Multinationality and performance effects: an integrated theory of new patterns of multinationality and home political influence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
I-Fan Yen ◽  
Hsin-Mei Lin
Keyword(s):  
Multinational Enterprises ◽  
Positive Relationship ◽  
Political Influence ◽  
Superior Performance ◽  
Foreign Investments ◽  
Content Type ◽  
Performance Effect ◽  
Performance Effects ◽  
And Performance ◽  
The Relationship

Purpose This paper aims to develop an integrated perspective on the relationship between multinationality and performance in the outward foreign direct investment (OFDI) of Chinese firms. The study not only represents contrasting OFDI patterns – namely, born global-natured multiple synchronous foreign investments versus conventional internationalization process (IP)-natured steady increasing foreign investments – but also contributes to understanding the extent to which explanations of home political influence need to be rooted within the general theory of multinationality. Design/methodology/approach By testing a comprehensive panel observation of 8,635 OFDI projects from 1991-2016 in China, this study found that multinationality with the new pattern of multiple synchronous OFDIs has a superior performance effect compared with the conventional pattern of steady increasing OFDIs. Findings This study also finds a positive relationship between multinationality (international diversification and home political influence) and the performance effect with the new pattern of multiple synchronous OFDIs, as well as a partial positive relationship between multinationality and the performance effect with the conventional pattern of steady increasing OFDIs. Research limitations/implications The study extends the understanding of the performance effects of Chinese multinational enterprises, which may benefit more from the new pattern of multiple synchronous OFDIs than from the conventional pattern of steady increasing OFDIs when the home-country institution is strongly positioned. Originality/value This paper concludes that multinationality needs an integrated framework that accounts for the new pattern of OFDI and the influence of diversification and home politics, particularly for the emerging country, China.

scholarly journals Technological capability, relational capability and firms’ performance

2019 ◽  
Vol 27 (1) ◽  
pp. 79-99 ◽  
Author(s):  
Yakubu Salisu ◽  
Lily Julienti Abu Bakar
Keyword(s):  
Positive Relationship ◽  
Technological Capability ◽  
Superior Performance ◽  
Learning Capability ◽  
Competitive Position ◽  
Content Type ◽  
And Performance ◽  
Relational Capabilities ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and small and medium enterprises (SMEs) performance in developing economy of Africa. Design/methodology/approach A quantitative survey design was employed to collect the data from owner/manager of manufacturing SMEs in Nigeria. Partial least square structural equation model was used in the evaluation of both the measurement and structural models to determine the reliability and validity of the measurement and test the hypotheses, respectively. Findings The statistical result indicates a positive relationship between technological capability, learning capability and SMEs performance. Equally, relational capability significantly and positively relates to SMEs learning capability. However, relational capability negatively relates to SMEs performance, while technological capability also negatively relates to learning capability. Furthermore, learning capability mediates the negative relationship of relational capability and SMEs performance to significant positive relationship, while it does not mediate the relationship of technological capability and performance. Research limitations/implications The analysis of this study is restricted to only resource-based view and dynamic capability theory. Data of the study were collected once a time on a self-reported technique. The study contributed significantly to the body literature on technological and relational capabilities and performance. It also demonstrated the need for SMEs manager to recognize and appreciate the roles of these strategic capabilities in achieving sustainable competitive position. Practical implications Through relational capability SMEs develops efficient collaborative relationship to acquire new techniques, knowledge. This is specifically, essential for SMEs firms from less developing and emerging economies as they are lagging behind at the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets. Similarly, technological capability enable firms to identify acquire and apply new external knowledge to develop operational competencies which may lead to the attainment of superior performance. Social implications Government policies and programs designed to support technological development and innovation must be adjusted to consider the peculiar nature of SMEs firms in terms of technology and innovativeness that enhances competitive position and performance. Originality/value This study empirically examined the relationship of technological and relational capabilities and the SMEs learning capability and performance.

Enhancing foreign subsidiaries' performance through relational ties, market- and nonmarket-based capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amonrat Thoumrungroje ◽  
Supara Kapasuwan
Keyword(s):  
Firm Performance ◽  
Multinational Enterprises ◽  
Social Capital Theory ◽  
Superior Performance ◽  
Foreign Subsidiaries ◽  
Capital Theory ◽  
Content Type ◽  
Mediating Role ◽  
Path Analyses ◽  
And Performance

PurposeGiven the inconclusive findings on relational ties–performance relationships, this study approaches this phenomenon through social capital theory and resource-based view (RBV) lenses to advocate the mediating role of nonmarket- and market-based capabilities.Design/methodology/approachA survey-based research methodology was employed. A list of 1,425 foreign subsidiaries was identified from the Thailand Board of Investment (BOI) website, and key informants were contacted. A final response rate of 11.8% was achieved. All hypotheses were tested via path analyses with the bootstrapping technique.FindingsThe results indicate that the relationships between business- and government-relational ties and performance are fully mediated by market- and nonmarket-based capabilities with the latter serving as essential but inadequate preconditions for achieving superior firm performance.Practical implicationsTo mitigate the liability of foreignness and to enhance performance of foreign subsidiaries operating in volatile emerging economies such as Thailand, government and business relational ties are crucial in developing nonmarket- and market-based capabilities. The nonmarket-based capabilities entail the ability to negotiate with and influence policy makers, which in turn helps augment the development of market-based capabilities, including the ability to be highly responsive to customers' needs.Originality/valueThis research illustrates the embedded roles of nonmarket and market-based capabilities developed through complex interactions among social actors, including the multinational enterprises’ (MNEs’) subsidiaries and government and nongovernment counterparts, in attaining superior performance. The results indicate how relational ties enable MNEs’ subsidiaries to develop various capabilities, and how these capabilities are related with each other and linked to firm performance. Findings from an emerging economy undergoing recent political and economic uncertainties also provide theoretical advancements for international business studies.

Why won’t task conflict cooperate? Deciphering stubborn results

2014 ◽  
Vol 25 (4) ◽  
pp. 333-358 ◽  
Author(s):  
Misty L. Loughry ◽  
Allen C. Amason
Keyword(s):  
Individual Differences ◽  
Conflict Management ◽  
Team Performance ◽  
Positive Relationship ◽  
Task Conflict ◽  
Empirical Literature ◽  
Content Type ◽  
Team Members ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to suggest why the theoretically positive relationship between task conflict and team performance has received mixed empirical support. Design/methodology/approach – We review the literature on task conflict and offer explanations for findings that contradict the expected positive relationship between task conflict and team performance. Findings – High levels of correlation among task, relationship and process conflict, and measurement and data analysis issues make it difficult to isolate the effects of each type of conflict. Group-level moderators, including values congruence, goal alignment, norms for debate and the group’s performance history and conflict history affect the relationship between task conflict and performance. The complex relationship between conflict and trust may cause task conflict to have mixed effects on performance. Individual differences and conflict management approaches also affect the relationship between task conflict and performance. Temporal issues and stages of group development are other relevant influences. Practical implications – To better achieve the theorized performance benefits of task conflict, a context characterized by trust is needed. Then norms fostering task conflict can be cultivated and employees can be trained in conflict management. Individual differences that affect team members’ ability to confidently accept task conflict can be considered in selection. Originality/value – Suggestions are presented for future research that may explain discrepant findings in the past empirical literature. In particular, it may be difficult for some team members to perceive task conflict in well-functioning teams. Measures of task conflict that avoid the use of words with a negative connotation should be tested.

scholarly journals The relationship between organizational culture and quality techniques, and its impact on operational performance

2015 ◽  
Vol 35 (10) ◽  
pp. 1460-1484 ◽  
Author(s):  
Lillian Do Nascimento Gambi ◽  
Harry Boer ◽  
Mateus Cecilio Gerolamo ◽  
Frances Jørgensen ◽  
Luiz Cesar Ribeiro Carpinetti
Keyword(s):  
Organizational Culture ◽  
Structural Equation ◽  
Operational Performance ◽  
Equation Modeling ◽  
Competing Values ◽  
Performance Impact ◽  
Content Type ◽  
Performance Effects ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to investigate if a firm’s organizational culture affects the set of quality techniques it uses, and if these quality techniques affect the relationship between organizational culture and operational performance. Design/methodology/approach – Based on data collected from 250 firms in Brazil and Denmark, structural equation modeling is used to investigate the relationship between organizational culture and the use of quality techniques, and its impact on operational performance. Four quality technique groups, four cultural profiles adopted from the Competing Values Framework and a set of operational performance indicators are used to operationalize the study. Findings – Culture does not appear to be an unequivocal predictor of the use of quality techniques. Furthermore, while most quality technique groups contribute indirectly to the total effect on operational performance in the developmental, group and hierarchical cultures, the performance effects are insignificant for all four groups in the rational culture. Practical implications – Managers need to be actively aware of the cultural characteristics of their organization before adopting quality techniques, in order to benefit most from the use of these techniques. Originality/value – Most previous studies address the relationships between culture, quality management and performance at the level of quality practices. This study takes the unitarist-pluralist discussion to the level of quality techniques and extends that discussion to what should be its core, namely, the influence of quality techniques on the performance impact of culture.

Relationship between sustainable operations practices and performance: a meta-analysis

2017 ◽  
Vol 66 (8) ◽  
pp. 1020-1042 ◽  
Author(s):  
Marina D’Agostini ◽  
Vilmar Antonio Gonçalves Tondolo ◽  
Maria Emília Camargo ◽  
Angela Isabel dos Santos Dullius ◽  
Rosana da Rosa Portella Tondolo ◽  
...  
Keyword(s):  
Design Methodology ◽  
Positive Relationship ◽  
Meta Analysis ◽  
Multidimensional Approach ◽  
Sustainable Operations ◽  
Content Type ◽  
Moderating Factors ◽  
And Performance ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between sustainable operations practices (SOP) and performance. Design/methodology/approach This study was conducted through a systematic literature review followed by a meta-analysis of correlations. Findings In the results, 14 of the relationships examined showed a positive relationship and 12 the presence of moderators. The study findings indicate that contingency affects the relationship between SOPs and performance. Research limitations/implications The research presented in this paper is mainly limited to databases that were searched. Among the quantitative articles selected from the databases, many did not have the data needed to conduct the meta-analysis, which may have limited the results of this study. Practical implications Using the results of this study, practitioners can become aware of to the occurrence of moderating factors in the relationships, which can range from interference from other practices and variables to characteristics of the organization itself or the market in which organizations operate. Originality/value This study uses a multidimensional approach for both SOP and performance. This approach allowed a more complete and comprehensive result, showing how these SOPs influence the different categories of performance, expanding the understanding of the relationship between practices and performance.

scholarly journals Digital transforming capability and performance: a microfoundational perspective

2020 ◽  
Vol 40 (7/8) ◽  
pp. 1095-1128
Author(s):  
Thayla Tavares Sousa-Zomer ◽  
Andy Neely ◽  
Veronica Martinez
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Content Type ◽  
Performance Effects ◽  
Order Construct ◽  
And Performance ◽  
Using Data ◽  
The Relationship

PurposeDrawing on the literature on dynamic capabilities and digital transformation, this paper conceptualises and investigates the relevant antecedents of an essential capability for digital transformation – the digital transforming capability – and its effect on the competitive advantage of firms.Design/methodology/approachA framework with individual and organisational microfoundations of the digital transforming capability is proposed based on previous research. The digital transforming capability is conceptualised as a second-order construct. The model is tested using data from a broad spectrum of large US companies. Structural equation modelling (SEM) is applied to test the proposed framework.FindingsThe study identifies three main microfoundations that, when combined, build a digital transforming capability (digital-savvy skills, digital intensity and context for action and interaction); in addition, the study tests the relationship between digital transforming capability and firm performance. The results validate the proposed theoretical framework. In addition to proposing relevant microfoundations of the digital transforming capability, we advance knowledge on the performance effects of those microfoundations.Originality/valueThe paper contributes to advancing the understanding of the digital transformation phenomenon by revealing the role of the primary components underlying the digital transforming capability. Yet the mechanisms by which the micro-level aspects are important for digital transformation and organisational outcomes are only suggested by anecdotal evidence. The paper also contributes to ongoing calls for further investigation to extend the understanding of the microfoundations of dynamic capabilities. Finally, by drawing on archival data, this study also contributes to calls to broaden the toolkit used in dynamic capabilities research.

scholarly journals Performance effects of intra- and inter-regional expansion: the moderating role of firm-specific advantages

2016 ◽  
Vol 14 (3) ◽  
pp. 8-20 ◽  
Author(s):  
Arkadiusz Ral-Trebacz ◽  
Stefan Eckert
Keyword(s):  
Empirical Work ◽  
Superior Performance ◽  
Performance Impact ◽  
Performance Effect ◽  
Business Operations ◽  
Positive Performance ◽  
Performance Effects ◽  
And Performance ◽  
Moderating Role

Recent empirical work suggests that the business operations of multinational companies are rather regional than global. The authors analyze the performance impact of intra-regional (as opposed to inter-regional) expansion among companies from six West European countries. Using multilevel modeling, the authors find that an increase in a firm’s degree of regionalization leads to superior performance. The results reveal that an inter-regional strategy does not seem to be a profitable expansion option. Moreover, while examining the moderating impact of firms’ FSAs on the link between intra-regional expansion and performance, the empirical findings suggest that marketing-related FSAs tend to be more regional-bound in nature and support the positive performance effect of intra-regional expansion

Integrated marketing channel relationships: integration dimensions and channel performance

2019 ◽  
Vol 34 (6) ◽  
pp. 1360-1373
Author(s):  
Yoritoshi Hara
Keyword(s):  
Demand Uncertainty ◽  
Contextual Factors ◽  
Marketing Channel ◽  
Manufacturing Companies ◽  
Content Type ◽  
Performance Effect ◽  
Performance Effects ◽  
Governance Strategies ◽  
Strategic Factors ◽  
And Performance

Purpose Inter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and authority integration, and their co-alignment with strategic and contextual factors. Design/methodology/approach The author conducted a quantitative empirical study using survey data of Japanese manufacturing companies’ relationships with their wholesalers to test hypotheses based on a literature review. Findings Coordination integration has a positive performance effect. There is co-alignment between high (low) coordination integration and high (low) product uniqueness. High (low) coordination integration is associated with high (low) demand uncertainty. High (low) authority integration is consistent with high (low) behavioral uncertainty. Research limitations/implications This study contributes theoretically to marketing channel and business-to-business marketing literature by holistically examining the linkages among governance forms, marketing-strategic factors, exchange-contextual factors and inter-firm performance. A limitation of this study is that the research data were collected in only one country, Japan. Thus, country-specific factors might affect the analytical outcomes. Practical implications Appropriate co-alignment among governance, strategies and contexts significantly influences performance. The findings have significant implications for manufacturing firms’ channel strategies. Originality/value This study tests the influences of two distinct dimensions of inter-firm integration on inter-firm outcomes, which few previous studies address. It comprehensively examines the linkages among governance forms, strategic factors, environmental factors and performance.

How do resources and diversification strategy explain the performance consequences of internationalization?

2014 ◽  
Vol 52 (5) ◽  
pp. 897-915 ◽  
Author(s):  
Yan Chen ◽  
Yiwei Jiang ◽  
Chengqi Wang ◽  
Wen Chung Hsu
Keyword(s):  
Emerging Market ◽  
Product Diversification ◽  
Firm Resources ◽  
Diversification Strategy ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Performance Consequences ◽  
Performance Effects ◽  
And Performance

Purpose – The purpose of this paper is to examine how firm resources and diversification strategy explain the performance consequences of internationalization of emerging market enterprises. Design/methodology/approach – The paper conducts a regression analysis by using a novel panel data set comprising of 685 listed Chinese firms over the period of 2008-2011. Findings – The results show that the relationship between internationalization and performance is inverse U-shaped. Further, marketing resources play a greater role in enhancing the performance effects of internationalization than technological resources do. Related product diversification enhances the performance effects, while unrelated product diversification does the contrary. Research limitations/implications – The study focusses on listed firms in one country, and as a result, the findings cannot be generalized to non-listed firms and firms in other countries. Practical implications – This paper offers guidelines for international managers to improve performance of internationalization by developing a particular type of resources and diversification strategy. Originality/value – This paper extends the literature on the functional form of the internationalization-performance relationship, and further suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and focusses on firm-specific resources and strategies that may facilitate or constrain the performance effects of internationalization.

“Knowledge management practices” as moderator in the relationship between organizational culture and performance in information technology companies in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Shea ◽  
Syed Aktharsha Usman ◽  
Sengottuvel Arivalagan ◽  
Satyanarayana Parayitam
Keyword(s):  
Information Technology ◽  
Organizational Culture ◽  
Knowledge Management ◽  
Organizational Performance ◽  
Management Practices ◽  
Self Report ◽  
Content Type ◽  
And Performance ◽  
Information Technology Companies ◽  
The Relationship

Purpose The purpose of this study is to empirically examine knowledge management (KM) practices as a moderator in the relationship between organizational culture and performance. The effect of four types of organizational culture on organizational performance was studied. In addition to direct effects, most importantly, KM practices as a moderator in strengthening the culture-performance relationship were empirically examined. Design/methodology/approach A carefully crafted survey instrument was distributed and data was collected from 1,255 respondents from 10 information technology companies in India. After checking the psychometric properties of the instrument, this paper performs hierarchical regression to test hypotheses. Findings The results reveal that: cooperative culture, innovative culture, consistent culture and effectiveness culture were all positively and significantly related to organizational performance; KM practices were positively and significantly related to organizational performance, KM practices moderate the relationship between various dimensions of organizational culture and organizational performance. Research limitations/implications As with any survey-based research, the present study suffers from the problems associated with self-report measures. These are common method bias and social desirability bias. However, this study attempts to minimize these limitations by following appropriate statistical techniques. Practical implications This study contributes to both practicing managers and the literature on KM and organizational culture. The study suggests that managers use KM practices, which are all-pervasive and very important for improving organizational performance. The results highlight the importance of implementing KM practices in organizations. Originality/value This study provides new insights into the importance of KM practices in achieving sustained competitive advantage by achieving organizational effectiveness. To the knowledge, the importance of KM practices is underemphasized in organizational culture research.

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