Pub Date : 2025-02-11DOI: 10.1016/j.ibusrev.2025.102415
Zhiwen Fan , Tao Wang , Zhongyi Han , Yu Jia
The dynamic international relations reflect a world that global supply chains are challenged by the political environment in which they are embedded, especially for emerging market firms (EMFs). Drawing on legitimacy-based view and supply chain management literature, this study investigated how political affinity between home and host country affect the use of governance in deterring opportunism of local distributors in the host market, as well as the moderating role of directionality of institutional distance. Using a survey dataset of 403 Chinese export firms at two time points and two secondary datasets, we find that political affinity increases the opportunistic behavior of local distributors by impeding contractual governance and facilitating relational governance. In addition, the effect of political affinity on governance strategies is conditional on the directionality of institutional distance. That is, negative institutional distance strengthens the impact of political affinity on contractual governance, while the influence of political affinity on relational governance is attenuated in the presence of positive or negative institutional distance. Our findings provide important insights for academic research and managerial practice.
{"title":"Political affinity and opportunism in global supply chain: The mediating role of contractual and relational governance","authors":"Zhiwen Fan , Tao Wang , Zhongyi Han , Yu Jia","doi":"10.1016/j.ibusrev.2025.102415","DOIUrl":"10.1016/j.ibusrev.2025.102415","url":null,"abstract":"<div><div>The dynamic international relations reflect a world that global supply chains are challenged by the political environment in which they are embedded, especially for emerging market firms (EMFs). Drawing on legitimacy-based view and supply chain management literature, this study investigated how political affinity between home and host country affect the use of governance in deterring opportunism of local distributors in the host market, as well as the moderating role of directionality of institutional distance. Using a survey dataset of 403 Chinese export firms at two time points and two secondary datasets, we find that political affinity increases the opportunistic behavior of local distributors by impeding contractual governance and facilitating relational governance. In addition, the effect of political affinity on governance strategies is conditional on the directionality of institutional distance. That is, negative institutional distance strengthens the impact of political affinity on contractual governance, while the influence of political affinity on relational governance is attenuated in the presence of positive or negative institutional distance. Our findings provide important insights for academic research and managerial practice.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 3","pages":"Article 102415"},"PeriodicalIF":5.9,"publicationDate":"2025-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143579140","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-11DOI: 10.1016/j.ibusrev.2025.102411
Pei Wang , Ziliang Deng , Zhan Wu , Vikas Kumar
Many emerging market governments have increased technological entry thresholds for foreign newcomers to promote technology transfer to local firms. Although such a policy change intensifies the threat from new foreign entrants in the long run, it protects local firms from intensive competition in the short run. Thus, whether local firms in the same industries will respond to such a policy change with more technological efforts remains to be discovered. We hypothesize that local firms in affected industries will refrain from upward momentum in innovation activities to some extent compared with local firms in industries without such a policy change. We also hypothesize that local firms in more robust resource and market positions will be influenced to a lower degree. Difference-in-difference modeling based on large panel datasets in China supports these hypotheses. This study provides novel insights into the international business literature by identifying that foreign-entry policy shifts may cause indirect effects on the innovation of local firms.
{"title":"Technology-seeking FDI policy change and local firm innovation","authors":"Pei Wang , Ziliang Deng , Zhan Wu , Vikas Kumar","doi":"10.1016/j.ibusrev.2025.102411","DOIUrl":"10.1016/j.ibusrev.2025.102411","url":null,"abstract":"<div><div>Many emerging market governments have increased technological entry thresholds for foreign newcomers to promote technology transfer to local firms. Although such a policy change intensifies the threat from new foreign entrants in the long run, it protects local firms from intensive competition in the short run. Thus, whether local firms in the same industries will respond to such a policy change with more technological efforts remains to be discovered. We hypothesize that local firms in affected industries will refrain from upward momentum in innovation activities to some extent compared with local firms in industries without such a policy change. We also hypothesize that local firms in more robust resource and market positions will be influenced to a lower degree. Difference-in-difference modeling based on large panel datasets in China supports these hypotheses. This study provides novel insights into the international business literature by identifying that foreign-entry policy shifts may cause indirect effects on the innovation of local firms.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 3","pages":"Article 102411"},"PeriodicalIF":5.9,"publicationDate":"2025-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143579141","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-10DOI: 10.1016/j.ibusrev.2025.102402
Xinrui Liu , Michael Mayer , Dimo Dimov
Despite the importance of returnee entrepreneurs’ prior international experience, its conceptualization and effect on firm outcomes remain unclear. We propose a new framework for understanding prior international experience, consisting of three components: length of time, cultural distance, and cultural specificity, along with their interactions. Our study examines how returnees' international experience impacts firms' entrepreneurial orientation (EO) and speed of internationalization. Using data from 216 Chinese internationalizing SMEs, we find that prior international experience positively influences the speed of internationalization, both directly and indirectly through EO. Cultural distance between the experienced host country and the returnee's home country, and that between the experienced host country and the firm’s internationalizing country, moderate these relationships. The cultural distance to the returnee’s home country seems to be an asset, whereas that to the firm’s internationalizing country seems to be a liability. We discuss theoretical and managerial implications for international experience conceptualization and returnee entrepreneurship.
{"title":"Returnee entrepreneurs’ international experience: Effects on entrepreneurial orientation and speed of internationalization","authors":"Xinrui Liu , Michael Mayer , Dimo Dimov","doi":"10.1016/j.ibusrev.2025.102402","DOIUrl":"10.1016/j.ibusrev.2025.102402","url":null,"abstract":"<div><div>Despite the importance of returnee entrepreneurs’ prior international experience, its conceptualization and effect on firm outcomes remain unclear. We propose a new framework for understanding prior international experience, consisting of three components: length of time, cultural distance, and cultural specificity, along with their interactions. Our study examines how returnees' international experience impacts firms' entrepreneurial orientation (EO) and speed of internationalization. Using data from 216 Chinese internationalizing SMEs, we find that prior international experience positively influences the speed of internationalization, both directly and indirectly through EO. Cultural distance between the experienced host country and the returnee's home country, and that between the experienced host country and the firm’s internationalizing country, moderate these relationships. The cultural distance to the returnee’s home country seems to be an asset, whereas that to the firm’s internationalizing country seems to be a liability. We discuss theoretical and managerial implications for international experience conceptualization and returnee entrepreneurship.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 4","pages":"Article 102402"},"PeriodicalIF":5.9,"publicationDate":"2025-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144239870","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-06DOI: 10.1016/j.ibusrev.2025.102400
Daniel Agerbech Petersen, Keith Goodall
We address the challenges of developing Chinese leaders in multinational companies (MNCs) from the perspective of the leaders themselves. We focus on the consequences of perceptual differences across cultures. Based on interviews with Chinese high-potential managers (HPMs), we find that differing perceptions of care and leadership impact the perceived quality of global talent management (GTM) and work practices. We conclude that from a Chinese perspective western MNCs are relatively effective in human capital and leader development, but weaker in terms of attention to social capital and leadership. We make recommendations for how Chinese managers in MNCs might be more effectively developed into global leadership roles.
{"title":"Leadership development in the cross-cultural context of China: Who really cares?","authors":"Daniel Agerbech Petersen, Keith Goodall","doi":"10.1016/j.ibusrev.2025.102400","DOIUrl":"10.1016/j.ibusrev.2025.102400","url":null,"abstract":"<div><div>We address the challenges of developing Chinese leaders in multinational companies (MNCs) from the perspective of the leaders themselves. We focus on the consequences of perceptual differences across cultures. Based on interviews with Chinese high-potential managers (HPMs), we find that differing perceptions of care and leadership impact the perceived quality of global talent management (GTM) and work practices. We conclude that from a Chinese perspective western MNCs are relatively effective in human capital and leader development, but weaker in terms of attention to social capital and leader<em>ship</em>. We make recommendations for how Chinese managers in MNCs might be more effectively developed into global leadership roles.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 3","pages":"Article 102400"},"PeriodicalIF":5.9,"publicationDate":"2025-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143579129","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-06DOI: 10.1016/j.ibusrev.2025.102404
Timothy King , Tiago Loncan , Zaheer Khan
Despite the higher expropriation risks associated with investing in corrupt countries, many multinational enterprises (MNEs) still choose to do so. The motivations for investing in such countries remain unclear. Using rich data on 3500 outward foreign direct investment (FDI) projects undertaken by U.S. manufacturing MNEs, we find that cash-rich firms are significantly less likely to locate FDI activities in more corrupt countries. We show that this effect is most pronounced in firms with stronger governance and monitoring regimes. Overall, our findings, which are robust to a battery of tests and treatment of a potential endogenous determination of cash holdings and FDI location decisions, suggest that liquidity influences firms’ perceived expropriation risk, with cash-rich firms optimally sheltering their FDI activities from more corrupt countries when expected expropriation costs outweigh the economic gains that can be easily exploited through FDI. These findings have important implications for research, practice, and policy regarding the FDI location decisions of MNEs.
{"title":"Dodging expropriation? The role of cash holdings as a firm-level driver of risky FDI location choices","authors":"Timothy King , Tiago Loncan , Zaheer Khan","doi":"10.1016/j.ibusrev.2025.102404","DOIUrl":"10.1016/j.ibusrev.2025.102404","url":null,"abstract":"<div><div>Despite the higher expropriation risks associated with investing in corrupt countries, many multinational enterprises (MNEs) still choose to do so. The motivations for investing in such countries remain unclear. Using rich data on 3500 outward foreign direct investment (FDI) projects undertaken by U.S. manufacturing MNEs, we find that cash-rich firms are significantly less likely to locate FDI activities in more corrupt countries. We show that this effect is most pronounced in firms with stronger governance and monitoring regimes. Overall, our findings, which are robust to a battery of tests and treatment of a potential endogenous determination of cash holdings and FDI location decisions, suggest that liquidity influences firms’ perceived expropriation risk, with cash-rich firms optimally sheltering their FDI activities from more corrupt countries when expected expropriation costs outweigh the economic gains that can be easily exploited through FDI. These findings have important implications for research, practice, and policy regarding the FDI location decisions of MNEs.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102404"},"PeriodicalIF":6.1,"publicationDate":"2025-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145026656","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-04DOI: 10.1016/j.ibusrev.2025.102403
Panagiotis Kyriakopoulos , Rose Narooz , Junzhe Ji
We use a real option lens to investigate how emerging market micromultinationals (mMNEs) employ foreign operation modes to address different sources of external uncertainty. Drawing from 564 mMNEs from 22 emerging markets, we firstly examine the mMNEs’ choice between high commitment operation mode (wholly owned subsidiary) and low commitment operation mode (international joint venture) in response to both economic and political uncertainty in host countries. We further investigate three enablers of strategic flexibility (multinationality, industry type and foreign investment experience) and their moderating role in the relationship between mMNE ownership choices and external uncertainties. Our results show that emerging market mMNEs choose low commitment foreign operation modes in response to economic uncertainty rather than political uncertainty when making their operation mode choice, and both multinationality and industry type moderate the economic uncertainty-operation mode relationship.
{"title":"Ownership choices of emerging market micromultinationals (mMNEs) under uncertainty: A real option approach","authors":"Panagiotis Kyriakopoulos , Rose Narooz , Junzhe Ji","doi":"10.1016/j.ibusrev.2025.102403","DOIUrl":"10.1016/j.ibusrev.2025.102403","url":null,"abstract":"<div><div>We use a real option lens to investigate how emerging market micromultinationals (mMNEs) employ foreign operation modes to address different sources of external uncertainty. Drawing from 564 mMNEs from 22 emerging markets, we firstly examine the mMNEs’ choice between high commitment operation mode (wholly owned subsidiary) and low commitment operation mode (international joint venture) in response to both economic and political uncertainty in host countries. We further investigate three enablers of strategic flexibility (multinationality, industry type and foreign investment experience) and their moderating role in the relationship between mMNE ownership choices and external uncertainties. Our results show that emerging market mMNEs choose low commitment foreign operation modes in response to economic uncertainty rather than political uncertainty when making their operation mode choice, and both multinationality and industry type moderate the economic uncertainty-operation mode relationship.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102403"},"PeriodicalIF":6.1,"publicationDate":"2025-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145026653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-29DOI: 10.1016/j.ibusrev.2025.102398
Enver Yücesan
Deglobalization, the process through which economic agents are increasingly severing their international economic links and relocating economic activity toward their domestic economies, has been affecting supply chains spanning the globe. In the face of major economic and political challenges, companies have always been redesigning their networks through which inputs are sourced, products are manufactured, and customer demand is satisfied. While the literature has addressed the traditional complexities arising from market volatility, cost differentials and emerging technologies, further guidance is needed on the impact of government policies for companies operating on a global scale. It is therefore necessary to identify the forces that drive deglobalization and understand how they shape the evolution of global supply chains. Anchored on the global value chain framework from macroeconomics, political science, international business, and operations management, we construct and validate systems dynamics models to assess the evolution of global supply chains where decisions taken at the macro and strategic levels would act as constraints or enablers at the tactical level. We observe that, independent from any other forces, the landed cost advantage, which was the principal driver of offshoring decisions, gets eroded over time through both higher competition and convergence of wages. Moreover, as competition shifts towards higher responsiveness, offshored facilities find themselves at a greater disadvantage. Political pressure in terms of tariffs and sanctions as well as management control in terms of ownership restrictions and the challenges in enforcing the rule of law reduce the attractiveness of offshoring. The rate at which offshoring decisions are reversed, however, depends on the complexity of both the manufacturing asset and the sophistication of the local ecosystem. Finally, political pressure does not necessarily lead to reshoring; nearshoring, the transfer of manufacturing facilities to a territory closer to the final market, emerges as a viable alternative. In short, these findings signal a slow transition from global to regional supply chains. As a result, supply chain professionals and policy makers are urged to adopt a broader perspective that incorporates the impact of operational, strategic, and geo-political parameters on the entire supply network in their decision or policy making processes. Going forward, emerging technologies and sustainability considerations will continue setting the boundary conditions within which global supply chains will continue to evolve.
{"title":"Does deglobalization imply the end of global supply chains?","authors":"Enver Yücesan","doi":"10.1016/j.ibusrev.2025.102398","DOIUrl":"10.1016/j.ibusrev.2025.102398","url":null,"abstract":"<div><div>Deglobalization, the process through which economic agents are increasingly severing their international economic links and relocating economic activity toward their domestic economies, has been affecting supply chains spanning the globe. In the face of major economic and political challenges, companies have always been redesigning their networks through which inputs are sourced, products are manufactured, and customer demand is satisfied. While the literature has addressed the traditional complexities arising from market volatility, cost differentials and emerging technologies, further guidance is needed on the impact of government policies for companies operating on a global scale. It is therefore necessary to identify the forces that drive deglobalization and understand how they shape the evolution of global supply chains. Anchored on the global value chain framework from macroeconomics, political science, international business, and operations management, we construct and validate systems dynamics models to assess the evolution of global supply chains where decisions taken at the macro and strategic levels would act as constraints or enablers at the tactical level. We observe that, independent from any other forces, the landed cost advantage, which was the principal driver of offshoring decisions, gets eroded over time through both higher competition and convergence of wages. Moreover, as competition shifts towards higher responsiveness, offshored facilities find themselves at a greater disadvantage. Political pressure in terms of tariffs and sanctions as well as management control in terms of ownership restrictions and the challenges in enforcing the rule of law reduce the attractiveness of offshoring. The rate at which offshoring decisions are reversed, however, depends on the complexity of both the manufacturing asset and the sophistication of the local ecosystem. Finally, political pressure does not necessarily lead to reshoring; nearshoring, the transfer of manufacturing facilities to a territory closer to the final market, emerges as a viable alternative. In short, these findings signal a slow transition from global to regional supply chains. As a result, supply chain professionals and policy makers are urged to adopt a broader perspective that incorporates the impact of operational, strategic, and geo-political parameters on the entire supply network in their decision or policy making processes. Going forward, emerging technologies and sustainability considerations will continue setting the boundary conditions within which global supply chains will continue to evolve.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 6","pages":"Article 102398"},"PeriodicalIF":6.1,"publicationDate":"2025-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145026657","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-27DOI: 10.1016/j.ibusrev.2025.102401
Daniel Pedroletti
A growing number of firms is considering reshoring as an option to cope with the increasingly complex international business environment. However, especially when concerning only part of the activities outsourced to suppliers, reshoring may harm the firm’s business relationships in the host country and restrain access to essential resources and capabilities. This paper examines the impact that reshoring outsourced activities has on the host-country network. Building on a case study and key concepts from the business network view of internationalization, the study reveals concurring but contrasting effects for the reshoring firm: the tangible commitment of the firm and its structural embeddedness in the foreign market diminish, while the intangible commitment and relational embeddedness simultaneously increase. Accordingly, the resulting host-country network counts fewer but deeper relationships. The study advances our knowledge of both internationalization and reshoring. The former is extended by furthering the understanding of the network and nonlinear views of internationalization, while the latter by exposing the multidirectional network effects of partial reshoring and discussing it in relation to recent global disruptions.
{"title":"Network effects of partial reshoring in the internationalization process","authors":"Daniel Pedroletti","doi":"10.1016/j.ibusrev.2025.102401","DOIUrl":"10.1016/j.ibusrev.2025.102401","url":null,"abstract":"<div><div>A growing number of firms is considering reshoring as an option to cope with the increasingly complex international business environment. However, especially when concerning only part of the activities outsourced to suppliers, reshoring may harm the firm’s business relationships in the host country and restrain access to essential resources and capabilities. This paper examines the impact that reshoring outsourced activities has on the host-country network. Building on a case study and key concepts from the business network view of internationalization, the study reveals concurring but contrasting effects for the reshoring firm: the tangible commitment of the firm and its structural embeddedness in the foreign market diminish, while the intangible commitment and relational embeddedness simultaneously increase. Accordingly, the resulting host-country network counts fewer but deeper relationships. The study advances our knowledge of both internationalization and reshoring. The former is extended by furthering the understanding of the network and nonlinear views of internationalization, while the latter by exposing the multidirectional network effects of partial reshoring and discussing it in relation to recent global disruptions.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 3","pages":"Article 102401"},"PeriodicalIF":5.9,"publicationDate":"2025-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143579333","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Foreign subsidiaries seek to gain attention from headquarters, often through strategic issue selling. It is therefore paramount to understand how the packaging of the issue and the process of issue selling affect headquarters’ attention. Cultural distance can influence the effectiveness of issue selling tactics. A study of 342 foreign subsidiaries reveals that when cultural distance is high, emphasizing corporate benefits becomes less effective, possibly due to headquarters' mistrust or misunderstanding. Interestingly, consistency with headquarters' practices matters less in culturally distant cases, offering opportunities for subsidiaries to propose more novel ideas. Joining efforts with other subsidiaries seems to pay off in low cultural distance situations but can backfire when distance is high, as headquarters may fear insurrection. Cultivating social relations with headquarters' executives is crucial for capturing attention, especially in high cultural distance scenarios, as they help bridge trust and compensate for communication gaps. Our sample, obtained from an online survey, contains 342 cases that comprise a broad coverage of 46 different subsidiaries’ countries and 26 different headquarters’ countries.
{"title":"Pursuing headquarters’ attention: Foreign subsidiaries’ strategic issue selling","authors":"Renato Souza-Santos , Jorge Carneiro , Ulf Andersson","doi":"10.1016/j.ibusrev.2025.102396","DOIUrl":"10.1016/j.ibusrev.2025.102396","url":null,"abstract":"<div><div>Foreign subsidiaries seek to gain attention from headquarters, often through strategic issue selling. It is therefore paramount to understand how the packaging of the issue and the process of issue selling affect headquarters’ attention. Cultural distance can influence the effectiveness of issue selling tactics. A study of 342 foreign subsidiaries reveals that when cultural distance is high, emphasizing corporate benefits becomes less effective, possibly due to headquarters' mistrust or misunderstanding. Interestingly, consistency with headquarters' practices matters less in culturally distant cases, offering opportunities for subsidiaries to propose more novel ideas. Joining efforts with other subsidiaries seems to pay off in low cultural distance situations but can backfire when distance is high, as headquarters may fear insurrection. Cultivating social relations with headquarters' executives is crucial for capturing attention, especially in high cultural distance scenarios, as they help bridge trust and compensate for communication gaps. Our sample, obtained from an online survey, contains 342 cases that comprise a broad coverage of 46 different subsidiaries’ countries and 26 different headquarters’ countries.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 3","pages":"Article 102396"},"PeriodicalIF":5.9,"publicationDate":"2025-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143579138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-22DOI: 10.1016/j.ibusrev.2025.102397
James M. Crick , David Crick
Although a coopetition-oriented mind-set (belief about the importance of cooperating with competitors) is likely to drive coopetition strategies, the nuances of this relationship remain under-researched. Furthermore, coopetition has typically been investigated in domestic settings, rather than in export markets, where different opportunities and challenges are likely to exist. Thus, underpinned by resource-based theory, and focusing on smaller-sized companies, this study examines the association between an export coopetition-oriented mind-set and export coopetition strategies under key moderating effects. Survey responses were collected from 107 small wine producers in South Africa (passing all major robustness checks). As hypothesized, the results showed that an export coopetition-oriented mind-set drives export coopetition strategies. However, surprisingly, this link was positively moderated by export competitive aggressiveness, but was not significantly impacted by export competitive intensity. Consequently, unique insights emerge for academics and practitioners regarding what factors help or hinder the facilitation of coopetition activities in export markets.
{"title":"Don’t stop believing: The manifestations of coopetition in export markets","authors":"James M. Crick , David Crick","doi":"10.1016/j.ibusrev.2025.102397","DOIUrl":"10.1016/j.ibusrev.2025.102397","url":null,"abstract":"<div><div>Although a coopetition-oriented mind-set (belief about the importance of cooperating with competitors) is likely to drive coopetition strategies, the nuances of this relationship remain under-researched. Furthermore, coopetition has typically been investigated in domestic settings, rather than in export markets, where different opportunities and challenges are likely to exist. Thus, underpinned by resource-based theory, and focusing on smaller-sized companies, this study examines the association between an export coopetition-oriented mind-set and export coopetition strategies under key moderating effects. Survey responses were collected from 107 small wine producers in South Africa (passing all major robustness checks). As hypothesized, the results showed that an export coopetition-oriented mind-set drives export coopetition strategies. However, surprisingly, this link was positively moderated by export competitive aggressiveness, but was not significantly impacted by export competitive intensity. Consequently, unique insights emerge for academics and practitioners regarding what factors help or hinder the facilitation of coopetition activities in export markets.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"34 3","pages":"Article 102397"},"PeriodicalIF":5.9,"publicationDate":"2025-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143579125","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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