The nature of informal networks in various societies, and particularly whether they recede or tend to persist over time, has long been a subject of discussion in international business studies. However, empirical research on trust in network-oriented societies, where individuals typically maintain somewhat different relationships with their in-group, out-group, and non-specified others, remains limited. Drawing on insights from informal network research and intergroup contact theory to model trust relationships in network societies, 882 respondents from three network societies -- China, Russia, and South Korea -- were surveyed, and confirmatory factor and path analyses applied. The results suggest that as network importance increases, both in-group trust and out-group trust also increase. Individuals who more commonly draw upon out-group trust ties attach less importance to in-group trust ties. Increases in non-specific trust, however, are associated with increases in both in-group and out-group trust, pointing towards the boundary spanning function of non-specific trust. Consequently, rather than finding a clear indication of whether informal networks persist or recede, ambivalent trust relationships were observed. This calls for a reexamination of the conventional ‘either/or’ perspective on the nature of informal networks. This network heterogeneity can be attributed to individuals, especially in developing network societies, utilizing a ‘both/and’ approach to trust and networking, and yielding more economic opportunities.
Cross-border transfer and the protection of knowledge are important for multinational enterprises (MNEs) to develop their network partners’ capabilities while simultaneously safeguarding competitive advantages. However, they can be challenging for MNEs due to cultural and institutional differences between home and host markets. This poses a dilemma for MNEs, which is how to strike a balance between their knowledge transfer (KT) and knowledge protection (KP) strategies. It is notable that, so far, research has primarily investigated these two areas independently, lacking an integrative view. Therefore, in this article, we reviewed 98 academic articles exploring knowledge transfer/protection in MNEs operating under international joint venture (IJV) arrangements and assessed publications from the last two decades (2000–2022). Drawing from institutional theory and the bargaining power perspective, we developed a conceptual framework highlighting the external and internal factors influencing KT and KP. Subsequently, we contextualized these factors within the specific domain of IJVs, drawing on insights gleaned from the studies in our sample. The interplay of these factors, along with their contextual nuances, provides a holistic and in-depth understanding of how knowledge is managed within the complex dynamics of IJVs. In addition, our review contributes to our understanding of knowledge management in MNEs by identifying novel gaps in the literature and suggesting a number of avenues for future research.
This study was to examine the influence of specific contributory variables within formal versus informal institutional distances on the sub-motives of emerging-market multinational enterprises’ (EMNEs) strategic-asset seeking (SAS), in order to gain insights into the behaviours and motivations of increasing outward foreign direct investment (OFDI) from emerging economies like China. From a multinomial logistic regression analysis of both firm and macro-level data, it was found that private business groups (PBGs) were more likely to target and acquire firms with patents and trademarks. The findings also suggest that the informal cultural distance was significantly associated solely with the EMNEs’ motive for seeking companies with trademarks but no patents. The association between formal institutional distance with EMNEs’ SAS behaviours was not significant. The findings also revealed that certain sub-dimensions of formal and informal cross-national distance had significant effects on overseas specific SAS behaviours. These findings inform further exploration of determinants of EMNEs’ SAS behaviours and provide a more comprehensive understanding of EMNEs’ internationalization trends. This research contributes to the current literature on EMNEs and provides practical and managerial implications for EMNE decision-makers while investing abroad.
This paper provides a systematic review of 210 papers on social networks and firm internationalization published between 2010 and 2022. It presents a comprehensive analysis of how social networks influence firm internationalization, following the concept of “insidership”. We classify social networks into individual, organizational, and national levels, and link these network levels and their characteristics with internationalization behavior, degree, and performance. We find that social networks promote internationalization through resources, trust, knowledge, and capabilities but can also have negative effects. In addition, we integrate boundary conditions from individual, firm, and environmental levels. In particular, we show that few theories focus on the impact of decision makers’ psychological and cognitive mechanisms on firms’ internationalization through social networks. Additionally, limited studies pursue dynamic and comparative research designs, with few adopting quasi-experimental and longitudinal qualitative methods. Therefore, we call for more creativity in exploring managerial roles and strategic decisions in internationalization through extended social network syntheses and reflective methodologies.
This study empirically examines the relationships among CEOs’ dark triad personality (narcissism, psychopathy, and Machiavellianism), ambidexterity, and firms’ internationalization behavior. Dark triad personality traits have attracted growing attention in the fields of psychology and organizational behavior due to their influence on individual decision-making, particularly by individuals in executive leadership roles. We extend research on dark triad personality to international business (IB) and examine the link between IB decision-makers’ personality traits and firms’ IB outcomes. Our research highlights the complex dynamics shaping firm internationalization, with both the CEO’s dark triad personality and ambidexterity playing significant roles in driving firm internationalization outcomes. An analysis of 405 firms from the United Kingdom and the United States reveals that ambidexterity partially mediates the relationship between dark triad personality and the degree of internationalization and that firms pursuing internationalization may benefit from CEOs with a dark triad personality.
We posit that, beyond the distinction between domestic and cross-border deals, family ownership configurations and board ownership determine whether family firms (FFs) prefer targets from closer or more distant markets, thus highlighting the crucial role of geographical distance when conducting acquisitions abroad. We further investigate whether target selection depends on firm performance relative to its aspirations. To test our hypotheses, we gather a comprehensive sample of 7297 acquisition deals, of which 3180 are cross-border transactions, undertaken by family and non-FFs from 30 European countries during the 2007–2015 period, with target firms located in 65 different countries. Our empirical strategy allows us to analyze FFs’ preference in terms of geographical distance when they decide to acquire a foreign company. The main findings suggest that FFs acquire targets from closer locations when there is a group of minority family shareholders or a higher level of board ownership. Meanwhile, FFs performing below their aspirations acquire more distant targets compared to other FFs. Our findings contribute to international business (IB) research by demonstrating that the distinction between domestic and foreign targets is not enough when investigating acquisitions, but the distance to the target firm is vital for a better understanding of cross-border deals.
This study analyzes the development of organizational culture in an international subsidiary in healthcare through the interaction of the parent company and local culture.
We conducted a single case study on Elekta Greece, a subsidiary of the multinational company Elekta based in Sweden via interviews.
The company creates a unique organizational culture, called the Philotask culture, that takes into consideration the cultural contexts of Sweden and Greece, the value of philotimo, situation in the market, and the type of company and services.
The model consists of a context-grounded framework focusing on healthcare. Research in other countries and industries can help to generalize this model.
The findings indicate that to develop organizational culture, managers need to consider the local cultural context.
This research contributes to organizational culture theory, reporting on the Philotask model that emerged.