Showing papers in "Journal of East-west Business in 2016"

The Emergence of China and India in the Global Market

Abstract: Over the past 20 years, China and India have emerged as the fastest growing economies in the world. In this context, the authors review, examine, and list the factors that have contributed to the emergence of China and India (referred to as Chindia). The authors compare the antecedents, characteristics, and consequences of their emergence in the global market. This article provides insights for the researchers and multinational enterprises from rest of the world to carry out studies on country analysis as well as foreign market entry modes. Besides, we posit theoretical and testable propositions for future research.

The Impact of National Context Effects on HRM Practices in Russian Subsidiaries of Western MNCs

Abstract: This article contributes to the research on comparative human resource management by providing a model of the Russian business system and its effect on human resource management practices at Russian subsidiaries of Western multinational companies. Whitley’s approach was adopted to illustrate the links between institutional arenas, business systems, and human resource management practices. The empirical part is based on interviews with senior human resources managers of Western multinational companies operating in Russia. The findings provide insight into the interaction between the national business system and human resource management practices in Russia.

"Social Ties, Social Capital and Recruiting Managers in Transnational Ventures"

Abstract: Social capital provides access to resources; however, how migrant entrepreneurs use social capital in the recruitment of managers for their transnational ventures is less understood. The authors conducted eight in-depth interviews with transnational entrepreneurs of Indian origin in the United Kingdom and nine confirmatory interviews with managers of their transnational ventures. Findings show that transnational entrepreneurs substitute or complement international and local social capital in the recruitment of managers contingent on whether they (a) live in the United Kingdom or India and (b) use social ties in the United Kingdom or India to recruit managers. Implications for research, policy and management are discussed.

Talent Management Practices in IT Companies from Emerging Markets: A Comparative Analysis of Russia, India, and China

Abstract: In this article, the authors review talent management practices in information technology (IT) companies from Russia, India, and China, discussing their differences and similarities. Using the emerging market context, the authors debate the factors influencing talent management, specifically in IT companies. The article examines the relevant research on the main talent management issues in Russia, India, and China, and offers one of the first intercountry comparative analyses of talent management practices in IT companies from emerging markets. The authors argue that although talent management practices are influenced by different institutional and cultural factors, there are similarities and differences that can be explained by the emerging market and industry-specific contexts.

Founding Environment, Inward Internationalization, and Firm Performance: Evidence from Chinese Private Enterprises

Abstract: The Chinese economic transition from a centrally planned economy to a free market economy since 1978 has witnessed local private enterprises as underdogs. Compared with state-owned enterprises that...

The Dynamic Links Between Exports, Foreign Direct Investment, and Economic Growth: Evidence from European Transition Economies

Abstract: By applying time series and panel data cointegration analysis, this study investigates the causal relations between exports, inward FDI and GDP for fifteen European transition economies over the period 1995–2014. This study goes beyond previous empirical works by using two auxiliary variables in the aforementioned nexus: domestic investment and government spending. Empirical findings suggest that though the effect of openness is beneficial to all economies of the region, the presence of export-led growth and FDI-led growth hypotheses are validated mainly for the group of economies that entered the European Union in 2004. Conversely, for the remaining economies, the results confirm the prevalence of a culture for saving over spending, which eventually provokes the beneficial expansion of their local investment and export capacity.

What Drives Precocity? A Study of Indian Technology-Intensive Firms

Abstract: Precocity is a temporal dimension of early international orientation. This article analyzes the factors that influence precocity in the context of technology-intensive firms from India. It uses a logistic regression model to examine entrepreneurial, network, and location-specific factors and finds that firms led by young entrepreneurs with foreign education and work experience in foreign markets and experience of startups are more likely to be precocious. Location and networks also emerge as significant drivers of early internationalization. The study contributes to the literature on early internationalization for developing markets and is the starting point for an examination of the born global phenomenon for the Indian information technology industry.

Unraveling the IJV Rationale in Emerging Markets: The Case of Multinational Enterprises in the Russian Construction Industry

Abstract: This article investigates the role of international joint venture strategy of five multinational enterprises in the Russian construction market. Joint ventures play a crucial and specific role for these firms’ strategy in Russia: They serve both as an entry mode and a postentry strategy; facilitate business and guide foreign investors; increase efficiency for further strategy; and help international construction firms overcome the environmental deficiencies. Findings of the article bolster the theory by stressing the facilitating effect of joint venture upon challenges and problems that Western firms meet in emerging market in contrast with more developed economies.

Internationalization of Indian Firms: An Exploratory Study of Two Firms from the Tyre Industry

Abstract: The sustained internationalization of firms of Indian origin has held the attention of academicians and practitioners alike. India’s place in the global tyres industry is far from being a prominent one. Yet, two Indian firms have chosen radically different paths to internationalize, as per the typology proposed in the article. This article takes a case study methodology approach that brings to light the antecedents, motives, and behaviors of these two firms in their internationalization journey thus far. Findings also indicate firms initially build a strong market position via delivery capabilities, and thereafter turn to brand building, followed by the quest for input capabilities.

Employee Turnover in International Brand Hotels in Russia: A Comparison of Nationals and Foreign Nationals

Abstract: This empirical study tests the relations between employee turnover and the organizational dimensions of service climate, comparing nationals and foreign nationals in the international brand Russian hotel industry. This study extends the geographic scope of employee turnover to the undertested Russian context. Responses were analyzed using a partial least squares model. Results show that nationals’ and foreign nationals’ responses to model variables diverge. Job insecurity directly affects the turnover intentions of Russian nationals, while its effect for foreign nationals was indirect through organizational commitment and job satisfaction. Compounded indirect effects of turnover antecedents and service climate dimensions are also examined and discussed.

Human Resource Management of Japanese Companies in Hungary: How do Japanese and Hungarian Styles Blend?

Abstract: A qualitative interview-based research with 32 participating companies, this article investigates the human resource management practices of Japanese subsidiaries in Hungary. The findings indicate that human resource management practices in Hungarian subsidiaries of Japanese companies are characterized as a hybrid of Japanese and Hungarian styles. Greater Japanese influence was found in the characteristics of the human resources department, corporate culture, safety practices, and trainings, whereas greater Hungarian influence was found in pay, benefits, and recruitment methods. The findings contribute uniquely to the understanding of whether and how the country-of-origin effect, localization effect, and dominance effect interplay in configuring human resource management practices in foreign subsidiaries of multinational companies.

The Internationalization of Asian Firms: An Overview and Research Agenda

Abstract: As the field of international business has expanded and gathered momentum, it is important to study different problems associated with the internationalization phenomenon. Whenever a company ventur...

Examining the Cross-Cultural Dimensionality of Prestige Sensitivity: An Empirical Analysis of Chinese and American Millennials

Abstract: This study examines the issue of prestige sensitivity among Millennials in China and the United States. Specifically, this study examines the phenomenon to see if differences exist among Millennials between these two countries. Furthermore, the investigation is expanded to examine possible gender differences. The results are somewhat mixed. While the scale used was both reliable and valid within each country, it did not meet the standard of metric equivalence between cultures, and is thus not valid for cross-cultural comparisons between China and the United States. In addition, some Millennials were found to seek status via high prices in both cultures.

Guanxi’s Changing Nature: A Chinese Born Global’s Experience

Abstract: This article aims to show that using guanxi initially fostered a Chinese born global’s internationalization but later, restricted its decision-making freedom and resulted in the firm’s partial deinternationalization. It concludes that because of guanxi’s reciprocal nature, owners and managers should use it with caution: they should not only focus on what (knowledge, financing, contacts) they can gain but also consider what (time, services, financial resources) they are expected to contribute and what (reputation, some customers, access to financing) they can lose if their partners decide to break the guanxi as a result of of receiving less than they expected.

What Sells in Romania: Performance or Relationships?

Abstract: The norm for sales organizations is the pursuit of long-term profitability through positive relationships with key accounts. Sales professionals begin and end their activities with the customer in mind, aiming to maximize their relationships over a long period of time. This article examines the association between buyer and seller relationships and customer satisfaction as well as the association between customer service orientation and customer relationships. Findings suggest that the ability to meet customer sales service expectations as well as the existence of positive relationships between buyers and sellers is associated with customer satisfaction. Implications for managers are explored.

Divergence and Convergence of Firm-Level Best Practices: The Case of Bajaj and Hero-Honda in India’s Two-Wheeler Industry

Abstract: This article examines micro-level issues of competitive rivalry of firms and the consequent convergence of best practices. Multinational investment in developing economies is one of the means of technology inflows. If local firms have a critical level of capabilities and are able to compete with multinational firms, this can lead to convergence of best practices. This, in turn, helps local firms in a developing economy to acquire capabilities for internationalization. The issue of convergence is examined with the case of rivalry between a large local firm (Bajaj) and a giant multinational corporation (Hero-Honda) in India’s two-wheeler industry.