Journal of World Business最新文献

Freeloading, a challenge faced by all workgroups but particularly acute in global virtual teams (GVTs), is an increasing concern as GVTs become increasingly ubiquitous in international business settings. This study employed a quasi-experimental design to evaluate the comparative effectiveness of different strategies grounded in equity theory for mitigating freeloading behavior in GVTs. The study used a sample of 2,022 GVTs comprising 12,536 business students from 43 countries who, for two months, worked on international business consulting projects. The results indicate that freeloading could be significantly reduced if the performance management system promotes a sense of equity and fairness by visible monitoring of individual effort coupled with the threat of reciprocations for insufficient contributions. Importantly, making a lack of individual effort visible through regular peer evaluations but taking no immediate punitive action could reduce perceived fairness and actually increase freeloading. The implications of these findings for practice and future research are discussed.

Using a historical lens to investigate sanctions against Apartheid South Africa, we found foreign multinational enterprises (MNEs) lost out repeatedly during sanctions, almost always to the local economic elite. When MNEs departed, they often sold their assets to the local economic elite to salvage some value. To ensure continued operations (and thus payments to them), MNE continued supporting buyers during the sanctions era. If MNEs repurchased their assets once sanctions ended, the local elite again benefited. Personal ties matter in institutionally weak contexts, and we make a contribution by using elite theory to interrogate with whom such ties are forged.

The development of an entrepreneurial strategic orientation is of growing concern for global corporations. Through a human capital lens, we probe how and when firms can develop and cultivate managerial entrepreneurial resources; by explicitly encouraging cross-cultural experiences that stimulate systematic shifts in mindset and behavior. Drawing on paradox theory and intercultural psychology, we put forth a model positing that cross-cultural experience (an endowment firms can either hire for or facilitate themselves) develops managerial entrepreneurialism—consisting of (a) venture ideation, (b) opportunity recognition, and (c) entrepreneurial behavior—through the intervening mechanism of a paradox mindset. As a boundary condition we uncover that paradox mindset formation partially hinges on home cultural tightness-looseness. We employ three distinct experiments on multinational samples of individual professionals (n = 506), active entrepreneurs (n = 370), and current managers in global firms (n = 288) to test our theorizing. Finding general support for our model, with analyses yielding important theoretical and practical implications from non-findings too, we conclude that a paradox mindset is a necessary, but not de facto, mediating step between cross-cultural experience and the cultivation of entrepreneurial managers. We also find that paradox mindset formation is conditional and related to home cultural tightness-looseness.

A strong critique of the international business field is that it has been “running out of steam” because IB scholars have failed to engage with emerging paradigm shifts in IB practice and management theory. IB research requires rejuvenation with timely, unique, controversial, and challenging new research questions. IB scholars need to move beyond incremental improvements to existing research agendas and focus on questions that are fundamentally new to the field. With this essay, we address four pressing topics (Buckley, Doh, & Benischke, 2017), namely: (1) the resurgence of populism, decoupling, and globalization; (2) disruptive technologies and digitalization; (3) sustainable development goals; and (4) the changing power relationships between firms, and between firms and governments. Our aim is to provide direct avenues for relevant new research that challenges the existing orthodoxy across the IB field. As part of this process, we introduce the papers in this special issue.

Criminal syndicates have been around for millennia. While some were founded to undertake cross-border activities, others have expanded internationally, evolving into sophisticated organizations that mimic multinational enterprises. The growing prevalence of criminal multinational enterprises (CMNEs) provides an opportunity to revisit international business theory, particularly internalization theory. We start by defining the CMNE, explaining its rise and interface with legitimate multinationals, and establishing similarities and differences with legitimate multinational enterprises. Then, we use the CMNE to “stress-test” the internalization theory of the multinational enterprise, set its boundaries, and offer theoretical development by way of extension, qualification, and refinement.

Existing research offers limited understanding of how foreign acquirers enhance their chance of success in cross-border acquisition (CBA) deals. Engaging and extending signaling theory, this paper argues that during the bidding stage of an acquisition deal wherein information asymmetry is heightened between the bidder and seller, reputation of foreign bidders can serve as a signal of quality, increasing their likelihood of winning a deal over domestic bidders. Importantly, this signal is only effective when there is strong nationalist sentiment in the seller's country. Analyses of 580 bidders in 275 cross-border multi-bidder acquisition contests between 1994 and 2016 support our predictions.

Mixed and inconsistent research results linking International Entrepreneurial Orientation (IEO) to international performance have led to controversies about the value of IEO as a determinant of international performance. Our research proposes a new model that considers international dynamic capabilities (IDCs) as a mediator between IEO and international performance. Cultural and institutional distance are considered as boundary conditions. Using multi-country, multi-informant, and multi-source data collected from 303 SMEs in China and Tunisia, we find that IDCs mediate the effect of SMEs' IEO on international performance, but the impacts of three IEO dimensions on IDCs vary under different institutional and cultural contexts.

Research on language diversity in international business has shown that language is a core element of one's social identity and employees in MNEs often form homophily-based clusters with those who share their native language. Such clusters can significantly influence communication and knowledge sharing processes within MNEs. However, research assumes that language-based clusters are monolithic in nature. In this study of two MNE headquarters in India, we develop a model to depict the dynamic processes by which language intersects with other salient identity attributes such as gender, regional dialects, and education to change the composition of language-based clusters and alter group dynamics and organizational processes.

This study examines the impact of soft and hard infrastructure deficiencies on foreign firms’ investments in emerging markets and firm strategies to mitigate such impact. Soft infrastructure refers to intangible components such as institutions and regulations, while hard infrastructure encompasses tangible physical components like transportation, energy systems, and water supply. Drawing on resource dependence theory, we argue that foreign firms are likely to decrease their investment scale in countries with deficient soft and hard infrastructures to reduce uncertainty. We further propose two strategies to mitigate the negative effects of infrastructure deficiencies. First, foreign firms can adopt an influencing strategy, increasing their influence on the host government to alleviate the negative impact of soft infrastructure deficiencies. Second, a shielding strategy can be employed to reduce dependence on the host government, particularly when dealing with hard infrastructure deficiencies. We analyze data from a sample of 3,341 foreign firms operating in 88 emerging economies between 2005 and 2020 and find empirical support for these arguments, highlighting the significance of infrastructural considerations for foreign investments in emerging economies.

Traditional perspectives on interstate cooperation stress its benefits in facilitating foreign direct investment (FDI) by reducing uncertainty in international operations and enhancing mutual trust between countries. Our investigation explores another side of interstate cooperation by discussing the potential risks that can emerge from it. Our fulcrum for exploring risks comes from an explicit consideration of the divergent interests that can exist between nation states and business. We focus on the phenomenon known as bilateral treaties on extradition, which enable one country to request the repatriation of fugitives or convicted criminals from another country through official cooperation. Extradition treaties extend the jurisdictional influence of a firm's home country to a host country. This mechanism can create concerns for firms when they are motivated to use FDI to escape from their home country, especially from certain emerging markets with weak institutions. We propose that emerging market firms can be motivated to circumvent host countries that have established extradition treaties with their home country. Both private-owned and state-owned enterprises can show this behavior, albeit the effect is weaker for state-owned enterprises as compared to private-owned ones. The effect is particularly strong on firms that have documented malfeasance in their home country. We test these ideas on outward FDI made by Chinese firms in 106 foreign countries during 2001–2013.