Foreign firms’ strategic positioning and performance in a host market

2018 ◽  
Vol 26 (2) ◽  
pp. 173-192 ◽  
Author(s):  
Henry Yu Xie ◽  
Qian (Jane) Xie ◽  
Hongxin Zhao
Keyword(s):  
Resource Partitioning ◽  
Foreign Firms ◽  
Local Market ◽  
Strategic Positioning ◽  
Market Knowledge ◽  
Content Type ◽  
Foreign Companies ◽  
Positioning Strategy ◽  
The Us ◽  
And Performance

Purpose Strategic positioning of foreign firms in a host market is vital for their success. By integrating the resource partitioning theory and the resource-based view, this study aims to investigate foreign firms’ strategic positioning (i.e. their choice of generalist or specialist positioning strategy) and its performance implications in the US market. Design/methodology/approach The final sample includes 212 foreign companies from 28 countries operating in the US market. Multiple data sources were used to collect data of these foreign companies’ subsidiaries in the USA This study used logistic regression to test its major hypotheses. Findings The results of this study suggest that a generalist positioning strategy is positively related to performance in a host market. It is also found that market concentration and local market knowledge moderate this strategic positioning – performance relationship. Research limitations/implications For a foreign firm that enters a host market, market concentration (an industry-level factor) in the host market and the firm’s local market knowledge (a firm-specific factor) play prominent roles in the strategic positioning – performance relationship. Originality/value This study offers a novel perspective of international business strategy by applying the lens of resource partitioning theory to study the relationships between multinational enterprises’ strategic positioning and performance. This study contributes to the strategy literature in that it examines the performance implications of firms’ strategic positioning (i.e. generalist or specialist positioning).

Clusters, technological knowledge spillovers, and performance

2015 ◽  
Vol 53 (2) ◽  
pp. 469-490 ◽  
Author(s):  
Tsai-Ju Liao
Keyword(s):  
Market Orientation ◽  
Cluster Size ◽  
Knowledge Spillovers ◽  
Technological Knowledge ◽  
Foreign Firms ◽  
Local Market ◽  
Local Ownership ◽  
Content Type ◽  
Strategic Behaviors ◽  
And Performance

Purpose – The purpose of this paper is to explore the cluster effect by decomposing the broad category of “clusters” into cluster size and technological knowledge spillovers. Further, this study questions whether all foreign firms benefit equally from participation in geographic clusters. Specifically, the paper examines the moderating roles of local ownership ties and a local market orientation with respect to the benefits of cluster size and technological knowledge spillover. Design/methodology/approach – Using the Database of Enterprises in China, this study examines a sample of 2,200 Taiwanese manufacturing firms operating in China from 2005 to 2007. Findings – The paper found that increased cluster size and technological knowledge spillovers help to enhance foreign firms’ financial performance. The analysis also shows that local ownership ties and a local market orientation have a positive moderating effect on the relationship between cluster size, technological knowledge spillovers, and performance. Originality/value – This study distinguishes between the effects of cluster size and technological knowledge spillovers, which is an important step toward demystifying the “black box” of cluster benefits. Further, due to the liability of foreignness and the lack of legitimacy that foreign firms face when operating in emerging economies, this study integrates the cluster perspective and the legitimacy perspective to discuss whether foreign firms can actively adopt strategic behaviors that will help to improve their legitimacy and enable them to better capture potential cluster benefits.

Competitive aggressiveness, community banking and performance

2020 ◽  
Vol 13 (2) ◽  
pp. 221-240
Author(s):  
Jeff Stambaugh ◽  
G. T. Lumpkin ◽  
Ronald K. Mitchell ◽  
Keith Brigham ◽  
Claudia Cogliser
Keyword(s):  
Structural Equation ◽  
Deposit Insurance ◽  
Equation Modeling ◽  
Hierarchical Regression ◽  
Content Type ◽  
The Us ◽  
Competitive Aggressiveness ◽  
And Performance ◽  
Federal Deposit Insurance ◽  
Competitive Actions

PurposeThe purpose of this paper is to develop and empirically test a conceptualization of competitive aggressiveness (CA), a dimension of entrepreneurial orientation.Design/methodology/approachStructural equation modeling and hierarchical regression are employed on responses from 182 banks in the southwestern US Performance data on the banks are drawn from the US Federal Deposit Insurance Corporation's (FDIC's) Call reports.FindingsThe results indicate awareness, motivation and capability are antecedents of CA, which itself is positively related to increased market share and, in more dense markets, profitability.Practical implicationsAggressive firms exhibit certain routines that can lead to competitive actions, which assists performance in some contexts. Managers who wish to increase (or decrease) their firms' overall competitive posture can encourage (or discourage) employees from performing competitive routines such as monitoring their rivals or talking about their rivals' strategies.Originality/valueBy developing CA' conceptualization, the study advances the understanding of the antecedents of competitive behavior and makes it easier to study competition in smaller firms.

M&As in Africa – effects of law and governance

2019 ◽  
Vol 14 (5) ◽  
pp. 873-898
Author(s):  
Alex Lundqvist ◽  
Eva Liljeblom ◽  
Anders Löflund ◽  
Benjamin Maury
Keyword(s):  
Spillover Effects ◽  
Extensive Study ◽  
Foreign Firms ◽  
Partial Control ◽  
Data Set ◽  
Content Type ◽  
Heritage Foundation ◽  
Transparency International ◽  
Shareholder Protection ◽  
And Performance

Purpose The cultural and legal differences between foreign acquirers and African target firms can be substantial. There is also a large variation in cultures and legal systems within Africa. However, there is limited research on merger and acquisition (M&A) performance by foreign firms in Africa. The purpose of this paper is to fill this gap by exploring the “spillover by law” hypothesis (Martynova and Renneboog, 2008) that focuses on the influence of the external environment on the governance and performance of foreign M&As in Africa. Design/methodology/approach The data set covers 415 M&A transactions by foreign firms in Africa during the period of 1999–2016. Dynamic data covering the country’s legal, cultural and political environment are collected from the World Bank, the Heritage Foundation and Transparency International. Findings The authors find that the legal environment significantly affects the returns of bidders on African firms. For complete acquisitions, bidder returns are significantly higher when the bidder’s country has higher shareholder protection and higher creditor protection compared with the target firm’s country. The results show that the effects are significant when there is a full control change (including a change in the target firm’s nationality) but not in the case of partial control transfers. The results are consistent with the “spillover by law” hypothesis. Originality/value The authors contribute to the literature on cross-border M&As by separately studying the valuation effects of full, majority and minority changes in control; by being the first study of the legal spillover effects in Africa; and by being the most extensive study of the legal determinants of the valuations of non-African acquirers of African firms.

India's business and corporate climate blunts FDI plan

2016 ◽  
Keyword(s):  
Corporate Culture ◽  
Joint Ventures ◽  
Prime Minister ◽  
Business Environment ◽  
Foreign Firms ◽  
Land Acquisition ◽  
Due Diligence ◽  
Indian Market ◽  
Content Type ◽  
Foreign Companies

Subject India's corporate culture and its impact on government plans to attract foreign investment. Significance Prime Minister Narendra Modi's government has made attracting foreign direct investment (FDI) a key plank of its economic policy. Yet the record of foreign companies investing in India, whether through joint ventures or wholly owned subsidiaries, is mixed. Impacts Malfeasance and corruption are an ever-growing risk to joint ventures, underlining the need for foreign firms to invest in due diligence. Modi's pro-business rhetoric will far exceed actual government efforts to curb corporate corruption until his term ends in mid-2019. This will not help reduce foreign companies' potential exposure to long and expensive legal battles. Business environment constraints will impede efforts to attract foreign greenfield and brownfield investment, rather than portfolio capital. This will compound other difficulties of operating in the Indian market, such as land acquisition problems.

Delhi will push to promote research and development

2018 ◽  
Keyword(s):  
Research And Development ◽  
Brain Drain ◽  
Direct Investment ◽  
Content Type ◽  
Foreign Companies ◽  
The Poor ◽  
The Us ◽  
Economic Survey ◽  
State Of Research ◽  
Reverse Brain Drain

Subject The state of R&D in India. Significance Last month’s Economic Survey, which the finance ministry presents to parliament as a prelude to the budget, highlighted the poor state of research and development (R&D) in India. However, the country is becoming a preferred destination for R&D conducted by foreign companies and an estimated 1 million Indian-trained scientists and technologists work in laboratories abroad. Impacts Delhi will continue to court foreign direct investment (FDI) in R&D. India may benefit from a reverse ‘brain drain’ if its skilled professionals struggle to secure US H-1B visas. The Modi government will face more accusations of interference in universities and come under pressure to desist. Reports suggest that the US administration is poised to restrict technology transfer to China; R&D in the whole of Asia would be affected.

China's divergent goals prevent coherent cyber policy

2015 ◽  
Keyword(s):  
Cyber Security ◽  
Security Policy ◽  
Legal Reform ◽  
Foreign Firms ◽  
The Internet ◽  
Economic Prosperity ◽  
Internal Security ◽  
Content Type ◽  
The Us ◽  
Business Conditions

Subject The politics of cyber security in China. Significance Since late April, state media have emphasised economic prosperity as the linchpin of internal security policy. This helps explain the suspension earlier in April of new cyber security rules that had elicited strong objections from leading technology corporations and the US, EU and Japanese governments. Impacts China has internal goals for regulation of the internet, but these will sometimes be subordinated to foreign policy. The Party's rigid, nationalistic propaganda line will complicate economic liberalisation at times. Legal reform will improve protection of foreign firms and intellectual property, even as business conditions deterioriate in other ways.

Trump protectionism looms over India-US defence deals

2017 ◽  
Keyword(s):  
Private Sector ◽  
Foreign Firms ◽  
Leadership Change ◽  
Content Type ◽  
Production Contracts ◽  
The Us ◽  
Defence Policy ◽  
Defence Procurement ◽  
The Many ◽  
Private Sector Involvement

Subject Outlook for the US-India defence procurement relationship. Significance US President Donald Trump’s stated goal of disrupting offshore supply chains of US firms casts doubt over deals such as Lockheed Martin’s bid to manufacture 100 fighter jets in India. This compounds the many challenges India already faces in getting foreign defence contractors to invest and manufacture locally. Impacts This week’s leadership change at the defence ministry is unlikely to alter India’s defence policy. Modi will continue to encourage Indian private sector involvement in co-production contracts with foreign firms. Should Trump adopt a hard line on protectionism, suppliers open to co-production will gain a further edge in India.

US semiconductor measures will hit China’s tech plans

2020 ◽  
Keyword(s):  
Medical Equipment ◽  
Semiconductor Industry ◽  
Foreign Firms ◽  
Commercial Development ◽  
Content Type ◽  
Technology Firms ◽  
Semiconductor Chip ◽  
The Us ◽  
Chinese Intellectual ◽  
Trade Shows

Significance It has evolved from US complaints about Chinese intellectual property and technology transfer practices into a broad-spectrum effort to paralyse the further technological and commercial development of Chinese technology firms, and decouple the US and Chinese IT sectors. Its focus has expanded to include the semiconductor chip industry. Impacts Businesses throughout the semiconductor industry worldwide are becoming caught up in a geopolitical clash. The semiconductor trade shows how a once apolitical sector can quickly become politicised, much as medical equipment has been amid COVID-19. China will seek continued access to non-US foreign technologies through regulation of foreign firms within China. To succeed, China’s semiconductor development projects will need to reduce waste and coordinate their efforts better.

Foreign firms face risks in India's e-commerce space

2021 ◽  
Keyword(s):  
Market Share ◽  
Consumer Protection ◽  
Regulatory Framework ◽  
Foreign Firms ◽  
Government Agencies ◽  
User Privacy ◽  
Content Type ◽  
Foreign Companies ◽  
Domestic Companies

Significance The ruling offers relief to Amazon, which not only faces stiff competition but is also grappling with changes in India’s e-commerce regulatory framework. On June 21, the Ministry of Consumer Affairs proposed revisions to the Consumer Protection (E-Commerce) Rules, 2020. Impacts Reliance will call for a dilution of consumer protection rules if its efforts to capture market share are impeded. User privacy may suffer, despite official claims, if government agencies gain unfettered access to people’s e-commerce transactions. Foreign companies will strongly resist government efforts to make their data available to domestic companies. The rivalry between Amazon and Reliance is likely to be especially bitter and may trigger further legal battles. Beijing will criticise Delhi’s new efforts to curtail Chinese imports to India.

SEC fines non-US entities for unregistered cross-border brokerage and advisory activities

2017 ◽  
Vol 18 (1) ◽  
pp. 75-77
Author(s):  
James Burns ◽  
Kimberly Beattie Saunders
Keyword(s):  
United States ◽  
Asset Management ◽  
Financial Services ◽  
Financial Institution ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Foreign Firms ◽  
Content Type ◽  
Regulatory Guidance ◽  
The Us

Purpose To explain a settlement involving a foreign financial institution, its non-US subsidiaries, and the US Securities and Exchange Commission (“SEC”) that reveals an SEC focus on policing the activities of foreign firms that reach into the United States and helps further define the scope of activities that require registration under the federal securities laws. Design/methodology/approach Provides insight into a recent area of focus for SEC regulators and introduces the potential regulatory implications for non-US firms with activities that reach into the United States. Findings Given the SEC’s current enforcement focus, it is critical that financial institutions take care to conduct their activities with an understanding of the regulatory requirements associated with the provision of brokerage and advisory services to US clients and customers – including, for many firms, registration as an investment adviser, broker-dealer, or both. Originality/value Practical regulatory guidance regarding SEC registration requirements that may reach non-US firms from experienced financial services lawyers specializing in asset management.

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