The effect of executive incentives on FDI ambidexterity

2018 ◽  
Vol 12 (4) ◽  
pp. 756-773 ◽  
Author(s):  
Zijie Li ◽  
Qiuling Gao ◽  
Kai Shen ◽  
Junyue Zhang

Purpose This paper aims to examine different hypotheses concerning the effects of executive incentive on the degree of Chinese foreign direct investment (FDI) ambidexterity. Specifically, this study provides new insights on how executive equity incentive and executive control right incentive may affect overseas ambidextrous strategy of Chinese enterprises. Design/methodology/approach This study used panel data of Chinese manufacturing listed companies in 2006-2015 to explore the relationships between related factors. Hypotheses are tested by using regression analysis. Findings This study found that executive equity incentive is positively related to the degree of FDI ambidexterity. It also found that the level at which control right incentives of executive are made has a curvilinear relationship with degree of FDI ambidexterity. Higher level of control right incentive of executive will be associated with higher degree of FDI ambidexterity; however, beyond some level, higher control right incentive of executive will be associated with lower degree of FDI ambidexterity. Research limitations/implications This paper has implications to future research and companies’ everyday practice on ambidextrous FDI strategy. Originality/value Based on the principal-agent framework and incentive theory, this paper offers an interesting insight of achieving balance of ambidextrous strategy for Chinese multinational enterprises by involving the different roles of executive equity incentive and executive control right incentive they played.

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.


Kybernetes ◽  
2016 ◽  
Vol 45 (3) ◽  
pp. 446-460 ◽  
Author(s):  
Jaka Vadnjal ◽  
Predrag Ljubotina

Purpose – Family businesses represent the largest share of small-sized firms in majority of economies around the world. Having in mind the global economic situation this trend is expected to be continued. With the goal of better understanding of the process of transferring the business to the next generation, which ensures a long-term success, the purpose of this paper is to investigate expectations of student’s with family business background. Design/methodology/approach – The research addresses the issue of an individual’s perception of entrepreneurship and the related factors that influence individual’s decision on whether to build a career as an employee, become a successor of family business or start own business as an independent entrepreneur. The authors separately analyzed West European (data from another study), East European and Slovenian senior student population for the purpose of comparative study. Students were surveyed and binominal regression was used for statistics. Findings – The results show differences between investigated populations and positions Slovenian students in the mean. The authors anticipate that differences are caused by historical, cultural and educational backgrounds. This challenging area is raising a lot of sub-questions for possible future research. Originality/value – The value of the study is in the replication of the existing methodology from the benchmarking study and result comparison.


2019 ◽  
Vol 26 (1) ◽  
pp. 67-92 ◽  
Author(s):  
Beiting He ◽  
Ran An ◽  
John Berry

PurposeThe purpose of this paper is to explore the psychological adjustment process of expatriates from Chinese multinational enterprises, including how their social capital affects this process.Design/methodology/approachThis qualitative investigation was based on semi-structured, in-depth interviews with 26 Chinese expatriates. The grounded theory method was applied to guide the data collection and analysis.FindingsThe psychological adjustment process of Chinese expatriates includes three periods: crisis, self-adjustment and self-growth period. In addition, bonding capital (including organizational, family and co-cultural colleagues’ support) is more conducive to Chinese expatriates’ psychological well-being than bridging capital (e.g. host-nationals’ support). Finally, a separation acculturation strategy is more conducive to psychological adjustment, rather than an integration strategy.Research limitations/implicationsThis study focused on expatriates themselves. Future research should consider other stakeholders (e.g. organizations, family), and examine expatriate adjustment from new perspectives (e.g. strategic human resource management, work-family balance). This study had a small sample and focused on only one organization. Future research could usefully add other Chinese multinational corporations, and other Chinese expatriates to expand the generalizability of the current findings.Practical implicationsThis study suggests the possible benefits of management practices for expatriates. Organizations can develop an “expatriate bubble” to help structure basic life overseas. Organizations could develop family-support programs and make them expatriate-supportive. Organizations should also strengthen the connections between expatriates and local colleagues.Originality/valueFew scholars have elaborated on how different support groups (based on their cultural backgrounds) influence the psychological adjustment of expatriates. Until now, mainland Chinese expatriates have received little attention. In addition, this research takes a significant step forward by illuminating the psychological adjustment of Chinese expatriates from a social capital perspective.


2016 ◽  
Vol 10 (1) ◽  
pp. 138-154 ◽  
Author(s):  
Hsien-Chun Chen ◽  
Amber Yun-Ping Lee ◽  
I-Heng Chen ◽  
Hsin-Li Wu

Purpose The importance and benefit of work meaningfulness has been recognized from many previous studies. The purpose of this study aimed at how employees in Taiwan sense their work as meaningful by introducing prosocial motivation along with two organizational-related factors – task significance and external prestige. Design/methodology/approach In total, 451 questionnaires were used to analyze the relationships among task significance, external prestige, prosocial motivation and work meaningfulness. Findings The results confirm the research hypotheses. This study advanced our understanding of how work meaningfulness arises through an integration of an individual’s psychological state with work contexts. The implications for managerial practices and future research are discussed. Originality/value This research represented an initial empirical test for measuring these constructs in Taiwanese society. While all the measurements have good reliabilities, it is only a good start. The examination of these constructs using these measurements needs additional research, preferably, in different cultural and industrial contexts.


2014 ◽  
Vol 3 (2) ◽  
pp. 118-134 ◽  
Author(s):  
Sibnath Deb ◽  
Esben Strodl ◽  
Jiandong Sun

Purpose – The purpose of this paper is to examine the prevalence of academic stress and exam anxiety among private secondary school students in India as well as the associations with socio-economic and study-related factors. Design/methodology/approach – Participants were 400 adolescent students (52 percent male) from five private secondary schools in Kolkata who were studying in grades 10 and 12. Participants were selected using a multi-stage sampling technique and were assessed using a study-specific questionnaire. Findings – Findings revealed that 35 and 37 percent reported high or very high levels of academic stress and exam anxiety respectively. All students reported high levels of academic stress, but those who had lower grades reported higher levels of stress than those with higher grades. Students who engaged in extra-curricula activities were more likely to report exam anxiety than those who did not engage in extra-curricula activities. Practical implications – Private high school students in India report high levels of academic stress and exam anxiety. As such there is a need to develop effective interventions to help these students better manage their stress and anxiety. Originality/value – This is the first study the authors are aware of that explores the academic stress levels of private secondary school students in India. The study identifies factors that may be associated with the experience of high levels of stress that need to be explored further in future research.


2017 ◽  
Vol 59 (5) ◽  
pp. 483-501 ◽  
Author(s):  
Gitika Sablok ◽  
Pauline Stanton ◽  
Timothy Bartram ◽  
John Burgess ◽  
Brendan Boyle

Purpose The purpose of this paper is to examine the HRD practices of multinational enterprises (MNEs) operating in Australia to understand the value that MNEs place on investment in their human capital, particularly managerial talent. Design/methodology/approach Drawing on a representative sample of 211 MNEs operating in Australia, this paper investigates the extent (using frequencies) and determinants (using logistic regression analysis) of training and development expenditure, management development strategies, talent management and succession planning policies. Findings The findings suggest that less than 20 per cent of MNEs operating in Australia are investing over 4 per cent of their annual pay bill on training and development. Furthermore, almost a quarter of firms invest less than 1 per cent in training and development. However, most MNEs invest in their managers and those with high potential through the use of management development programmes, talent management strategies and succession planning. Interestingly, in comparison to US MNEs, Australian MNEs were less likely to use management development or talent management programmes for senior management or high performing staff. Research limitations/implications The current study is cross-sectional and represents a snapshot of MNEs’ HRD practices at one point in time. The study measured the perceptions of the most senior HR manager and did not include the views of other organisational participants. The authors suggest the need for future research studies that incorporate longitudinal research designs and the views of different organisational actors. Practical implications HR managers or HRD specialists need to develop a strong understanding of the Australian institutional context, as well as demonstrate the importance/business case for an integrative approach to HRD. Originality/value This paper fulfils an identified need to study the HRD practices of MNEs operating in Australia, particularly focusing on the value that MNEs place on their human capital.


2018 ◽  
Vol 33 (7) ◽  
pp. 883-895 ◽  
Author(s):  
Jinjie Xue ◽  
Hongping Yuan ◽  
Zizhen Geng

Purpose This study aims to investigate impacts of classic transaction cost-related factors (i.e. partner selection cost, specific asset investment and extorting rent cost) on joint venture (JV) partner’s cooperative and opportunistic behaviour, from the perspective of transaction cost economics. Design/methodology/approach Item measurements, based on which the questionnaire was developed, were derived according to a thorough search and review of related literature. In all, 226 valid responses from manufacturing enterprises in China were collected. A structural equation modelling approach was used to analyse the data and examine the fitness of the proposed model. Findings This study shows that partner selection cost, specific asset investment and extorting rent cost are positively related to a JV partner’s cooperative behaviour. Specific asset investment exerts the most significant influence on partner’s cooperative behaviour. The results also reveal that partner’s opportunistic behaviour is not significantly affected by specific asset investment but is negatively influenced by extorting rent cost. Both partner selection cost and extorting rent cost show positive impacts on specific asset investment. Research limitations/implications The investigation focused on only manufacturing enterprises in one country. Future research could be directed to investigating other countries to increase the generalizability of the findings. Practical implications The findings suggest that increasing the extorting rent cost to promote the probability of specific asset investment is a core element to enhance JV partner cooperation. Originality/value The study not only empirically investigates the relative importance of classic transaction cost-related factors on JV partner opportunism and cooperation, but also enables a deeper understanding of the interrelationship among the classic transaction cost-related factors and their influences on partner cooperation and opportunism.


2019 ◽  
Vol 23 (4) ◽  
pp. 675-695 ◽  
Author(s):  
Ribin Seo

Purpose The purpose of this paper is to explore the curvilinear relationship between entrepreneurial orientation (EO) and innovation performance in ventures of Korea, where this topic has been unexplored. Design/methodology/approach This study used 1,837 ventures’ responses in a panel data of the 2015 Korea’s Venture Business Investigation Survey. The measurements of EO based on the Miller/Covin and Slevin scale were used from the survey. The author adopted and independently measured three different indicators of innovation performance: technology innovation, product innovation and sales growth. Findings The results of the regression analysis show the significant curvilinear relationships of EO with technology innovation and product innovation, while the relationship between EO and sales growth remains linear. The author also found that multiplicative EO construct explains the changes in R2 better than the summative EO construct for the improvement of innovations in technology and product. Originality/value This paper provides empirical evidence on the EO–innovation performance relationships from Korean ventures – an underexplored area of research. It also takes into account the curvilinear relationships of summative and multiplicative EO constructs with different performance indicators. Future research can benefit from the use of the multiplicative EO estimation and multiple performance indicators to capture a clearer picture of the causal relationships.


2016 ◽  
Vol 29 (6) ◽  
pp. 628-645
Author(s):  
Maria do Carmo Caccia-Bava ◽  
Valerie C.K. Guimaraes ◽  
Tor Guimaraes

Purpose – Without use the expected benefits from healthcare management systems (HMS) cannot be derived. Thus, while use alone may not guarantee success, one can safely assume that the more use the better. HMS has been instrumental in facilitating care providers’ work. However, many hospitals have encountered usage problems and some user-related factors have been recognized in the literature as potentially important to make HMS more successful. The purpose of this paper is to test the importance of the factors proposed in the literature as important determinants of HMS usage measured by the number of hours used and the frequency of use. Design/methodology/approach – Several user-related variables such as user participation, user expertise, and user training previously studied separately by different authors are brought together into an integrated model to be tested empirically. Data from 213 nurses using their hospital HMS have been used to test proposed relationships between the independent variables and HMS usage results. Findings – The results confirm the importance of these factors and provide the basis for managerial recommendations. Hospital managers can use the resources validated by this study to improve their own operations and improve the likelihood of success implementing HMS. Future research projects may identify other possible factors important for HMS implementation success to improve the model proposed here. Originality/value – HMS is a very widely used and an important system for hospitals, but has been neglected in research. This is one of the first rigorous studies of HMS, and the results provide new practical insights for hospital administrators.


2015 ◽  
Vol 23 (1) ◽  
pp. 2-14 ◽  
Author(s):  
Alvaro Cuervo-Cazurra ◽  
Rajneesh Narula

Purpose – The purpose of this paper is to introduce the debate forum on internationalization motives of this special issue of Multinational Business Review. Design/methodology/approach – The authors reflect on the background and evolution of the internationalization motives over the past few decades, and then provide suggestions for how to use the motives for future analyses. The authors also reflect on the contributions to the debate of the accompanying articles of the forum. Findings – There continue to be new developments in the way in which firms organize themselves as multinational enterprises (MNEs), and this implies that the “classic” motives originally introduced by Dunning in 1993 need to be revisited. Dunning’s motives and arguments were deductive and atheoretical, and these were intended to be used as a toolkit, used in conjunction with other theories and frameworks. They are not an alternative to a classification of possible MNE strategies. Originality/value – This paper and the ones that accompany it, provide a deeper and nuanced understanding on internationalization motives for future research to build on.


Sign in / Sign up

Export Citation Format

Share Document