scholarly journals Achieving the Paradox of Concurrent Internationalization Speed: Internationalizing Rapidly in Both Breadth and Depth

2021 ◽  
Vol 61 (4) ◽  
pp. 429-467
Author(s):  
Georgios Batsakis ◽  
Vasilis Theoharakis
Keyword(s):  
Firm Performance ◽  
Global Economy ◽  
Multinational Enterprises ◽  
Past Research ◽  
Foreign Markets ◽  
Temporal Dimension ◽  
Upper Echelons Theory ◽  
Internationalization Speed ◽  
Organizational Paradox ◽  
The 2008 Financial Crisis

AbstractIn this paper, we draw on the notions of breadth and depth of internationalization speed in an attempt to examine the performance implications for multinational enterprises (MNEs) that rapidly and concurrently internationalize in new and existing foreign markets. Specifically, we examine the organizational paradox which suggests that firms which grow internationally by concurrently expanding rapidly in both new foreign markets (breadth) and in foreign markets they currently operate (depth), are better off than firms which do not adopt such an approach. Since past research has not examined the interaction between the breadth and depth of MNE internationalization speed on firm performance, we contribute to the temporal dimension of the internationalization process by developing a novel, yet paradoxical approach. Our analysis is based on a longitudinal sample of the world’s largest retail MNEs covering the period 2003–2012, which includes the 2008 financial crisis that had a significant effect on the global economy. We find that concurrent internationalization speed positively relates to firm performance during periods of stability. Further, we draw from the upper-echelons theory and find that the aforementioned relationship can be strengthened by the level of CEO international experience and CEO education.

Multinational Enterprises and the Global Economy.

1995 ◽  
Vol 40 (1) ◽  
pp. 189
Author(s):  
David P. McCaffrey ◽  
John H. Dunning
Keyword(s):  
Global Economy ◽  
Multinational Enterprises

Market orientation and firm performance: can there be too much of a good thing?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vivien Jancenelle ◽  
Susan F. Storrud-Barnes ◽  
Dominic Buccieri
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Past Research ◽  
Good Thing ◽  
Annual Reports ◽  
Curvilinear Relationship ◽  
Computer Assisted ◽  
Content Type ◽  
Trade Offs ◽  
Linear Relationships

PurposePast research has generally purported that market orientation (MO) leads to superior firm performance, despite emerging evidence suggesting that the highest levels of MO are not always rewarded. Drawing on resource-based view and MO literature, the authors posit that too much MO may be as detrimental as too little for firms seeking to achieve better performance, and that moderate MO capabilities may be the most beneficial. Furthermore, the authors propose and test for organizational confidence as a first potential moderator of the MO-performance inverted U-shaped link.Design/methodology/approachThe authors use Computer-Assisted-Text-Analysis (CATA) methodology assess constructs from annual reports matched with a 5-year longitudinal dataset of 2,245 firm-year observations drawn from the S&P 500.FindingsThe results not only support the presence of an inverted U-shaped link between MO and firm performance, but also identify organizational confidence as an important moderator of this newly uncovered curvilinear relationship.Practical implicationsWhen it comes to the effect of MO on firm performance, there can be indeed be “too much of a good thing,” and managers should be aware of the trade-offs that come attached with overcommitting to a MO strategy.Originality/valueThe authors contribute to extant research on the MO–performance link by moving beyond simple linear relationships and identifying an inverted U-shaped relationship between MO and firm performance. This newly found curvilinear relationship may explain and reconcile prior contradicting findings on the benefits of MO. Organizational confidence is also found to trigger a shape-flip of the MO–performance link, thereby suggesting a new boundary condition.

The Paradigm of the Investment Development Path

2020 ◽  
pp. 1379-1391
Author(s):  
Marian Cătălin Voica ◽  
Mirela Clementina Panait ◽  
Irina Gabriela Radulescu
Keyword(s):  
Financial Crisis ◽  
Global Economy ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Original Model ◽  
Foreign Direct Investments ◽  
Member States ◽  
Development Path ◽  
International Financial Crisis

This article describes how foreign direct investments (FDI) is one of the most important forces that influences the global economy. Along the last two and a half decades, the motivations and the field of interest of multinational enterprises (MNEs) mutated to new forms under the influence of globalization and the international financial crisis. Those two events had a dramatic impact on the evolution of inward and outward flow of FDI. The main scope of this article is to analyze the advance of the EU28 member states through the stages of the Investment Development Path (IDP) in the period from 1990 to 2014 and to explore the viability of the original model in nowadays global economy realities. The results show that FDI is useful to gauge the economics of lesser developed countries.

Wall Street women: professional saviors of the global economy

2015 ◽  
Vol 11 (2) ◽  
pp. 137-155 ◽  
Author(s):  
Melissa Fisher
Keyword(s):  
Financial Crisis ◽  
Global Economy ◽  
First Generation ◽  
Field Work ◽  
Financial Policy ◽  
Wall Street ◽  
Content Type ◽  
Cultural Power ◽  
The 2008 Financial Crisis ◽  
Practical Implications

Purpose – This paper aims to, by drawing on two decades of field work on Wall Street, explore the recent evolution in the gendering of Wall Street, as well as the potential effects – including the reproduction of financiers’ power – of that evolution. The 2008 financial crisis was depicted in strikingly gendered terms – with many commentators articulating a divide between masculine, greedy, risk-taking behavior and feminine, conservative, risk-averse approaches for healing the crisis. For a time, academics, journalists and women on Wall Street appeared to be in agreement in identifying women’s feminine styles as uniquely suited to lead – even repair – the economic debacle. Design/methodology/approach – The article is based on historical research, in-depth interviews and fieldwork with the first generation of Wall Street women from the 1970s up until 2013. Findings – In this article, it is argued that the preoccupation in feminine styles of leadership in finance primarily reproduces the power of white global financial elites rather than changes the culture of Wall Street or breaks down existent structures of power and inequality. Research limitations/implications – The research focuses primarily on the ways American global financial elites maintain power, and does not examine the ways in which the power of other international elites working in finance is reproduced in a similar or different manner. Practical implications – The findings of the article provide practical implications for understanding the gendering of financial policy making and how that gendering maintains or reproduces the economic system. Social implications – The paper provides an understanding of how the gendered rhertoric of the financial crisis maintains not only the economic power of global financial elites in finance but also their social and cultural power. Originality/value – The paper is based on original, unique, historical ethnographic research on the first generation of women on Wall Street.

Free Traders

2019 ◽  
Author(s):  
Malcolm Fairbrother
Keyword(s):  
Free Trade ◽  
Global Economy ◽  
Multinational Enterprises ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
The United States ◽  
Social Scientists ◽  
Historical Case ◽  
Mass Public ◽  
Political Events

This book is about the political events and decisions in the 1980s and 1990s that established the global economy we have today. Different social scientists and other commentators have described the foundations of globalization very differently. Some have linked the rise of free trade and multinational enterprises to the democratic expression of ordinary people’s hopes and desires; others have said they were a top-down project requiring, if anything, the circumvention of democracy. This book shows that politicians did not decide to embrace globalization because of the preferences of the mass public. Instead, using comparative-historical case studies of Canada, Mexico, and the United States, this book shows that politicians’ decisions reflected the agendas and outlooks of various kinds of elites. On the basis of more than a hundred interviews, and analyses of materials from archives in all three countries, the book tells the story of how the three countries negotiated and ratified two agreements that substantially opened and integrated their economies: the 1989 Canada-US and trilateral 1994 North American Free Trade Agreements. Contrary to what many people believe, these agreements (like free trade elsewhere) were based less on mainstream, neoclassical economics than on the informal, self-serving economic ideas of businesspeople. This folk economics shaped the contents of the agreements, and helped bind together the elite coalitions whose support made them politically possible. These same ideas, however, have reinforced some harmful economic misunderstandings, and have even contributed to the recent backlash against globalization in some countries.

scholarly journals Development of Dynamic Capabilities for Automotive Industry Performance under Disruptive Innovation

2020 ◽  
Vol 6 (4) ◽  
pp. 97
Author(s):  
Atichat Rotjanakorn ◽  
Pornrat Sadangharn ◽  
Khahan Na-Nan
Keyword(s):  
Firm Performance ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Past Research ◽  
Disruptive Innovation ◽  
Dynamic Capability ◽  
Competitive Advantages ◽  
Cross Sectional ◽  
Innovative Firm ◽  
Short Period

Dynamic capabilities are creating dramatic change for the industry around the world. Resource-Based View (RBV) theory and Operational capability theory are the basic capabilities of an organization under a normal changing environment. This creates a competitive advantage and organizational success in a relatively short period of time, in which the dynamic environment is not sufficient to cope with this change. Dynamic capability is a concept for managing change under this dynamic environment. Past research supports a direct positive relationship between dynamic capability and firm performance but it did not focus on the mediator variables. This research emphasizes the influences of competitive advantages and innovation capabilities as mediators of dynamic capabilities and firm performance were investigated. A cross-sectional design study was utilised and questionnaires were submitted to 326 firms to test the proposed relationships. IBM SPSS Statistics Base 26, IBM SPSS AMOS 21, and PROCESS macro 3.6 were used for statistical analysis. Results revealed that competitive advantages and innovation capabilities were partially mediated by dynamic capabilities and firm performance. Findings contribute to the literature on empowering leadership and innovative firm performance by highlighting that competitive advantages and innovation capabilities act as mediators to improve dynamic capabilities and enhance innovative firm performance.

scholarly journals The Relationship between Corporate Environmental Responsibility and Firm Performance: A Moderated Mediation Model of Strategic Similarity and Organization Slack

2019 ◽  
Vol 11 (12) ◽  
pp. 3395 ◽  
Author(s):  
Van Thac Dang ◽  
Ninh Nguyen ◽  
Xiangzhi Bu ◽  
Jianming Wang
Keyword(s):  
Firm Performance ◽  
Past Research ◽  
Moderated Mediation ◽  
Environmental Responsibility ◽  
Organizational Slack ◽  
Mediation Model ◽  
Business Managers ◽  
Corporate Environmental Responsibility ◽  
Moderated Mediation Model ◽  
The Relationship

There has been growing interest among business managers and academics in corporate environmental responsibility (CER), which represents a company’s focus on its long-term sustainability and society. Past research, however, has reported inconsistent and mixed results with regard to the link between CER and firm performance. This study, therefore, proposes and validates a moderated mediation model of strategic similarity and organizational slack to better explain the relationship between CER and firm performance. Data were obtained from 260 listed firms in China from 2015 to 2017, resulting in 780 firm-year observations. Multivariate data analysis indicates that strategic similarity mediates the relationship between CER and firm performance. Furthermore, organizational slack moderates the relationship between CER and strategic similarity and the indirect effect of CER on firm performance through strategic similarity. The findings of this study provide insights for business managers attempting to understand and enhance the quality of their decision making regarding CER. Importantly, business managers should engage in CER activity and pursue strategic similarity to deal with pressure from stakeholders while following the competitive speed of competitors in the marketplace.

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