How Does Cultural Distance Matter in Long-term Value Creation of Cross-border Acquisitions?

2021 ◽  
pp. 1-15
Author(s):  
Wenjun Tu ◽  
Yongmin Zhang
Keyword(s):  
Value Creation ◽  
Cultural Distance ◽  
Cross Border

scholarly journals The Role of Confucius Institutes and One Belt, One Road Initiatives on the Values of Cross-Border M&A: Empirical Evidence from China

2020 ◽  
Vol 12 (24) ◽  
pp. 10277
Author(s):  
Jin-Young Jung ◽  
Wei Wang ◽  
Sung-Woo Cho
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Cultural Distance ◽  
Cross Border ◽  
Long Run ◽  
One Belt One Road ◽  
Negative Effect ◽  
Confucius Institutes

This study examines how national cultural policies such as Confucius Institutes and One Belt, One Road initiatives (BRI) affect the post-acquisition returns of Chinese cross-border mergers and acquisitions based on data from a sample of 192 transactions covering 2011 to 2015. We find that the cultural export of Chinese Confucius Institutes and the BRI exert a significantly positive impact on long-term acquirer returns, while cultural/institutional distance exerts a negative impact. Further evidence shows that Confucius Institutes and BRI mitigate the negative effect of cultural distance between merging firms. These results offer the first evidence that national cultural translation has substantial impacts on the long-run acquirer financial performance of cross-border mergers that decrease cultural institutional heterogeneity between countries.

scholarly journals COVID-19: first long-term care facility outbreak in the Netherlands following cross-border introduction from Germany, March 2020

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Mitch van Hensbergen ◽  
Casper D. J. den Heijer ◽  
Petra Wolffs ◽  
Volker Hackert ◽  
Henriëtte L. G. ter Waarbeek ◽  
...  
Keyword(s):  
The Netherlands ◽  
Long Term Care ◽  
Care Facility ◽  
Control Measures ◽  
Border Region ◽  
Term Care ◽  
Term Care Facility ◽  
Long Term Care Facility ◽  
Cross Border

Abstract Background The Dutch province of Limburg borders the German district of Heinsberg, which had a large cluster of COVID-19 cases linked to local carnival activities before any cases were reported in the Netherlands. However, Heinsberg was not included as an area reporting local or community transmission per the national case definition at the time. In early March, two residents from a long-term care facility (LTCF) in Sittard, a Dutch town located in close vicinity to the district of Heinsberg, tested positive for COVID-19. In this study we aimed to determine whether cross-border introduction of the virus took place by analysing the LTCF outbreak in Sittard, both epidemiologically and microbiologically. Methods Surveys and semi-structured oral interviews were conducted with all present LTCF residents by health care workers during regular points of care for information on new or unusual signs and symptoms of disease. Both throat and nasopharyngeal swabs were taken from residents suspect of COVID-19, based on regional criteria, for the detection of SARS-CoV-2 by Real-time Polymerase Chain Reaction. Additionally, whole genome sequencing was performed using a SARS-CoV-2 specific amplicon-based Nanopore sequencing approach. Moreover, twelve random residents were sampled for possible asymptomatic infections. Results Out of 99 residents, 46 got tested for COVID-19. Out of the 46 tested residents, nineteen (41%) tested positive for COVID-19, including 3 asymptomatic residents. CT-values for asymptomatic residents seemed higher compared to symptomatic residents. Eleven samples were sequenced, along with three random samples from COVID-19 patients hospitalized in the regional hospital at the time of the LTCF outbreak. All samples were linked to COVID-19 cases from the cross-border region of Heinsberg, Germany. Conclusions Sequencing combined with epidemiological data was able to virtually prove cross-border transmission at the start of the Dutch COVID-19 epidemic. Our results highlight the need for cross-border collaboration and adjustment of national policy to emerging region-specific needs along borders in order to establish coordinated implementation of infection control measures to limit the spread of COVID-19.

scholarly journals Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110074
Author(s):  
Zhiyi Qiu ◽  
Rong Chen ◽  
Ye Yang
Keyword(s):  
Empirical Study ◽  
Venture Capital ◽  
Emerging Markets ◽  
Cultural Distance ◽  
Cross Border ◽  
Entry Strategy ◽  
China Mainland ◽  
Entrepreneurial Activities

Cross-border venture capitals (CBVCs) are increasingly prevailing in recent decades, inter alia in emerging markets like China. The venture capital (VC) firms investing outside their home countries are faced with foreignness which is broadly regarded as liability. The primary aim of this article is to contribute to our understanding how foreignness affects VC’s strategy when entering emerging markets, particularly with respect to the foreignness originated from cultural distance. The data consist of over 5,000 CBVC deals taking place in China mainland from 1988 to 2016. Our empirical study shows that, with foreignness growing, it turns from liability into advantage in the context of CBVCs. We find an inverse U-shape relationship between foreignness and syndication, with VC firm’s reputation as the moderator. Besides, foreign VC firms establish local subsidiary when faced with foreignness, which serves as alternative to syndication. The key contribution of this article is that foreignness turns from liability into advantage in emerging markets, which exerts a curvilinear impact on the entry strategy of VC firms. This study advances the knowledge of foreignness and VC strategy, and sheds new light on entrepreneurial activities in emerging markets.

Proactive Value Co-Creation via Structural Ambidexterity: Customer Success Management and the Modularization of Frontline Roles

2021 ◽  
pp. 109467052199756
Author(s):  
Bryan Hochstein ◽  
Nawar N. Chaker ◽  
Deva Rangarajan ◽  
Duane Nagel ◽  
Nathaniel N. Hartmann
Keyword(s):  
Value Creation ◽  
Functional Role ◽  
Service Firms ◽  
Study Analysis ◽  
Case Study Analysis ◽  
Multilevel Perspective ◽  
Business To Business ◽  
Depth Interviews

An increasing number of business-to-business (B2B) service firms have transitioned to recurring revenue-based solutions. These subscription B2B solutions are becoming increasingly common, yet offer challenges for long-term renewal if value is not consistently realized by the customer. To address this concern, customer success (CS) management has emerged. CS management is based on regular proactive action taken by the seller to (a) educate, prepare, and engage customers for value co-creation; (b) demonstrate the value delivered by the solution; and (c) provide a channel for advocacy on behalf of customers within the service-providing firm. Our findings highlight the under-researched topic of CS in B2B settings. Specifically, we propose the CS function and role as a structural alternative to within-person (i.e., cross-functional) ambidexterity and emphasize the ability of a CS focus by service firms to complement existing firm operations in value creation efforts. Our case study analysis provides a multilevel perspective (i.e., executive, functional role employees, and customers) via in-depth interviews that offer unique insights on “how parts of the service-sales system work together.” Overall, CS is growing as a practice that propagates value to the customer via ongoing success with solutions while improving service-firm renewal and growth of subscription business.

Post-acquisition control strategy and cross-border acquisition performance of Chinese MNEs: a fsQCA approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qi Yue ◽  
Ping Deng ◽  
Yanyan Cao ◽  
Xing Hua
Keyword(s):  
Fuzzy Set ◽  
Control Strategy ◽  
Multinational Enterprises ◽  
Cultural Distance ◽  
Emerging Market ◽  
Complex Nature ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Chinese Mnes

PurposePost-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance of Chinese multinational enterprises (MNEs) through a configurational perspective.Design/methodology/approachBased on 70 cross-border acquisition cases by Chinese MNEs, we adopt fuzzy-set qualitative comparative analysis (fsQCA) to study the combined effects of strategic control, operational control, institutional distance, cultural distance, relative capacity and business relatedness on the cross-border acquisition performance.FindingsOn the basis of fuzzy set analysis of multiple interdependent factors, we identify six configurations that are conductive to achieving high cross-border acquisition performance and two configurations that relate to the absence of high performance, thus shedding light on the casually complex nature of performance drivers of acquisitions.Originality/valueThis study provides a holistic, configurational approach to investigating cross-border acquisition performance by emerging market firms. Our results provide some compelling evidence that accounts for the causal complexity of post-acquisition control strategies and acquisition outcomes in the context of emerging economies.

scholarly journals The Transnationalization of Labor Mobility: Development Trends and Selected Challenges Involved in Its Regulation

2017 ◽  
Vol 9 (2) ◽  
pp. 115
Author(s):  
Ludger Pries ◽  
Martina Maletzky
Keyword(s):  
Labor Mobility ◽  
Ideal Types ◽  
Non Profit ◽  
Labor Conditions ◽  
For Profit ◽  
Cross Border ◽  
Mass Migration ◽  
Different Types ◽  
Term Labor

Internationalization of value chains and of for-profit as well as non-profit organizations, and as a result of cheaper and safer mass migration, transnational labor mobility is of increasing importance. The article presents the development of the different types of cross-border labor mobility (from long-term labor migration over expatriats/inpatriats up to business traveling); it analyses crucial aspects of labor conditions and how the collective regulation of working, employment and participation conditions in general is affected: could local or national forms of labor regulation cope with these new conditions? What are the main challenges when it comes to collective bargaining and the monitoring of labor conditions? The article is based on a three year international and comparative research in Germany and Mexico. First, different ideal types of transnational labor mobility are distinguished that have emerged as a result of increasing cross-border labor mobility. Then potential sources of labor related social inequality and challenges in the regulation of the working, employment and participation conditions for transnational workers are discussed. Finally, some conclusions are drawn for further research.

scholarly journals The Influence of Logistics Mode on Cross Border E-commerce Business Scale

2021 ◽  
Vol 235 ◽  
pp. 03006
Author(s):  
Xiaohui Hu
Keyword(s):  
United States ◽  
Regression Analysis ◽  
The United States ◽  
Intermodal Transportation ◽  
Road Transportation ◽  
Cross Border ◽  
Logistics Mode ◽  
Transportation Logistics ◽  
The Impact

China’s cross-border e-commerce companies are facing the problem of high logistics cost caused by excessive reliance on road transportation in domestic logistics link. In the long-term development, crossborder e-commerce companies in the United States have adopted the intermodal transportation logistics mode, which can reduced the domestic logistics costs. In order to study the impact of intermodal-transportation logistics mode on the scale of cross-border e-commerce companies, this paper selects the relevant data of Hub Group, the first intermodal marketing company in North America, makes multiple regression analysis, and draws the following conclusion: the intermodal-transportation logistics mode of highway and railway collaborative transportation is conducive to the expansion of cross-border e-commerce business scale.

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