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Article
Publication date: 4 December 2023

Juciara Nunes de Alcântara, Cristina Lelis Leal Calegario, Marco Túlio Dinali Viglioni and Jorge Carneiro

Although emerging markets are distinctly known for the rapid growth and international expansion of their state-owned enterprises, little is known about the influence of parent

Abstract

Purpose

Although emerging markets are distinctly known for the rapid growth and international expansion of their state-owned enterprises, little is known about the influence of parent resource advantages and mixed state ownership on a subsidiary’s performance. Using the resource-based view, this study aims to investigate how resource advantages from the parent company and state ownership influence the performance of subsidiaries.

Design/methodology/approach

This study included a unique data set of 207 subsidiaries from 33 large Brazilian multinationals located in 32 countries from 2000 to 2015. The authors used a hierarchical linear modeling and a multilevel structure based on data at different levels to analyze the influence of home-country parent resource advantages and state ownership on host-country subsidiary’s performance.

Findings

This study illustrates that state ownership can alleviate the resource advantages of parent companies. Evidence is presented, indicating that low and medium degrees of state ownership have a negative impact on the resource advantages of the parent company, consequently reducing the subsidiary’s performance. Moreover, this study highlights that low and medium degrees of state ownership lead to conflicting interests between state ownership and parent resource advantages, resulting in an overall decline in subsidiary performance.

Originality/value

This research contributes new evidence regarding state ownership and resource advantages to the field of international business studies and the domain of Latin American multinational enterprises, Multilatinas. The results suggest that low and medium levels of state ownership diminish the influx of resources from parent companies, thereby restricting the subsidiary’s performance.

Details

European Business Review, vol. 36 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 1 April 2005

Christopher M. Moore and Grete Birtwistle

Examines the application and nature of parenting advantage within the context of luxury fashion conglomerates principally as a means of understanding the synergistic benefits that…

25253

Abstract

Purpose

Examines the application and nature of parenting advantage within the context of luxury fashion conglomerates principally as a means of understanding the synergistic benefits that accrue as a result of brand consolidation within the sector.

Design/methodology/approach

Derived from company annual accounts, market analysts' reports and other secondary sources, the paper delineates and evaluates the ten‐year renaissance of Gucci brand from a company on the verge of bankruptcy to its emergence as the world's second largest luxury group.

Findings

Through the identification of intra‐business group synergies, it is clear that the transference of brand management expertise and competence is the principal dimension of parenting advantage in the Gucci Group.

Originality/value

From an examination of the Gucci Group's brand management strategy, resource investments and business development activities, the paper proposes a model of the luxury fashion brand. This multi‐dimensional model identifies the components of the luxury fashion brand, locates their inter‐connections and illustrates how these collectively can provide and sustain advantage within this highly competitive sector.

Details

International Journal of Retail & Distribution Management, vol. 33 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 13 July 2012

Matthias Kruehler, Ulrich Pidun and Harald Rubner

The major purpose of this paper is the development of a theoretical framework that can be used by corporate practitioners to understand the implicit parenting strategy of their

5322

Abstract

Purpose

The major purpose of this paper is the development of a theoretical framework that can be used by corporate practitioners to understand the implicit parenting strategy of their company, assess its performance, and adjust it for improving the net corporate value creation.

Design/methodology/approach

In this paper, a three‐dimensional framework is developed that accounts for corporate‐to‐business and business‐to‐business interactions, value‐adding and value‐destroying activities, and strategic and operational levers. The framework is operationalized by assigning a broad set of individual activities to these levers.

Findings

The paper delivers a robust, systematic, and operational framework to assess the net benefits to a given business of being part of a corporate portfolio, and to identify and evaluate implicit parenting strategies in corporate practice. While previous studies mainly focused on broad parenting approaches with low granularity this framework now allows earlier observations to be substantiated, finer distinctions between the applied strategies to be drawn, and the core of superior value added approaches to be investigated.

Practical implications

The introduced framework can be used to analyze the origin and underlying drivers of conglomerate discounts and premia and thus enhance understanding of capital market valuation of multi‐business companies. The developed framework can also be the basis for the derivation of a typology of corporate parenting strategies. In this way, it can support practitioners in portfolio management – which was also the explicit motivation for the development of the original parenting advantage concept.

Originality/value

The outlined framework will facilitate the investigation of structural, strategic, and organizational roots of superior parenting strategies in corporate practice. It may be used to analyze performance differences of multi‐business companies that go beyond the degree of diversification and may finally contribute to solving the puzzle of the conglomerate discount.

Details

Journal of Business Strategy, vol. 33 no. 4
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 9 April 2019

Timothy Galpin

The gap between management theory and practice has been much criticized. To help bridge the divide, a synthesis of empirical, theoretical and practice literature is offered, along…

3527

Abstract

Purpose

The gap between management theory and practice has been much criticized. To help bridge the divide, a synthesis of empirical, theoretical and practice literature is offered, along with an application of the widely used VRIO framework, to contend that developing a focused corporate parenting approach as a core competence serves as a source of competitive advantage for diversified companies.

Design/methodology/approach

A synthesis of empirical, theoretical and practice literature is presented, beginning with a discussion of why and how firms diversify; the relative performance of firms that pursue related and unrelated diversification; an application of the resource-based view, core competencies and the VRIO framework; a description of focused corporate parenting as a core competency; a prescription for how diversified firms can implement a focused corporate parenting approach; and implications for research.

Findings

Developing a focused corporate parenting approach as a core competence serves as a source of competitive advantage for diversified companies.

Research limitations/implications

The synthesis of empirical, theoretical and practice literature presented provides a foundation for future research into the impact of focused corporate parenting on diversified firm performance.

Practical implications

The paper includes a prescription for how diversified firms can implement a focused corporate parenting approach.

Originality/value

The application of the resource-based view and core competency theories to corporate parenting provides managers with the rationale for and methodology to focus their corporate parenting activities.

Details

Journal of Business Strategy, vol. 40 no. 3
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 16 January 2009

Jan‐Egbert Sturm and Barry Williams

The purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign‐owned banks operating in Australia. The relevance of both comparative…

1716

Abstract

Purpose

The purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign‐owned banks operating in Australia. The relevance of both comparative advantage theory and new trade theory to multinational banking in Australia will be tested.

Design/methodology/approach

A three stage research method is employed. First, estimates of foreign bank efficiency are drawn from a larger sample of domestic and foreign banks in Australia. Efficiency is estimated using parametric distance functions, applying several different specifications of inputs and outputs. Second, factor analysis is used to estimate a series of common factors drawn from the above theories. Third, general to specific modelling is used to determine which of the factors from the second stage determine differences in foreign bank efficiency.

Findings

Following clients (defensive expansion) was found to increase host nation efficiency, and new trade theory tended to, (but not conclusively), dominate comparative advantage theory. The limited global advantage hypothesis was found to apply for US bank revenue creation efficiency, but not for transformation of physical inputs into outputs. Banks from the UK and Japan were also found to display superior revenue creation efficiency. Competitor market share reduces host nation efficiency and positive parent bank attributes such as size, credit rating and profits are associated with lower host nation efficiency, as is home nation financial development.

Originality/value

This is the first study that has used a combination of factor analysis and general to specific modelling to study determinants of foreign bank efficiency in the host nation.

Details

Managerial Finance, vol. 35 no. 2
Type: Research Article
ISSN: 0307-4358

Keywords

Book part
Publication date: 23 April 2007

Jesper B. Sørensen

Insights into the origins of entrepreneurial activity are gained through a study of alternative mechanisms implicated in the tendency for children of the self-employed to be…

Abstract

Insights into the origins of entrepreneurial activity are gained through a study of alternative mechanisms implicated in the tendency for children of the self-employed to be substantially more likely than other children to enter into self-employment themselves. I use unique life history data to examine the impact of parental self-employment on the transition to self-employment in Denmark and assess the different mechanisms identified in the literature. The results suggest that parental role modeling is an important source of the transmission of self-employment. However, there is little evidence to suggest that children of the self-employed enter self-employment because they have privileged access to their parent's financial or social capital, or because their parents’ self-employment allows them to develop superior entrepreneurial abilities.

Details

The Sociology of Entrepreneurship
Type: Book
ISBN: 978-1-84950-498-0

Book part
Publication date: 23 November 2017

Jonas F. Puck, Markus Hödl, Igor Filatotchev and Thomas Lindner

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…

Abstract

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.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

Keywords

Book part
Publication date: 10 June 2019

Tammy Harel Ben Shahar

Legal and philosophical scholarship on religious education typically focuses on religious schools that challenge core liberal values. Religious schools that offer their students…

Abstract

Legal and philosophical scholarship on religious education typically focuses on religious schools that challenge core liberal values. Religious schools that offer their students quality secular education, and whose religious character is mild, do not raise these concerns and have therefore evaded scrutiny thus far. This chapter argues that the latter kind of religious schools, which I call “creaming religious schools,” may have a negative effect on educational equality and should therefore be subject to restrictive legal regulation. The negative effect on equality is caused by the fact that when successful, these schools appeal not only to members of the religious community but also to non-member high-achieving students who leave the public schools (a process called creaming) thus weakening them. The chapter argues that the harm caused to public schools cannot be redeemed by alluding to the right to religious education because the religious justification for creaming religious schools is relatively weak. The chapter then examines several potential legal measures for contending with creaming religious schools: the antidiscrimination doctrine, which the chapter rejects, showing that it actually aggravates creaming, locating schools in disadvantaged neighborhoods, restricting tuition, reflective enrollment policy, and finally, the total prohibition of establishing creaming religious schools.

Details

Studies in Law, Politics, and Society
Type: Book
ISBN: 978-1-78973-727-1

Keywords

Article
Publication date: 1 February 1998

J.‐M. JUNNONEN

The aim of the present paper was to examine strategy formation in construction firms. Strategic thinking has become increasingly important because the environment of construction…

1039

Abstract

The aim of the present paper was to examine strategy formation in construction firms. Strategic thinking has become increasingly important because the environment of construction has changed dramatically in recent years. An organizational strategy is the result of a formation process over time and an organization uses strategy when dealing with a changing environment. Therefore, strategies are formed in an iterative process of social interactions involving various activities. The basic unit of analysis strategy must be a distinct business and corporate entity. Corporate strategy should grow out of a deep understanding of how construction firms prosper in individual business areas, i.e. ‘the parenting advantage’. Parenting advantage is a criterion for guiding corporate strategy formation. Business strategy is formed by accepted common thinking and on the basis of business strategy in general. Business strategy and competitive advantage is based on the competencies and resources of firms.

Details

Engineering, Construction and Architectural Management, vol. 5 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 23 October 2018

Huifeng Bai, Julie McColl and Christopher Moore

The purpose of this paper is to examine luxury fashion retailers’ ownership structures at their internationalisation strategies in Hong Kong and mainland China.

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Abstract

Purpose

The purpose of this paper is to examine luxury fashion retailers’ ownership structures at their internationalisation strategies in Hong Kong and mainland China.

Design/methodology/approach

This study adopts a pragmatic mixed methods approach, comprising a quantitative mail survey and ten qualitative executive interviews.

Findings

This study found that group-owned luxury fashion retailers usually encounter fewer difficulties when internationalising into mainland China than their individually owned counterparts because of parenting advantage, particularly functional and service support. However, the success of some individually owned brands has demonstrated that branding strategies, management culture, international experience, financial power and local partners’ know-how are as important as parent company support and although the luxury market in mainland China has become developed, many foreign luxury fashion retailers still enter Hong Kong prior to mainland China. However, in relation to post-entry management and expansion strategies, the importance of Hong Kong has weakened because the emergence of capital cities, the growth of the middle class and fewer political restrictions.

Research limitations/implications

The research findings are generated in the context of Hong Kong and mainland China, they are therefore limited in explaining luxury fashion retailers’ internationalisation strategies in other markets. Despite the challenge of the sample size, 63 out of 130 survey respondents (48.5 per cent response rate) and ten interview participants are felt to be sufficient to represent the market.

Practical implications

This research can be used by practitioners when assessing appropriate entry strategies to the Chinese luxury fashion market.

Originality/value

This is a pioneering study of the Chinese luxury market from the perspective of international retail strategies. It differentiates between Greater China (including Hong Kong, Macau and Taiwan) and mainland China, and examines the impact of luxury fashion retailers’ ownership structures on their internationalisation strategies.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

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