Global Strategy Journal最新文献_第8页

“Us” and “them”: Corporate strategic activism, horizontal inequalities, and society's capacity to address its grand challenges “我们”和“他们”:企业战略行动主义、横向不平等以及社会应对重大挑战的能力

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2022-02-28 DOI: 10.1002/gsj.1430

Brian Ganson, Tony L. He, Witold J. Henisz

Research Summary

Divisions into an “us” and a “them” across racial, ethnic, economic, geographic, and other demographic divides impede society's capacity to address grand challenges. Firms have an impact on such divisions—whether positively or negatively, intentionally or not—through the dual mechanisms of rents and relationships. Firms may contribute to horizontal inequalities that underlie intergroup conflict through the distribution of the benefits, costs, and risks of firm activities. Through their relational strategies, firms also shape the willingness and ability of different groups to work together for positive change. Firm behaviors emerging from their daily operations can thus change society's capacity to address its grand challenges, necessitating corporate activism that encompasses market and nonmarket strategies, as well as a broader understanding of the strategy-setting process itself.

Managerial Summary

This paper examines how firms inevitably shape conflict and cooperation in society through their impact on relationships between groups across racial, ethnic, economic, geographic, and other demographic boundaries. Managers distribute the gains and losses of business activities in ways that differently impact identity groups attentive to their relative inequalities. Strategies regarding how stakeholder relationships are built or broken can also change the ability of groups to build consensus on issues of broad social concern. We explain how these managerial decisions can thus affect the capacity of broader society to address collective challenges. We further explore how managers can design and implement inclusive market and nonmarket strategies that strengthen the cooperative potential of different groups to advance important social goals.

跨越种族、民族、经济、地理和其他人口划分的“我们”和“他们”阻碍了社会应对重大挑战的能力。企业通过租金和关系的双重机制对这种分工产生影响——无论是积极的还是消极的，有意的还是无意的。通过企业活动的利益、成本和风险的分配，企业可能会助长构成集团间冲突的横向不平等。通过他们的关系战略，公司还塑造了不同群体为积极变革而共同努力的意愿和能力。因此，从日常运营中出现的企业行为可以改变社会应对重大挑战的能力，这就需要包括市场和非市场战略在内的企业行动主义，以及对战略制定过程本身的更广泛理解。本文探讨了企业如何通过对跨种族、民族、经济、地理和其他人口边界的群体之间关系的影响，不可避免地塑造社会中的冲突与合作。管理者以不同的方式分配商业活动的收益和损失，以不同的方式影响关注其相对不平等的身份群体。关于如何建立或破坏利益相关者关系的策略也可以改变群体就广泛关注的社会问题达成共识的能力。我们解释了这些管理决策如何影响更广泛的社会解决集体挑战的能力。我们进一步探讨管理者如何设计和实施包容性市场和非市场战略，以加强不同群体的合作潜力，推进重要的社会目标。

{"title":"“Us” and “them”: Corporate strategic activism, horizontal inequalities, and society's capacity to address its grand challenges","authors":"Brian Ganson, Tony L. He, Witold J. Henisz","doi":"10.1002/gsj.1430","DOIUrl":"10.1002/gsj.1430","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Divisions into an “us” and a “them” across racial, ethnic, economic, geographic, and other demographic divides impede society's capacity to address grand challenges. Firms have an impact on such divisions—whether positively or negatively, intentionally or not—through the dual mechanisms of rents and relationships. Firms may contribute to horizontal inequalities that underlie intergroup conflict through the distribution of the benefits, costs, and risks of firm activities. Through their relational strategies, firms also shape the willingness and ability of different groups to work together for positive change. Firm behaviors emerging from their daily operations can thus change society's capacity to address its grand challenges, necessitating corporate activism that encompasses market and nonmarket strategies, as well as a broader understanding of the strategy-setting process itself.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This paper examines how firms inevitably shape conflict and cooperation in society through their impact on relationships between groups across racial, ethnic, economic, geographic, and other demographic boundaries. Managers distribute the gains and losses of business activities in ways that differently impact identity groups attentive to their relative inequalities. Strategies regarding how stakeholder relationships are built or broken can also change the ability of groups to build consensus on issues of broad social concern. We explain how these managerial decisions can thus affect the capacity of broader society to address collective challenges. We further explore how managers can design and implement inclusive market and nonmarket strategies that strengthen the cooperative potential of different groups to advance important social goals.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 3","pages":"520-542"},"PeriodicalIF":7.6,"publicationDate":"2022-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44759700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 4

The interplay between location and strategy in a turbulent age 在动荡的时代，地理位置和战略之间的相互作用

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2022-02-22 DOI: 10.1002/gsj.1432

Harald Bathelt, Pengfei Li

Research Summary

The spread of protectionist policies and the COVID-19 pandemic force policymakers and managers to fundamentally rethink the relationship between location and strategy. We examine this location-strategy interplay through a structure-agency perspective by investigating how the economic landscape shapes and, simultaneously, is shaped by firm strategies. Increasing spatial disparity and diversity of innovation and wealth in clusters and city-regions create both tremendous challenges and opportunities for multinational enterprises to strategically leverage knowledge over space. Locational choices and actions of multinationals, in turn, affect regional economic development paths and geographies of innovation. We argue for deep dialogue and collaboration between economic geography, international business and strategy to untie the knots in the intricate interplay between location and strategy and solve the grand challenges in our turbulent age.

Managerial Summary

The wide spread of protectionism and the COVID-19 pandemic have disrupted global value chains unprecedently, forcing policymakers and firm managers to rethink the relationship between business strategies and locations. We suggest that this relationship can be understood in a bilateral way. The concentration of innovation and economic activities in city-regions and clusters creates big challenges but also tremendous opportunities for multinational enterprises. Multinationals need to direct knowledge across space but also have to deal with local resistance and opposition. The choices and actions of these firms are shaped by and, simultaneously, influence spatial patterns of economic activities. We argue for deep collaboration between economic geographers and international business scholars to solve the grand challenges for business, community and society in our turbulent time.

保护主义政策的蔓延和2019冠状病毒病大流行迫使决策者和管理者从根本上重新思考区位与战略之间的关系。我们通过研究经济景观是如何形成的，同时又是如何被企业战略所塑造的，从结构-代理的角度来审视这种区位-战略的相互作用。集群和城市区域不断扩大的空间差距以及创新和财富的多样性，为跨国企业在空间上战略性地利用知识带来了巨大的挑战和机遇。跨国公司的区位选择和区位行动反过来又影响着区域经济发展路径和创新地域。我们主张在经济地理学、国际商务和战略之间进行深入的对话和合作，以解开地理位置与战略之间错综复杂的相互作用中的结，并解决我们动荡时代的重大挑战。保护主义的广泛传播和2019冠状病毒病大流行前所未有地扰乱了全球价值链，迫使政策制定者和企业管理者重新思考企业战略与地点之间的关系。我们建议可以从双边的角度来理解这种关系。创新和经济活动在城市、地区和集群中的集中给跨国企业带来了巨大的挑战，但也带来了巨大的机遇。跨国公司需要跨越空间引导知识，但也必须应对当地的抵制和反对。这些企业的选择和行动受到经济活动空间格局的影响，同时也影响着它们。我们主张经济地理学家和国际商业学者之间的深入合作，以解决我们这个动荡时代商业、社区和社会面临的巨大挑战。

{"title":"The interplay between location and strategy in a turbulent age","authors":"Harald Bathelt, Pengfei Li","doi":"10.1002/gsj.1432","DOIUrl":"10.1002/gsj.1432","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>The spread of protectionist policies and the COVID-19 pandemic force policymakers and managers to fundamentally rethink the relationship between location and strategy. We examine this location-strategy interplay through a structure-agency perspective by investigating how the economic landscape shapes and, simultaneously, is shaped by firm strategies. Increasing spatial disparity and diversity of innovation and wealth in clusters and city-regions create both tremendous challenges and opportunities for multinational enterprises to strategically leverage knowledge over space. Locational choices and actions of multinationals, in turn, affect regional economic development paths and geographies of innovation. We argue for deep dialogue and collaboration between economic geography, international business and strategy to untie the knots in the intricate interplay between location and strategy and solve the grand challenges in our turbulent age.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>The wide spread of protectionism and the COVID-19 pandemic have disrupted global value chains unprecedently, forcing policymakers and firm managers to rethink the relationship between business strategies and locations. We suggest that this relationship can be understood in a bilateral way. The concentration of innovation and economic activities in city-regions and clusters creates big challenges but also tremendous opportunities for multinational enterprises. Multinationals need to direct knowledge across space but also have to deal with local resistance and opposition. The choices and actions of these firms are shaped by and, simultaneously, influence spatial patterns of economic activities. We argue for deep collaboration between economic geographers and international business scholars to solve the grand challenges for business, community and society in our turbulent time.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 3","pages":"451-471"},"PeriodicalIF":7.6,"publicationDate":"2022-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46976334","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 6

Between a rock and a hard place: The consequences of complex headquarters configurations for subsidiary R&D activities 进退两难:复杂的总部结构对子公司研发活动的影响

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2022-02-16 DOI: 10.1002/gsj.1431

Edward Gillmore, Ulf Andersson, Henrik Dellestrand

Research summary

Challenges related to the complexity of overlapping multiple partner headquarters configurations, the resulting power and political tensions between headquarters, and the consequent effects of multiple interventions in subsidiary value-creating activities remain an understudied phenomenon. We present a rich case study of how complex overlapping headquarters configurations develop. Then, we present the processes underlying power and political tensions that lead to parenting disadvantages between partner headquarters. We find that multiple and simultaneous headquarters interventions place the subsidiary between a rock and a hard place, as it becomes subject to conflicting headquarters voices. We contribute to the literature on parenting in multinational enterprises through an increased understanding of overlapping headquarters configurations and the power and political tensions between headquarters configurations that stimulate interventions in subsidiary R&D mandates.

Managerial summary

Multinational enterprises are exposed to a plethora of complex challenges. To meet these challenges, the organizational structure often becomes complex. We focus on the causes and consequences of complex headquarters structures, that is, operating with multiple partner headquarters, within multinational enterprises in relation to the allocation and reallocation of subsidiary R&D mandates. We observe that headquarters interventions are driven by expectations and assigned roles to manage the multinational enterprise. Being aware of what partner headquarters are doing, that is, possessing system knowledge, can prevent redundant involvement by and competition between headquarters. Our findings indicate that if headquarters' knowledge of the system is low, this may cause the emergence of conflicting headquarters voices and considerable frustration among subsidiary managers.

与重叠的多个合作伙伴总部配置的复杂性、总部之间由此产生的权力和政治紧张关系以及在附属价值创造活动中多重干预的后续影响相关的挑战仍然是一个未充分研究的现象。我们提出了一个丰富的案例研究如何复杂的重叠总部配置的发展。然后，我们介绍了导致合作伙伴总部之间养育不利因素的潜在权力和政治紧张的过程。我们发现，总部的多重同时干预将子公司置于进退两难的境地，因为它会受到总部相互冲突的声音的影响。我们通过加深对重叠的总部配置以及总部配置之间的权力和政治紧张关系的理解，促进了对子公司研发任务的干预，从而为跨国企业中养育子女的文献做出了贡献。跨国企业面临着大量复杂的挑战。为了应对这些挑战，组织结构往往变得复杂。我们的重点是复杂总部结构的原因和后果，即在跨国企业内与多个伙伴总部一起运作，涉及附属研发任务的分配和重新分配。我们观察到，总部的干预是由期望驱动的，并分配了管理跨国企业的角色。了解合作伙伴总部在做什么，即拥有系统知识，可以防止总部之间的重复参与和竞争。我们的研究结果表明，如果总部对系统的了解较低，这可能会导致总部声音冲突的出现和子公司经理之间相当大的挫败感。

{"title":"Between a rock and a hard place: The consequences of complex headquarters configurations for subsidiary R&D activities","authors":"Edward Gillmore, Ulf Andersson, Henrik Dellestrand","doi":"10.1002/gsj.1431","DOIUrl":"10.1002/gsj.1431","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research summary</h3>\u0000 \u0000 <p>Challenges related to the complexity of overlapping multiple partner headquarters configurations, the resulting power and political tensions between headquarters, and the consequent effects of multiple interventions in subsidiary value-creating activities remain an understudied phenomenon. We present a rich case study of how complex overlapping headquarters configurations develop. Then, we present the processes underlying power and political tensions that lead to parenting disadvantages between partner headquarters. We find that multiple and simultaneous headquarters interventions place the subsidiary between a rock and a hard place, as it becomes subject to conflicting headquarters voices. We contribute to the literature on parenting in multinational enterprises through an increased understanding of overlapping headquarters configurations and the power and political tensions between headquarters configurations that stimulate interventions in subsidiary R&D mandates.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial summary</h3>\u0000 \u0000 <p>Multinational enterprises are exposed to a plethora of complex challenges. To meet these challenges, the organizational structure often becomes complex. We focus on the causes and consequences of complex headquarters structures, that is, operating with multiple partner headquarters, within multinational enterprises in relation to the allocation and reallocation of subsidiary R&D mandates. We observe that headquarters interventions are driven by expectations and assigned roles to manage the multinational enterprise. Being aware of what partner headquarters are doing, that is, possessing system knowledge, can prevent redundant involvement by and competition between headquarters. Our findings indicate that if headquarters' knowledge of the system is low, this may cause the emergence of conflicting headquarters voices and considerable frustration among subsidiary managers.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"13 1","pages":"217-247"},"PeriodicalIF":7.6,"publicationDate":"2022-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46723955","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Tapping into emerging markets: EMNEs' strategies for innovation capability building 开拓新兴市场:新兴市场企业的创新能力建设战略

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2022-02-10 DOI: 10.1002/gsj.1429

Henry Lopez-Vega, Nicolette Lakemond

Research Summary

This article explores EMNEs' innovation capability building in emerging markets. The paper provides a longitudinal account of how the Brazilian cosmetics firm Natura transitioned from scant to ample innovation resources and processes. Building on the institution-based view and the resource-based view, we explain how EMNEs' innovation capability building is anchored in open innovation and collaborative nonmarket strategies. The paper reveals a unique pattern of innovation capability building based on a combination of local and global open innovation processes and harnessing the country characteristics over time. It is shown how combining open innovation and collaborative nonmarket strategies can help mitigate weak formal and informal institutions in emerging markets. The study offers an integrated framework explaining innovation capability building and the effects on the institutional setting.

Managerial Summary

The increase of well-known EMNEs has raised interest in understanding how these firms build sustainable innovation capabilities. Based on a longitudinal study of the Brazilian-based cosmetics firm Natura, this paper shows how an open innovation strategy can be used to tap into home-market natural resources and connect to the global setting. This innovation capability process involves traditional market-based strategies like inter-organizational collaborations but also nonmarket strategies, such as developing local relationships, supporting socio-biodiversity, and contributing to local society. The findings point at the importance of developing an overall innovation strategy, directing attention to innovation processes, engaging in recursive practice in innovation projects, responding to the market and nonmarket environments, and linking the emerging market institutional setting and the global market context.

本文探讨了新兴市场中EMNEs的创新能力建设。本文提供了一个纵向帐户如何巴西化妆品公司Natura从缺乏过渡到充足的创新资源和流程。在基于制度的观点和基于资源的观点的基础上，我们解释了EMNEs的创新能力建设如何锚定在开放式创新和协作的非市场战略中。本文揭示了一种独特的创新能力建设模式，该模式基于本地和全球开放创新过程的结合，并利用各国的特点。本文展示了开放式创新和协作性非市场战略的结合如何有助于缓解新兴市场中薄弱的正式和非正式制度。本研究提供了一个完整的框架来解释创新能力建设及其对制度设置的影响。知名EMNEs的增加引起了人们对了解这些公司如何建立可持续创新能力的兴趣。基于对巴西化妆品公司Natura的纵向研究，本文展示了如何利用开放式创新战略来开发国内市场的自然资源，并与全球环境相联系。这种创新能力过程包括传统的市场战略，如组织间合作，但也包括非市场战略，如发展当地关系，支持社会生物多样性，为当地社会做出贡献。研究结果指出，制定整体创新战略、关注创新过程、在创新项目中进行递归实践、应对市场和非市场环境、将新兴市场制度环境与全球市场环境联系起来具有重要意义。

{"title":"Tapping into emerging markets: EMNEs' strategies for innovation capability building","authors":"Henry Lopez-Vega, Nicolette Lakemond","doi":"10.1002/gsj.1429","DOIUrl":"10.1002/gsj.1429","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>This article explores EMNEs' innovation capability building in emerging markets. The paper provides a longitudinal account of how the Brazilian cosmetics firm Natura transitioned from scant to ample innovation resources and processes. Building on the institution-based view and the resource-based view, we explain how EMNEs' innovation capability building is anchored in open innovation and collaborative nonmarket strategies. The paper reveals a unique pattern of innovation capability building based on a combination of local and global open innovation processes and harnessing the country characteristics over time. It is shown how combining open innovation and collaborative nonmarket strategies can help mitigate weak formal and informal institutions in emerging markets. The study offers an integrated framework explaining innovation capability building and the effects on the institutional setting.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>The increase of well-known EMNEs has raised interest in understanding how these firms build sustainable innovation capabilities. Based on a longitudinal study of the Brazilian-based cosmetics firm Natura, this paper shows how an open innovation strategy can be used to tap into home-market natural resources and connect to the global setting. This innovation capability process involves traditional market-based strategies like inter-organizational collaborations but also nonmarket strategies, such as developing local relationships, supporting socio-biodiversity, and contributing to local society. The findings point at the importance of developing an overall innovation strategy, directing attention to innovation processes, engaging in recursive practice in innovation projects, responding to the market and nonmarket environments, and linking the emerging market institutional setting and the global market context.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 2","pages":"394-417"},"PeriodicalIF":7.6,"publicationDate":"2022-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1429","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46354993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 11

Locational boundness of resource, compatibility of production, and downside risks of multinationality 资源的区位有限性、生产的兼容性以及多国性的下行风险

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2022-01-13 DOI: 10.1002/gsj.1426

Sangcheol Song

Research Summary

We extend the multinational operational flexibility literature by examining how the characteristics of resources and capabilities within a portfolio of international investments affect its downside risks. We postulate that non-location bound resources and capabilities within an international investment portfolio are crucial to reducing switching costs and enhancing cross-country switchability, thus curbing downside risks. Our large sample of Korean multinational corporations reveals that globally sourced production inputs or more technological capabilities help curb downside risks, while locally sourced inputs or more marketing capabilities do not. We additionally find that the positive effect of less locational boundness is more salient when the portfolio has a high product relatedness or standardization.

Managerial Summary

This study provides some managerial implications for international business managers. The findings suggest that the downside risk reduction effect of multinationality varies by heterogeneous resource and production conditions. They indicate that the locational boundness embedded in marketing capability, technological capability, and product type affects cross-border switchability. IB managers make strategic decisions on resource and product types for their overseas manufacturing subsidiaries in the configuration and coordination processes of their internationalization to maximize multinational operational flexibility. A more effective alignment of resources and capabilities with the strategic intent of boosting geographic fungibility facilitates effective production shifts within the same production network.

我们通过研究国际投资组合中的资源和能力特征如何影响其下行风险来扩展跨国经营灵活性文献。我们假设国际投资组合中的非区位约束资源和能力对于降低转换成本和提高跨国转换能力至关重要，从而抑制下行风险。我们对韩国跨国公司的大量样本显示，全球采购的生产投入或更多的技术能力有助于遏制下行风险，而本地采购的投入或更多的营销能力则没有作用。我们还发现，当投资组合具有较高的产品相关性或标准化时，较少的区位边界的积极作用更为显著。本研究为国际商务管理者提供了一些管理启示。研究结果表明，多国性降低下行风险的效果因资源和生产条件的异质性而异。研究表明，市场营销能力、技术能力和产品类型的区位局限性影响了跨境可转换性。跨国企业管理者在其海外制造子公司国际化的配置和协调过程中对其资源和产品类型进行战略决策，以最大限度地提高跨国经营的灵活性。通过提高地理可替代性的战略意图，更有效地整合资源和能力，有助于在同一生产网络内实现有效的生产转移。

{"title":"Locational boundness of resource, compatibility of production, and downside risks of multinationality","authors":"Sangcheol Song","doi":"10.1002/gsj.1426","DOIUrl":"10.1002/gsj.1426","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>We extend the multinational operational flexibility literature by examining how the characteristics of resources and capabilities within a portfolio of international investments affect its downside risks. We postulate that non-location bound resources and capabilities within an international investment portfolio are crucial to reducing switching costs and enhancing cross-country switchability, thus curbing downside risks. Our large sample of Korean multinational corporations reveals that globally sourced production inputs or more technological capabilities help curb downside risks, while locally sourced inputs or more marketing capabilities do not. We additionally find that the positive effect of less locational boundness is more salient when the portfolio has a high product relatedness or standardization.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This study provides some managerial implications for international business managers. The findings suggest that the downside risk reduction effect of multinationality varies by heterogeneous resource and production conditions. They indicate that the locational boundness embedded in marketing capability, technological capability, and product type affects cross-border switchability. IB managers make strategic decisions on resource and product types for their overseas manufacturing subsidiaries in the configuration and coordination processes of their internationalization to maximize multinational operational flexibility. A more effective alignment of resources and capabilities with the strategic intent of boosting geographic fungibility facilitates effective production shifts within the same production network.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 2","pages":"334-358"},"PeriodicalIF":7.6,"publicationDate":"2022-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48165047","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Move fast and break things: Reassessing IB research in the light of the digital revolution 快速行动，打破常规:根据数字革命重新评估IB研究

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2022-01-06 DOI: 10.1002/gsj.1427

Julian Birkinshaw

Research Summary

How has the emergence of born-digital firms such as Facebook and Uber influenced international business (IB) research? In this essay, I outline the distinctive qualities of these firms, in particular their “global by default” mindset, and I discuss how IB research on strategy, organization, and institutional context is evolving to help us understand them better. I argue that some traditional domains of inquiry (e.g., subsidiary role typologies) have become obsolete, while others (e.g., MNC–government relationships) have become more important. There is also scope for developing new theories to explain what we observe, rather than seeking to “shoehorn” new phenomena into our existing schemata.

Managerial Summary

“Move fast and break things” was the original motto of Facebook (now Meta), and it is emblematic of how many born-digital firms behave. These firms seek to grow quickly, and they have little regard for international borders, often operating in a global-by-default way. They are, in other words, very different to industrial-era firms that plotted their international expansion in a cautious and sequential way. In this essay, I discuss whether our existing IB theories—which were developed during the industrial era—are still fit-for-purpose in an economy increasingly dominated by born-digital firms.

Facebook和Uber等数字公司的出现对国际商业(IB)研究产生了怎样的影响?在这篇文章中，我概述了这些公司的独特品质，特别是他们的“全球默认”思维模式，并讨论了IB研究在战略、组织和制度背景方面的发展如何帮助我们更好地理解它们。我认为，一些传统的研究领域(例如，辅助角色类型学)已经过时，而其他领域(例如，跨国公司与政府的关系)变得更加重要。也有发展新理论来解释我们观察到的东西的空间，而不是试图将新现象“硬塞”到我们现有的图式中。“快速行动，打破陈规”是Facebook(现在的Meta)最初的座右铭，也是许多数字化公司的典型行为。这些公司寻求快速增长，他们很少考虑国际边界，经常以全球默认的方式运营。换句话说，它们与工业时代以谨慎和有序的方式规划国际扩张的公司非常不同。在这篇文章中，我讨论了我们现有的在工业时代发展起来的IB理论是否仍然适合于一个日益由天生的数字公司主导的经济。

{"title":"Move fast and break things: Reassessing IB research in the light of the digital revolution","authors":"Julian Birkinshaw","doi":"10.1002/gsj.1427","DOIUrl":"10.1002/gsj.1427","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>How has the emergence of born-digital firms such as Facebook and Uber influenced international business (IB) research? In this essay, I outline the distinctive qualities of these firms, in particular their “global by default” mindset, and I discuss how IB research on strategy, organization, and institutional context is evolving to help us understand them better. I argue that some traditional domains of inquiry (e.g., subsidiary role typologies) have become obsolete, while others (e.g., MNC–government relationships) have become more important. There is also scope for developing new theories to explain what we observe, rather than seeking to “shoehorn” new phenomena into our existing schemata.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>“Move fast and break things” was the original motto of Facebook (now Meta), and it is emblematic of how many born-digital firms behave. These firms seek to grow quickly, and they have little regard for international borders, often operating in a global-by-default way. They are, in other words, very different to industrial-era firms that plotted their international expansion in a cautious and sequential way. In this essay, I discuss whether our existing IB theories—which were developed during the industrial era—are still fit-for-purpose in an economy increasingly dominated by born-digital firms.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"12 4","pages":"619-631"},"PeriodicalIF":7.6,"publicationDate":"2022-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48342804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 15

Institutions and entrepreneurship in a non-ergodic world 非遍历世界中的制度和企业家精神

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2021-11-22 DOI: 10.1002/gsj.1425

Dan Li, Michael A. Hitt, Bat Batjargal, R. Duane Ireland, Toyah L. Miller, Alvaro Cuervo-Cazurra

Research Summary

This special issue advances the global strategy and entrepreneurship fields by providing a better understanding of the linkage between institutions and entrepreneurship. We provide an overview of existing literature in three key research areas: (a) the impact of institutions (types and complexity) on entrepreneurship, (b) the effect of institutional evolution (overall evolution and interplay among institutions) on entrepreneurship, and (c) the coevolution of institutions and entrepreneurship. We introduce the eight articles appearing in this special issue, examine the relationship between institutions and entrepreneurship in a non-ergodic world, and highlight meaningful and promising avenues for future research in each of the three key research areas in the domain of institutions and entrepreneurship.

Managerial Summary

This study clarifies the complex relationship between institutions (the rules and norms that govern economic transactions) and entrepreneurship. Our discussion of existing literature, special issue articles, institutions and entrepreneurship in a world of significant change, and several promising avenues for future research highlights to entrepreneurs and their stakeholders the critical role that institutions play in entrepreneurial strategies and actions in three ways. First, the types of institutions and their complexity in a location alter entrepreneurs' incentives and ability to create new ventures. Second, the continued changes in institutions - some in favor of free-market relationships and others restricting them - alter entrepreneurs' behaviors. Third, the entrepreneurial spirit and the creation of new ventures can drive the transformation of institutions that govern future market transactions.

本特刊通过更好地理解制度与创业之间的联系，推动了全球战略和创业领域的发展。我们概述了三个关键研究领域的现有文献:(a)制度(类型和复杂性)对企业家精神的影响，(b)制度演变(制度之间的整体演变和相互作用)对企业家精神的影响，以及(c)制度和企业家精神的共同演变。我们将介绍本期特刊中出现的八篇文章，在一个非遍历的世界中审视制度与企业家精神之间的关系，并强调在制度与企业家精神领域的三个关键研究领域中，未来研究的有意义和有希望的途径。本研究阐明了制度(管理经济交易的规则和规范)与企业家精神之间的复杂关系。我们对现有文献、特刊文章、制度和企业家精神在一个重大变化的世界中的讨论，以及未来研究的几个有希望的途径，向企业家及其利益相关者强调了制度在企业家战略和行动中的关键作用。首先，一个地区的机构类型及其复杂性改变了企业家创建新企业的动机和能力。其次，制度的持续变化——有些支持自由市场关系，有些则限制自由市场关系——改变了企业家的行为。第三，企业家精神和新企业的创建可以推动管理未来市场交易的制度的变革。

{"title":"Institutions and entrepreneurship in a non-ergodic world","authors":"Dan Li, Michael A. Hitt, Bat Batjargal, R. Duane Ireland, Toyah L. Miller, Alvaro Cuervo-Cazurra","doi":"10.1002/gsj.1425","DOIUrl":"10.1002/gsj.1425","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>This special issue advances the global strategy and entrepreneurship fields by providing a better understanding of the linkage between institutions and entrepreneurship. We provide an overview of existing literature in three key research areas: (a) the impact of institutions (types and complexity) on entrepreneurship, (b) the effect of institutional evolution (overall evolution and interplay among institutions) on entrepreneurship, and (c) the coevolution of institutions and entrepreneurship. We introduce the eight articles appearing in this special issue, examine the relationship between institutions and entrepreneurship in a non-ergodic world, and highlight meaningful and promising avenues for future research in each of the three key research areas in the domain of institutions and entrepreneurship.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This study clarifies the complex relationship between institutions (the rules and norms that govern economic transactions) and entrepreneurship. Our discussion of existing literature, special issue articles, institutions and entrepreneurship in a world of significant change, and several promising avenues for future research highlights to entrepreneurs and their stakeholders the critical role that institutions play in entrepreneurial strategies and actions in three ways. First, the types of institutions and their complexity in a location alter entrepreneurs' incentives and ability to create new ventures. Second, the continued changes in institutions - some in favor of free-market relationships and others restricting them - alter entrepreneurs' behaviors. Third, the entrepreneurial spirit and the creation of new ventures can drive the transformation of institutions that govern future market transactions.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"11 4","pages":"523-547"},"PeriodicalIF":7.6,"publicationDate":"2021-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46823949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 7

Complexity offering opportunity: Mutual learning between Zhejiang Geely Holding Group and Volvo Cars in the post-acquisition process 复杂性提供机会:浙江吉利控股集团与沃尔沃汽车在收购后过程中的相互学习

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2021-11-10 DOI: 10.1002/gsj.1424

Anna Jonsson, Jan-Erik Vahlne

Research Summary

While much of the literature on complex global environments builds on studies of multinationals from mature markets, little is known about how firms from emerging markets understand and cope with complexity. This paper builds on a longitudinal case study of Zhejiang Geely Holding Group (ZGH) in the post-acquisition process of Volvo Car Group (VCG) and its efforts to learn how to learn in order to catch up with the internationalization process as means for developing capabilities and compete in the global automotive industry. Building on the Uppsala model, we contribute with insights how an emerging market multinational understands complexity and organize the post-acquisition process to explicitly emphasize the importance of mutual learning to develop and exploit opportunities to improve the business.

Managerial Summary

A key finding is that ZGH does not understand complexity only as a risk that should be coped with, managed and controlled—following the western idea of risk management—but also as an opportunity for learning. While the importance of knowledge management and organizational learning is often emphasized as a means to achieve competitive advantage, it is seldom as easily managed in practice. Building on insights from ZGH we illustrate that to enable knowledge development and mutual learning, top-management from the acquiring firm needs to emphasize learning and trust the acquired firm rather than controlling it. It is equally important that the acquired firm trust the intentions of the new owner and reflect on the interest in learning—not least to improve and remain valuable.

虽然许多关于复杂全球环境的文献都是建立在对来自成熟市场的跨国公司的研究基础上的，但对于新兴市场的公司如何理解和应对复杂性却知之甚少。本文以浙江吉利控股集团(ZGH)在收购沃尔沃汽车集团(VCG)后的纵向案例研究为基础，学习如何学习，以赶上国际化进程，作为发展能力和参与全球汽车产业竞争的手段。在乌普萨拉模式的基础上，我们提供了新兴市场跨国公司如何理解复杂性和组织收购后流程的见解，以明确强调相互学习的重要性，以开发和利用机会来改善业务。一个关键的发现是，ZGH不仅将复杂性理解为一种应该应对、管理和控制的风险——遵循西方的风险管理理念——而且还将其视为一个学习的机会。虽然知识管理和组织学习的重要性经常被强调为获得竞争优势的手段，但在实践中很少这样容易管理。基于ZGH的见解，我们说明，为了实现知识发展和相互学习，收购方的高层管理人员需要强调学习和信任被收购方，而不是控制被收购方。同样重要的是，被收购的公司要信任新所有者的意图，并反思对学习的兴趣——不仅仅是为了提高和保持价值。

{"title":"Complexity offering opportunity: Mutual learning between Zhejiang Geely Holding Group and Volvo Cars in the post-acquisition process","authors":"Anna Jonsson, Jan-Erik Vahlne","doi":"10.1002/gsj.1424","DOIUrl":"10.1002/gsj.1424","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>While much of the literature on complex global environments builds on studies of multinationals from mature markets, little is known about how firms from emerging markets understand and cope with complexity. This paper builds on a longitudinal case study of Zhejiang Geely Holding Group (ZGH) in the post-acquisition process of Volvo Car Group (VCG) and its efforts to learn how to learn in order to catch up with the internationalization process as means for developing capabilities and compete in the global automotive industry. Building on the Uppsala model, we contribute with insights how an emerging market multinational understands complexity and organize the post-acquisition process to explicitly emphasize the importance of mutual learning to develop and exploit opportunities to improve the business.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>A key finding is that ZGH does <i>not</i> understand complexity only as a risk that should be coped with, managed and controlled—following the western idea of risk management—but also as an opportunity for learning. While the importance of knowledge management and organizational learning is often emphasized as a means to achieve competitive advantage, it is seldom as easily managed in practice. Building on insights from ZGH we illustrate that to enable knowledge development and mutual learning, top-management from the acquiring firm needs to emphasize learning and trust the acquired firm rather than controlling it. It is equally important that the acquired firm trust the intentions of the new owner and reflect on the interest in learning—not least to improve and remain valuable.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"13 3","pages":"700-731"},"PeriodicalIF":7.6,"publicationDate":"2021-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1424","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48687402","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 5

Directionality matters: Board interlocks and firm internationalization 方向性问题：董事会联动和公司国际化

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2021-10-27 DOI: 10.1002/gsj.1423

Harun Emre Yildiz, Sergey Morgulis-Yakushev, Ulf Holm, Mikael Eriksson

Research Summary

This paper examines an understudied aspect of network relationships—that is, direction of relational ties. Tie direction is important since it can shape when and how firms can benefit from the international experience of other firms. We focus on a specific type of network relationship—that is, interlocking directorates, which provides a clinical context to study directionality. We show that, due to their higher familiarity, identification, and executive power, focal firm directors serving in other firms' boards (i.e., outgoing ties) are more beneficial for utilizing partners' international experience. However, outside directors sitting on the boards of focal firms (i.e., incoming ties) can bring more useful first-hand experience and facilitate international expansion once these ties get stronger. Theoretical and practical implications of these results are discussed.

Managerial Summary

As they grow internationally, firms need to manage risks and uncertainties of doing business abroad. In this regard, they can potentially benefit from the international experience of other firms in their network. We show how firms can realize these benefits by means of interlocking ties (i.e., shared board memberships). To that end, we examine the directionality of interlocking ties. Specifically, we argue that a firm's ability to utilize partners' experience for its own international expansion is greater when its directors sit on the boards of other firms (so-called outgoing ties) compared to when other firms' directors sit on its own board (so-called incoming ties). However, experience coming through incoming ties is more effective for a firm's international expansion once these ties get stronger.

研究综述：本文考察了网络关系的一个研究不足的方面，即关系纽带的方向。平局方向很重要，因为它可以决定公司何时以及如何从其他公司的国际经验中受益。我们关注一种特定类型的网络关系，即互锁董事会，它为研究方向性提供了临床背景。我们发现，由于其更高的熟悉度、认同度和执行力，在其他公司董事会任职的焦点公司董事（即离职关系）更有利于利用合作伙伴的国际经验。然而，焦点公司董事会的外部董事（即即将上任的关系）可以带来更有用的第一手经验，并在这些关系变得更加牢固后促进国际扩张。讨论了这些结果的理论和实际意义。

{"title":"Directionality matters: Board interlocks and firm internationalization","authors":"Harun Emre Yildiz, Sergey Morgulis-Yakushev, Ulf Holm, Mikael Eriksson","doi":"10.1002/gsj.1423","DOIUrl":"10.1002/gsj.1423","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>This paper examines an understudied aspect of network relationships—that is, direction of relational ties. Tie direction is important since it can shape when and how firms can benefit from the international experience of other firms. We focus on a specific type of network relationship—that is, interlocking directorates, which provides a clinical context to study directionality. We show that, due to their higher familiarity, identification, and executive power, focal firm directors serving in other firms' boards (i.e., outgoing ties) are more beneficial for utilizing partners' international experience. However, outside directors sitting on the boards of focal firms (i.e., incoming ties) can bring more useful first-hand experience and facilitate international expansion once these ties get stronger. Theoretical and practical implications of these results are discussed.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>As they grow internationally, firms need to manage risks and uncertainties of doing business abroad. In this regard, they can potentially benefit from the international experience of other firms in their network. We show how firms can realize these benefits by means of interlocking ties (i.e., shared board memberships). To that end, we examine the directionality of interlocking ties. Specifically, we argue that a firm's ability to utilize partners' experience for its own international expansion is greater when its directors sit on the boards of other firms (so-called outgoing ties) compared to when other firms' directors sit on its own board (so-called incoming ties). However, experience coming through incoming ties is more effective for a firm's international expansion once these ties get stronger.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"13 1","pages":"90-110"},"PeriodicalIF":7.6,"publicationDate":"2021-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/gsj.1423","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43322813","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 7

Chief executive officer power and initial public offering underpricing: Examining the influence of demand-side cultural power distance 首席执行官权力与ipo抑价:需求侧文化权力距离的影响研究

IF 7.6 2区管理学 Q1 BUSINESS

Global Strategy Journal

Pub Date : 2021-10-11 DOI: 10.1002/gsj.1422

Ryan Krause, Juanyi Chen, Garry D. Bruton, Igor Filatotchev

Research Summary

Initial public offering (IPO) underpricing reflects the inability of early investors to capture the full value of an entrepreneurial firm. IPO firms can potentially limit underpricing by signaling wealth protection through lower chief executive officer (CEO) power. Such signaling is particularly challenging for many IPO firms, though, because for those doing business in high-power-distance cultures, CEO power can also signal wealth creation, making CEO power a mixed signal for IPO investors. Drawing on signaling theory, we argue that CEO power is positively associated with IPO underpricing, but this relationship weakens for IPO firms doing business in countries with high cultural power distance because the information signaled becomes less clear. The signaling impact of both CEO power and demand-side cultural power distance weakens, however, when underwriter reputation offers a substitute signal.

Managerial Summary

This research offers new knowledge for IPO corporate governance practitioners, such as entrepreneurs, venture capitalists, underwriters, and regulators. Specifically, our research demonstrates that the power dynamic in the upper echelons has implications for demand-side legitimacy or making U.S.-listed firms more legitimate with international customers. As a result, stockholders and securities analysts who balk at the consolidation of CEO power should consider the potential benefits that such consolidation of power might grant the firm when competing in different cultural environments associated with foreign markets.

首次公开募股(IPO)定价过低反映了早期投资者无法获得创业公司的全部价值。IPO公司可能会通过降低首席执行官(CEO)的权力来传递财富保护的信号，从而限制定价过低。不过，这种信号对许多IPO公司来说尤其具有挑战性，因为对于那些在权力距离高的文化中开展业务的公司来说，CEO权力也可能是创造财富的信号，这使得CEO权力对IPO投资者来说是一个好坏参半的信号。利用信号理论，我们认为CEO权力与IPO抑价呈正相关，但对于在文化权力距离高的国家开展业务的IPO公司，这种关系减弱，因为信息信号变得不那么清晰。然而，当承销商声誉提供替代信号时，CEO权力和需求方文化权力距离的信号影响减弱。本研究为IPO公司治理从业者(如企业家、风险投资家、承销商和监管机构)提供了新的知识。具体而言，我们的研究表明，高层的权力动态对需求方合法性或使美国上市公司对国际客户更具合法性具有影响。因此，那些反对CEO权力整合的股东和证券分析师应该考虑这样的权力整合在与国外市场相关的不同文化环境中竞争时可能给公司带来的潜在好处。

{"title":"Chief executive officer power and initial public offering underpricing: Examining the influence of demand-side cultural power distance","authors":"Ryan Krause, Juanyi Chen, Garry D. Bruton, Igor Filatotchev","doi":"10.1002/gsj.1422","DOIUrl":"10.1002/gsj.1422","url":null,"abstract":"<div>\u0000 \u0000 \u0000 <section>\u0000 \u0000 <h3> Research Summary</h3>\u0000 \u0000 <p>Initial public offering (IPO) underpricing reflects the inability of early investors to capture the full value of an entrepreneurial firm. IPO firms can potentially limit underpricing by signaling wealth protection through lower chief executive officer (CEO) power. Such signaling is particularly challenging for many IPO firms, though, because for those doing business in high-power-distance cultures, CEO power can also signal wealth creation, making CEO power a mixed signal for IPO investors. Drawing on signaling theory, we argue that CEO power is positively associated with IPO underpricing, but this relationship weakens for IPO firms doing business in countries with high cultural power distance because the information signaled becomes less clear. The signaling impact of both CEO power and demand-side cultural power distance weakens, however, when underwriter reputation offers a substitute signal.</p>\u0000 </section>\u0000 \u0000 <section>\u0000 \u0000 <h3> Managerial Summary</h3>\u0000 \u0000 <p>This research offers new knowledge for IPO corporate governance practitioners, such as entrepreneurs, venture capitalists, underwriters, and regulators. Specifically, our research demonstrates that the power dynamic in the upper echelons has implications for demand-side legitimacy or making U.S.-listed firms more legitimate with international customers. As a result, stockholders and securities analysts who balk at the consolidation of CEO power should consider the potential benefits that such consolidation of power might grant the firm when competing in different cultural environments associated with foreign markets.</p>\u0000 </section>\u0000 </div>","PeriodicalId":47563,"journal":{"name":"Global Strategy Journal","volume":"11 4","pages":"686-708"},"PeriodicalIF":7.6,"publicationDate":"2021-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41796343","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 6