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Showing papers in "Journal of International Business Studies in 2020"


Journal ArticleDOI
TL;DR: The relevance of extant international business (IB) research, and more specifically work on international human resources management (IHRM), to address COVID-19 pandemic challenges is shown.
Abstract: We show the relevance of extant international business (IB) research, and more specifically work on international human resources management (IHRM), to address COVID-19 pandemic challenges. Decision-makers in multinational enterprises have undertaken various types of actions to alleviate the impacts of the pandemic. In most cases these actions relate in some way to managing distance and to rethinking boundaries, whether at the macro- or firm-levels. Managing distance and rethinking boundaries have been the primary focus of much IB research since the IB field was established as a legitimate area of academic inquiry. The pandemic has led to increased cross-border distance problems (e.g., as the result of travel bans and reduced international mobility), and often also to new intra-firm distancing challenges imposed upon previously co-located employees. Prior IHRM research has highlighted the difficulties presented by distance, in terms of employee selection, training, support, health and safety, as well as leadership and virtual collaboration. Much of this thinking is applicable to solve pandemic-related distance challenges. The present, extreme cases of requisite physical distancing need not imply equivalent increases in psychological distance, and also offer firms some insight into the unanticipated benefits of a virtual workforce - a type of workforce that, quite possibly, will influence the 'new normal' of the post-COVID world. Extant IHRM research does offer actionable insight for today, but outstanding knowledge gaps remain. Looking ahead, we offer three domains for future IHRM research: managing under uncertainty, facilitating international and even global work, and redefining organizational performance.

331 citations


Journal ArticleDOI
TL;DR: In this article, the authors reviewed the rapidly growing domain of global value chain (GVC) research by analyzing several highly cited conceptual frameworks and then appraising GVC studies published in such disciplines as international business, general management, supply chain management, operations management, economic geography, regional and development studies, and international political economy.
Abstract: This article reviews the rapidly growing domain of global value chain (GVC) research by analyzing several highly cited conceptual frameworks and then appraising GVC studies published in such disciplines as international business, general management, supply chain management, operations management, economic geography, regional and development studies, and international political economy. Building on GVC conceptual frameworks, we conducted the review based on a comparative institutional perspective that encompasses critical governance issues at the micro-, GVC, and macro-levels. Our results indicate that some of these issues have garnered significantly more scholarly attention than others. We suggest several future research topics such as microfoundations of GVC governance, GVC mapping, learning, impact of lead firm ownership and strategy, dynamics of GVC arrangements, value creation and distribution, financialization, digitization, the impact of renewed protectionism, the impact of GVCs on their macro-environment, and chain-level performance management.

223 citations


Journal ArticleDOI
TL;DR: A review and critique of the 20-year-old literature on institutional distance, which has greatly proliferated, can be found in this article, where three institutional perspectives have served as a theoretical foundation for this construct: organizational institutionalism, institutional economics, and comparative institutionalism.
Abstract: This paper presents a review and critique of the 20-year-old literature on institutional distance, which has greatly proliferated. We start with a discussion of the three institutional perspectives that have served as a theoretical foundation for this construct: organizational institutionalism, institutional economics, and comparative institutionalism. We use this as an organizing framework to describe the different ways in which institutional distance has been conceptualized and measured, and to analyze the most common organizational outcomes that have been linked to institutional distance, as well as the proposed explanatory mechanisms of those effects. We substantiate our qualitative review with a meta-analysis, which synthesizes the main findings in this area of research. Building on our review and previous critical work, we note key ambiguities in the institutional distance literature related to underlying theoretical perspectives and associated mechanisms, distance versus profile effects, and measurement. We conclude with actionable recommendations for improving institutional distance research.

160 citations


Journal ArticleDOI
TL;DR: In this article, the authors identify and organize theoretical and empirical research on subsidiary management based on over 600 articles in leading academic journals and develop a conceptual framework that integrates complementary streams of theoretical and empirically supported research with the subsidiary as its focal unit of analysis.
Abstract: Multinational enterprise (MNE) subsidiaries abroad are important organizations in their own rights. They typically hold some of the MNE’s most critical resources, and operate at the forefront of complex international environments. In this review, we identify and organize theoretical and empirical research on subsidiary management based on over 600 articles in leading academic journals. We develop a conceptual framework that integrates complementary streams of theoretical and empirical research with the subsidiary as its focal unit of analysis. In particular, we review six lines of research on subsidiary scope, practices, knowledge management, engagement with local market and nonmarket actors, performance, and individuals within subsidiaries. We highlight theoretical perspectives that have contributed to, and been advanced by, research on MNE subsidiaries. Based on the review, we explore future research agendas, linking the contemporary research themes with two main thrusts. First, subsidiary management is a multi-level phenomenon that would benefit from more microfoundational research. Second, subsidiary management operates at key interfaces of technology paradigm shifts, and of disruptions in the political and institutional environment. Research into the dynamics of subsidiary management would thus enhance our understanding of international business in a volatile global economy.

156 citations


Journal ArticleDOI
TL;DR: In this article, the authors introduce IB scholars to contemporary configurational thinking and its analytical tool, fuzzy-set qualitative comparative analysis (fsQCA), and present a wide range of IB phenomena where it could be usefully applied.
Abstract: International business (IB) researchers have been slow to embrace a configurational approach in hypothesis formulation and empirical analysis. Yet, much of what IB scholars study is inherently configurational: various explanatory factors and their interplay simultaneously determine the outcome(s) studied, such as governance choice or firm-level performance. The mismatch between the nature of the empirical phenomena studied on the one hand, and hypothesis formulation and empirical methods deployed on the other, explains why many quantitative empirical studies in IB are overly reductionist, relying on hypotheses that assume linear (or simple, curvilinear), unifinal, and symmetrical effects. In this Editorial, we introduce IB scholars to contemporary configurational thinking and its analytical tool, fuzzy-set qualitative comparative analysis (fsQCA). We discuss this tool’s main tenets, advantages, and disadvantages. We review the limited prior IB research using this approach and present a wide range of IB phenomena where it could be usefully applied. We propose that contemporary configurational thinking and fsQCA can help scholars produce insights more closely aligned with the complex realities of international business than conventional research approaches.

151 citations


Journal ArticleDOI
TL;DR: The authors investigated the role of firms' institutional embeddedness in terms of age and affiliation to business group on their aggressive internationalization pursuit, an issue which has remained less explored in international business scholarship.
Abstract: According to the springboard perspective, emerging market multinationals seek strategic assets aggressively from the outset. In this paper, we investigate the role of firms’ institutional embeddedness in terms of age and affiliation to business group on their aggressive internationalization pursuits, an issue which has remained less explored in international business scholarship. This study, based on 8163 Indian listed firms over 18 years, identifies a trend that younger firms founded in the liberalized era, post 1991, and unaffiliated firms are more likely to pursue aggressive internationalization by conducting their first cross-border acquisition (CBA) faster. Among affiliated firms, younger ones are relatively faster in conducting their first CBA. Furthermore, the evidence signals a moderating impact of inter-group heterogeneity in terms of group-level assets and foreign investments on the relationship between firm age and aggressive internationalization.

131 citations


Journal ArticleDOI
TL;DR: In this article, a review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by multinational enterprises to more comprehensive frameworks, wherein established MNEs from advanced economies still play a pivotal role, but new players and places also emerge in the global generation and diffusion of knowledge.
Abstract: Internationalization of R&D and innovation by multinational enterprises (MNEs) has undergone a gradual and comprehensive change in perspective over the past 50 years. From sporadic works in the late 1950s and in the 1960s, it became a systematically analyzed topic in the 1970s, starting with pioneering reports and “foundation texts”. Our review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by MNEs to more comprehensive frameworks, wherein established MNEs from advanced economies still play a pivotal role, but new players and places also emerge in the global generation and diffusion of knowledge. Hence, views of R&D internationalization increasingly rely on concepts, ideas, and methods from IB and other related disciplines such as industrial organization, international economics, and economic geography. Two main findings are highlighted. First, scholarly research pays increasing attention to the network-like characteristics of international R&D activities. Second, different streams of literature have emphasized the role of location-specific factors in R&D internationalization. The increasing emphasis on these aspects has created new research opportunities in some key areas, including inter alia: cross-border knowledge-sourcing strategies, changes in the geography of R&D and innovation, and the international fragmentation of production and R&D activities.

123 citations


Journal ArticleDOI
TL;DR: In this paper, the authors revisited their theorizing as it relates to firms that had only begun to emerge when Johanson and Vahlne published their award-winning paper: born digitals, and addressed how technological affordances, especially direct engagement with stakeholders, automation, network effects, flexibility and scalability, affect the internationalization of born digital firms.
Abstract: Johanson and Vahlne (J Int Bus Stud 40(9):1411–1431, 2009) articulate various theoretical mechanisms underpinning the internationalization process; mechanisms they suggest are pertinent across firm type. Their argument builds on their earlier publications and, in this spirit, we consider Johanson and Vahlne (2009) in the contemporary context of digital firms. In particular, we revisit their theorizing as it relates to firms that had only begun to emerge when Johanson and Vahlne published their award-winning paper: born digitals. We address how technological affordances, especially direct engagement with stakeholders, automation, network effects, flexibility and scalability, affect the internationalization of born digitals. We also develop a future agenda for international business research on born digital firms.

116 citations


Journal ArticleDOI
TL;DR: In this paper, the authors focus on the need to view EMF internationalization as deeply situated in multifaceted contextual influences, as influenced by path dependence and as manifested in practice.
Abstract: The growth of outward foreign direct investment from emerging markets has led to increased scholarly attention on the internationalization of emerging market firms (EMFs). We break from the recent strategic approach on internationalizing EMFs to develop a problematization approach, which permits us to introduce a geographic relational perspective. We use this perspective to highlight process thinking, complex social realities, and relational practice as means by which to better develop theory on the internationalization of EMFs. Our emergent approach emphasizes the need to view EMF internationalization as deeply situated in multifaceted contextual influences, as influenced by path dependence and as manifested in practice. These three relational tenets (contextuality, path dependence, and practice) are central to our geographic relational approach’s ability to generate new challenging research questions for understanding EMF internationalization. Consequently, we add novelty to the international business domain by bringing space and process to the forefront of the EMF research agenda.

85 citations


Journal ArticleDOI
TL;DR: The authors explored insufficient and inappropriate treatment of collinearity and use simulations to illustrate the potential impact on results, and also showed how IB researchers doing quantitative work can avoid collunearity issues that lead to spurious and unstable results.
Abstract: Collinearity between independent variables is a recurrent problem in quantitative empirical research in International Business (IB). We explore insufficient and inappropriate treatment of collinearity and use simulations to illustrate the potential impact on results. We also show how IB researchers doing quantitative work can avoid collinearity issues that lead to spurious and unstable results. Our six principal insights are the following: first, multicollinearity does not introduce bias. It is not an econometric problem in the sense that it would violate assumptions necessary for regression models to work. Second, variance inflation factors are indicators of standard errors that are too large, not too small. Third, coefficient instability is not a consequence of multicollinearity. Fourth, in the presence of a higher partial correlation between the variables, it can paradoxically become more problematic to omit one of these variables. Fifth, ignoring clusters in data can lead to spurious results. Sixth, accounting for country clusters does not pick up all country-level variation.

70 citations


Journal ArticleDOI
TL;DR: In this paper, the Uppsala model is applied to a number of different IB issues, most notably the process of globalization, which is best understood as a driver of the evolution of the multinational business enterprise (MBE).
Abstract: In our award-winning 2009 article, we further developed the model that we originally presented in 1977. We observed that firms form relationships and that those relationships become networks, and thus in the end the business macro environment consists of networks of relationships between firms. Those relationships have far-reaching consequences, especially in terms of opportunity recognition and development. Since 2009, we have applied the Uppsala model to a number of different IB issues, most notably the process of globalization, which we believe is best understood as a driver of the evolution of the multinational business enterprise (MBE). We suggest that our model can still be improved further by recognizing the general psychological characteristics of managers, for instance, what makes them tend to shy away from radical change and to prefer instead an incremental approach? What does this mean for internationalization? Generally, we think that the closer our assumptions are to reality, the better the resulting model.

Journal ArticleDOI
TL;DR: In this paper, a meta-analysis revealed that supervisor transformational leadership is positively related to individual-and team-level innovation regardless of national boundaries, however, the relationship trended somewhat more strongly in countries with higher levels of uncertainty avoidance.
Abstract: Transformational leadership is commonly assumed to facilitate employee innovation in all cultures. Drawing upon field studies from 17 countries, this meta-analysis revealed that supervisor transformational leadership is positively related to individual- and team-level innovation regardless of national boundaries. However, the relationship trended somewhat more strongly in countries with higher levels of uncertainty avoidance. These findings suggest that employee innovation in most countries can be enhanced by investing in supervisor transformational leadership, but organizations operating in countries with higher levels of uncertainty avoidance may benefit more from this strategy.

Journal ArticleDOI
TL;DR: In this article, the authors analyzed methodological trends in empirical research in JIBS from 1970 to 2019 and found that there has been an increase in the use of large-scale longitudinal, cross-national datasets, complex analytical techniques, including the incorporation of multiple analytical techniques within the same study, but a decline in the diversity of methods in use.
Abstract: We analyze methodological trends in empirical research in JIBS from 1970 to 2019. Our results point to the prevalence of the following patterns: there has been an increase in the use of (1) large-scale longitudinal, cross-national datasets, (2) complex analytical techniques, including the incorporation of multiple analytical techniques within the same study, but (3) a decline in the diversity of methods in use. We relate these trends to the underlying social, technical, and communicative conventions in the journal during the 50-year period. The observed patterns are consistent with theory that posits scientific fields entrench a dominant paradigm over time, resulting in a restricted set of methodological options being selected. Such restrictions jeopardize the quality of research because the study of any phenomenon requires the use of multiple methodological procedures to avoid the systematic biases, errors, omissions, and limitations introduced by any single option. Therefore, we propose the use of triangulation as a strategy for building methodological alternatives into research designs. Institutionalization of this principle in the field of international business has the potential to enhance both the rigor and scope of future inquiry.

Journal ArticleDOI
TL;DR: In this paper, a model describing how multinational enterprises from emerging economies (EMNEs) overcome the liability of outsidership in their internationalization from a capability-building perspective was developed and discussed.
Abstract: This paper develops and discusses a model describing how multinational enterprises from emerging economies (EMNEs) overcome the liability of outsidership in their internationalization from a capability-building perspective. Our aim is to celebrate the important intellectual contribution of Johanson and Vahlne (J Int Bus Stud 40(9):1411–1431, 2009), who introduced the liability of outsidership concept. We first discuss learning from the local environment that can reduce outsidership, and then explain how greater absorptive capacity can translate into better performance internationally. Finally, we elaborate on how the institutional environment further conditions the process and the outcomes of learning. We conclude with some suggestions for future research from five theoretical perspectives: learning, social network theory, institutional theory, resource dependence theory, and MNE structure and design.

Journal ArticleDOI
TL;DR: Approaches to new IB theory are developed, addressing the interdependencies of MNEs and city-regions that are a crucial avenue for future research, and two generic MNE strategies are contrasted.
Abstract: Much of the rising international connectedness of city-regions has developed from MNEs replacing local connections with (superior) international ones. This often creates local disconnectedness that energizes the current populist backlash against MNE activities. We develop approaches to new IB theory, addressing the interdependencies of MNEs and city-regions that we propose as a crucial avenue for future research. We contrast two generic MNE strategies. The first is the traditional one: the 'global orchestration' of resources and markets. We argue that it exacerbates local disconnectedness. The second, that we call 'local spawning,' involves engaging with the local entrepreneurial eco-system to create and renew local connectedness, diffusing populist responses. Some MNEs are better able to implement a local spawning strategy, due to industry factors like innovation clock-speed, and firm characteristics like organizational path dependency. Finally, we distinguish between disconnection, which is an outcome of MNE strategy, and global disruptions, like the coronavirus (COVID-19) pandemic, which are primarily stochastic events. Addressing disconnections requires MNEs to re-orient their strategies while dealing with disruptions requires undertaking risk mitigation. We present empirical evidence from city-regions around the world to illustrate our theory.

Journal ArticleDOI
TL;DR: The authors introduced the construct of family business legitimacy and an associated index (FBLI) to capture the effect of informal institutional embeddedness of organizations and family business and empirically measured FBLI scores for 83 countries spanning both developed and emerging economies.
Abstract: Family-controlled firms (FCFs)’ prevalence, strategies, and performance differ across countries. We explain these differences through the lens of informal institutions, suggesting that different countries have different levels of appreciation for family business. To capture this effect, we introduce the construct of family business legitimacy (FBL) and an associated index (FBLI). We empirically measure FBLI scores for 83 countries spanning both developed and emerging economies. By combining meta-analytic and archival data, we show that FCFs prevail, follow unique strategies, and outperform non-FCFs in countries with high FBLI scores. As a new contingency variable, FBL advances the literature on the informal institutional embeddedness of organizations and family business.

Journal ArticleDOI
TL;DR: In this article, the authors provide a brief overview of network research in the IB domain to give a sense of some of the major ongoing themes and to illustrate how the social network approach can provide fresh insights and add substantive value to the field.
Abstract: Insights from social network research have generated significant advancements in disciplines such as sociology, economics, and psychology. In comparison, the incorporation of social network ideas into international business (IB) research remains more limited. The purpose of this special issue is to foster further research on social networks in IB. In our introductory essay, we provide a brief overview of network research in the IB domain to give a sense of some of the major ongoing themes and to illustrate how the social network approach can provide fresh insights and add substantive value to the field. To emphasize the considerable potential of using social network theories and ideas to advance research and understanding in IB, we also indicate some future directions. We follow these with a summary of the five articles in the special issue.

Journal ArticleDOI
TL;DR: Complexity is viewed as the underlying cause of the unique methodological challenges facing international business research and several recommendations are offered to help IB scholars embrace this complexity and conduct reliable, interesting, and practically relevant research.
Abstract: International business (IB) research is designed to explore and explain the inherent complexity of international business, which arises from the multiplicity of entities, multiplexity of interactions, and dynamism of the global economic system. To analyze this complexity, IB scholars have developed four research lenses: difference, distance, diversity, and disparity. These four lenses on complexity have created not only unique research opportunities for IB scholarship but also unique research methodological challenges. We therefore view complexity as the underlying cause of the unique methodological challenges facing international business research. We offer several recommendations to help IB scholars embrace this complexity and conduct reliable, interesting, and practically relevant research.

Journal ArticleDOI
TL;DR: In this article, the authors investigated the factors that are associated with a higher propensity to co-locate production and R&D activities abroad and found that the strength of the co-location effect is highly heterogeneous across firms.
Abstract: The literature has highlighted that the propensity of MNEs to co-locate offshore R&D labs with their production plants can vary substantially according to firm and industry characteristics. In this paper, we apply a novel two-stage estimation procedure that allows us to tease out this heterogenous behavior and investigate the factors that are associated with a higher propensity to co-locate production and R&D activities abroad. Using data on 1483 greenfield international investments in R&D activities made by 855 firms in 587 cities worldwide, we uncover that the strength of the co-location effect is indeed highly heterogenous across firms. In particular, it is higher among firms with less international experience and geographical dispersion of international activities, as well as with a lower share of intangible assets. These results are consistent with the idea that co-location is a substitute for firms’ ability to coordinate complex and dispersed organizational structures, and that firms relying relatively less on codified knowledge can use co-location of offshore R&D and production to facilitate knowledge transfer across activities.

Journal ArticleDOI
TL;DR: The Uppsala Model has served as a theoretical underpi... as discussed by the authors, typically viewed as an internationalization process model, internationalization stages model, or a sequential internationalization model.
Abstract: The Uppsala Model - typically viewed as an internationalization process model, an internationalization stages model, or a sequential internationalization model - has served as a theoretical underpi ...

Journal ArticleDOI
TL;DR: The authors found that the institutions associated with economic freedom in combination with the cultural trait long-term orientation positively influences CSR practices, and found that longterm orientation at both the level of the society and at the levels of the company can positively influence CSR practice.
Abstract: Studies of international differences in firm behavior tend to consider either institutional or cultural factors. Focusing on corporate social responsibility (CSR), we conjecture that not only both institutions and culture need to be taken into account, but also the interaction between these two sets of factors. We theorize that the institutions associated with economic freedom in combination with the cultural trait long-term orientation positively influences CSR practices. Panel data of 5023 companies from 41 countries confirm this expectation. This finding pertains both to long-term orientation at the level of the society and at the level of the company. Our findings support calls for more attention to interactive effects of cultures and institutions.

Journal ArticleDOI
TL;DR: In this article, the authors combine after-action review and needs assessment frameworks to describe the four most pervasive contemporary methodological challenges faced by international business researchers, as identified by authors of Journal of International Business Studies articles: psychometrically deficient measures, idiosyncratic samples or contexts, less-than-ideal research designs and insufficient evidence about causal relations.
Abstract: We combine after-action review and needs-assessment frameworks to describe the four most pervasive contemporary methodological challenges faced by international business (IB) researchers, as identified by authors of Journal of International Business Studies articles: Psychometrically deficient measures (mentioned in 73% of articles), idiosyncratic samples or contexts (mentioned in 62.2% of articles), less-than-ideal research designs (mentioned in 62.2% of articles), and insufficient evidence about causal relations (mentioned in 8.1% of articles). Then, we offer solutions to address these challenges: demonstrating why and how the conceptualization of a construct is accurate given a particular context, specifying whether constructs are reflective or formative, taking advantage of the existence of multiple indicators to measure multi-dimensional constructs, using particular samples and contexts as vehicles for theorizing and further theory development, seeking out particular samples or contexts where hypotheses are more or less likely to be supported empirically, using Big Data techniques to take advantage of untapped sources of information and to re-analyze currently available data, implementing quasi-experiments, and conducting necessary-condition analysis. Our article aims to advance IB theory by tackling the most typical methodological challenges and is intended for researchers, reviewers and editors, research consumers, and instructors who are training the next generation of scholars.

Journal ArticleDOI
TL;DR: This paper suggests that a reappraisal of theory is required, not least because of the eruption of Covid-19, but that internalization theory is the best source of theoretical restructuring in the face of the new empirical realities facing the global economy.
Abstract: Petricevich and Teece's (2019) article on the reshaping of globalization raises profound issues on the theory and empirics of international business. The fracture in the world economy between the USA and China is the result of Government policy, but its relationship to rising VUCA (volatility, uncertainty, complexity, and ambiguity) elements in globalization is more complex than simple policy changes. This paper suggests that a reappraisal of theory is required, not least because of the eruption of Covid-19, but that internalization theory is the best source of theoretical restructuring in the face of the new empirical realities facing the global economy.


Journal ArticleDOI
TL;DR: In this paper, the authors developed a model showing the interplay of multiple tensions and management approaches to address them in a Latin American Multinational Hybrid Organization (MLMHO). And they added to the literature on hybridity in multinational organizations by pointing out how regional differences between units of a single organization unfold.
Abstract: While all multinational organizations face the challenge of managing tensions between local integration and global responsiveness, they are increasingly required to pursue additional, often paradoxical, objectives – such as social and commercial goals. However, we know little about how these tensions at the core of the MNC strategy interact. Based on an inductive qualitative study of four headquarters–subsidiary relationships in a Latin American Multinational Hybrid Organization, we develop a model showing the interplay of multiple tensions and management approaches to address them. This allows us to contribute to research on subsidiary roles, which we found to differ depending on how multiple tensions are addressed. Furthermore, we add to the literature on hybridity in multinational organizations by pointing out how regional differences between units of a single organization unfold. Finally, we provide some practical recommendations for the management of multinational hybrid organizations.

Journal ArticleDOI
TL;DR: In this paper, the authors meta-analyze relationships of perceived organizational support with attitudinal and behavioral outcomes in Western (i.e., horizontal-individualistic) and Eastern (e.g., vertical-collectivistic) cultures.
Abstract: The authors meta-analyze relationships of perceived organizational support (POS) with attitudinal and behavioral outcomes in Western (i.e., horizontal-individualistic) and Eastern (i.e., vertical-collectivistic) cultures. The social-exchange perspective suggests that POS effects are stronger in Western cultures because employees are more likely to see the self as independent and understand their relationship with the organization in terms of reciprocity. However, the social-identity perspective suggests that POS effects are stronger in Eastern cultures because employees are more likely to see the self as interdependent and are more attuned to organizational support as an identity-related cue. Addressing these competing hypotheses, meta-analytic results from 827 independent samples (n = 332,277) across 54 countries show support for both perspectives. In the West, POS was more strongly associated with social-exchange processes than organizational-identification processes. In contrast, In the East, POS was more strongly associated with organizational-identification processes than social-exchange processes. Overall, POS was more strongly related to job attitudes and performance in the East than in the West. Cultural differences in POS effects on attitudinal outcomes were found to be increasing over time. We discuss the implications of these findings for organizational-support theory and research.

Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of network centrality on firm's internationalization behavior within the ISA domain in response to the performance-aspiration gap and built on social and behavioral perspectives to predict that network centralities and performance-based aspirations will be associated with the number of ISA the firm engages in.
Abstract: Whereas social network analysis has been associated with organizational aspirations, little is known on how firm’s structural positioning, and particularly network centrality, affects organizational aspirations to engage in international strategic alliances (ISA). This study examines the impact of network centrality on firm’s internationalization behavior within the ISA domain in response to the performance–aspiration gap. We build on social and behavioral perspectives to predict that network centrality and performance-based aspirations will be associated with the number of ISA the firm engages in. Using a sample of 7760 alliance collaborations from the top 81 global pharmaceutical firms for the period of 1991–2012, we find supporting evidence for most of our arguments.

Journal ArticleDOI
TL;DR: In this paper, the authors reveal the financial performance implications of the speed at which Chinese multinational enterprises (CMNEs) expand into intra-regional versus interregional host countries, and propose a framework that integrates internationalization speed and home regionalization literatures.
Abstract: Our study reveals the financial performance implications of the speed at which Chinese multinational enterprises (CMNEs) expand into intra-regional versus inter-regional host countries. In doing so, we propose a framework that integrates internationalization speed and home regionalization literatures. Using data from 767 publicly listed CMNEs from the years 2002 to 2014, we discover that the faster the intra-regional internationalization, the better the firm’s financial performance, whereas faster inter-regional internationalization demonstrates a poorer financial performance. We also find that fast-mover CMNEs’ technological and marketing resources are valuable in intra-regional host countries, but vulnerable in inter-regional host countries. We discuss the implications of these findings for studies of the Uppsala internationalization process model and regional MNEs.

Journal ArticleDOI
TL;DR: This paper developed a typology that takes into account not only complementarity of capabilities but also the compatibility of intent between MNEs (exploration vs. exploitation) and SMEs (international vs. domestic orientation).
Abstract: Although international business scholars have begun to recognize the division of entrepreneurial labor between MNEs and SMEs, there is a fragmented understanding of the different forms MNE–SME cooperation can take. We develop a typology that takes into account not only complementarity of capabilities but also, crucially, the compatibility of intent between MNEs (exploration vs. exploitation) and SMEs (international vs. domestic orientation). The framework offers a novel way to understand the forms and dynamics of MNE–SME cooperation. We also show how it can be applied more broadly, by considering its application to societal challenges, such as achieving the United Nations’ Sustainable Development Goals.

Journal ArticleDOI
TL;DR: This paper examined the impact of country-dyadic military conflicts on market reaction to cross-border acquisitions and found that military conflicts reduce acquirer returns following CBA announcements and cultural similarity between acquirer and target countries weakens the relationship between military conflicts and market reaction.
Abstract: Our work examines the impact of country-dyadic military conflicts on market reaction to cross-border acquisitions (CBAs). Building on intergroup relations research, we theorize that country-dyadic military conflicts, weighted by their severity, trigger intergroup conflicts between the merging firms and, in so doing, hamper market reaction to CBA. Drawing on a sample that comprises 7321 CBAs between 1988 and 2011, we find that country-dyadic military conflicts reduce acquirer returns following CBA announcements and that cultural similarity between acquirer and target countries weakens the relationship between military conflicts and market reaction to CBA while colonial ties between the countries, the target country’s national pride, and the target’s firm size reinforce the relationship. Our study contributes to an emerging body of work that examines the role of international politics/relations in international business.