The micro-foundations of industrial diversification through foreign acquisitions: the multifaceted role of CEO experience

2021 ◽  
pp. 102104
Author(s):  
Stefano Elia ◽  
Peder Greve ◽  
Tommaso Vallone ◽  
Davide Castellani
Keyword(s):  
Foreign Acquisitions ◽  
Industrial Diversification ◽  
Micro Foundations

scholarly journals Moderating role of productivity on diversified conglomerates and performance: the case of Malaysia

2017 ◽  
Vol 9 (2) ◽  
pp. 118-133 ◽  
Author(s):  
Alex Kwaku Gyan
Keyword(s):  
Firm Performance ◽  
Content Type ◽  
Industrial Diversification ◽  
And Performance ◽  
Diversified Firms ◽  
The Relationship ◽  
Subsequent Modification ◽  
Moderating Role ◽  
Significant Moderator

Purpose The purpose of this paper is to investigate the previous mixed findings in the relationship between diversification and firm performance. Using international and industrial conglomerates, the paper introduces productivity as a moderating variable to ascertain whether the mixed views in the diversification-performance nexus is due to variations in productivity. The findings in both proxies of performance (q and return on asset (ROA)) show that productivity is not a significant moderator in the diversification-performance link, except that under industrial conglomerates productivity enhances ROAs significantly. Meanwhile, the results show that diversification either has no significant value on firm performance or relates negatively with performance – a contrasting result to the hypothesis of this study. Design/methodology/approach This study adopts diversification measurement, categorisation approach and the methodology used in the work of Fauver et al. (2004) and the subsequent modification by Lee et al. (2012). This study, however, investigates the moderating effect of productivity on diversified firms and not ownership as shown in the previous studies. Performance is measured by two proxies to show robustness of the study. ROA is an accounting tool and Tobin’s q reflects a market-based performance of the firm. Findings The results show that productivity has no moderating impact on a market-based performance of a diversified firm. Regarding ROA, results show a split in finding by showing that productivity has no significant impact on international diversification; however, for industrial diversification, results show significant impact. Originality/value The paper adds to knowledge of finance by ruling out the view that the inconsistencies in the diversification and performance nexus in emerging economies could be due to vagaries in productivity. It is confirmed that productivity technically does not strengthen the link between diversification and performance: suggesting that factors other than productivity could establish a maximal impact on that link to minimise the inconsistencies in the findings on diversification-performance link.

scholarly journals Perceiving ‘capability’ within dynamic capabilities: The role of owner-manager self-efficacy

2017 ◽  
Vol 35 (8) ◽  
pp. 883-902 ◽  
Author(s):  
Alex Kevill ◽  
Kiran Trehan ◽  
Mark Easterby-Smith
Keyword(s):  
Self Efficacy ◽  
Dynamic Capabilities ◽  
Black Box ◽  
Dynamic Capability ◽  
The United Kingdom ◽  
Crucial Component ◽  
Growing Body ◽  
Micro Foundations ◽  
Micro Enterprises

This article combines two popular, yet separate concepts: dynamic capabilities and self-efficacy. Both are concerned with ability/capability and offer potentially valuable synergies. As such, our in-depth qualitative study based in three micro-enterprises in the United Kingdom investigates, ‘what role(s) may owner-manager perceived self-efficacy play as a micro-foundation of dynamic capabilities in micro-enterprises?’ Our findings show that perceived self-efficacy can influence dynamic capability enactment in multifaceted ways and even suggest that in some cases, perceived self-efficacy is a crucial component of dynamic capabilities, without which there may be no such capability. These insights help open up the black box of dynamic capabilities by contributing important knowledge to the growing body of research into the micro-foundations of such capabilities. Furthermore, our study illuminates the importance of idiosyncratic micro-foundations of dynamic capabilities in micro-enterprises and expands extant knowledge of the potential effects of self-efficacy in the small business and entrepreneurship domain.

scholarly journals Uncertainty and Complexity: Towards Model-Based Demography

2021 ◽  
pp. 13-29
Author(s):  
Jakub Bijak
Keyword(s):  
Scientific Reasoning ◽  
Human Mobility ◽  
Research Programme ◽  
Point Of View ◽  
Migration Studies ◽  
Formal Modelling ◽  
Model Based ◽  
And Migration ◽  
Micro Foundations

AbstractThis chapter focuses on the broad methodological and philosophical underpinnings of the Bayesian model-based approach to studying migration. Starting from reflections on the uncertainty and complexity in demography and, in particular, migration studies, the focus moves to the shifting role of formal modelling, from merely describing, to predicting and explaining population processes. Of particular importance are the gaps in understanding asylum migration flows, which are some of the least predictable while at the same time most consequential forms of human mobility. The well-recognised theoretical void of demography as a discipline does not help, especially given the lack of empirical micro-foundations in formal modelling. Here, we analyse possible solutions to theoretical shortcomings of demography and migration studies from the point of view of the philosophy of science, looking at the inductive, deductive and abductive approaches to scientific reasoning. In that spirit, the final section introduces and extends a research programme of model-based demography.

scholarly journals Industrial Diversification in Europe: The Differentiated Role of Relatedness

2018 ◽  
Vol 94 (5) ◽  
pp. 514-549 ◽  
Author(s):  
Jing Xiao ◽  
Ron Boschma ◽  
Martin Andersson
Keyword(s):  
Industrial Diversification

scholarly journals How Are Political Institutions Gendered?

2019 ◽  
Vol 68 (3) ◽  
pp. 543-564 ◽  
Author(s):  
Vivien Lowndes
Keyword(s):  
Gender Equality ◽  
Comparative Politics ◽  
Political Institutions ◽  
Political Systems ◽  
Political Opportunities ◽  
Gendered Institutions ◽  
Micro Foundations

Understanding the role of institutions can help explain why gender equality policies often fail and why the efforts of gender equality advocates are frequently frustrated. Focusing on micro-foundations and using cases from comparative politics, the article builds a model that specifies the mechanisms whereby political institutions are systematically gendered. Political opportunities and outcomes are shaped not only by rules ‘about gender’ but also by seemingly neutral rules that have ‘gendered effects’, due to their interaction with institutions outside the realm of formal politics. Rules shape behaviour in gendered ways through mechanisms of regulation, obligation and persuasion. Actors reproduce gendered institutions through enacting rules, but they also generate change through adapting, resisting or reforming them. The article specifies concepts and methods for researching how political institutions are gendered within and across political systems. It also identifies points of intervention for those seeking to build more gender-just political institutions.

Strong alien or weak acquaintance? The effect of perceived institutional distance and cross-national uncertainty on ownership level in foreign acquisitions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatemeh Askarzadeh ◽  
Hamed Yousefi ◽  
Mahdi Forghani Bajestani
Keyword(s):  
Multinational Enterprises ◽  
Mode Selection ◽  
Ordinary Least Squares ◽  
Institutional Distance ◽  
Least Squares Regression ◽  
Content Type ◽  
Foreign Acquisitions ◽  
Foreign Acquisition ◽  
Negative Effect

Purpose Focusing on the direction of foreign acquisition, this study aims to differentiate the effect of institutional distance on the level of ownership. The authors identify several theoretical and methodological issues that might account for the inconsistencies in the literature and provide remedies accordingly. Specifically, the authors propose perceived institutional distance as a conceptualization of distance that controls for asymmetric uncertainty. Design/methodology/approach The authors test the framework with ordinary least squares regression for a sample of 14,192 firm-entries in 115 target countries over 2007–2017. Findings The authors find that institutional distance shows a negative effect on equity ownership in all-inclusive global samples, while there are two imbalanced opposite effects if direction is considered. This casts doubt on the validity of studies that ignore direction. The authors suggest that multinational enterprises entering countries with lower-quality institutions tend to perceive more pronounced distance effects than those expanding the other way around. Hence, the authors argue that “perceived institutional distance” better explains the functional role of distance than simple distance. Practical implications This study better delineates the link between distance and uncertainty and enhances managerial insights for entry mode selection. For policy-making purposes, the authors also show that improvement in institutional quality has a different effect on foreign resource commitment in developed and developing countries. Originality/value To the best of authors’ knowledge, this is the first study that considers both directionality and imbalance in institutional distance and proposes a measure to control for non-linear asymmetric relationship between distance and ownership. The authors extend the institutional theory and show the superiority of perceived institutional distance in predicting ownership implications.

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