scholarly journals The effects of past satisfaction and commitment on the future intention to internationalize

2016 ◽  
Vol 11 (2) ◽  
pp. 256-272
Author(s):  
Jase R Ramsey ◽  
Livia Barakat ◽  
Matthew C. Mitchell ◽  
Thomas Ganey ◽  
Olesea Voloshin
Keyword(s):  
Positive Relationship ◽  
Emerging Market ◽  
Small Sample ◽  
Firm Level ◽  
Content Type ◽  
Future Studies ◽  
The Future ◽  
Future Intention ◽  
Future Intent ◽  
The Relationship

Purpose – The purpose of this paper is to provide evidence that firms that are more committed to internationalization, systematically differ from firms that are less committed to internationalization in their future intention to engage in foreign direct investment (FDI). The authors analyzed data from 42 large Brazilian multinational enterprises (MNEs) and found that results support previous research on the degree of satisfaction with prior internationalization efforts and future intent to internationalize, such that the relationship between the two is positive. Yet contrary to existing literature, the degree to which a firm was committed to internationalization has a negative influence on the positive relationship between satisfaction and intent. Design/methodology/approach – All Brazilian firms that have entered foreign markets via FDI were surveyed to measure the firm’s: intent to internationalize; satisfaction with prior internationalization; and commitment to internationalization. Intent to internationalize is future based while both satisfaction and commitment reflect previous year’s activities. The potential response pool included publically traded companies listed on the Bovespa (São Paulo Stock Exchange) and private limited companies (Ltda.). The authors conducted a hierarchical moderated regression analysis to test the moderating effect of commitment to internationalization on the relationship between international satisfaction and intent to internationalize. Findings – This study adds to the literature by examining how past international satisfaction and commitment affect the future intent to internationalize for large Brazilian MNEs. The results confirm that the degree of past satisfaction regarding a firm’s international business is positively related to the firm’s future intent to internationalize. However, the results diverge from past research in two important ways. First, contrary to the organizational behavior literature, past commitment to internationalization does not have a significant relationship with future intention to internationalize. Second, the results show the relationship between satisfaction and intent is weakened by a high degree of international commitment. Research limitations/implications – A limitation of this study is the small sample size. While it encompasses the vast majority of large MNEs in Brazil, the authors still do not have enough data points to test more hypotheses such as the effects of firm size, number of countries the firm is in, and age of the firm. Future studies should attempt to expand the work done here by examining these effects. Another limitation of this study is that it is based on solely one country; Brazil. Future studies should attempt to replicate these findings in other emerging market countries. Practical implications – These results have three main managerial implications. First, international strategists analyzing the trajectory of a firm’s future intentions to internationalize should focus on how satisfied the firm has been with its past efforts. Second, managers should not assume that just because their firms have a large presence abroad that this will subsequently lead to future plans to internationalize. Finally, for emerging market MNEs in a period of the financial crises, committing more to internationalization may reduce the positive relationship between satisfaction and intention. Originality/value – The purpose of this study is to add to the small but growing work on large MNEs from Brazil in order to better understand their internationalization strategies. While there are literally hundreds of articles investigating the individual-level relationship between satisfaction and the intent to do something, there are a dearth at the firm level (see Wood et al., 2011, as a notable exception). The authors therefore attempt to extend the literature on internationalization by discussing how satisfaction at the firm level affects a firm-level decision.

Ownership participation of cross-border mergers and acquisitions by emerging market firms

2015 ◽  
Vol 53 (1) ◽  
pp. 221-246 ◽  
Author(s):  
Monica Yang
Keyword(s):  
Mergers And Acquisitions ◽  
Cultural Distance ◽  
Emerging Market ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Firm Level ◽  
Content Type ◽  
Cross Border ◽  
Emerging Market Firms ◽  
The Relationship

Purpose – The purpose of this paper is to adopt a multi-level approach to investigate what factors shape the content of emerging market firms’ foreign market entry decisions, particularly the ownership participation in cross-border mergers and acquisitions (M&As). In addition, the author would like to know if companies from emerging markets that possess higher (or lower) ownership in cross-border M&As receive higher valuation in the market. Design/methodology/approach – Using panel data of cross-border M&As by emerging market firms from 2000 to 2012, the author tests the hypothesized effects of the independent variables on the level of ownership participation; and uses a standard event study methodology to assess the market reaction of a particular cross-border M&A deal. Findings – The author finds that a country-level factor (institutional distance), an industry-level factor (industry unrelatedness) and a firm-level factor (board concentration) have significant impact on ownership participation in cross-border M&As. The author also finds that investors do give high valuation to those emerging market firms that chose high ownership participation in cross-border M&As. However, the author did not finds the support for the relationship between ownership participation and cultural distance. Neither did the author finds the support for the relationship between ownership participation and board independence. Originality/value – This study enhances the understanding of conditions under which the level of ownership participation in cross-border M&As would increase (decrease) and how the market reacts to high (low) ownership participation of cross-border M&As by emerging market firms.

Corporate social responsibility and future financial performance

2018 ◽  
Vol 13 (3) ◽  
pp. 351-371 ◽  
Author(s):  
Mahdi Salehi ◽  
Mahmoud Lari DashtBayaz ◽  
Sohila Khorashadizadeh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Emerging Market ◽  
Return On Assets ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Future ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between corporate social responsibility (CSR) expenditures and firm financial performance in an emerging market. Design/methodology/approach The authors examine the hypotheses by performing panel data analysis on a sample of 159 companies listed on the Tehran Stock Exchange during 2010–2015. Findings The findings suggest that the investment in CSR initiatives is significantly and positively associated with firm financial performance as proxied by changes in return on assets. Moreover, the findings confirm a positive and significant association between CSR expenditures and firm financial performance as proxied by both the future changes in return on assets and the future changes in operating cash flows scaled by total assets. Originality/value The present study has examined the relationship between CSR and firm financial performance in a country where, to the authors’ knowledge as in most other developing markets, such a relationship has not been a subject of empirical research. Besides, the use of a three-dimensional measure of financial performance, primarily considering research undertaken in an emerging market, as a valuable contribution may be observed.

scholarly journals When does corporate governance matter? Evidence from across the corporate life-cycle

2015 ◽  
Vol 41 (7) ◽  
pp. 673-691 ◽  
Author(s):  
Thomas O'Connor ◽  
Julie Byrne
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Firm Value ◽  
Emerging Market ◽  
Small Sample ◽  
Content Type ◽  
A Value ◽  
Corporate Life Cycle ◽  
Two Measures ◽  
The Relationship

Purpose – The purpose of this paper is to explore the relationship between corporate governance and firm value at different stages of the corporate life-cycle. Design/methodology/approach – The authors use two measures, commonly employed in the literature, to differentiate between “immature” and “mature” firms, and estimate separate governance-value regressions for each set of firms. Findings – The findings suggest that it is differences in the resource/strategic governance functions, which manifest in young firms which result in differences in value across firms, all else equal. The authors find no relationship between governance and firm value for older firms. Hence, differences in the monitoring aspect of governance between mature firms are not rewarded with a value premium. Research limitations/implications – The findings imply that the strategic and resource roles of governance are “must haves” for firms since firms that score highly on these fronts are valued more highly. In contrast, differences in the monitoring aspect of governance are not rewarded, suggesting that effective monitoring is not a necessity, but rather a “nice to have”. The analysis is limited to a small sample of emerging market firms, and it would be of interest to extend this analysis to a larger and broader sample of firms. Originality/value – The findings suggest that corporate governance is not valued at all stages of the corporate life-cycle.

scholarly journals The role of firm characteristics on the relationship between gender diversity and firm performance

2016 ◽  
Vol 54 (6) ◽  
pp. 1407-1419 ◽  
Author(s):  
Mehmet Nihat Solakoglu ◽  
Nazmi Demir
Keyword(s):  
Firm Performance ◽  
Emerging Market ◽  
Gender Diversity ◽  
Firm Level ◽  
Content Type ◽  
Specific Factors ◽  
And Performance ◽  
The Relationship ◽  
Measures Of Performance

Purpose – The purpose of this paper is to understand the effect of gender diversity on firm performance and evaluate how that relationship is influenced by some firm-specific factors for firms in an emerging market. Design/methodology/approach – The authors collected firm level financial data and firm level characteristics for the firms listed in BIST100 index of Borsa Istanbul for the period between 2002 and 2006. Due to endogeneity of gender diversity and firm performance, the authors utilize unbalanced panel data with 2SLS specification. To observe the sensitivity of results across measures of performance, three measures of performance, two accounting-based and one market-based, are utilized. Findings – Overall, the authors find some weak evidence that gender diversity impacts firm performance. In particular, the findings imply significant association between gender diversity and firm performance for firms that are targeting local markets, for firms in the financial sector and for firms that are family or block-owned. Moreover, findings are fragile with respect to the measures of diversity and performance selected. Originality/value – Although the relationship between gender diversity and firm performance are investigated several times in the past, there are not many studies that examines the role of firm-specific factors on that relationship. By revealing the factors that are important, this study provides an explanation why the existing literature leads to mixed results.

A strategic mismatch: organizational politics and creative propensity

2018 ◽  
Vol 28 (2) ◽  
pp. 223-239
Author(s):  
Fatima Omer ◽  
Hamid Hassan
Keyword(s):  
Emerging Markets ◽  
Structural Equation ◽  
Positive Relationship ◽  
Emerging Market ◽  
Negative Relationship ◽  
Organizational Politics ◽  
Equation Modeling ◽  
Content Type ◽  
Foreign Companies ◽  
The Relationship

Purpose This paper aims to investigate the relationship between negatively perceived organizational politics (NPOP) on creative propensity (CP), while also studying their interplay with organizational commitment (OC) and job satisfaction (JS). Design/methodology/approach A survey technique was used in three different IT-related companies in an emerging market. Customers also included foreign companies for two of the three. In terms of age, these companies were roughly a decade old or more. Respondents were employees who were involved in IT-related jobs. Instrument was used five-point Likert scale. Data analysis involved partial least squares structural equation modeling (PLS-SEM). Findings JS appears to have a positive relationship with OC. Both factors have been shown to have a positive relationship with CP. NPOP appears to have a negative relationship with not only CP but also JS and OC. Originality/value This research aids in bridging a gap in research and contributes to literature with respect to the relationship among CP with JS, OC and NPOP. There is a need for greater research with respect to the relationship of CP with JS, OC and particularly with NPOP between these factors. This research would aid in bridging the gap by investigating relationships among these factors. Globalization and international business may increase the importance of creativity for IT-related as well as other companies. Businesses in emerging markets may require creativity for growth, survival and catching up to companies in developed markets or for competitiveness. With the prevalence of politics in organizations, it may be of strategic value for businesses in emerging markets to be able to calibrate these factors to increase their potential for creativity.

Home country institutional impact on the choice of direct vs indirect exports: an emerging markets perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
B. Elango ◽  
Nitin Pangarkar
Keyword(s):  
Home Country ◽  
Emerging Market ◽  
Uncertainty Avoidance ◽  
Firm Level ◽  
Content Type ◽  
Second Stage ◽  
Export Strategy ◽  
Scant Attention ◽  
Institutional Impact ◽  
The Relationship

PurposeThis study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies by emerging market firms.Design/methodology/approachThis study is based on a dataset of 23,256 observations on firms from 32 countries spread over 11 years (2006–2016). Since only some firms undertake exports, the Heckman procedure is used to control for sample self-selection. In the first stage, we predict which firms will choose to export, and, in the second stage, we examine the factors driving the choice made by firms involved in exports between direct and indirect exports strategies.FindingsThe analyses reveal that firms are more likely to choose direct exports when institutional harshness is high and when they are from countries with low uncertainty avoidance. We also find that the strength of the relationship between institutional harshness and the choice of direct exports is moderated at high levels of uncertainty avoidance.Research limitations/implicationsWhile this study's empirical models account for many firm-level factors as well as home country differences discussed in the literature, we acknowledge there could be other temporal, firm or country idiosyncratic factors not included in our analysis driving the key choices examined in the paper.Originality/valueThis study makes three contributions to exporting literature. First, it highlights the drivers of the choice between direct and indirect exports. This choice is an important facet of exporting strategy and has received scant attention in prior IB research. Second, it demonstrates how the choice between direct and indirect exports is impacted by the degree of the home country's institutional harshness and uncertainty avoidance. Third, it offers insights on how the interaction of formal and informal home market institutional factors influences export strategy.

Corporate social responsibility, green innovation and competitiveness – causality in manufacturing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carmen Paola Padilla-Lozano ◽  
Pablo Collazzo
Keyword(s):  
Corporate Social Responsibility ◽  
Supply Chain ◽  
Social Responsibility ◽  
Emerging Market ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Firm Level ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to explore the interplay of corporate social responsibility (CSR) and green innovation in boosting competitiveness in manufacturing in an emerging market context. This study adds green innovation as mediator in the relationship between CSR and competitiveness. Design/methodology/approach A model with three second-order constructs is developed and tested, in a sample of 325 managers from manufacturing companies in Ecuador, using quantitative and cross-section methods. Findings After obtaining adjusted and validated measurement models, a structural equation model was conducted, where the main hypotheses were confirmed, providing empirical evidence that CSR and green innovation significantly influence manufacturing competitiveness in a developing economy. Research limitations/implications This study considers only manufacturing companies in Ecuador, focusing on CSR practices in a single territorial case study. It arguably contributes to reinforce the business case for CSR, with new evidence on the causal relationships between CSR, green innovation and competitiveness, in the context of emerging market manufacturing industries. Although the literature often points at a positive relationship between CSR and firm-level competitiveness, supporting empirical evidence remains scarce. This model, introducing green innovation as mediator in the relationship between CSR and competitiveness in developing markets, accounts for a novel theoretical approach. Practical implications The findings are consistent with previous research, reporting the positive influence of CSR activities on organizational competitiveness, reducing risks and cost structures, as well as improving the relationship with employees, enhancing talent attraction, retention and productivity. Incorporating formal CSR tools to the model allowed us to highlight the relevance of ‘green’ certifications as a means to provide a competitive edge, along with increased bargaining power in the supply chain, resulting in competitiveness gains. The findings on the role of green innovation suggest a transition from cost-savings to a more strategic leverage on responsible innovation as a source of competitive advantage. Social implications Additionally, this research contributes to shed light on the impact of green processes and product innovations on social and environmental performance, providing evidence of a more efficient use of energy and natural resources, increasing productivity and by extension, profitability. CSR shapes an innovation culture that, through the use of social, environmental and sustainability controllers, can create new business models, products, services or processes that boost both firm-level and supply chain productivity, benefits that eventually spill over to the host community. Originality/value This study aims at bridging the research gap on the interplay of CSR, green innovation and competitiveness in manufacturing in an emerging market context.

When do job insecure employees adapt to change?

2019 ◽  
Vol 25 (3) ◽  
pp. 271-286 ◽  
Author(s):  
Kristi N. Lavigne ◽  
Victoria L. Whitaker ◽  
Dustin K. Jundt ◽  
Mindy K. Shoss
Keyword(s):  
Job Insecurity ◽  
Small Sample ◽  
Adaptive Performance ◽  
Work Behaviors ◽  
Content Type ◽  
Work Tasks ◽  
Main Effect ◽  
Low Levels ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between job insecurity and adaptive performance (AP), contingent on changes to core work tasks, which we position as a situational cue to employees regarding important work behaviors. Design/methodology/approach Employees and their supervisors were invited to participate in the study. Supervisors were asked to provide ratings of employees’ AP and changes to core tasks; employees reported on job insecurity. Findings As predicted, changes to core tasks moderated the relationship between job insecurity and AP. Job insecurity was negatively related to AP for those experiencing low levels of change, but was not related to AP for those experiencing high levels of change. Counter to expectations, no main effect of job insecurity was found. Research limitations/implications This study employed a fairly small sample of workers from two organizations, which could limit generalizability. Practical implications The study identifies changes to core tasks as a boundary condition for the job insecurity–AP relationship. Findings suggest that organizations may not observe deleterious consequences of job insecurity on AP when changes to core tasks are high. Originality/value Few researchers have examined boundary conditions of the impact of job insecurity on AP. Furthermore, inconsistent findings regarding the link between job insecurity and AP have emerged. This study fills the gap and expands upon previous research by examining changes to core tasks as a condition under which job insecurity does not pose an issue for AP.

Perceptions of time at work

2016 ◽  
Vol 45 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Aristides Isidoro Ferreira ◽  
Joana Diniz Esteves
Keyword(s):  
Gender Differences ◽  
Design Methodology ◽  
Internet Use ◽  
The Internet ◽  
Content Type ◽  
Future Studies ◽  
Work Related ◽  
Phone Calls ◽  
Working Day ◽  
The Relationship

Purpose – Activities such as making personal phone calls, surfing on the internet, booking personal appointments or chatting with colleagues may or may not deviate attentions from work. With this in mind, the purpose of this paper is to examine gender differences and motivations behind personal activities employees do at work, as well as individuals’ perception of the time they spend doing these activities. Design/methodology/approach – Data were obtained from 35 individuals (M age=37.06 years; SD=7.80) from a Portuguese information technology company through an ethnographic method including a five-day non-participant direct observation (n=175 observations) and a questionnaire with open-ended questions. Findings – Results revealed that during a five-working-day period of eight hours per day, individuals spent around 58 minutes doing personal activities. During this time, individuals engaged mainly in socializing through conversation, internet use, smoking and taking coffee breaks. Results revealed that employees did not perceive the time they spent on non-work realted activities accurately, as the values of these perceptions were lower than the actual time. Moreover, through HLM, the findings showed that the time spent on conversation and internet use was moderated by the relationship between gender and the leisure vs home-related motivations associated with each personal activity developed at work. Originality/value – This study contributes to the literature on human resource management because it reveals how employees often perceive the time they spend on non-work related activities performed at work inaccurately. This study highlights the importance of including individual motivations when studying gender differences and personal activities performed at work. The current research discusses implications for practitioners and outlines suggestions for future studies.

Improving new product development performance by risk management

2016 ◽  
Vol 31 (3) ◽  
pp. 418-425 ◽  
Author(s):  
Mehran Salavati ◽  
Milad Tuyserkani ◽  
Seyyede Anahita Mousavi ◽  
Nafiseh Falahi ◽  
Farshid Abdi
Keyword(s):  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Small Sample Size ◽  
New Product ◽  
Small Sample ◽  
Content Type ◽  
Total Performance ◽  
The Relationship ◽  
Npd Performance

Purpose The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance. Design/methodology/approach Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance. Findings Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance. Research limitations/implications First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings. Practical implications The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization. Originality/value Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.

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