the effects of absorptive capacity on postacquisition performance, depending on the type of knowledge explored. Second, by drawing on EMNE learning perspectives, the authors demonstrate the versatility of absorptive capacity in emerging markets.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

Keywords

Open Access
Article
Publication date: 6 July 2021

Giuseppe Valenza, Andrea Caputo and Andrea Calabrò

The field of scientific research on small and medium-sized family businesses has been growing exponentially and the aim of this paper is to systematize the body of knowledge to…

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Abstract

Purpose

The field of scientific research on small and medium-sized family businesses has been growing exponentially and the aim of this paper is to systematize the body of knowledge to develop an agenda for the future.

Design/methodology/approach

Adopting comparative bibliometric analyses on 155 articles (from 1989 until 2018) the authors provide a systematic assessment of the scientific research about small family firms, unveiling the structure and evolution of the field. Bibliographic coupling, co-citation analysis and co-occurrence analysis are adopted to identify the most influential studies and themes.

Findings

Four clusters of research are reviewed: succession in family SMEs, performances of family SMEs, internationalization of family SMEs and organizational culture of family SMEs.

Originality/value

This paper contributes to the field of family SMEs by providing a systematic analysis of the scientific knowledge. Reviewing those clusters allows to providing avenues and reflections for future research and further practice.

Details

Journal of Family Business Management, vol. 13 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 16 April 2024

Chris Brueck

The purpose of this study is to shed light on the twin transition in China in the organization of innovation processes in artificial intelligence (AI) and green technology (GT…

Abstract

Purpose

The purpose of this study is to shed light on the twin transition in China in the organization of innovation processes in artificial intelligence (AI) and green technology (GT) development and to understand the role of foreign multinationals in Chinese innovation systems.

Design/methodology/approach

A qualitative research approach is used by interviewing executives from German multinationals with expertise in AI and GT development and organization of innovation processes in China. In total, 11 semi-structured interviews were conducted with companies, and the data were analysed with a thematic qualitative text analysis.

Findings

The findings show that AI applications for GT are primarily developed in cross-company projects that are led by local and regional authorities through the organization of industrial districts and clusters. German multinationals are either being integrated, remaining autonomous or being excluded from these twin transition innovation processes.

Originality/value

This paper aims to fill the gap in the literature by providing one of the first qualitative approach towards twin transition innovation processes in China and exploring the integration of multinational enterprises in cluster organizations. To the best of the author’s knowledge, this is one of the first twin transition studies from this perspective in emerging economies.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Open Access
Article
Publication date: 16 May 2023

Alexander Kessler and Viktoriya Zipper-Weber

Born-again global internationalization is a rarely researched topic. Especially process-oriented studies are largely missing. In loss modes concerning their socioemotional wealth…

Abstract

Purpose

Born-again global internationalization is a rarely researched topic. Especially process-oriented studies are largely missing. In loss modes concerning their socioemotional wealth (SEW), family businesses take more risks and can be informative examples of born-again global internationalization.

Design/methodology/approach

This article analyzes the process of born-again global internationalization of a mature family business triggered by succession in an SEW loss mode. The interplay of dynamic capabilities (DCs) as drivers and SEW preservation guides the in-depth analysis based on an interpretative single case study design.

Findings

The analysis reveals a model with (1) the personal and familial level of the business family, (2) the bonding and transfer level between the business family and the family business and (3) the organizational level as three levels of DCs as drivers of born-again global internationalization in family businesses and SEW preservation as a continuously influencing context.

Originality/value

The article contributes to push forward the fragmented level of knowledge in the field of born-again global internationalization of family businesses. It brings together the triggering phase of born-again global internationalization with the later phases (driving successful rapid internationalization). In particular, it explores how the triggering factors on the family level can be translated into the development of capabilities on the firm level to drive successful internationalization. Based on these insights, the article offers novel implications for research and practice.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 6 July 2015

Noemi Sinkovics, Rudolf R. Sinkovics, Samia Ferdous Hoque and Laszlo Czaban

The purpose of this paper includes two interconnected objectives. The first is to provide a reconceptualisation of social value creation as social constraint alleviation. The…

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Abstract

Purpose

The purpose of this paper includes two interconnected objectives. The first is to provide a reconceptualisation of social value creation as social constraint alleviation. The second is to respond to the call put forward by Giuliani and Macchi (2014) to produce synergies between bodies of literature exploring the development impact of businesses. The paper focuses on ideas from the global value chain/global production networks (GVC/GPN), business and human rights, corporate social responsibility (CSR), international business (IB) and (social) entrepreneurship literatures.

Design/methodology/approach

The paper offers a reconceptualisation of social value creation by building on the synergies, complementarities and limitations of existing concepts identified through the literature review.

Findings

The reconceptualisation of social value creation put forward in this paper contributes to the literature in the following way. It offers a useful and clear definition of the term “social” (Devinney, 2009), and it attends to the limitations of the constraint concept as put forward by Ted London and his collaborators (London, 2011). Furthermore, it sketches out the basic ideas of a two-system approach to allow for the differentiation between symptom treatment and root cause alleviation. Finally, it offers a refinement of Wettstein’s (2012) proposed capability-based remedial action concept. The paper furthermore proposes that there are three distinct ways in which businesses generally respond to social constraints.

Originality/value

The paper illustrates how the redefined concept of social value creation can connect different bodies of literature and help make sense of existing empirical results, without engaging in definitional debates.

Open Access
Article
Publication date: 28 June 2022

Aihie Osarenkhoe and Daniella Fjellström

The paper aims to illuminate the platform created by a cluster organization to facilitate its internationalization and thereby enhance its regional innovation system partners'…

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Abstract

Purpose

The paper aims to illuminate the platform created by a cluster organization to facilitate its internationalization and thereby enhance its regional innovation system partners' competitiveness by providing access to global value chains and boosting innovativeness.

Design/methodology/approach

The study draws upon the interaction approach, focusing on the interaction process, interaction partners, relationship atmosphere, and relationship environment. A qualitative study was conducted at Future Position X, a Swedish cluster organization. A total of 58 interviews were conducted, including 48 face-to-face in-depth interviews between 2017 and 2019 with six key informants at FPX, representatives from 28 SMEs, ten members of regional innovation systems to which FPX belongs, and four process leaders of regional and local networks, in addition to online interviews with ten members of the regional innovation systems conducted via Microsoft Teams in March 2021. The time span of the study provides a longitudinal perspective.

Findings

The FPX cluster collaborates with actors in the quadruple helix, maintaining a mindset that has led to a number of new partner agreements in the global arena to secure the resources and expertise necessary for cluster activities, and thereby ensuring firms in FPX networks access to platforms for international expansion. Internationalization thus expands the cluster's knowledge base beyond the traditional environment of its member firms.

Research limitations/implications

Very few innovations arise from the isolated work of a lone genius. Instead, most innovation is achieved through complex, interactive, iterative and cumulative learning processes in which a variety of actors are involved. The FPX cluster organization's internationalization platform is therefore vital to the internationalization of its partners since cluster actors lack the time, resources, knowledge, experience, and networks required to break into international markets singlehandedly.

Practical implications

This study suggests that, for practitioners and researchers alike, the growing importance and relevance of the regional innovation system cannot be overemphasized. It also holds policy and societal implications in that FPX's global network helps regional SMEs to internationalize, in addition to inspiring international firms to establish operations in the Gävleborg region, thereby helping to strengthen the overall GIS environment. Internationalization also expands the FPX cluster's knowledge base beyond the traditional environment of its firms, an example of this being the construction start of a Microsoft data centre in the region in 2020.

Social implications

FPX is financed through taxation and grant funding. By initiating projects, creating relationships and building collaborations, FPX thus contributes to collaboration between business, academia and the public sector. FPX also contributes to knowledge development of new technology by creating meeting places and networks around digital issues, such as GIS, AI, the IoT and blockchain technology.

Originality/value

While earlier research has concentrated on endogenous gaps critical to cluster dynamics, comparatively little attention has been paid to exogenous gaps, i.e. linkages between regional clusters and innovation partners elsewhere in the world. This study showcases the richness of interactions in the cluster against the background of wider, global innovation interactions. Future research should examine other vital questions that remain unanswered, e.g. by measuring and exploring the extent to which regional innovation systems can contribute to long-term economic growth for society.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

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