scholarly journals Taking advantage of institutional weakness? Political stability and foreign subsidiary survival in primary industries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel C. Lupton ◽  
Donya Behnam ◽  
Alfredo Jiménez
Keyword(s):  
Multinational Enterprises ◽  
Political Stability ◽  
Curvilinear Relationship ◽  
Market Strategy ◽  
Content Type ◽  
Primary Sector ◽  
Pros And Cons ◽  
Subsidiary Survival ◽  
Parametric Survival ◽  
At Home

Purpose This paper aims to investigate the extent to which locating primary industry subsidiaries in politically unstable countries impacts their survival. The authors argue that foreign multinational enterprises in less stable political environments can shape policies that are impactful on the costs of operating in primary industries and avoid compliance with more stringent policies at home. Design/methodology/approach Using a sample of 753 primary sector investments of Japanese multinational enterprises during the period 1986 to 2013, the authors conduct a parametric survival analysis of the relationship between political stability and subsidiary survival. Findings Political instability has a slight, curvilinear relationship with subsidiary survival, such that both high and low stability are associated with lower exit hazard, while moderate levels of stability increased exit hazard. This nonlinear relationship is stronger for efficiency-seeking subsidiaries, and weaker for market-seeking subsidiaries. Originality/value This research contributes to the debate around the pros and cons of globalization by examining the extent to which firms benefit by offshoring primary sector investments to avoid more costly legal requirements at home. The results suggest that this non-market strategy should be mitigated through appropriate policy measures and provides evidence that those policies already implemented are effective.

Do institutional risk preferences exist in Chinese direct investments in ASEAN countries? A case study of Chinese-funded enterprises in Laos

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siyue Chen ◽  
Gengzhi Huang ◽  
Hongou Zhang ◽  
Yuyao Ye ◽  
Qitao Wu
Keyword(s):  
Multinational Enterprises ◽  
Institutional Economics ◽  
Sampling Strategy ◽  
Political Stability ◽  
New Institutional Economics ◽  
Strategic Decision ◽  
Institutional Factors ◽  
Snowball Sampling ◽  
Content Type ◽  
The Relationship

Purpose Institutional factors play an important and complex role in Chinese outward foreign direct investment (OFDI) location choices that do not seem to be influenced by a host country’s high political risks. Moreover, the location choice for OFDI is key to corporate strategic decision-making on internationalization. Therefore, this study aims to examine the direct investments of Chinese multinational enterprises (MNEs) in Laos. Design/methodology/approach Combining the purposive sampling strategy and snowball sampling method, the authors interviewed nine market- and resource-seeking Chinese enterprises in Laos. Drawing from the mainstream eclectic paradigm and the theory of new institutional economics, the authors analyzed two key variables – enterprise investment motivation and enterprise heterogeneity. Findings Chinese MNEs are not insensitive to the regressive institutional quality of host countries; the relationship effect and institutional distance are the location decision pathways along with which institutional factors influence Chinese multinationals’ investments in Laos; political stability is necessary for Chinese-funded enterprises to invest in Laos and the degree of corruption is an overestimated institutional preference factor. Originality/value The relationship effect is introduced into the analysis framework as an intermediate variable that influences the decision of MNEs to invest in countries with underdeveloped institutions. It verifies the significant roles of bilateral political relations and network relations in the OFDI location decisions of state-owned and private enterprises, respectively.

Institutional determinants of foreign direct investment inflows: evidence from emerging markets

2019 ◽  
Vol 15 (2) ◽  
pp. 245-261 ◽  
Author(s):  
Justin Paul ◽  
Pravin Jadhav
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Markets ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Political Stability ◽  
Strategic Decision ◽  
Content Type ◽  
Institutional Determinants ◽  
Using Data ◽  
Determinants Of Fdi

Purpose Foreign direct investment (FDI) is a strategic decision for achieving competitive advantage by multinational enterprises. The purpose of this paper is to explore the role of institutional determinants of FDI using data from 24 emerging markets including China, India, Indonesia, Turkey, Thailand, Malaysia and Pakistan. Design/methodology/approach In order to identify factors that attract FDI in emerging markets, this study has used data from sources such as the World Bank, Index of Economic Freedom and UNCTAD. Findings The findings of this research indicate that infrastructure quality, trade cost measured by tariff and non-tariff barriers, institutional quality measured by effective rule of law, political stability, regulatory quality and control on corruption are significant determinants of FDI in emerging markets. Originality/value This is the first study to analyze the sectoral institutional determinants of Inward FDI in the important emerging economies, to the best of authors’ knowledge.

The effect of executive incentives on FDI ambidexterity

2018 ◽  
Vol 12 (4) ◽  
pp. 756-773 ◽  
Author(s):  
Zijie Li ◽  
Qiuling Gao ◽  
Kai Shen ◽  
Junyue Zhang
Keyword(s):  
Executive Control ◽  
Multinational Enterprises ◽  
Future Research ◽  
Curvilinear Relationship ◽  
Related Factors ◽  
Content Type ◽  
Interesting Insight ◽  
Control Right ◽  
Chinese Foreign Direct Investment ◽  
Equity Incentive

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

The contingent effect of political ties on post-entry performance

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jieqiong Ma ◽  
Jie Yang ◽  
Ying Song
Keyword(s):  
Multinational Enterprises ◽  
Secondary Data ◽  
Foreign Firms ◽  
Entry Modes ◽  
Market Strategy ◽  
Content Type ◽  
Fine Grained ◽  
Political Ties ◽  
Post Entry ◽  
The Impact

Purpose Political ties are critical for multinational enterprises’ (MNE) survival and success. However, the effect of political ties is not monotonic. The purpose of this paper is to look into the contingent effect of political ties on MNEs’ post-entry performance. Design/methodology/approach Based on survey data collected from 416 foreign subsidiaries operating in China, which was combined with several secondary data sources, this study examined the three-way interaction of political ties, entry mode and industry restriction. Findings The findings support the hypotheses that the impact of political ties on firm performance is contingent on firms’ ownership-based entry modes and industry restriction. In particular, the impact of political ties is stronger for joint ventures (JV) in less restricted industries and wholly owned subsidiaries (WOS) in more restricted industries. Practical implications Political ties have different effects on WOS and JV. While in general political ties have a stronger impact for JV than for WOS, their impacts on both parties vary on industry restriction. Managers should consider ownership structure as well as industry restriction when making non-market strategies and decisions. Originality/value By analyzing the impacts of intra-organizational and market environmental factors, this study provides a fine-grained view of foreign firms’ non-market strategy in China from a post-entry performance perspective.

What determines the adoption of employee empowerment practices by MNE subsidiaries in China?

2020 ◽  
Vol 14 (4) ◽  
pp. 871-894
Author(s):  
Yishuai Yin
Keyword(s):  
Multinational Enterprises ◽  
Design Methodology ◽  
Large Body ◽  
Employee Empowerment ◽  
Institutional Factors ◽  
Hierarchical Regression ◽  
Content Type ◽  
Hrm Practices ◽  
Institutional Forces ◽  
Mne Subsidiaries

Purpose This paper aims to explore how institutional factors determine the adoption of employee empowerment practices by multinational enterprises (MNEs) subsidiaries in China. Design/methodology/approach This paper examines the effects of MNE subsidiaries’ external and internal institutional factors on the degree of employee empowerment practices adopted by these subsidiaries. Using hierarchical regression analysis, hypotheses were tested with a sample of 99 MNE subsidiaries operating in China. Findings The results show that both the informal institutions of the host country and the subsidiary’s characteristics play an important role in shaping the degree of empowerment practices adopted by MNE subsidiaries in China. Originality/value Employee empowerment practices have been increasingly used by MNEs to leverage human resources for organizational competitive advantage. Although a large body of work has studied a bundle of HRM practices as a whole adopted in MNE subsidiaries, there is a paucity of research on the specific empowerment practices in MNE subsidiaries. This research fills this important gap in the literature by investigating the institutional forces that influence the empowerment practices in MNE subsidiaries in China.

Conflict and creativity in inter-organizational teams

2017 ◽  
Vol 28 (1) ◽  
pp. 74-102 ◽  
Author(s):  
Nan Hu ◽  
Zhi Chen ◽  
Jibao Gu ◽  
Shenglan Huang ◽  
Hefu Liu
Keyword(s):  
Shared Leadership ◽  
Negative Relationship ◽  
Task Conflict ◽  
Relationship Conflict ◽  
Curvilinear Relationship ◽  
Team Creativity ◽  
Content Type ◽  
Conflict Situations ◽  
Organizational Teams ◽  
Study Offer

Purpose This paper aims to examine the effects of task and relationship conflicts on team creativity, and the moderating role of shared leadership in inter-organizational teams. An inter-organizational team normally comprises employees from collaborated organizations brought together to conduct an initiative, such as product development. Practitioners and researchers have witnessed the prevalence of conflict in inter-organizational teams. Despite significant scholarly investigation into the importance of conflict in creativity, a deep theoretical understanding of conflict framework remains elusive. Design/methodology/approach A questionnaire survey was conducted in China to collect data. Consequently, 54 teams, which comprised 54 team managers and 276 team members, were deemed useful for the study. Findings By testing our hypotheses on 54 inter-organizational teams, we found that relationship conflict has a negative relationship with team creativity, whereas task conflict has an inverted U-shaped (curvilinear) relationship with team creativity. Furthermore, when shared leadership is stronger, the negative relationship with team creativity is weaker for relationship conflict, whereas the inverted U-shaped relationship with team creativity is stronger for task conflict. Research limitations/implications The main limitation is cross-sectional, which cannot establish causality in relationships. Despite this potential weakness, the present research provides insights into conflict, leadership and inter-organizational collaboration literature. Practical implications The findings of this study offer some guidance on how managers can intervene in the conflict situations of inter-organizational teams. Social implications Managers are struggling to identify ways to effectively manage team conflict when a team of diverse individuals across organizational boundaries are brought together to solve a problem. The findings of this study offer some guidance on how managers can intervene in the conflict situations of inter-organizational teams. Originality/value This paper provides understandings about how relationship and task conflicts affect team creativity in inter-organizational teams.

Direct percutaneous cerebral angiography in neurosurgical practice

1980 ◽  
Vol 52 (4) ◽  
pp. 525-528 ◽  
Author(s):  
Jerry Bauer ◽  
Jose Luis Salazar ◽  
Oscar Sugar ◽  
Ronald P. Pawl
Keyword(s):  
High Risk ◽  
Cerebrovascular Disease ◽  
Cerebral Angiography ◽  
Complication Rate ◽  
High Risk Population ◽  
Content Type ◽  
Pros And Cons ◽  
Sixth Decade ◽  
Symptoms And Signs ◽  
Fine Print

✓ A retrospective analysis of 1171 consecutive percutaneous retrograde brachial and carotid cerebral angiograms was performed on 635 patients, 50.7% of whom were in the sixth decade or older. Symptoms and signs of cerebrovascular disease were the most frequently investigated and diagnosed, accounting for 46.7% of all the angiograms. Despite this relatively high-risk population, we have found direct percutaneous cerebral angiography to have a very low risk. The pros and cons of direct percutaneous versus transfemoral cerebral angiography are discussed. The literature of the previous 10 years is reviewed, and the complication rate of these two techniques is compared.

A long life after exploitation and exploration

2014 ◽  
Vol 17 (2) ◽  
pp. 209-228 ◽  
Author(s):  
Ming Piao
Keyword(s):  
Positive Impact ◽  
Product Market ◽  
Disk Drive ◽  
Curvilinear Relationship ◽  
Content Type ◽  
Cox Proportional Hazard ◽  
Main Effect ◽  
Future Viability ◽  
Exploitation And Exploration ◽  
Organizational Longevity

Purpose – The purpose of this paper is to investigate the longevity implications of exploitation and exploration. It examines the main effect of exploitation, the main effect of exploration, and the interaction effect of exploitation and exploration on organizational longevity. Design/methodology/approach – This study employs Cox Proportional Hazard Model in analyzing 20-year data from the hard disk drive industry. Findings – Exploitation, independent of exploration, has a positive impact on organizational longevity. Exploration, independent of exploitation, has a curvilinear impact on organizational longevity. Jointly, exploitation weakens the curvilinear relationship between exploration and organizational longevity. Research limitations/implications – This study challenges the dualistic view that exploitation is for “current viability” and exploration is for “future viability.” It suggests that firms need to actively engage in (instead of compromise) both exploitation and exploration in order to prolong their lifespan despite the counter force triggered by the negative dynamics between exploitation and exploration. Practical implications – In order to prolong organizational longevity, firms need to fully engage in (but not compromise) their existing product-market domains, actively explore (but not over-explore) their new product-market domain, and to embrace (but not avoid) the tension between exploitation and exploration. Originality/value – This study is one of the few that systematically and empirically examined the longevity implications of exploitation and exploration. It adds specificity and precision to the understanding of how exploitation and exploration, independently and jointly, affect organizational longevity.

Home country underdevelopment and internationalization

2017 ◽  
Vol 27 (3) ◽  
pp. 217-230 ◽  
Author(s):  
Alvaro Cuervo-Cazurra ◽  
Ravi Ramamurti
Keyword(s):  
Emerging Markets ◽  
Comparative Advantage ◽  
Home Country ◽  
Emerging Market ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Economic Underdevelopment ◽  
Conceptual Paper ◽  
Practical Implications ◽  
At Home

Purpose The purpose of this study is to use the rise of emerging-market multinationals as a vehicle to explore how a firm’s country of origin influences its internationalization. Design/methodology/approach This paper is a conceptual paper. Findings We argue that the home country’s institutional and economic underdevelopment can influence the internationalization of firms in two ways. First, emerging-market firms may leverage innovations made at home to cope with underdeveloped institutions or economic backwardness to gain a competitive advantage abroad, especially in other emerging markets; We call this innovation-based internationalization. Second, they may expand into countries that are more developed or have better institutions to escape weaknesses on these fronts at home; we call this escape-based internationalization. Research limitations/implications Comparative disadvantages influence the internationalization of the firm differently from comparative advantage, as it forces the firm to actively upgrade its firm-specific advantage and internationalize. Practical implications We explain two drivers of internationalization that managers operating in emerging markets can consider when facing disadvantages in their home countries and follow several strategies, namely, trickle-up innovation, self-reliant innovation, improvisation management, self-reliance management, technological escape, marketing escape, institutional escape and discriminatory escape. Originality/value We explain how a firm’s home country’s comparative disadvantage, not just its comparative advantage, can spur firms its internationalization.

Digital competences of the workforce – a research topic?

2017 ◽  
Vol 23 (3) ◽  
pp. 721-734 ◽  
Author(s):  
Matthias Murawski ◽  
Markus Bick
Keyword(s):  
Research Topic ◽  
Future Research ◽  
Digital Competence ◽  
Content Type ◽  
Research Activities ◽  
Starting Point ◽  
Pros And Cons ◽  
Definition Of ◽  
The Individual ◽  
Practical Implications

Purpose Considering working in the digital age, questions on the consequences for the individual workers are, so far, often neglected. The purpose of this paper is to deal with the question of whether the digital competences of the workforce is a research topic. The authors argue for the thesis that it is indeed a research topic. Design/methodology/approach In addition to a literature analysis of the top IS, HR, and learning publications, non-scientific sources, as well as the opinions of the authors, are included. The authors’ thesis is challenged through a debate of corresponding pros and cons. Findings The definition of digital competences lacks scientific depth. Focussing on the workforce is valid, as a “lifelong” perspective is not mandatory for research. Digital competence research is a multidisciplinary task to which the IS field can make a valuable contribution. Research limitations/implications Although relevant references are included, some aspects are mainly driven by the opinions of the authors. The theoretical implications encompass a call for a scientific definition of digital competences. Furthermore, scholars should focus on the competences of the workforce, including occupations, roles, or industries. The authors conclude by providing a first proposal of a research agenda. Practical implications The practical implications include the alignment of multiple stakeholders for the design of “digital” curricula and the integration by HR departments of the construct of digital competences, e.g. for compensation matters and job requirements. Originality/value This paper is one of very few contributions in the area of the digital competences of the workforce, and it presents a starting point for future research activities.

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