Pub Date : 2022-11-08DOI: 10.1108/ribs-03-2022-0037
Dawn L Keig, L. Brouthers
Purpose This paper aims to apply a risk/uncertainty lens to corruption to explore how different types of corruption (formal vs informal) in a multinational enterprise’s (MNE) operating environment have different relationships to firm performance. Design/methodology/approach This paper uses a portfolio approach to measure the formal and informal corruption impacts of an MNE’s entire set of operating locations and test the hypotheses using both accounting- and market-based measures of performance on a sample of 648 firms. Findings This study hypothesizes and finds that because formal corruption represents risk, it is typically included in the a priori evaluations of trade-offs between market attractiveness and costs made by MNEs prior to market entry, higher formal corruption in the firm’s environment is positively related to its financial performance. Conversely, the uncertainty associated with the generally intangible and pervasive nature of informal corruption prevents similar, accurate cost consideration before entering the market, resulting in a negative relationship between higher levels of informal corruption and firm performance. Originality/value This study provides unique empirical support for the notion that MNEs can both gain and lose by investing in corrupt institutional environments, grounded in an understanding of the differences between risk and uncertainty, reinforcing the importance of considering the potential impacts of both the formal and informal dimensions of corruption in a firm’s operating environment.
{"title":"Exploring corruption impacts on MNE performance through the lens of risk and uncertainty","authors":"Dawn L Keig, L. Brouthers","doi":"10.1108/ribs-03-2022-0037","DOIUrl":"https://doi.org/10.1108/ribs-03-2022-0037","url":null,"abstract":"\u0000Purpose\u0000This paper aims to apply a risk/uncertainty lens to corruption to explore how different types of corruption (formal vs informal) in a multinational enterprise’s (MNE) operating environment have different relationships to firm performance.\u0000\u0000\u0000Design/methodology/approach\u0000This paper uses a portfolio approach to measure the formal and informal corruption impacts of an MNE’s entire set of operating locations and test the hypotheses using both accounting- and market-based measures of performance on a sample of 648 firms.\u0000\u0000\u0000Findings\u0000This study hypothesizes and finds that because formal corruption represents risk, it is typically included in the a priori evaluations of trade-offs between market attractiveness and costs made by MNEs prior to market entry, higher formal corruption in the firm’s environment is positively related to its financial performance. Conversely, the uncertainty associated with the generally intangible and pervasive nature of informal corruption prevents similar, accurate cost consideration before entering the market, resulting in a negative relationship between higher levels of informal corruption and firm performance.\u0000\u0000\u0000Originality/value\u0000This study provides unique empirical support for the notion that MNEs can both gain and lose by investing in corrupt institutional environments, grounded in an understanding of the differences between risk and uncertainty, reinforcing the importance of considering the potential impacts of both the formal and informal dimensions of corruption in a firm’s operating environment.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48120845","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 : 2022-11-08DOI: 10.1108/ribs-01-2022-0015
Mengdi Zhang, Mohd Haniff Jedin
Purpose Drawing on the resource-based view (RBV) and structure–conduct–performance (SCP) paradigm perspectives, this study aims to investigate the influence of the innovation and technical capabilities of exporting organisations on their export performance moderate by competitive intensity. Design/methodology/approach Primary data were collected from 162 Chinese manufacturer–exporter companies operating across China. The conceptual framework of this study, which incorporated the impact of RBV and SCP paradigm determinants on export performance through the interaction effect of competitive intensity, was tested using structural equation modelling (Smart-PLS). Findings Results show that the technical and innovation capabilities can increase its export success in international markets. Furthermore, this research finds that competitive intensity moderates the positive relationship between technical capability and export performance but not the relationship between innovation capability and export performance. Originality/value This study presents a holistic assessment of the export performance of manufacturer–exporter enterprises by accounting for the overlooked effect of organisational capabilities through the moderating function of competitive intensity. This study has far-reaching consequences for export academics and practitioners, including the fundamental concept of an internationalizing small- and medium-sized enterprises, especially the manufacturers.
{"title":"Firm innovation and technical capabilities for enhanced export performance: the moderating role of competitive intensity","authors":"Mengdi Zhang, Mohd Haniff Jedin","doi":"10.1108/ribs-01-2022-0015","DOIUrl":"https://doi.org/10.1108/ribs-01-2022-0015","url":null,"abstract":"\u0000Purpose\u0000Drawing on the resource-based view (RBV) and structure–conduct–performance (SCP) paradigm perspectives, this study aims to investigate the influence of the innovation and technical capabilities of exporting organisations on their export performance moderate by competitive intensity.\u0000\u0000\u0000Design/methodology/approach\u0000Primary data were collected from 162 Chinese manufacturer–exporter companies operating across China. The conceptual framework of this study, which incorporated the impact of RBV and SCP paradigm determinants on export performance through the interaction effect of competitive intensity, was tested using structural equation modelling (Smart-PLS).\u0000\u0000\u0000Findings\u0000Results show that the technical and innovation capabilities can increase its export success in international markets. Furthermore, this research finds that competitive intensity moderates the positive relationship between technical capability and export performance but not the relationship between innovation capability and export performance.\u0000\u0000\u0000Originality/value\u0000This study presents a holistic assessment of the export performance of manufacturer–exporter enterprises by accounting for the overlooked effect of organisational capabilities through the moderating function of competitive intensity. This study has far-reaching consequences for export academics and practitioners, including the fundamental concept of an internationalizing small- and medium-sized enterprises, especially the manufacturers.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44551128","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 : 2022-11-03DOI: 10.1108/ribs-12-2021-0171
Moza Rashed AlShehhi, Jacob Cherian, S. Farouk, M. Al Nahyan
Purpose This study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of small and medium-sized enterprises (SMEs) in the context of the United Arab Emirates (UAE). Design/methodology/approach Adopting a quantitative approach, the researchers designed a questionnaire based on an extensive literature review and used structural equation modeling to ascertain the mediating role of international entrepreneurial orientation in the relationship between influential dynamic capabilities and SMEs' internationalization success. Findings The findings of this study indicate that international entrepreneurship orientation mediates the relationship between dynamic capabilities and internationalization success, as the indirect impact value is greater than the direct effect value for the relationship. Because the existence of the mediator in the model has no significant impact on the model's direct effects, full mediation is the most appropriate mediation type. Research limitations/implications This study has some limitations. One of the major limitations of this study relates to the limited finances of the incumbent, as the questionnaires were delivered to the respondents via email, but the incumbent had to follow up with phone calls and reminders. Second, this study mainly relied upon primary data and analysis based on the use of qualitative techniques; in future, researchers can incorporate qualitative aspects using interviews and other qualitative analysis tools and techniques. Third, limitation relates to sample size, as the sample size of research was above 500 but was limited to just UAE. Future researchers can conduct a cross-sectional analysis to determine the mediating role of different factors for the promotion of internationalization. Practical implications This study highlights the fundamental factors affecting the internationalization of SMEs in the UAE context, which has rarely been discussed. This study broadens the scope of internationalization by discussing its impact on SMEs' financial and non-financial performance. Social implications This study will contribute to the advancement of current information about the elements that impact the internationalization of SMEs and develop a new framework for analyzing SMEs' internationalization in the UAE. Originality/value This study contributes to the literature by developing and testing a framework based on a comprehensive literature review to include different factors and their constructs that impact the potential internationalization of SMEs in developing economies. This study identifies and addresses a research gap regarding the relationship between internationalization and company performance among UAE SMEs.
{"title":"Influential dynamic capabilities and small and medium enterprises' internationalization success: mediating role of international entrepreneurial orientation","authors":"Moza Rashed AlShehhi, Jacob Cherian, S. Farouk, M. Al Nahyan","doi":"10.1108/ribs-12-2021-0171","DOIUrl":"https://doi.org/10.1108/ribs-12-2021-0171","url":null,"abstract":"\u0000Purpose\u0000This study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of small and medium-sized enterprises (SMEs) in the context of the United Arab Emirates (UAE).\u0000\u0000\u0000Design/methodology/approach\u0000Adopting a quantitative approach, the researchers designed a questionnaire based on an extensive literature review and used structural equation modeling to ascertain the mediating role of international entrepreneurial orientation in the relationship between influential dynamic capabilities and SMEs' internationalization success.\u0000\u0000\u0000Findings\u0000The findings of this study indicate that international entrepreneurship orientation mediates the relationship between dynamic capabilities and internationalization success, as the indirect impact value is greater than the direct effect value for the relationship. Because the existence of the mediator in the model has no significant impact on the model's direct effects, full mediation is the most appropriate mediation type.\u0000\u0000\u0000Research limitations/implications\u0000This study has some limitations. One of the major limitations of this study relates to the limited finances of the incumbent, as the questionnaires were delivered to the respondents via email, but the incumbent had to follow up with phone calls and reminders. Second, this study mainly relied upon primary data and analysis based on the use of qualitative techniques; in future, researchers can incorporate qualitative aspects using interviews and other qualitative analysis tools and techniques. Third, limitation relates to sample size, as the sample size of research was above 500 but was limited to just UAE. Future researchers can conduct a cross-sectional analysis to determine the mediating role of different factors for the promotion of internationalization.\u0000\u0000\u0000Practical implications\u0000This study highlights the fundamental factors affecting the internationalization of SMEs in the UAE context, which has rarely been discussed. This study broadens the scope of internationalization by discussing its impact on SMEs' financial and non-financial performance.\u0000\u0000\u0000Social implications\u0000This study will contribute to the advancement of current information about the elements that impact the internationalization of SMEs and develop a new framework for analyzing SMEs' internationalization in the UAE.\u0000\u0000\u0000Originality/value\u0000This study contributes to the literature by developing and testing a framework based on a comprehensive literature review to include different factors and their constructs that impact the potential internationalization of SMEs in developing economies. This study identifies and addresses a research gap regarding the relationship between internationalization and company performance among UAE SMEs.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46272629","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 : 2022-10-14DOI: 10.1108/ribs-01-2022-0001
L. Takyi, V. Naidoo, Courage Simon Kofi Dogbe, Edward O. Akoto
Purpose This study aims to assess the potential mediating effects of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation. Design/methodology/approach This study was a cross-sectional design, where the structured questionnaire was used in gathering data from 301 indigenous Ghanaian firms. The path estimation was conducted by running structural equation modelling in AMOS v.23. Findings It was concluded that government support had a significant positive effect on Ghanaian indigenous firms’ degree of internationalisation. Formal network was found to partially mediate the relationship between government support and indigenous firms’ degree of internationalisation. Finally, it was concluded that informal networks had no mediating effect. Research limitations/implications One limitation is that the effect of the government support and network strategy was only explored on indigenous exporters, meaning that exporters which did not fall within the definition of indigenous firms were excluded from the study. Future studies could conduct a comparative study on the same variables, using indigenous and non-indigenous firms. Practical implications It is recommended that Ghanaian exporters should participate in government training and workshop programmes focussing on building export business strategies and networking to improve export activities. Originality/value This study’s unique contribution is its investigation of how networking portfolio, including formal and informal ties, helps explain the nexus between government support and the internationalisation of local firms in the developing market, such as Ghanaians.
{"title":"Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation","authors":"L. Takyi, V. Naidoo, Courage Simon Kofi Dogbe, Edward O. Akoto","doi":"10.1108/ribs-01-2022-0001","DOIUrl":"https://doi.org/10.1108/ribs-01-2022-0001","url":null,"abstract":"\u0000Purpose\u0000This study aims to assess the potential mediating effects of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation.\u0000\u0000\u0000Design/methodology/approach\u0000This study was a cross-sectional design, where the structured questionnaire was used in gathering data from 301 indigenous Ghanaian firms. The path estimation was conducted by running structural equation modelling in AMOS v.23.\u0000\u0000\u0000Findings\u0000It was concluded that government support had a significant positive effect on Ghanaian indigenous firms’ degree of internationalisation. Formal network was found to partially mediate the relationship between government support and indigenous firms’ degree of internationalisation. Finally, it was concluded that informal networks had no mediating effect.\u0000\u0000\u0000Research limitations/implications\u0000One limitation is that the effect of the government support and network strategy was only explored on indigenous exporters, meaning that exporters which did not fall within the definition of indigenous firms were excluded from the study. Future studies could conduct a comparative study on the same variables, using indigenous and non-indigenous firms.\u0000\u0000\u0000Practical implications\u0000It is recommended that Ghanaian exporters should participate in government training and workshop programmes focussing on building export business strategies and networking to improve export activities.\u0000\u0000\u0000Originality/value\u0000This study’s unique contribution is its investigation of how networking portfolio, including formal and informal ties, helps explain the nexus between government support and the internationalisation of local firms in the developing market, such as Ghanaians.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":"42 2","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-10-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41262317","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 : 2022-10-13DOI: 10.1108/ribs-11-2021-0150
Dina M. Abdelzaher, N. Ramadan
Purpose Despite the increased level of national conflict around the world, outward foreign direct investment (FDI) targeting these areas has increased. This study aims to adopt a dynamic capability lens to examine the relationship between firm capabilities and the level of conflict in their FDI portfolio. The paper argues that conflict zones may be an attractive destination for a subset of firms, given their capability profile. Design/methodology/approach The authors draw from a sample of US Fortune 500 firms (2019) to examine their FDI destinations; specifically, they collected data on the locations of their foreign subsidiaries, which resulted into a final sample of 118 diversified US firms. The model was analyzed using ordinary least squares multiple regression to predict the extent to which their FDI portfolios have ongoing domestic and international conflict and the impact of expansion in such conflict-stricken markets on firm financial performance (ROA). Findings The authors find that firms with greater international geographical diversification capabilities, as depicted by their geographic spread, and those with greater local stock management capability, as depicted by their initial public offering maturity, are more likely to launch subsidiaries in high ongoing conflict zones. Furthermore, the authors find that while it may be unprofitable for firms to seek FDI in high-conflict zones, firms that operate in strategic industries (manufacturing, infrastructure, natural resource extraction) experienced positive performance. This can be attributed to the fact that firms operating in these sectors are more likely to directly profit in the reconstruction/rebuilding of such conflict-stricken markets. Originality/value While previous literature focused on macro-level factors, this study sought to highlight firm-level factors that determine FDI decision in conflict zones. The authors capture different dimensions/sources of firms’ dynamic capability, one resulting from foreign experience (i.e. geographic diversification) and the other from local experience (i.e. domestic stock management) to assess how each correlate with multinational corporations’ level of conflict in their FDI portfolio. Furthermore, the authors contribute to the understanding of the relationship between expansion in conflict zones and firm performance and highlight that industry does matter. Implications from this study highlight the importance of building risk management capabilities to handle not just expansion in conflict zones but also during challenging times like those brought about by pandemics.
{"title":"Dynamic capabilities and FDI in conflict zones: the role of diversification and stock management capabilities","authors":"Dina M. Abdelzaher, N. Ramadan","doi":"10.1108/ribs-11-2021-0150","DOIUrl":"https://doi.org/10.1108/ribs-11-2021-0150","url":null,"abstract":"\u0000Purpose\u0000Despite the increased level of national conflict around the world, outward foreign direct investment (FDI) targeting these areas has increased. This study aims to adopt a dynamic capability lens to examine the relationship between firm capabilities and the level of conflict in their FDI portfolio. The paper argues that conflict zones may be an attractive destination for a subset of firms, given their capability profile.\u0000\u0000\u0000Design/methodology/approach\u0000The authors draw from a sample of US Fortune 500 firms (2019) to examine their FDI destinations; specifically, they collected data on the locations of their foreign subsidiaries, which resulted into a final sample of 118 diversified US firms. The model was analyzed using ordinary least squares multiple regression to predict the extent to which their FDI portfolios have ongoing domestic and international conflict and the impact of expansion in such conflict-stricken markets on firm financial performance (ROA).\u0000\u0000\u0000Findings\u0000The authors find that firms with greater international geographical diversification capabilities, as depicted by their geographic spread, and those with greater local stock management capability, as depicted by their initial public offering maturity, are more likely to launch subsidiaries in high ongoing conflict zones. Furthermore, the authors find that while it may be unprofitable for firms to seek FDI in high-conflict zones, firms that operate in strategic industries (manufacturing, infrastructure, natural resource extraction) experienced positive performance. This can be attributed to the fact that firms operating in these sectors are more likely to directly profit in the reconstruction/rebuilding of such conflict-stricken markets.\u0000\u0000\u0000Originality/value\u0000While previous literature focused on macro-level factors, this study sought to highlight firm-level factors that determine FDI decision in conflict zones. The authors capture different dimensions/sources of firms’ dynamic capability, one resulting from foreign experience (i.e. geographic diversification) and the other from local experience (i.e. domestic stock management) to assess how each correlate with multinational corporations’ level of conflict in their FDI portfolio. Furthermore, the authors contribute to the understanding of the relationship between expansion in conflict zones and firm performance and highlight that industry does matter. Implications from this study highlight the importance of building risk management capabilities to handle not just expansion in conflict zones but also during challenging times like those brought about by pandemics.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46873506","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 : 2022-10-05DOI: 10.1108/ribs-06-2021-0082
Aya Mohamed Izzularab, Farouk Radwan, Ramadan Gad, Peter Björk
Purpose This study aims to investigate the effect of country image on investment intention and the role of investment image as a mediating factor. Both cognitive and affective country image dimensions were addressed to assess the functional and emotional aspects of the country image and their effects on investment intention. The current study targeted Egypt, as one of the developing countries, from the point of view of Nordic investors. Design/methodology/approach Partial least squares structural equation modeling was used to test the proposed model using data collected from 124 top managers of different companies in the clean energy sector in Nordic countries. Findings The results showed that cognitive and affective country images are positively related to the investment image, and that investment image is positively correlated with the investment intention. The investment image has a full mediating role in the relationship between cognitive and affective country images and investment intention. Originality/value The past few decades have witnessed a growing interest in country image research; however, limited studies have investigated the impact of country image on foreign investment intention. This study adds to the understanding for the potential contribution of the investment image of developing countries in the decision-making process for the foreign direct investment.
{"title":"The mediating role of investment image in the effect of country image on investment intention: an empirical study on Egypt","authors":"Aya Mohamed Izzularab, Farouk Radwan, Ramadan Gad, Peter Björk","doi":"10.1108/ribs-06-2021-0082","DOIUrl":"https://doi.org/10.1108/ribs-06-2021-0082","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the effect of country image on investment intention and the role of investment image as a mediating factor. Both cognitive and affective country image dimensions were addressed to assess the functional and emotional aspects of the country image and their effects on investment intention. The current study targeted Egypt, as one of the developing countries, from the point of view of Nordic investors.\u0000\u0000\u0000Design/methodology/approach\u0000Partial least squares structural equation modeling was used to test the proposed model using data collected from 124 top managers of different companies in the clean energy sector in Nordic countries.\u0000\u0000\u0000Findings\u0000The results showed that cognitive and affective country images are positively related to the investment image, and that investment image is positively correlated with the investment intention. The investment image has a full mediating role in the relationship between cognitive and affective country images and investment intention.\u0000\u0000\u0000Originality/value\u0000The past few decades have witnessed a growing interest in country image research; however, limited studies have investigated the impact of country image on foreign investment intention. This study adds to the understanding for the potential contribution of the investment image of developing countries in the decision-making process for the foreign direct investment.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46478131","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 : 2022-08-22DOI: 10.1108/ribs-10-2021-0137
Ihssan Samara, I. Yousef
Purpose This study aims to investigate the joint effect of foreign directors (FDs) and firm performance on the corporate strategic change. Design/methodology/approach A theoretical framework linking foreign directors, firm performance and strategic change is proposed and tested. This study uses a sample of longitudinal data from 958 US listed firms over the period 2010–2018. The basic model of study first tests whether there is a direct relationship between FDs and level of strategic change. It then incorporates firm performance as a moderating variable, testing its effect on the relationship between foreign director and strategic change. Findings Consistent with the study’s expectations, the empirical findings indicate that FDs rich in appropriate experience are associated with superior strategic change, measured both in terms of variation in firm strategy over time and deviation from industry norms. The findings confirm that FDs are a salient driver of strategic change. The strength of the effect, however, depends on the firm performance. Research limitations/implications This paper has implications for effective global leadership development based on international appointments. First, directors can benefit from being assigned to work in foreign countries so that they are exposed to a wide range of experiences and can learn to overcome culture shock. Second, posting directors to foreign countries can improve their international knowledge and enhance various competencies related to creativity, leadership and problem-solving. By demonstrating that the board’s characteristics can play a role in corporate strategy development, the current study thus has implications for both study and practice with regard to board composition. The number of seats on any given board is finite, and each individual director is thus expected to not only monitor top management but also to apply their knowledge and relevant experience in service to the company’s ambitions. Except in cases where high firm performance leads to strategic persistence, the results suggest that greater levels of FDs correlate positively with strategic change. Practical implications The practical implications of this paper pertain to director recruitment and selection. First, the findings echo support for the inclusion of members with greater levels of international experience on boards and top management teams. It seems that, despite the importance of this characteristic, directors at US companies often lack substantial experience abroad (Carpenter and Westphal, 2001). A possible reason for this could be that internationally experienced employees otherwise lack the social capital necessary for promotion to directorships because of time spent stationed away from the firm’s headquarters. It is thus essential for companies to create networking opportunities for directors assigned to foreign offices. Originality/value Although previous research has provided some insight into how chief e
{"title":"The impact of foreign directors and firm performance on strategic change","authors":"Ihssan Samara, I. Yousef","doi":"10.1108/ribs-10-2021-0137","DOIUrl":"https://doi.org/10.1108/ribs-10-2021-0137","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the joint effect of foreign directors (FDs) and firm performance on the corporate strategic change.\u0000\u0000\u0000Design/methodology/approach\u0000A theoretical framework linking foreign directors, firm performance and strategic change is proposed and tested. This study uses a sample of longitudinal data from 958 US listed firms over the period 2010–2018. The basic model of study first tests whether there is a direct relationship between FDs and level of strategic change. It then incorporates firm performance as a moderating variable, testing its effect on the relationship between foreign director and strategic change.\u0000\u0000\u0000Findings\u0000Consistent with the study’s expectations, the empirical findings indicate that FDs rich in appropriate experience are associated with superior strategic change, measured both in terms of variation in firm strategy over time and deviation from industry norms. The findings confirm that FDs are a salient driver of strategic change. The strength of the effect, however, depends on the firm performance.\u0000\u0000\u0000Research limitations/implications\u0000This paper has implications for effective global leadership development based on international appointments. First, directors can benefit from being assigned to work in foreign countries so that they are exposed to a wide range of experiences and can learn to overcome culture shock. Second, posting directors to foreign countries can improve their international knowledge and enhance various competencies related to creativity, leadership and problem-solving. By demonstrating that the board’s characteristics can play a role in corporate strategy development, the current study thus has implications for both study and practice with regard to board composition. The number of seats on any given board is finite, and each individual director is thus expected to not only monitor top management but also to apply their knowledge and relevant experience in service to the company’s ambitions. Except in cases where high firm performance leads to strategic persistence, the results suggest that greater levels of FDs correlate positively with strategic change.\u0000\u0000\u0000Practical implications\u0000The practical implications of this paper pertain to director recruitment and selection. First, the findings echo support for the inclusion of members with greater levels of international experience on boards and top management teams. It seems that, despite the importance of this characteristic, directors at US companies often lack substantial experience abroad (Carpenter and Westphal, 2001). A possible reason for this could be that internationally experienced employees otherwise lack the social capital necessary for promotion to directorships because of time spent stationed away from the firm’s headquarters. It is thus essential for companies to create networking opportunities for directors assigned to foreign offices.\u0000\u0000\u0000Originality/value\u0000Although previous research has provided some insight into how chief e","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49487594","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 : 2022-08-03DOI: 10.1108/ribs-10-2021-0130
Oscar Malca, Jorge Luis Rubio Donet, Miguel Marcilla-Vigo, Francisco J. Acedo
Purpose This study aims to analyse the joint impact of institutional distance (ID) and the generation of commercial intelligence (GCI) on export proactivity and coordination capacity, as well as the effect of these last ones on the export performance. Design/methodology/approach This analysis was carried out by using structural equation modelling for 89 Peruvian agro-exporting small and medium enterprises (SMEs). Findings This study demonstrates the positive impact of relational norms on intelligence generation, and that of the latter on coordination capacity and export proactivity. Likewise, ID has a negative impact on coordination capacity, revealing its inverse effect on this relationship. Research limitations/implications The paper has limitations due to its cross-sectional nature. In addition, future studies could increase the sample size and studies in other sectors for comparison purposes. Also, studies on ID in emerging countries should be deepened. Practical implications Managerial implications are reported and show the influence of the institutional context on the coordination capacity and export proactivity of the firm. Originality/value In the literature review on exporting SMEs in emerging countries, it has been little studied the impact of activities such as relationship management and ID from markets as antecedents to the GCI, export proactivity and coordination capacity as well as their effect on their export performance. Therefore, the originality relies on the insights provided by Peru, because this country bases its exports on its comparative advantages and the reactive behaviour of most of its small and medium enterprises (SMEs).
{"title":"The impact of institutional distance in export management: insights from Peruvian agro-exporting SMEs","authors":"Oscar Malca, Jorge Luis Rubio Donet, Miguel Marcilla-Vigo, Francisco J. Acedo","doi":"10.1108/ribs-10-2021-0130","DOIUrl":"https://doi.org/10.1108/ribs-10-2021-0130","url":null,"abstract":"\u0000Purpose\u0000This study aims to analyse the joint impact of institutional distance (ID) and the generation of commercial intelligence (GCI) on export proactivity and coordination capacity, as well as the effect of these last ones on the export performance.\u0000\u0000\u0000Design/methodology/approach\u0000This analysis was carried out by using structural equation modelling for 89 Peruvian agro-exporting small and medium enterprises (SMEs).\u0000\u0000\u0000Findings\u0000This study demonstrates the positive impact of relational norms on intelligence generation, and that of the latter on coordination capacity and export proactivity. Likewise, ID has a negative impact on coordination capacity, revealing its inverse effect on this relationship.\u0000\u0000\u0000Research limitations/implications\u0000The paper has limitations due to its cross-sectional nature. In addition, future studies could increase the sample size and studies in other sectors for comparison purposes. Also, studies on ID in emerging countries should be deepened.\u0000\u0000\u0000Practical implications\u0000Managerial implications are reported and show the influence of the institutional context on the coordination capacity and export proactivity of the firm.\u0000\u0000\u0000Originality/value\u0000In the literature review on exporting SMEs in emerging countries, it has been little studied the impact of activities such as relationship management and ID from markets as antecedents to the GCI, export proactivity and coordination capacity as well as their effect on their export performance. Therefore, the originality relies on the insights provided by Peru, because this country bases its exports on its comparative advantages and the reactive behaviour of most of its small and medium enterprises (SMEs).\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":"1 1","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"62239651","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 : 2022-08-03DOI: 10.1108/ribs-10-2021-0144
Nadia Hanif, Jianfeng Wu, K. Grant
Purpose The purpose of this study is to test a model for cross-border technological acquisitions (CBTAs) focusing on the level of ownership acquired in the target firm and the acquiring firm's post-acquisition innovation performance (PAIP), with the degree of integration as a mediator, based on the dynamic capability perspective of the resource-based view. This study further concludes the role of the country-of-origin effect (COE) (when emerging economies' acquiring firms purchase technological resources from developed economies' target firms) on the success of the acquiring firms in CBTAs. Design/methodology/approach Data on CBTAs initiated by 542 acquiring firms was quantified from four high technology industries from 1995 to 2015 for the empirical investigation of the research hypotheses. Hierarchical fixed year effect negative binomial regression technique was used to analyze the proposed model for the success of CBTAs. Findings The analysis of the CBTAs confirmed that acquiring firms who opt for a higher level of acquired ownership strategy increase the degree of integration of the target firm's technological resource stock. The level of acquired ownership improves the PAIP of the acquiring firms; however, the degree of integration positively accelerates the relationship between the acquired ownership and the PAIP. Considering the COE, acquiring firms that initiated CBTAs from emerging economies to purchase technological resources from developed economies' targets have firm-specific technological capability holes to execute the integration, which negatively impacts the emerging economies acquiring firm's PAIP. Originality/value This study contributes to the CBTAs literature by exploring the enabling role of the degree of integration between the level of acquired ownership and the PAIP of the acquiring firms. Further, this study put forward empirics on the COE of the acquiring firms for their integrative capability to integrate the target firm's resource stock and subsequent innovation performance.
{"title":"When degree of integration mediates level of acquired ownership and post-acquisition innovation performance: evidence from cross-border technological acquisitions","authors":"Nadia Hanif, Jianfeng Wu, K. Grant","doi":"10.1108/ribs-10-2021-0144","DOIUrl":"https://doi.org/10.1108/ribs-10-2021-0144","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to test a model for cross-border technological acquisitions (CBTAs) focusing on the level of ownership acquired in the target firm and the acquiring firm's post-acquisition innovation performance (PAIP), with the degree of integration as a mediator, based on the dynamic capability perspective of the resource-based view. This study further concludes the role of the country-of-origin effect (COE) (when emerging economies' acquiring firms purchase technological resources from developed economies' target firms) on the success of the acquiring firms in CBTAs.\u0000\u0000\u0000Design/methodology/approach\u0000Data on CBTAs initiated by 542 acquiring firms was quantified from four high technology industries from 1995 to 2015 for the empirical investigation of the research hypotheses. Hierarchical fixed year effect negative binomial regression technique was used to analyze the proposed model for the success of CBTAs.\u0000\u0000\u0000Findings\u0000The analysis of the CBTAs confirmed that acquiring firms who opt for a higher level of acquired ownership strategy increase the degree of integration of the target firm's technological resource stock. The level of acquired ownership improves the PAIP of the acquiring firms; however, the degree of integration positively accelerates the relationship between the acquired ownership and the PAIP. Considering the COE, acquiring firms that initiated CBTAs from emerging economies to purchase technological resources from developed economies' targets have firm-specific technological capability holes to execute the integration, which negatively impacts the emerging economies acquiring firm's PAIP.\u0000\u0000\u0000Originality/value\u0000This study contributes to the CBTAs literature by exploring the enabling role of the degree of integration between the level of acquired ownership and the PAIP of the acquiring firms. Further, this study put forward empirics on the COE of the acquiring firms for their integrative capability to integrate the target firm's resource stock and subsequent innovation performance.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41475722","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 : 2022-07-27DOI: 10.1108/ribs-05-2021-0071
Jorge Alcaraz, Elizabeth Salamanca
Purpose The purpose of this paper is to identify how the cultural attributes of ethnic networks affect foreign direct investment (FDI) location. Design/methodology/approach The study tests on panel data the effect of ethnic networks in interaction with their member’s cultural attributes on FDI location. Findings Results show that ethnic networks whose members predominantly exhibit a human orientation do not affect FDI location. However, when performance orientation is the predominant cultural attribute of the members of an ethnic network, there is a positive and significant effect on FDI location. Practical implications Managers need to be aware that not all networks will be equally helpful in achieving particular goals. For instance, ethnic networks where the performance orientation is dominant among their members affect FDI location, unlike ethnic networks where human orientation is dominant. Therefore, decision-makers need to identify and align these two elements (networks and goals) to maximize outcomes. Originality/value This study contributes to the literature by suggesting that FDI location is affected by ethnic networks where performance orientation is dominant among the members, which is not the case when human orientation is dominant among the members of the ethnic networks.
{"title":"When do ethnic networks help with foreign direct investment location?","authors":"Jorge Alcaraz, Elizabeth Salamanca","doi":"10.1108/ribs-05-2021-0071","DOIUrl":"https://doi.org/10.1108/ribs-05-2021-0071","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to identify how the cultural attributes of ethnic networks affect foreign direct investment (FDI) location.\u0000\u0000\u0000Design/methodology/approach\u0000The study tests on panel data the effect of ethnic networks in interaction with their member’s cultural attributes on FDI location.\u0000\u0000\u0000Findings\u0000Results show that ethnic networks whose members predominantly exhibit a human orientation do not affect FDI location. However, when performance orientation is the predominant cultural attribute of the members of an ethnic network, there is a positive and significant effect on FDI location.\u0000\u0000\u0000Practical implications\u0000Managers need to be aware that not all networks will be equally helpful in achieving particular goals. For instance, ethnic networks where the performance orientation is dominant among their members affect FDI location, unlike ethnic networks where human orientation is dominant. Therefore, decision-makers need to identify and align these two elements (networks and goals) to maximize outcomes.\u0000\u0000\u0000Originality/value\u0000This study contributes to the literature by suggesting that FDI location is affected by ethnic networks where performance orientation is dominant among the members, which is not the case when human orientation is dominant among the members of the ethnic networks.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":" ","pages":""},"PeriodicalIF":3.1,"publicationDate":"2022-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47353761","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：