scholarly journals Revisiting the “matching managers to strategy” argument in the context of a firm’s internationalisation strategy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Szymon Kaczmarek ◽  
Richard B. Nyuur
Keyword(s):  
Multinational Corporations ◽  
Quantitative Methods ◽  
Ordinary Least Squares ◽  
Host Countries ◽  
Content Type ◽  
Cultural Fit ◽  
Matching Process ◽  
Internationalisation Strategy ◽  
Detailed Specification ◽  
Empirical Context

Purpose This paper aims to revisit the long-standing in the management literature argument of “matching managers to strategy” in the new empirical context of the top management team (TMT) and firm internationalisation. The purpose of this paper is to examine the consequences of matching nationalities of the TMT members to the multinational corporations’ (MNC) countries of operation. Design/methodology/approach This research is based on the quantitative methods. The authors use the traditional regression analysis, with the ordinary least squares estimation, in the moderated multiple regression models. Findings The study findings point to the importance of the asset-based exposure to international environments for the benefits of the TMT nationality matching to materialise. They re-affirm the critical remarks on the early “matching managers to strategy” frameworks, which indicated that the effectiveness of matching is underpinned by the detailed specification of the matching contingencies that influence the matching process. Originality/value The measure of matching the TMT foreign nationals to the MNCs’ host countries constitutes a novel way of capturing the TMT internationalisation, as opposed to measuring the incidence of foreigners on the TMTs or the TMT nationality diversity variable. It therefore underlines the aspect of matching in terms of the cultural fit between the TMT nationalities and countries of MNCs’ operations.

The dilemma of institutional duality and multinational firms 1967-2017

2018 ◽  
Vol 26 (2) ◽  
pp. 145-172 ◽  
Author(s):  
Akiebe Humphrey Ahworegba
Keyword(s):  
Multinational Corporations ◽  
Design Methodology ◽  
Multinational Firms ◽  
Management Approach ◽  
Institutional Pressures ◽  
Host Countries ◽  
Content Type ◽  
External Pressures ◽  
Institutional Contexts ◽  
Institutional Duality

Purpose The purpose of this paper is to improve the understanding of the dilemma of institutional duality (ID) confronting multinational corporations and to propose a workable solution for this problem. Design/methodology/approach The author has searched the literature using several terms directly related to the dilemma of ID and multinational firms. Findings The findings reveal that to attain “legitimacy”, subsidiaries strive to balance institutional pressures stemming from external environments in the host country and their parent organizations. Understanding institutional theories of multinational corporations enables the subsidiaries to manage external pressures. ID impact varies among subsidiaries, depending on institutional contexts and internal strategies of subsidiaries. Originality/value An “institutional duality incidence model” portraying how dual institutions make “legitimacy” problematic for subsidiaries is proposed. A framework for identifying factors generating ID dilemma and their management approach is also proposed. It is concluded that a multinational corporation that recognizes ID as a central concern is more likely to achieve and maintain a higher level of harmony with its subsidiaries and host countries.

An investigation of Confucius Institute’s effects on China’s OFDI via cultural difference and institutional quality

2020 ◽  
Vol 14 (3) ◽  
pp. 241-263
Author(s):  
Chensheng Xu ◽  
Feng Yao ◽  
Fan Zhang ◽  
Yonghong Wang
Keyword(s):  
Host Country ◽  
Cultural Difference ◽  
Institutional Quality ◽  
Cultural Exchange ◽  
Ordinary Least Squares ◽  
Study Strategies ◽  
Potential Interaction ◽  
Host Countries ◽  
Content Type ◽  
The Impact

Purpose This study aims to investigate the influence of the Confucius Institute (CI) on outward foreign direct investment (OFDI) by China and its potential interaction with cultural difference and institutional quality in host countries. Design/methodology/approach In the empirical study, the gravity model is adopted as the benchmark to investigate the effects of CI on China's OFDI using the ordinary least squares or Poisson Pseudo Maximum Likelihood estimators. Panel data on China's OFDI from 2004 to 2015 are used. Cultural difference and institutional quality are included explicitly as control variables to examine the effects of CI on China's OFDI. Findings CI has a significant positive effect on China’s OFDI, and this effect depends on the cultural difference and institutional quality of the host country. The impact of CI on China’s OFDI is more prominent in host countries with a smaller cultural difference or lower institutional quality. Originality/value CI is a comprehensive platform for foreign cultural exchange and signifies the rebirth of Confucianism in China. The present study shows that CI can stimulate the growth of China’s OFDI, with implications for other Asian countries influenced by Confucianism. Based on the results of the study, strategies for “Going Global” and encouraging economic growth based on cultural exchange and the recognition of host country heterogeneities are proposed.

How do formal and informal institutional distance affect the reverse knowledge spillover of Chinese MNCs?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yi She ◽  
Jin Hong ◽  
Chuwei Ji
Keyword(s):  
Multinational Corporations ◽  
Knowledge Spillovers ◽  
Positive Impact ◽  
Innovation Performance ◽  
Parent Company ◽  
Practical Significance ◽  
Host Countries ◽  
Content Type ◽  
Chinese Mncs ◽  
The Impact

PurposeThis study examines the impact of outward foreign direct investment (OFDI) of Chinese multinational corporations (MNCs) and formal and informal institutional distances between the home and host countries on the innovation performance of parent company.Design/methodology/approachThis study uses panel data to conduct an empirical analysis on the data of 59 mature Chinese MNCs and their 872 overseas subsidiaries over the past 11 years and draws interesting results.FindingsResults show that OFDI and formal and informal institutional distances between countries exert a significant positive impact on the innovation performance of the parent company and formal and informal institutional distances negatively moderate the impact between OFDI and the parent company's innovation performance.Originality/valueAlthough international business research pays increasing attention to transnational differences in institutions and cultures, research on the relationship between technology spillover and distance is relatively limited. In addition, few studies consider the impact of FID and IFID on transnational reverse knowledge spillovers. This research fills these research gaps, and the conclusions have certain practical significance for multinational companies.

When does emotional intelligence function better in enhancing expatriates' cross-cultural adjustment? A study of Japanese PCNs in Malaysia

2020 ◽  
Vol 8 (1) ◽  
pp. 67-84 ◽  
Author(s):  
Jessica Marie Arokiasamy ◽  
Soyeon Kim
Keyword(s):  
Emotional Intelligence ◽  
Multinational Corporations ◽  
Cultural Adjustment ◽  
Cross Cultural ◽  
Business Success ◽  
Host Countries ◽  
Content Type ◽  
Expatriate Management ◽  
Positive Effect

PurposeAs globalization expands opportunities for foreign investments, the role of expatriates is becoming important for business success in host countries. Cross-cultural adjustment (CCA) of expatriates is considered significant in determining business success in host countries. This study investigated the issue among Japanese expatriates in Malaysia. The purposes of this study were to unravel the influence of emotional intelligence (EI) on CCA and clarify the facilitating role of cultural intelligence (CI) on the relationship between EI and CCA.Design/methodology/approachA survey was administered to 107 Japanese parent country nationals (PCNs) working at Japanese subsidiaries in Malaysia.FindingsThe findings show that EI positively influences the subdimensions of CCA, namely, CCA–general, CCA–social and CCA–work. A notable finding is that CI facilitates the positive effect of EI on CCA–social.Research implicationsThe findings advance the existing studies on expatriate management by delving into the CCA issue with two culturally distinctive countries that have rarely been studied in this research domain, Japan and Malaysia. This study further contributes to prior studies by clarifying a boundary condition in which EI functions better in enhancing expatriates' CCA.Practical implicationsThe findings provide Japanese multinational corporations (MNCs) valuable directions and strategic ideas in the realm of expatriate management. Such insights can contribute to business success in host countries.Originality/valueDiverting from the conventional West–East approach in expatriate management studies, this study took an East–East orientation and explored the relationships among EI, CI and CCA. By proving that CI stimulates the positive effect of EI on CCA, this study underlines the significantly interactive effects of two distinctive individual capabilities on enhancing expatriates' CCA. It further highlights that CI should take on importance in attempts to understand CCA, even in seemingly culturally similar East–East nations.

scholarly journals Role of entrepreneurial education in nurturing entrepreneurial orientation among engineering students

2020 ◽  
Vol 14 (2) ◽  
pp. 139-149
Author(s):  
Sujiv Nair ◽  
Sushmitha Sundar ◽  
Ganesh Mangadu Paramasivam
Keyword(s):  
Student Performance ◽  
Entrepreneurial Orientation ◽  
Engineering Students ◽  
Ordinary Least Squares ◽  
Entrepreneurial Firms ◽  
College Level ◽  
Entrepreneurial Education ◽  
Content Type ◽  
Management Concepts ◽  
Empirical Context

Purpose The purpose of this paper is to understand whether entrepreneurial education imbibes entrepreneurial orientation (EO) among engineering students. The authors wanted to test whether students’ performance in the Technology Entrepreneurship Programme (TEP) influences the propensity of entrepreneurial firms to hire them. Design/methodology/approach Data was collected from 1,296 students who were enrolled with the two-year TEP during the academic year 2016–2018 using structured questionnaires. Multinomial and Ordinary Least Squares regressions were used to examine the hypotheses. Findings The findings of this study suggest that superior student performance in the programme is positively correlated with the students being hired by entrepreneurial firms. Practical implications This study identifies aspects of EO that relates with employability. The positive relationship found between student performance in the programme and chances of getting hired insists on the need to inculcate entrepreneurial values among students at the college level. The findings will also provide valuable insights for graduate entrepreneurs, policymakers, corporates and educators on multiple dimensions for customizing EO among students during their study at college level. Originality/value The authors used a live intervention titled TEP as empirical context to explore how training in entrepreneurial, design and management concepts influences EO. The authors also tracked the success of the programme through actual job offers made to the participants of the programme.

Transparency and foreign direct investment into Sub-Saharan Africa

2014 ◽  
Vol 5 (2) ◽  
pp. 146-159 ◽  
Author(s):  
Olusegun Felix Ayadi ◽  
Solabomi Ajibolade ◽  
Johnnie Williams ◽  
Ladelle M. Hyman
Keyword(s):  
Multinational Corporations ◽  
Sub Saharan Africa ◽  
Host Countries ◽  
African Countries ◽  
Content Type ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Sub Saharan ◽  
Long Run Equilibrium

Purpose – The financial economics literature points to the likelihood that transparency affects the inflows of direct foreign investments. The purpose of this paper is to examine the relationship between degree of transparency in an economy and the level of foreign direct investment (FDI) inflows using cross-section and time series data from 13 Sub-Saharan African countries from 1998 through 2008. Design/methodology/approach – The paper employed a panel unit root and panel cointegration tests to data from 13 Sub-Saharan countries from 1998 through 2008. The long-run equilibrium relationship is estimated by the fully modified ordinary least squares (FMOLS) method. The cointegration framework employed in this study accounts for individual as well as time effects by adjusting for potential heterogeneity and serial correlation existing in the data panel. Findings – The results imply that the level of transparency and size of FDI inflows into Sub-Saharan Africa have a long-run equilibrium relationship. Research limitations/implications – The role of multinational corporations in increasing the levels of corruption in host countries is supported in this study. Practical implications – The role of multinational corporations in contributing to the absence of transactional transparency in host countries is supported in this study. The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions should be endorsed by African countries. African countries should make efforts to transform their domestic political and economic environments in order to enhance transparency and allow rule of law to apply. Originality/value – This paper is the first to empirically test the aforementioned long-run equilibrium relationship by isolating the role of transparency in international capital flows.

scholarly journals The impact of online reputation on hotel profitability

2020 ◽  
Vol 32 (1) ◽  
pp. 20-39 ◽  
Author(s):  
Seraina C. Anagnostopoulou ◽  
Dimitrios Buhalis ◽  
Ioanna L. Kountouri ◽  
Eleftherios G. Manousakis ◽  
Andrianos E. Tsekrekos
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Semantic Analysis ◽  
Online Reviews ◽  
Ordinary Least Squares ◽  
Bottom Line ◽  
Content Type ◽  
Online Reputation ◽  
The Impact ◽  
Financial Profitability

Purpose The purpose of this study is to quantify the impact of online customer reputation on financial profitability. Design/methodology/approach Online reputation is captured by extracting the most recurring textual themes associated with customer satisfaction and dissatisfaction, expressed within positive vs negative online guest reviews on Booking.com. Latent semantic analysis is used for textual analysis. Proxies of overall financial performance are manually constructed for the sample hotels, using financial data from the Financial Analysis Made Easy (FAME) database. Ordinary least squares is used to gauge the effect of online customer reputation on financial profitability. Findings Empirical findings indicate that recurring textual themes from positive online reviews (in contrast to negative reviews) exhibit a higher degree of homogeneity and consensus. The themes repeated in positive, but not in negative reviews, are found to significantly associate with hotel financial performance. Results contribute to the discussion about the measurable effect of online reputation on financial performance. Originality/value Contemporary quantitative methods are used to extract online reputation for a sample of UK hotels and associate this reputation with bottom-line financial profitability. The relationship between online reputation, as manifested within hotel guest reviews, and the financial performance of hotels is examined. Financial profitability is the result of revenues, reduced by the costs incurred in order to be able to offer a given level of service. Previous studies have mainly focused on basic measures of performance, i.e. revenue generation, rather than bottom-line profitability. By combining online guest reviews from travel websites (Booking.com) with financial measures of enterprise performance (FAME), this study makes a meaningful contribution to the strategic management of hotel businesses.

scholarly journals The internationalization process of Chinese research institutions since the reform and opening-up

2019 ◽  
Vol 1 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Wu Chen ◽  
Yanping Li
Keyword(s):  
Multinational Corporations ◽  
Organizational Structures ◽  
Policy Integration ◽  
Research Institutions ◽  
Host Countries ◽  
Content Type ◽  
Chinese Characteristics ◽  
The One ◽  
Reform And Opening Up ◽  
Opening Up

Purpose The purpose of this paper is to systematically review the evolution, characteristics, motivations, entry patterns, organizational structure and effectiveness of the internationalization of Chinese research institutions in the past 40 years of reform and opening-up. Design/methodology/approach This paper describes the evolution and practice of Chinese research institutions “going out” by constructing a theoretical framework diagram and uses official statistics and existing research to explain the authors’ points. Findings The research results show that the internationalization of research institutions has undergone four phases: sprout period, starting period, adjustment period and accelerating period. It shows a rapid growth of investment scale, diversification of investment entities, rich and varied forms, and transition to major countries along the “One Belt and One Road.” Expanding the international market, tracking and acquiring technological frontiers, nurturing domestic R&D talents, and evading the risks of political, economic, cultural and scientific differences between home and host countries are the main motivations for Chinese research institutions to “go global.” Multinational corporations have entered the host country with modes such as M&A, greenfield investment and joint R&D alliances in their own strengths and also presented a variety of organizational structures such as integrated R&D networks. Originality/value This paper systematically summarizes the internationalized experience model of research institutions with Chinese characteristics since the reform and opening-up. From the perspective of internationalization model transformation, policy integration and cooperation among emerging economies, it presents the opportunities and challenges faced by the research institutions in the process of internationalization and provides a theoretical basis for improving the internationalization ability of research institutions.

Dual relational embeddedness and knowledge transfer in European multinational corporations and subsidiaries

2018 ◽  
Vol 24 (3) ◽  
pp. 519-533 ◽  
Author(s):  
Alberto Ferraris ◽  
Gabriele Santoro ◽  
Veronica Scuotto
Keyword(s):  
Knowledge Transfer ◽  
Multinational Corporations ◽  
Transfer Process ◽  
Ordinary Least Squares ◽  
Transfer Of Knowledge ◽  
Least Squares Regression ◽  
Content Type ◽  
Positive Effects ◽  
Relational Embeddedness

Purpose This paper aims to investigate the relationship between the level of subsidiaries’ internal and external relational embeddedness and the degree of subsidiaries’ knowledge transfer. More specifically, the aim is to explore dual embeddedness of subsidiaries involved in the knowledge transfer process within multinational corporations’ (MNCs) network. Design/methodology/approach The authors empirically analyse 165 European subsidiaries to demonstrate the crucial role of dual relational embeddedness in the transfer of knowledge within MNCs. Data were collected via a close-ended questionnaire and processed through an ordinary least squares regression model. Findings Results show that internal embeddedness directly and positively influences the degree of subsidiaries’ knowledge transfer, whereas external embeddedness does not. Notwithstanding, a higher level of both types of embeddedness – known as dual embeddedness – generates multiplicative and positive effects on the degree of subsidiaries’ knowledge transfer. Practical implications Best practices and relevant knowledge follow a reverse transfer of knowledge from the subsidiaries to the internal MNC network that is facilitated by the relational embeddedness of subsidiaries. This has resulted in developing a dual embeddedness, which introduces new routines and scripts, as well as more relational links. Originality/value The research emphasises the relevance of the knowledge transfer process in multiple directions, evoking the central role of dual-embedded subsidiaries.

Racial dissimilarity and diversity climate effect organizational identification

2016 ◽  
Vol 35 (5/6) ◽  
pp. 314-327 ◽  
Author(s):  
Brooklyn Cole ◽  
Raymond J. Jones ◽  
Lisa M. Russell
Keyword(s):  
Organizational Identification ◽  
Turnover Intentions ◽  
Ordinary Least Squares ◽  
Important Variable ◽  
Hierarchical Regression ◽  
Diversity Climate ◽  
Climate Effect ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the relationship between psychological diversity climate (PDC) and organizational identification (OID) when influenced by racial dissimilarity between the subordinate and supervisor. Design/methodology/approach Ordinary least squares hierarchical regression analysis was run for hypotheses testing. Findings Three of the four hypothesized relationships were supported. Support was found for the direct relationship between PDC and OID. The moderator race was significant thus also supported. The moderator of dissimilarity was not supported. Finally the three-way interaction with race and dissimilarity was supported. Practical implications OID is an important variable for overall organizational success. OID influences a wealth of organizationally relevant outcomes including turnover intentions. Considering higher turnover exists for minority employees, understanding how diversity climate perceptions vary by employee race and therefore impact OID differently, helps managers when making decisions about various initiatives. Originality/value This study is the first the authors know of to investigate the impact of dissimilarity on the PDC-OID relationship.

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