Dual relational embeddedness and knowledge transfer in European multinational corporations and subsidiaries

2018 ◽  
Vol 24 (3) ◽  
pp. 519-533 ◽  
Author(s):  
Alberto Ferraris ◽  
Gabriele Santoro ◽  
Veronica Scuotto

Purpose This paper aims to investigate the relationship between the level of subsidiaries’ internal and external relational embeddedness and the degree of subsidiaries’ knowledge transfer. More specifically, the aim is to explore dual embeddedness of subsidiaries involved in the knowledge transfer process within multinational corporations’ (MNCs) network. Design/methodology/approach The authors empirically analyse 165 European subsidiaries to demonstrate the crucial role of dual relational embeddedness in the transfer of knowledge within MNCs. Data were collected via a close-ended questionnaire and processed through an ordinary least squares regression model. Findings Results show that internal embeddedness directly and positively influences the degree of subsidiaries’ knowledge transfer, whereas external embeddedness does not. Notwithstanding, a higher level of both types of embeddedness – known as dual embeddedness – generates multiplicative and positive effects on the degree of subsidiaries’ knowledge transfer. Practical implications Best practices and relevant knowledge follow a reverse transfer of knowledge from the subsidiaries to the internal MNC network that is facilitated by the relational embeddedness of subsidiaries. This has resulted in developing a dual embeddedness, which introduces new routines and scripts, as well as more relational links. Originality/value The research emphasises the relevance of the knowledge transfer process in multiple directions, evoking the central role of dual-embedded subsidiaries.

2019 ◽  
Vol 25 (1) ◽  
pp. 10-26 ◽  
Author(s):  
Pasquale De Luca ◽  
Mirian Cano Rubio

Purpose The knowledge transfer plays a key role in the firm’s capability to develop and to maintain a strategic competitive advantage over time. The capability of the firm to develop an efficient and effective process of knowledge transfer increases the internal skills and then the capability to compete in the business with positive effects on the performance. In order to maximize the effectiveness and efficiency of the knowledge transfer process it must be consider two main variables: the amount of knowledge to be transferred and the speed of the process. In this contest, the purpose of this paper is to developed a theoretical model, defined the knowledge transfer curve, able to evaluate the knowledge transfer process on the basis of its speed. Design/methodology/approach The curve of the knowledge transfer is based on the methodology of the learning curve. The curve of the knowledge transfer process can be evaluated on the basis of two main variables: the first is the content of knowledge to be transferred. It refers to the quality and quantity of the information to be transferred within the firm; and the second is the speed of the knowledge transfer process. It refers to the time in which the knowledge transfer can be realized. The function of the knowledge transfer is defined using ordinary differential equation. Findings There is an inverse relationship between time t and the variation rate r. The higher the variable r, the faster the knowledge transfer toward the level K. Therefore, the variable r measures the efficiency and effectiveness of the knowledge transfer process. On the basis of these considerations, manager must evaluate their policies about the knowledge transfer on the basis of their effects on the variable r: only the policy that increases its value can be considered effective for the knowledge transfer process. Originality/value The originality resides in the development of a theoretical model that is able to capture and measure the effectiveness and efficiency of the knowledge transfer. It is possible to define a curve of knowledge transfer on the basis of these two variables: content of the knowledge to be transferred and the time of the transfer process, by using an ordinary differential equation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xusen Cheng ◽  
Ying Bao ◽  
Alex Zarifis ◽  
Wankun Gong ◽  
Jian Mou

PurposeArtificial intelligence (AI)-based chatbots have brought unprecedented business potential. This study aims to explore consumers' trust and response to a text-based chatbot in e-commerce, involving the moderating effects of task complexity and chatbot identity disclosure.Design/methodology/approachA survey method with 299 useable responses was conducted in this research. This study adopted the ordinary least squares regression to test the hypotheses.FindingsFirst, the consumers' perception of both the empathy and friendliness of the chatbot positively impacts their trust in it. Second, task complexity negatively moderates the relationship between friendliness and consumers' trust. Third, disclosure of the text-based chatbot negatively moderates the relationship between empathy and consumers' trust, while it positively moderates the relationship between friendliness and consumers' trust. Fourth, consumers' trust in the chatbot increases their reliance on the chatbot and decreases their resistance to the chatbot in future interactions.Research limitations/implicationsAdopting the stimulus–organism–response (SOR) framework, this study provides important insights on consumers' perception and response to the text-based chatbot. The findings of this research also make suggestions that can increase consumers' positive responses to text-based chatbots.Originality/valueExtant studies have investigated the effects of automated bots' attributes on consumers' perceptions. However, the boundary conditions of these effects are largely ignored. This research is one of the first attempts to provide a deep understanding of consumers' responses to a chatbot.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah R. Crane

PurposeEntrepreneurial firms contribute to economic growth, but the potential gendered nature of this contribution must be investigated as outcomes of male-owned and female-owned firms differ. The study investigates the female underperformance hypothesis in a cross-country analysis of Schumpeterian entrepreneurs. Next, it investigates if there is a gendered dimension of Schumpeterian firm contribution to economic growth.Design/methodology/approachThe study utilizes both nonparametric and parametric methodologies. Through nonparametric methods, the success of female-owned and male-owned firms is compared. Next, a parametric ordinary least squares regression model tests if there is a gendered nature of an entrepreneurial firm's economic contribution.FindingsIn nonparametric analyses, female-owned entrepreneurial firms in developed countries perform similarly to male-owned firms, while in developing countries male-owned firms significantly outperform female-owned firms. The author also finds strong evidence that the gender of the Schumpeterian entrepreneur does not matter in the contribution in economic growth.Research limitations/implicationsIn all countries, the number of female-owned entrepreneurial firms was significantly lower than that of male-owned firms. The findings point to consistent cultural barriers for women in innovation-related fields and persistent gendered norms in entrepreneurship. Thus, removal of cultural barriers and continued support for Schumpeterian entrepreneurship will benefit women and contribute to a country's economic growth.Originality/valueThe data for this study is a unique utilization of the Enterprise World Survey to identify Schumpeterian entrepreneurial firms. Additionally, the study challenges the female underperformance hypothesis and contributes to the literature on the role of entrepreneurship in economic growth.


2020 ◽  
Vol 24 (8) ◽  
pp. 1899-1920
Author(s):  
Jiawen Chen ◽  
Linlin Liu

Purpose This study aims to extend the temporal perspective on ambidexterity by investigating how and under what conditions top management team (TMT) temporal leadership improves innovation ambidexterity. Design/methodology/approach Using a questionnaire survey, data were collected from 165 small- and medium-sized enterprises in China. Ordinary least squares regression models were applied to test the hypotheses. Findings The findings show that TMT temporal leadership has a positive effect on innovation ambidexterity and temporal conflict mediates this relationship. Market dynamism and institutional support moderate the indirect effect of TMT temporal leadership on innovation ambidexterity. Practical implications Managers wishing to promote exploration and exploitation simultaneously should pay attention to the temporal aspects of their innovation strategy and improve their temporal leadership activities. Originality/value This study highlights the temporal conflicts in ambidexterity and clarifies the enabling role of TMT temporal leadership. It contributes new insights to the research on organizational ambidexterity and strategic leadership.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Siddiquei ◽  
Fahad Asmi ◽  
Muhammad Ali Asadullah ◽  
Farhan Mir

PurposeThe Chinese firms are keenly focused on reducing their environmental footprints as part of the competitive strategy. Within the context of sustainable organizations in China, we test a multilevel framework that examined the impact of environmental-specific servant leadership on the green individual (pro-environmental behavior) and team (project green performance) outcomes within projects. Using social identity theory, we theorize and test the mediating role of green self-identity (individual level) and team green identification (team level) in the relationships between environmental-specific servant leadership, pro-environmental behavior and project green performance.Design/methodology/approachWe used survey questionnaires to collect multi-level and multi-wave data from 42 ongoing project-based sustainable organisations in China. The multilevel team to individual-level hypothesis were analyzed using multilevel-modeling via Mplus, while team level hypotheses were tested using ordinary least squares regression.FindingsThe multilevel regression analysis showed that environmental-specific servant leadership has a trickle-down effect of green self-identity, which subsequently predicts pro-environmental behavior. The ordinary least squares regression results demonstrated that environmental-specific servant leadership predicts project green performance via team green identification. Also, environmental-specific servant leadership has a positive and direct impact on pro-environmental behavior and project green performance.Research limitations/implicationsWe offer community and service dimension of leadership as a determinant of environmental performance at multiple levels. We provide managerial and policy implications to Chinese organizations striving to reposition themselves as eco-friendly organizations both nationally and globally.Originality/valueThe study is among the first to understand the role of environmental-specific servant leadership in predicting individual-level and team-level environment-related mediator and outcomes simultaneously.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatemeh Askarzadeh ◽  
Hamed Yousefi ◽  
Mahdi Forghani Bajestani

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.


2019 ◽  
Vol 23 (9) ◽  
pp. 1885-1900 ◽  
Author(s):  
Ajai S. Gaur ◽  
Hongjia Ma ◽  
Baoshan Ge

Purpose Cross-border flow of knowledge is fraught with many challenges. The complexity associated with the organization of multinational corporations (MNCs), and the information asymmetry in foreign locations poses particular challenges to knowledge flow. Yet, effective transfer of knowledge is critical for the survival and performance of MNCs. The purpose of this paper is to present a comprehensive framework to understand the difficulties in the smooth flow of knowledge in MNCs. Design/methodology/approach The study is conceptual in nature and is based on an extensive review of the extant literature. Findings This review of the literature suggests that knowledge flow in MNCs is affected by country-level, firm-level and individual-level factors. The authors discuss these in the backdrop of the MNC strategy and the knowledge transfer context. The authors present their theoretical model and discuss the implications for advancing research in this domain. Originality/value This is one of the first papers to present a comprehensive framework to understand knowledge flows in MNCs.


2013 ◽  
Vol 17 (5) ◽  
pp. 695-708 ◽  
Author(s):  
Nishant Kumar

Purpose – This study aims to provide insight to the little-researched phenomenon of reverse knowledge flow within multinational corporations (MNCs) and to explain the role of managerial attention in exploiting the prospect of knowledge transfer from subsidiaries located in developing countries. Design/methodology/approach – Existing literature across disciplines has been integrated to provide a clear description of the concept of reverse knowledge flow and managerial attention, in order to explain the role of managerial attention in reverse knowledge transfer activities within MNCs. Two pilot studies were conducted on European MNCs to build the background for this study. Findings – Managerial attention is a key factor in recognising potential source of knowledge within the multinational network, and a prior requirement for knowledge transfer to take place. Attention decisions are partially based on the knowledge source location, awareness/attractiveness, and the strategic importance. Thus, MNCs can adopt managerial practices and control mechanisms to influence the attention of executives and achieve higher knowledge flow from subsidiaries. Research limitations/implications – There is a need to undertake empirical research and in-depth case studies of knowledge management practices using the arguments and framework provided in this article. Practical implications – MNCs can develop mechanisms for overcoming attention biases influence on reverse knowledge flow. The attention based approach can lead to better subsidiary integration and knowledge management practices in MNCs. Originality/value – This study advances the theory on reverse knowledge flow in MNCs by presenting an attention based theoretical framework for effective knowledge transfer.


2018 ◽  
Vol 13 (5) ◽  
pp. 837-854
Author(s):  
Shaista Wasiuzzaman

PurposeThe purpose of this paper is to detect variations in earnings management activity across industries and the possible influence of various industry variables on these variations.Design/methodology/approachA total sample of 4,249 firm-year observations from 13 different industries spanning a total of eight years (from 2005 to 2012) is used for this purpose. The ordinary least squares regression technique is used to test the influence of various industry variables on earnings management activity.FindingsThe findings indicate the presence of earnings management practices in Malaysian industries. Among industry-level variables, capital intensity, volatility and profitability are found to influence aggregate earnings management. Further analysis shows that volatility only influences the smoothing measure while profitability influences the discretionary measure. Interestingly, industry competitiveness and leverage are not able to explain the variations in earnings management across industries.Originality/valueTo the authors’ knowledge, this is the first study which documents the role of various industry characteristics in influencing earnings management activity. It highlights the importance of considering industry-level variables in a study on earnings management and, hence, adds to the growing literature on earnings management.


2019 ◽  
Vol 23 (1) ◽  
pp. 134-155 ◽  
Author(s):  
Rubén Martínez-Alonso ◽  
María J. Martínez-Romero ◽  
Alfonso A. Rojo-Ramírez

Purpose The purpose of this paper is to offer new insights regarding an issue that has attracted the interest of multitude academics and practitioners in business management and family firm literature: technological innovation (TI). Specifically, this study brings new knowledge regarding both the impact of TI efficiency on firm growth and the moderating role of family involvement in management on such relationship. Design/methodology/approach The authors use a matched-pairs design and an ordinary least squares regression analysis to examine a sample of 152 Spanish manufacturing firms. Findings First, the authors show that firms obtaining higher TI efficiency are also those that achieve superior growth. Second, the authors reveal that as family involvement in management increases, the positive effect that TI efficiency exerts on firm growth is strengthened. Practical implications This study suggests that family managers should essentially consider various aspects such as tacit knowledge, social capital and long-standing collaborations with stakeholders to reinforce the relationship between TI efficiency and firm growth. Originality/value To the best of the authors’ knowledge, this is the first study that analyses the effect of TI efficiency on firm growth, as well as, when and to what extent family involvement in management influences the TI efficiency–growth relationship. Thus, this paper provides a deeper understanding of the importance that family managers could have on firm growth deriving from TI efficiency.


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