Cross-border M&As and technological innovation: the moderating roles of formal and informal institutional distance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongxia Zhang ◽  
Huixin Yang
Keyword(s):  
Technological Innovation ◽  
Turning Point ◽  
Fixed Effect Model ◽  
Test Method ◽  
Institutional Distance ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
Cross Border ◽  
Post Merger Integration ◽  
The Impact

Purpose To reconcile the existing contradictory conclusions on the relationship between cross-border mergers and acquisitions (M&As) and innovation, this paper aims to propose a theoretical model of the impact of cross-border M&As on technological innovation and explore the moderating role of institutional distance from the perspective of springboard theory and new institutional theory. Design/methodology/approach Through the use of the two-way fixed effect model and the U-test method, the authors test the hypotheses based on a sample of cross-border M&A events of Chinese manufacturing enterprises during the period from 2006 to 2019. Findings The research shows that there is an inverted U-shaped relationship between cross-border M&As and technological innovation. Furthermore, formal institutional distance moderates the inverted U-shaped relationship in such a way that it reaches its turning point at a smaller scale of cross-border M&As, and the inverted U-shaped relationship is steeper when formal institutional distance is relatively high. The informal institutional distance moderates the inverted U-shaped relationship in such a way that it reaches its turning point at a larger scale of cross-border M&As and the inverted U-shaped relationship is flatter when the informal institutional distance is relatively high. Originality/value The research conclusions integrate heterogeneous views of the existing research, further clarify the influence mechanism and boundary conditions between cross-border M&As and technological innovation, identify the different moderating roles of formal institutional distance and informal institutional distance and enrich the literature on knowledge transfer and recombinant innovation during post-merger integration.

The impact of organizational position level and cultural flow direction on the relationship between cultural intelligence and expatriate cross-border adaptation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Zhang ◽  
Yuran Li ◽  
Mark Frost ◽  
Shiyu Rong ◽  
Rong Jiang ◽  
...  
Keyword(s):  
Cultural Intelligence ◽  
Flow Direction ◽  
Power Distance ◽  
Cultural Adjustment ◽  
Data Set ◽  
Content Type ◽  
Cross Border ◽  
Organizational Position ◽  
The Impact ◽  
The Relationship

PurposeThis paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.Design/methodology/approachThe authors develop and test a model on the interplay among cultural intelligence, organizational position level, cultural flow direction and expatriate adaptation, using a data set of 387 expatriate on cross-border transitions along the Belt & Road area.FindingsThe authors find that both organizational position level and cultural flow moderate the relationship between cultural intelligence and expatriate adaptation, whereby the relationship is contingent on the interaction of organizational position status and assignment directions between high power distance and low power distance host environments.Originality/valuePrevious research has shown that higher levels of cultural intelligence are positively related to better expatriate adaptation. However, there is a lack of research on the effect of position difference and cultural flow on such relationship. Our study is among the first to examine how the interaction between cultural flow and organizational position level influences the cultural intelligence (CI) and cultural adjustment relationship in cross-cultural transitions.

Do consumers support the cross-border charitable activities as the same?

2020 ◽  
Vol 11 (3) ◽  
pp. 441-458
Author(s):  
Zelin Tong ◽  
Tingting Li ◽  
Wenting Feng ◽  
Yuanyuan Zhou ◽  
Ling Zhou
Keyword(s):  
Social Identity ◽  
Host Country ◽  
Home Country ◽  
Identity Transformation ◽  
Extensive Literature ◽  
Content Type ◽  
Cross Border ◽  
National Power ◽  
Charitable Activities ◽  
The Impact

Purpose This study aims to investigate the impact of cross-border charitable activities on host- and home-country consumers based on the social identity theory. Design/methodology/approach Through an extensive literature review and two experimental designs, this study establishes the research framework and hypothesises the relationships between the constructs. Findings National power moderates the impact of cross-border charitable activities on host- and home-country consumers. In particular, compared to countries with high national power, countries with low national power undertaking cross-border charitable activities will receive more positive reactions from the host-country consumers, and, conversely, more negative reactions from the home-country consumers. Research limitations/implications From the consumer perspective, this study finds that brand cross-border charitable activities have different influences on consumers in different countries because of an identity transformation mechanism that exists between the “insiders” and the “outsiders”, which is different from the assumptions of western theories. Practical implications The findings provide insights for undertaking brand cross-border charitable activities. Originality/value Previous studies, which are based on social identity categorisation, assume that cross-border charitable activities have a more positive impact on home-country consumers than host-country consumers. However, this study adopts the research paradigm of social identity relationisation and draws an opposite conclusion, which not only expands the theory of local intergroup interaction, but also clarifies how brand cross-border charitable activities influence Chinese consumers.

Does the origin matter? The effects of cross-border mergers and acquisitions in France

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Federico Carril-Caccia
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Direct Investment ◽  
Developed Countries ◽  
Emerging Countries ◽  
Intangible Asset ◽  
Data Set ◽  
Content Type ◽  
Cross Border ◽  
The Impact

PurposeThe present article analyses the effects of cross-border mergers and acquisitions (CBM&As) on targets' total factor productivity (TFP), employment, wages and intangible-asset investment. The author investigates whether the impact of CBM&As differs depending on the origin of the investing multinational (MNE). The author distinguishes between CBM&As from European countries, other developed countries and emerging countries.Design/methodology/approachThe author makes use of a unique firm-level data set of foreign direct investment in the French manufacturing sector. The authors applies propensity score matching and difference in differences to estimate the effect of CBM&As.FindingsThe results show that the consequences of CBM&As differ strongly depending on the origin. CBM&As from European MNEs have a positive impact on TFP, wages and intangible-asset investment, and those from emerging countries seem to increase wages and intangible-asset investments. In contrast, CBM&As that originate from MNEs from other developed countries do not have a significant effect.Originality/valueThis article contributes to the growing literature on the effects of foreign direct investment that highlights the relevance of accounting for the MNEs' origin. In particular, it is the first to address the impact of emerging-country MNEs' CBM&As in Europe.

The impact of technological innovation upon servitization

2019 ◽  
Vol 30 (7) ◽  
pp. 1097-1114 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Mu-Yen Hsu
Keyword(s):  
Service Delivery ◽  
Technological Innovation ◽  
Large Scale ◽  
Manufacturing Firms ◽  
Multivariate Logistic Regression Model ◽  
Technological Innovations ◽  
Manufacturing Firm ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through service provision is becoming an important strategy for most industries. A growing demand for packaged product and service delivery is blurring the traditional boundaries between manufacturing and service firms. This trend is called “servitization.” Prior research had different perspectives on the relationship between technological innovations and servitization. Some argued that as servitization exerts the innovative convergence of products and services, the possession of appropriate readiness and absorption capacity through technological innovations for a manufacturing firm is critical to the success of servitization. In contrast, some argued that the knowledge gained from developing technological innovations cannot be applied to the creation of services due to the fundamental difference between technology and service. These contradicting arguments motivated the authors to study the relationship between technological innovations and servitization a step further. The paper aims to discuss these issues. Design/methodology/approach To address the research gap, the authors conducted an empirical study based on the large-scale samples from the second Taiwan Community Innovation Survey (Taiwan CIS). A multivariate logistic regression model was applied in the research. Findings The authors found that different types of technological innovations, namely product innovation and process innovation, have different impacts on servitization. The innovativeness level of the technological innovation moderates the relationship between technological innovation and servitization. Based on the above findings, this research specifically explains the causes of the contradictory results of the prior research. Originality/value The values of this research are twofold. Its academic contribution rests on bridging the literature of innovation and servitization, and on providing a model to clarify the relationships among technological innovation type, level of innovativeness and servitization. Its practical contribution lies in its establishment of a guideline that illuminates manufacturing firms reinforcing service delivery through their existing technological innovation trajectory.

Institutional pressures and the extent of cross-channel integration: the moderating effect of enterprise's capabilities

2020 ◽  
Vol 3 (1) ◽  
pp. 113-133
Author(s):  
Guangling Zhang ◽  
Chenchen Liu ◽  
Hui Wang
Keyword(s):  
Institutional Theory ◽  
Positive Impact ◽  
Institutional Pressures ◽  
Resource Based View ◽  
Content Type ◽  
Technology Competence ◽  
Manufacturing Enterprises ◽  
Channel Integration ◽  
Empirical Perspective ◽  
The Impact

PurposeCurrently, the issues of cross-channel integration (CCI) have become the attentive focus. However, little research based on institutional theory details the drivers of and obstacles to adopt CCI strategy. Combined with resource-based view (RBV) and institutional theory, this thesis studies the effect of institutional pressures on the manufactures' extent of CCI, through exploring the moderating effects of firm's technology competence and relationship governance capabilities on the relationship between institutional pressures and the extent of CCI.Design/methodology/approachThe survey data of 249 valid research samples were obtained from Chinese manufacturing enterprises. Statistical software such as SPSS 22.0 and AMOS 18.0 was used to analyze the data and test the conceptual model and relevant research hypotheses from an empirical perspective.FindingsThe results of empirical study from 249 manufacturers indicate that the mimetic, coercive and normative pressures perceived by enterprises can significantly promote their extent of CCI; relationship governance capabilities attenuate the positive impact of mimetic pressures on the extent of CCI, but strengthen that of normative pressures on the extent of CCI; besides, technology competence can attenuate the positive effect of mimetic pressures on the extent of CCI, but enhance that of normative pressures on the extent of CCI.Originality/valueFew studied the impact of the interaction of internal capabilities and external institutional pressures on CCI of enterprises. This study combines institutional theory and resource-based view to fill the theoretical gap in this regard.

scholarly journals European intellectual property institutions and Chinese foreign direct investment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Direct Investment ◽  
Trade Openness ◽  
Negative Relationship ◽  
Preliminary Evidence ◽  
Institutional Distance ◽  
Content Type ◽  
Chinese Foreign Direct Investment ◽  
The Impact

PurposeWe investigate the impact of the strength of intellectual property (IP) institutions on Chinese outward foreign direct investment (OFDI).Design/methodology/approachWe use two different measures of IP on a sample of 21 European countries in the period 2003–2015. Panel quantile methodology is applied to assess the relationship at several points of the conditional distribution of OFDI.FindingsWe provide novel and robust evidence revealing a highly negative relationship between OFDI and the strength of IP institutions in Europe. This relationship which is more pronounced in the median and upper-quantiles, bolsters the conventional theoretical expectation that high institutional distance between home and host countries is inversely related to OFDI. Equally important is the preliminary evidence of the non-linear impact of IP at the median and upper-quantiles as well as the impact of other controlling variables such as GDP, population, trade openness and unit labour costs on Chinese OFDI.Originality/valueThe ensuing theoretical implications are of great significance for future studies on the institutional distance and drivers of OFDI by emerging economies as well as for European policymakers in so far as the strengthening of IP institutions constitutes a gravitational point for inward investment flows from China.

Impact of Eurozone crisis on domestic bank lending in India

2020 ◽  
Vol 12 (4) ◽  
pp. 577-591
Author(s):  
Vighneswara Swamy
Keyword(s):  
Emerging Economies ◽  
Debt Crisis ◽  
Bank Lending ◽  
Eurozone Crisis ◽  
Financial Shocks ◽  
Content Type ◽  
Crisis Period ◽  
Cross Border ◽  
International Banks ◽  
The Impact

Purpose The significant economic weight of the Eurozone in the globe caused the contagion of the Eurozone debt crisis on the emerging markets. The Eurozone debt crisis caused the sudden plummeting of the cross-border bank credit (BC) to India causing a significant impact on bank lending in India. Essentially, the purpose of this study is to find an answer to the question: Did the decline in cross-border cross-credit from Eurozone had an impact on domestic BC in India? Design/methodology/approach Using the data for the period from 2000 to 2013 sourced from Bank for International Settlements international banking statistics consolidated data sets, the novel specification of the study captures the impact of Eurozone cross-border credit on India by developing two regression frameworks that capture the pre-Euro debt crisis period scenario and post-Euro debt crisis period scenario. Findings The results offer a very interesting analogy of the behavior of BC and cross-border credit during the pre and post-Eurozone crisis scenarios of analysis. During the pre-Eurozone crisis period, cross-border credit displayed a significant negative relationship with BC indicating that cross-border credit to the Indian firms indirectly benefitted the banks by creating increased demand for domestic BC. The post-Eurozone crisis period witnessed a nexus between cross-border credit and BC during the pre-Eurozone crisis period, which gradually disappeared largely because of the onset of the Eurozone crisis. Originality/value This study is a first of its kind in investigating the impact of the Eurozone crisis on an emerging economy like India. This study supports the hypothesis of the existence of the transmission of financial shocks through the balance sheets of international banks. The findings conform to the policy concerns of most of the emerging economies that international banks transmit financial shocks from their home countries. The implication for India and other emerging economies is that international credit growth deserves careful monitoring.

Economic impact of data localization in five selected African countries

2018 ◽  
Vol 20 (4) ◽  
pp. 337-357
Author(s):  
Mona Farid Badran
Keyword(s):  
South Africa ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Research Paper ◽  
Policy Recommendations ◽  
African Countries ◽  
Content Type ◽  
Cross Border ◽  
The Impact ◽  
The Eu

Purpose The purpose of this study is to quantify the impact of laws and regulations that govern the cross-border flow of data on the economies of five selected African countries, namely, Egypt, Morocco, South Africa, Kenya and Mauritius. Moreover, this study addresses the state of cloud computing in Africa. Finally, policy recommendations are provided in this respect. Design/methodology/approach To reach accurate finding the Global Trade Analysis Project (GTAP) data was used, and then the computable general equilibrium (CGE) was computed to estimate the total cost on the economy. Using the three data regulations linkages indexes (DRLs), the increased administrative cost effect was analyzed on five to six major economic sectors in the target countries. This was followed by estimating the loss in sector-wide total factor productivity (TFP) (for the five to six shortlisted sectors). Using this data, the computable general equilibrium model (CGE) was computed, in order to estimate the economy-wide impact. Based on these findings, a set of recommendations were offered to the policy maker, reflecting the obtained results and conclusions and their implications on drafting data-related policies. Findings The obtained data indexes reveal that Mauritius is the country with the most laws and regulations governing the cross border flow of data, followed by South Africa Egypt to a lesser extent and finally Morocco and Kenya both showing an obvious lack of data regulations. The small value of the estimated elasticity of the selected countries compared to the value of the estimated elasticity in the EU-0.347 shows that the impact of data localization is less in the selected African countries than in the other set of EU countries examined in the research paper. This is because the former has smaller economies with fewer linkages to the global economy and are less reliant on sectors that are heavy users of data. Thus, the overall impact of data localization was not as profound on TFP as is the case in advanced economies. This research paper arrives at the conclusion that fighting the trend of data localization is crucial. In fact, data localization hinders the necessary and essential role of global trade in realizing economic development. Specifically, this is evident in the increase in production costs as reflected in the increase of the prices of goods, which would lead to a decline in incomes. Originality/value Global studies looked at the impact of data localization on the EU, as well as China, India, Korea and Vietnam, providing some data on Asia Pacific. However, no study has ever been conducted on the Middle East and Africa. This study aims to fill this gap. The approach of this study is to capture the extent of data localization mandates encoded in the laws of each of the selected five African countries showing how these mandates govern their cross-border data flow and, in turn, affect their economies. Furthermore, the policy recommendations section of this research paper makes a contribution to the existing literature.

Influence of technological innovation capabilities on product competitiveness

2016 ◽  
Vol 116 (5) ◽  
pp. 883-902 ◽  
Author(s):  
Lijun Liu ◽  
Zuhua Jiang
Keyword(s):  
New Product Development ◽  
Technological Innovation ◽  
Quantitative Research ◽  
Yangtze River Delta ◽  
Equation Model ◽  
Organizational Capabilities ◽  
Organizational Strategies ◽  
Content Type ◽  
Knowledge Resources ◽  
Manufacturing Enterprises

Purpose – The purpose of this paper is to shed light on how technological innovation capabilities (TICs) influence the product competitiveness of Chinese manufacturing enterprises and identify the key technological innovation components. Design/methodology/approach – Quantitative research setting was applied in Chinese Yangtze River Delta. Survey was carried out with 166 responses. Findings – The study reveals that the firm’s strategies capabilities, knowledge resources, fundamental research, application R & D, and manufacturing capabilities have significant influence on the new product development performance and product competitiveness of Chinese manufacturing enterprises. Interestingly, firm’s organizational capabilities and human, finance, and material resource have no significant correlation with the product competitiveness. Practical implications – From a practical perspective, the relationships among TICs enablers, processes, and product competitiveness may provide a clue regarding how firms can promote technological innovation to sustain their competitive advantage. Moreover, the key factors of TICs found in the study are useful for policy makers and managers of Chinese firms to make decision. Originality/value – This study is one of the first studies to apply the structure equation model method to measure the relationship between TICs and product competitiveness under the background of Chinese manufacturing. The results provide a new framework on the how technological innovation capability influence product competitiveness of Chinese manufacturing firms. From a managerial perspective, this study identifies several crucial TICs factors to support product competitiveness, and discusses the implications of these factors for developing organizational strategies that encourage technological innovation.

The joint effect of investment motives and institutional context on Russian international acquisitions

2016 ◽  
Vol 11 (4) ◽  
pp. 674-692 ◽  
Author(s):  
Desislava Dikova ◽  
Andrei Panibratov ◽  
Anna Veselova ◽  
Lyubov Ermolaeva
Keyword(s):  
Negative Binomial ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Future Research ◽  
Foreign Direct Investments ◽  
Outward Fdi ◽  
Foreign Investments ◽  
Data Set ◽  
Content Type ◽  
Cross Border

Purpose The purpose of this paper is to advance knowledge about factors that influence the location of Russian foreign direct investments. In particular, it focusses on the role of institutional distance (represented by corruption perception distance, political distance and cultural distance) as a moderator of the relationships between traditional investment motives and the number of M&A deals made by Russian companies in a specific country. Design/methodology/approach The analysis is conducted on panel data of Russian cross-border M&As launched in 46 countries during the period 2007-2013. The final data set includes 322 observations. Due to the nature of dependent variable and the results of pre-tests, negative binomial regression is used in the main analysis. Findings The key finding of the study reveals the importance of institutional distance, in particular, the moderating effect of different dimensions of institutional distance on the relationships between internationalization motives and the number of Russian M&As. Corruption, political and cultural differences show different effects in terms of both direction and strength, but all three were found to be significant. Research limitations/implications The major concern stems from the type of secondary data used in the paper. This indicates the necessity to improve data collection methods which could allow for better transparency of Russian foreign investments, would facilitate more sophisticated research and probably more accurate business forecasts. Originality/value By conducting a systematic examination of Russian cross-border M&As the authors contribute to the literature on emerging markets firms by addressing the important yet under-researched domain of Russian foreign direct investments. Building on the macroeconomic and institutional logic proposed in this study, future research on Russian cross-border activities could add to the understanding by providing more generalizable and critical evidence. The study provides a point of departure from prior studies on Russian outward FDI which the authors hope to inspire future research to further analyze the drivers of Russian M&As and foreign investments in general.

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