Pub Date : 2023-09-06DOI: 10.1108/ribs-02-2023-0016
Zelha Altinkaya, Mustafa Kemal Yilmaz, Mine Aksoy, Zekeriya Oguz Secme
Purpose Social media (SM) networks offer a golden opportunity for firms that particularly engage in international activities to set up sustainable customer relationships and improve competitiveness. The purpose of this study is to examine the influence of SM adoption on the export intensity (EI) of firms listed on Borsa Istanbul (BIST) for the years 2010–2020. The authors use social media index (SMI) to measure SM adoption and firm size (FSize) as a moderator on exploring the interaction of SM and EI. Design/methodology/approach Using a sample of 150 firms listed on the BIST Industrials Index, this study explores how the adoption of SM affects EI by using panel data analysis over the period of 2010–2020. Findings The results indicate that the SMI has a positive and significant effect on the EI. FSize positively moderates the interaction of SMI and EI, indicating that large firms benefit more from the SM in increasing export performance. The findings reflect high potential of EI improvement through adopting right SM policies in emerging markets. Research limitations/implications The sample covers only public companies listed on the BIST Industrials Index. Future studies may extend the coverage and include multiple emerging markets to draw generalized results for the export-oriented firms. This research also analyzes solely four SM networks, i.e. Facebook, Instagram, Twitter and YouTube. However, there are many other SM networks that firms use in online marketing in foreign markets. Finally, this research did not discuss the potential factors that could influence the use of SM in emerging market firms. Practical implications This study denotes the significant role of SM adoption on the EI of firms in an emerging market setting from the perspective of resource-based view. It presents an insightful approach in understanding the mission played by SM networks in enhancing the EI of Turkish firms. Policymakers may use the findings to develop public support programs to promote the adoption and implementation of the SM among exporting firms in emerging markets. Originality/value The study provides evidence on the effects of SM adoption on the EI from the perspective of emerging countries. It also helps to gain a deeper understanding of how different SM platforms contribute to the internationalization of firms.
{"title":"Social media adoption and export intensity: the moderating role of firm size","authors":"Zelha Altinkaya, Mustafa Kemal Yilmaz, Mine Aksoy, Zekeriya Oguz Secme","doi":"10.1108/ribs-02-2023-0016","DOIUrl":"https://doi.org/10.1108/ribs-02-2023-0016","url":null,"abstract":"\u0000Purpose\u0000Social media (SM) networks offer a golden opportunity for firms that particularly engage in international activities to set up sustainable customer relationships and improve competitiveness. The purpose of this study is to examine the influence of SM adoption on the export intensity (EI) of firms listed on Borsa Istanbul (BIST) for the years 2010–2020. The authors use social media index (SMI) to measure SM adoption and firm size (FSize) as a moderator on exploring the interaction of SM and EI.\u0000\u0000\u0000Design/methodology/approach\u0000Using a sample of 150 firms listed on the BIST Industrials Index, this study explores how the adoption of SM affects EI by using panel data analysis over the period of 2010–2020.\u0000\u0000\u0000Findings\u0000The results indicate that the SMI has a positive and significant effect on the EI. FSize positively moderates the interaction of SMI and EI, indicating that large firms benefit more from the SM in increasing export performance. The findings reflect high potential of EI improvement through adopting right SM policies in emerging markets.\u0000\u0000\u0000Research limitations/implications\u0000The sample covers only public companies listed on the BIST Industrials Index. Future studies may extend the coverage and include multiple emerging markets to draw generalized results for the export-oriented firms. This research also analyzes solely four SM networks, i.e. Facebook, Instagram, Twitter and YouTube. However, there are many other SM networks that firms use in online marketing in foreign markets. Finally, this research did not discuss the potential factors that could influence the use of SM in emerging market firms.\u0000\u0000\u0000Practical implications\u0000This study denotes the significant role of SM adoption on the EI of firms in an emerging market setting from the perspective of resource-based view. It presents an insightful approach in understanding the mission played by SM networks in enhancing the EI of Turkish firms. Policymakers may use the findings to develop public support programs to promote the adoption and implementation of the SM among exporting firms in emerging markets.\u0000\u0000\u0000Originality/value\u0000The study provides evidence on the effects of SM adoption on the EI from the perspective of emerging countries. It also helps to gain a deeper understanding of how different SM platforms contribute to the internationalization of firms.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46721867","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-18DOI: 10.1108/ribs-03-2023-0018
T. Ndofirepi
Purpose This study aims to examine the degree to which a selection of home country factors affects the proclivity of firms to internationalise. The study also proposes and tests a conceptual model that fuses institutional and resource-based theories to improve our understanding of firm internationalisation. Design/methodology/approach The study uses cross-sectional, national-level secondary data from the 2018 Global Entrepreneurship Development Institute and World Economic Forum data sets on global entrepreneurship and competitiveness indices for 137 countries. The data is analysed using correlation and hierarchical regression analysis to test the hypotheses. Findings The results indicate that national income, institutions, trade openness and availability of risk capital positively influenced firm internationalisation, while home-country networking had an inverse effect. However, home country infrastructure had no statistically significant effect on firm internationalisation. Research limitations/implications The findings highlight the importance of considering home country attributes in understanding the internationalisation of firms. Originality/value This study contributes to the body of knowledge by providing empirical evidence of the role of local factors on the internationalisation of entrepreneurial ventures. It also tests a novel conceptual model that integrates institutional and resource-based theories to explain the nuances of the internationalisation of business ventures globally.
{"title":"Exploring the link between home country attributes and firms' internationalisation: evidence from GEDI and WEF data","authors":"T. Ndofirepi","doi":"10.1108/ribs-03-2023-0018","DOIUrl":"https://doi.org/10.1108/ribs-03-2023-0018","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the degree to which a selection of home country factors affects the proclivity of firms to internationalise. The study also proposes and tests a conceptual model that fuses institutional and resource-based theories to improve our understanding of firm internationalisation.\u0000\u0000\u0000Design/methodology/approach\u0000The study uses cross-sectional, national-level secondary data from the 2018 Global Entrepreneurship Development Institute and World Economic Forum data sets on global entrepreneurship and competitiveness indices for 137 countries. The data is analysed using correlation and hierarchical regression analysis to test the hypotheses.\u0000\u0000\u0000Findings\u0000The results indicate that national income, institutions, trade openness and availability of risk capital positively influenced firm internationalisation, while home-country networking had an inverse effect. However, home country infrastructure had no statistically significant effect on firm internationalisation.\u0000\u0000\u0000Research limitations/implications\u0000The findings highlight the importance of considering home country attributes in understanding the internationalisation of firms.\u0000\u0000\u0000Originality/value\u0000This study contributes to the body of knowledge by providing empirical evidence of the role of local factors on the internationalisation of entrepreneurial ventures. It also tests a novel conceptual model that integrates institutional and resource-based theories to explain the nuances of the internationalisation of business ventures globally.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46261165","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-29DOI: 10.1108/ribs-01-2023-0002
Samta Jain, Smita Kashiramka, P. K. Jain
Purpose Emerging market multinational companies have been vigorous in pursuing inorganic growth through cross-border acquisitions (CBAs). The fundamental studies till now have portrayed that rapid internationalization through CBAs tends to create value for these emerging market firms (EMFs) in the short term. However, there is an ambiguity about whether these firms endure better performance in the long term. The purpose of this study is to assess the long-term (ex-post) financial and operating performance of EMFs involved in overseas acquisitions before the COVID-19 pandemic hit the world economy. Design/methodology/approach CBAs completed by Indian and Chinese companies constitute the sample of the study. The performance has been analysed during the pre-COVID period spanning 17 years from 2001 to 2017. A comprehensive set of 14 financial ratios has been used to represent change (improvement/decline) in enterprises’ post-acquisition operating performance; these ratios have been divided into four broad groups: profitability, efficiency, solvency and liquidity ratios. Findings The performance of Indian companies has deteriorated significantly after the acquisition. However, there has been no change (deterioration/improvement), subsequent to CBAs, in the profitability of Chinese firms. Practical implications The findings of the study support that firms from emerging economies exploit CBAs as a “springboard” to obtain strategic assets including intangible resources and brands rather than to achieve synergies through economies of scale and scope. Apparently, outbound acquisitions by emerging economy firms are not driven by cost-reduction or revenue-generation activities. Originality/value None of the studies, to the best knowledge of the authors, has carried out performance analysis using a comprehensive set of financial ratios. The comparative study of two emerging economies is another valuable addition to the existing literature. The study holds the potential to serve as the benchmark to assess the performance of CBAs executed after COVID-19.
{"title":"Performance of cross-border acquirers from India and China: its sustainability in the long-run?","authors":"Samta Jain, Smita Kashiramka, P. K. Jain","doi":"10.1108/ribs-01-2023-0002","DOIUrl":"https://doi.org/10.1108/ribs-01-2023-0002","url":null,"abstract":"\u0000Purpose\u0000Emerging market multinational companies have been vigorous in pursuing inorganic growth through cross-border acquisitions (CBAs). The fundamental studies till now have portrayed that rapid internationalization through CBAs tends to create value for these emerging market firms (EMFs) in the short term. However, there is an ambiguity about whether these firms endure better performance in the long term. The purpose of this study is to assess the long-term (ex-post) financial and operating performance of EMFs involved in overseas acquisitions before the COVID-19 pandemic hit the world economy.\u0000\u0000\u0000Design/methodology/approach\u0000CBAs completed by Indian and Chinese companies constitute the sample of the study. The performance has been analysed during the pre-COVID period spanning 17 years from 2001 to 2017. A comprehensive set of 14 financial ratios has been used to represent change (improvement/decline) in enterprises’ post-acquisition operating performance; these ratios have been divided into four broad groups: profitability, efficiency, solvency and liquidity ratios.\u0000\u0000\u0000Findings\u0000The performance of Indian companies has deteriorated significantly after the acquisition. However, there has been no change (deterioration/improvement), subsequent to CBAs, in the profitability of Chinese firms.\u0000\u0000\u0000Practical implications\u0000The findings of the study support that firms from emerging economies exploit CBAs as a “springboard” to obtain strategic assets including intangible resources and brands rather than to achieve synergies through economies of scale and scope. Apparently, outbound acquisitions by emerging economy firms are not driven by cost-reduction or revenue-generation activities.\u0000\u0000\u0000Originality/value\u0000None of the studies, to the best knowledge of the authors, has carried out performance analysis using a comprehensive set of financial ratios. The comparative study of two emerging economies is another valuable addition to the existing literature. The study holds the potential to serve as the benchmark to assess the performance of CBAs executed after COVID-19.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45073026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-23DOI: 10.1108/ribs-04-2023-0030
G. Anggadwita, N. Indarti, P. Sinha, H. Manik
Purpose Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia. Design/methodology/approach This study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships. Findings This study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization. Originality/value This study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.
{"title":"The internationalization performance of Indonesian SMEs during COVID-19 pandemic: exploring a mediation model","authors":"G. Anggadwita, N. Indarti, P. Sinha, H. Manik","doi":"10.1108/ribs-04-2023-0030","DOIUrl":"https://doi.org/10.1108/ribs-04-2023-0030","url":null,"abstract":"\u0000Purpose\u0000Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia.\u0000\u0000\u0000Design/methodology/approach\u0000This study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships.\u0000\u0000\u0000Findings\u0000This study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization.\u0000\u0000\u0000Originality/value\u0000This study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49124728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-05DOI: 10.1108/ribs-11-2022-0100
S. Kukreja, G. Maheshwari, Archana Singh
Purpose This study aims to examine the impact of home–host country distance on the cross-border mergers and acquisitions performance. Design/methodology/approach The results of this study are based on a final sample of 483 completed cross-border deals involving BRICS nation acquirers and targets spread across a set of 27 nations. While controlling for prior experience, among other factors, the impact of nine institutional distance dimensions on deal performance is examined. Cumulative abnormal returns calculated over the select event windows are used as a measure of deal performance. Findings The results of this study validate the explanatory power of cross-country distance and exhibit that financial and cultural distance exert a negative influence on deal performance, whereas political and global connectedness distance positively impacts performance. Interestingly, geographic distance is not found to be related to performance outcomes. Research limitations/implications The results of this study caution against possible aggregation of the cross-country distance measure and point towards the need to acknowledge and analyse the multi-dimensional nature of distance. Practical implications The results of this study are expected to aid managers in devising internationalisation strategies and target selection, maximising their performance and shareholder wealth. Originality/value This study contributes to the knowledge of internationalisation and cross-country distance. It presents as one of the first to investigate the impact of institutional distance on deal performance using a substantially large multi-country emerging market data set.
{"title":"Interplay of cross-country distance with cross-border M&A performance: an institutional perspective","authors":"S. Kukreja, G. Maheshwari, Archana Singh","doi":"10.1108/ribs-11-2022-0100","DOIUrl":"https://doi.org/10.1108/ribs-11-2022-0100","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the impact of home–host country distance on the cross-border mergers and acquisitions performance.\u0000\u0000\u0000Design/methodology/approach\u0000The results of this study are based on a final sample of 483 completed cross-border deals involving BRICS nation acquirers and targets spread across a set of 27 nations. While controlling for prior experience, among other factors, the impact of nine institutional distance dimensions on deal performance is examined. Cumulative abnormal returns calculated over the select event windows are used as a measure of deal performance.\u0000\u0000\u0000Findings\u0000The results of this study validate the explanatory power of cross-country distance and exhibit that financial and cultural distance exert a negative influence on deal performance, whereas political and global connectedness distance positively impacts performance. Interestingly, geographic distance is not found to be related to performance outcomes.\u0000\u0000\u0000Research limitations/implications\u0000The results of this study caution against possible aggregation of the cross-country distance measure and point towards the need to acknowledge and analyse the multi-dimensional nature of distance.\u0000\u0000\u0000Practical implications\u0000The results of this study are expected to aid managers in devising internationalisation strategies and target selection, maximising their performance and shareholder wealth.\u0000\u0000\u0000Originality/value\u0000This study contributes to the knowledge of internationalisation and cross-country distance. It presents as one of the first to investigate the impact of institutional distance on deal performance using a substantially large multi-country emerging market data set.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-06-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45658646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-19DOI: 10.1108/ribs-06-2022-0061
Tiia Vissak
Purpose This paper aims to give an overview of the literature on Central and Eastern European (CEE) firms’ successful internationalization: different authors’ understanding of success, and, thereafter, these firms’ internationalization processes, external factors, internal motivators and actions that affect successful internationalizers’ initial and subsequent foreign activities, and, finally, internationalization outcomes. Design/methodology/approach This is a systematic-narrative hybrid literature review paper that focuses on CEE firms’ successful internationalization. Findings This paper concludes that CEE firms’ “success” is understood and measured differently, successful internationalizers can experience various internationalization paths, they are affected by a large number of external impact factors, internal motivators or actions and their internationalization outcomes vary considerably. Thus, there is no “ideal” type of successful internationalization: as different CEE firms can be called “successful”, they also follow different trajectories to achieve success. Originality/value To the best of the author’s knowledge, this is the first literature review paper that gives an overview on how success has been defined in studies about CEE firms’ internationalization, if some types of internationalizers have been considered more successful and if there are any important CEE-specific contextual factors or not.
{"title":"A literature review on CEE firms’ internationalization: success measurement, achievement and outcomes","authors":"Tiia Vissak","doi":"10.1108/ribs-06-2022-0061","DOIUrl":"https://doi.org/10.1108/ribs-06-2022-0061","url":null,"abstract":"\u0000Purpose\u0000This paper aims to give an overview of the literature on Central and Eastern European (CEE) firms’ successful internationalization: different authors’ understanding of success, and, thereafter, these firms’ internationalization processes, external factors, internal motivators and actions that affect successful internationalizers’ initial and subsequent foreign activities, and, finally, internationalization outcomes.\u0000\u0000\u0000Design/methodology/approach\u0000This is a systematic-narrative hybrid literature review paper that focuses on CEE firms’ successful internationalization.\u0000\u0000\u0000Findings\u0000This paper concludes that CEE firms’ “success” is understood and measured differently, successful internationalizers can experience various internationalization paths, they are affected by a large number of external impact factors, internal motivators or actions and their internationalization outcomes vary considerably. Thus, there is no “ideal” type of successful internationalization: as different CEE firms can be called “successful”, they also follow different trajectories to achieve success.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this is the first literature review paper that gives an overview on how success has been defined in studies about CEE firms’ internationalization, if some types of internationalizers have been considered more successful and if there are any important CEE-specific contextual factors or not.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44212427","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-18DOI: 10.1108/ribs-11-2022-0106
H. P. Bowen, L. Sleuwaegen
Purpose This paper aims to derive and estimate a theory-based empirical specification that models a firm’s choices of its international diversification (ID) and product diversification (PD) and how they evolve over time in response to shocks that alter the relative cost and relative profitability of ID and PD. Design/methodology/approach We use longitudinal data on U.S. manufacturing firms from 1984 to 1999, a period of intense shocks associated with rapid globalization, to estimate a dynamic panel data Tobit model that permits lags in a firm’s adjustment to its optimal mix of ID and PD over time. Findings We find strong support for the theoretical framework underlying our empirical specifications and posited dynamics, with full adjustment estimated to require, on average, 1.5 years, a finding with implications for the time spacing of observations in empirical studies of ID and PD to avoid biased inferences. Among the globalization shocks during the time period studied, our results indicate that global competitive pressures and efficiency gains from global supply integration to be the more important factors driving U.S. firms toward greater ID relative to PD. Augmentation of firms’ organizational (managerial) and physical capital resources is also found to be important for supporting an expansion of ID relative to PD. Technological resource augmentation is instead found to favor expansion of PD relative to ID. Originality/value Our empirical specification is novel. It readily incorporates an often ignored but necessary theoretical condition that defines a firm’s optimal choices of its ID and PD, and it allows observed choices at a point in time to deviate from their optimal values.
{"title":"Modeling the dynamics of firms’ international and product market diversification strategy: the case of U.S. firms’ response to late 20th century globalization","authors":"H. P. Bowen, L. Sleuwaegen","doi":"10.1108/ribs-11-2022-0106","DOIUrl":"https://doi.org/10.1108/ribs-11-2022-0106","url":null,"abstract":"\u0000Purpose\u0000This paper aims to derive and estimate a theory-based empirical specification that models a firm’s choices of its international diversification (ID) and product diversification (PD) and how they evolve over time in response to shocks that alter the relative cost and relative profitability of ID and PD.\u0000\u0000\u0000Design/methodology/approach\u0000We use longitudinal data on U.S. manufacturing firms from 1984 to 1999, a period of intense shocks associated with rapid globalization, to estimate a dynamic panel data Tobit model that permits lags in a firm’s adjustment to its optimal mix of ID and PD over time.\u0000\u0000\u0000Findings\u0000We find strong support for the theoretical framework underlying our empirical specifications and posited dynamics, with full adjustment estimated to require, on average, 1.5 years, a finding with implications for the time spacing of observations in empirical studies of ID and PD to avoid biased inferences. Among the globalization shocks during the time period studied, our results indicate that global competitive pressures and efficiency gains from global supply integration to be the more important factors driving U.S. firms toward greater ID relative to PD. Augmentation of firms’ organizational (managerial) and physical capital resources is also found to be important for supporting an expansion of ID relative to PD. Technological resource augmentation is instead found to favor expansion of PD relative to ID.\u0000\u0000\u0000Originality/value\u0000Our empirical specification is novel. It readily incorporates an often ignored but necessary theoretical condition that defines a firm’s optimal choices of its ID and PD, and it allows observed choices at a point in time to deviate from their optimal values.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44884502","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-04-07DOI: 10.1108/ribs-11-2022-0104
B. Krasniqi, N. Williams, Iraj Hashi, Fisnik Reçica, E. Lubishtani, Li̇ri̇don Kryeziu
Purpose This paper aims to examine the influence of formal and informal institutional quality on country-level variations in foreign equity shares in transition economies (TEs). Design/methodology/approach Drawing on institutional theory and transaction cost theory, this paper examines the influence of formal and informal institutional quality on country-level variations in foreign equity shares in TEs. The authors use a two-step empirical strategy, identifying clusters of explanatory variables and running generalized least squares random effect estimations to test for the influence of explanatory and control variables on foreign equity shares. Findings Foreign equity share is positively affected by informal institutions and negatively by formal institutions. However, when control for stage of transition we find that the the presence of informal institutions in more rapidly or advanced transforming economies negatively influences foreign equity shares. Complex infrastructure discourages foreign equity shareholdings, and foreign companies use informal practices to overcome unfavourable host country conditions. Government size has a negative effect, and gross domestic product per capita positively affects foreign equity shares. Research limitations/implications The study is the new groundwork for the re-enactment of a fruitful discussion on foreign equity. The study has practical implications for managers, too – managers of foreign-owned firms operating in weakly installed institutional environments should carefully analyse the entry strategies because of the high presence of informal institutions. Furthermore, managers could understand the various facilitation roles of informal institutions in any firm internationalisation effort to arrive at optimal ownership holdings for better internationalisation performance. Although the study is based on a sample of transition countries, the findings have implications for other emerging economies’ contexts sharing similar institutional settings. Originality/value This study provides a unique empirical investigation and evidence based on country-level indicators on the effect of formal and informal institutions on foreign equity shares holdings in TEs, reinforcing the importance of impacts of both the formal and informal dimensions on ownership decisions of foreign investors.
{"title":"The impact of institutional quality on country-level variations in foreign equity shares in transition economies","authors":"B. Krasniqi, N. Williams, Iraj Hashi, Fisnik Reçica, E. Lubishtani, Li̇ri̇don Kryeziu","doi":"10.1108/ribs-11-2022-0104","DOIUrl":"https://doi.org/10.1108/ribs-11-2022-0104","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the influence of formal and informal institutional quality on country-level variations in foreign equity shares in transition economies (TEs).\u0000\u0000\u0000Design/methodology/approach\u0000Drawing on institutional theory and transaction cost theory, this paper examines the influence of formal and informal institutional quality on country-level variations in foreign equity shares in TEs. The authors use a two-step empirical strategy, identifying clusters of explanatory variables and running generalized least squares random effect estimations to test for the influence of explanatory and control variables on foreign equity shares.\u0000\u0000\u0000Findings\u0000Foreign equity share is positively affected by informal institutions and negatively by formal institutions. However, when control for stage of transition we find that the the presence of informal institutions in more rapidly or advanced transforming economies negatively influences foreign equity shares. Complex infrastructure discourages foreign equity shareholdings, and foreign companies use informal practices to overcome unfavourable host country conditions. Government size has a negative effect, and gross domestic product per capita positively affects foreign equity shares.\u0000\u0000\u0000Research limitations/implications\u0000The study is the new groundwork for the re-enactment of a fruitful discussion on foreign equity. The study has practical implications for managers, too – managers of foreign-owned firms operating in weakly installed institutional environments should carefully analyse the entry strategies because of the high presence of informal institutions. Furthermore, managers could understand the various facilitation roles of informal institutions in any firm internationalisation effort to arrive at optimal ownership holdings for better internationalisation performance. Although the study is based on a sample of transition countries, the findings have implications for other emerging economies’ contexts sharing similar institutional settings.\u0000\u0000\u0000Originality/value\u0000This study provides a unique empirical investigation and evidence based on country-level indicators on the effect of formal and informal institutions on foreign equity shares holdings in TEs, reinforcing the importance of impacts of both the formal and informal dimensions on ownership decisions of foreign investors.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46137508","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-07DOI: 10.1108/ribs-08-2022-0074
Rimi Zakaria, Eylem Ersal Kiziler
Purpose This study takes a dyadic approach to explaining merger and acquisition (M&A) deal outcomes. Acknowledging the socio-cognitive (e.g. intangible and macro-environmental) idiosyncrasies, the authors theorize that some acquirer–target dyads have a superior ability to complete complex relational transactions in an M&A deal. Specifically, deals are successful when an acquirer and a target: are similar considering their sectoral characteristics, have contextually-informed deal-making competencies, and are familiar with one another given their sectoral and institutional features. Design/methodology/approach This study uses logistic regression analysis to examine how sectoral and institutional characteristics in the acquiring and target company dyads relate to the likelihood of merger and acquisition deal completion. Findings Analyzing a sample of 37,560 M&A deals, the authors find empirical evidence in support of the dyadic to deal completion. The authors find that sectoral similarity and institutional familiarity in an M&A dyad can predict the likelihood of deal completion. Specifically, service multinational acquirers are more competent than their manufacturing counterparts in general, and in same-sector and same-country deals in particular. In contrast, service sector acquirers also are at a relative disadvantage vis-à-vis their manufacturing counterparts in cross-national deals. Research limitations/implications Considering the theoretical and managerial implications, the authors identify new avenues for future research on service and manufacturing M&A dyads that can deepen the knowledge of inter-firm transaction processes. Originality/value First, the authors draw on the socio-cognitive, behavioral, and relational models to explain M&A deal process in both domestic and cross-border settings. Drawing on service vis-à-vis manufacturing sector business models, the authors predict deal completion. Second, the authors propose that familiarity between the acquiring and target companies in the form of sectoral and cross-national factors becomes pivotal to the inter-firm processes. Finally, the authors empirically demonstrate how inter-firm dynamics in a dyad can pose complex deal-making challenges, which make some acquirers especially susceptible to contextual shocks.
{"title":"Sectoral and institutional characteristics of acquirers and targets: a dyadic approach to deal completion","authors":"Rimi Zakaria, Eylem Ersal Kiziler","doi":"10.1108/ribs-08-2022-0074","DOIUrl":"https://doi.org/10.1108/ribs-08-2022-0074","url":null,"abstract":"\u0000Purpose\u0000This study takes a dyadic approach to explaining merger and acquisition (M&A) deal outcomes. Acknowledging the socio-cognitive (e.g. intangible and macro-environmental) idiosyncrasies, the authors theorize that some acquirer–target dyads have a superior ability to complete complex relational transactions in an M&A deal. Specifically, deals are successful when an acquirer and a target: are similar considering their sectoral characteristics, have contextually-informed deal-making competencies, and are familiar with one another given their sectoral and institutional features.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses logistic regression analysis to examine how sectoral and institutional characteristics in the acquiring and target company dyads relate to the likelihood of merger and acquisition deal completion.\u0000\u0000\u0000Findings\u0000Analyzing a sample of 37,560 M&A deals, the authors find empirical evidence in support of the dyadic to deal completion. The authors find that sectoral similarity and institutional familiarity in an M&A dyad can predict the likelihood of deal completion. Specifically, service multinational acquirers are more competent than their manufacturing counterparts in general, and in same-sector and same-country deals in particular. In contrast, service sector acquirers also are at a relative disadvantage vis-à-vis their manufacturing counterparts in cross-national deals.\u0000\u0000\u0000Research limitations/implications\u0000Considering the theoretical and managerial implications, the authors identify new avenues for future research on service and manufacturing M&A dyads that can deepen the knowledge of inter-firm transaction processes.\u0000\u0000\u0000Originality/value\u0000First, the authors draw on the socio-cognitive, behavioral, and relational models to explain M&A deal process in both domestic and cross-border settings. Drawing on service vis-à-vis manufacturing sector business models, the authors predict deal completion. Second, the authors propose that familiarity between the acquiring and target companies in the form of sectoral and cross-national factors becomes pivotal to the inter-firm processes. Finally, the authors empirically demonstrate how inter-firm dynamics in a dyad can pose complex deal-making challenges, which make some acquirers especially susceptible to contextual shocks.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49330023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-01DOI: 10.1108/ribs-12-2021-0163
H. Cho, B. Jin, D. Shin
Purpose Drawing on the resource-based view and contingency theory, this study aims to investigate the effects of organizational capabilities – technology capability and marketing capability – on small- and medium-sized enterprises’ (SMEs’) export performance and the moderating roles of contingent factors in this relationship in the context of a highly competitive export-oriented economy. Design/methodology/approach The research framework was tested using a three-way stepwise hierarchical multiple regression analysis with data gathered from 531 Korean international SMEs. Findings In addition to the direct effects of two types of organizational capabilities on export performance, the results show that both capabilities were critical when the export market was competitive, and marketing capability was more important when exporting with a brand name and targeting a developing country. Originality/value This study further extends the literature on SMEs’ internationalization in the context of highly competitive export-driven markets and highlights the importance of strategically allocating SMEs’ capabilities to reap optimal export performance by considering dynamic contingencies.
{"title":"Do contingencies matter between organizational capabilities and SME export performance?","authors":"H. Cho, B. Jin, D. Shin","doi":"10.1108/ribs-12-2021-0163","DOIUrl":"https://doi.org/10.1108/ribs-12-2021-0163","url":null,"abstract":"\u0000Purpose\u0000Drawing on the resource-based view and contingency theory, this study aims to investigate the effects of organizational capabilities – technology capability and marketing capability – on small- and medium-sized enterprises’ (SMEs’) export performance and the moderating roles of contingent factors in this relationship in the context of a highly competitive export-oriented economy.\u0000\u0000\u0000Design/methodology/approach\u0000The research framework was tested using a three-way stepwise hierarchical multiple regression analysis with data gathered from 531 Korean international SMEs.\u0000\u0000\u0000Findings\u0000In addition to the direct effects of two types of organizational capabilities on export performance, the results show that both capabilities were critical when the export market was competitive, and marketing capability was more important when exporting with a brand name and targeting a developing country.\u0000\u0000\u0000Originality/value\u0000This study further extends the literature on SMEs’ internationalization in the context of highly competitive export-driven markets and highlights the importance of strategically allocating SMEs’ capabilities to reap optimal export performance by considering dynamic contingencies.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43757679","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：