Toward a better understanding of MNEs’ local staffing decision: a multilevel analysis

2015 ◽  
Vol 53 (10) ◽  
pp. 2321-2338 ◽  
Author(s):  
Youjin Baik ◽  
Young-Ryeol Park
Keyword(s):  
Hierarchical Linear Modeling ◽  
Multinational Enterprises ◽  
Longitudinal Design ◽  
Human Resources Management ◽  
Institutional Distance ◽  
Institutional Environments ◽  
Foreign Subsidiaries ◽  
Cross Sectional ◽  
Content Type ◽  
Regional Diversification

Purpose – The purpose of this paper is to address the question of how regional diversification affects subsidiary staffing composition in multinational enterprises. Another important objective of this study is to examine the effects of institutional distance, specifically regulative and normative distances, on foreign subsidiary staffing composition. Design/methodology/approach – To estimate firm- and country-level parameters simultaneously, hierarchical linear modeling was conducted on a sample of 1,068 foreign subsidiaries of South Korean firms operating in 25 countries in 2014. Findings – The results reveal that intra-regional diversification has a positive effect, whereas inter-regional diversification has a negative effect on local staffing in foreign subsidiaries. In addition, there is a positive association between informal distance (such as normative distance) and local staffing of foreign subsidiaries, while formal distance (such as regulative distance) is negatively related to local staffing of foreign subsidiaries. Research limitations/implications – The cross-sectional nature of the data in this study may preclude examination of the relationships among institutional distance, institutional environment, and subsidiary staffing composition. The authors suggest that future researchers employ a longitudinal design to examine the effects on staffing composition of institutional distance and institutional environments over time. Originality/value – The paper contributes to the literature on international human resources management by highlighting the importance of combining multilevel parameters to improve assessment of the importance of firms’ competitive strategy and institutional environments in local staffing in foreign subsidiaries.

Minding the pennies – at home and abroad

2018 ◽  
Vol 34 (1) ◽  
pp. 34-36
Keyword(s):  
Case Studies ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Reading Time ◽  
Local Culture ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Head Office ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Discussions around multinational enterprises (MNEs) and how they run their foreign subsidiaries often relate to either the direction of traffic when it comes to autonomy and power or culture. For the latter, the textbooks are stuffed with case studies and examples of how things went mainly wrong when an MNE ventured into a certain market when it came to managing the local culture, with debates around globalization, localization, or (the horribly named) glocalization strategies and which one is best in any given circumstance. This is of course relevant and important, but often the meat of the story lies in the former category and the ensuing power struggles between head office and foreign hub. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Antecedents and consequences of psychological contract breach

2016 ◽  
Vol 31 (8) ◽  
pp. 1312-1326 ◽  
Author(s):  
J.C. Peng ◽  
Jia-Jing Jien ◽  
Julian Lin
Keyword(s):  
Servant Leadership ◽  
Hierarchical Linear Modeling ◽  
Psychological Contract ◽  
Negative Relationship ◽  
Psychological Contract Breach ◽  
Employee Behavior ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Contract Breach ◽  
Content Type

Purpose The purpose of this paper is to investigate store-level servant leadership and the procedural justice climate (PJC) as key antecedents for employee-perceived psychological contract breach (PCB) and explores the mediating roles of PCB in the relationships among servant leadership, the PJC and deviant employee behavior. Design/methodology/approach Survey data were collected from 301 employees at 94 stores of a restaurant chain in Taiwan. The model and hypotheses were tested using hierarchical linear modeling. Findings The results support the moderated mediation model, showing that the indirect effects of servant leadership and PJC on deviant employee behavior through PCB were stronger for employees with an external locus of causality attribution than for those with an internal locus. Research limitations/implications The study relied on cross-sectional survey design, therefore the authors cannot infer causality. Practical implications The results will help organizations and managers understand that supervisor servant leadership has suppressive effects on deviant employee behavior through the intermediary mechanism of negative psychological perception (i.e. the perception of a PCB). Originality/value The primary purpose of this study is to examine the influences of store-level servant leadership and the PJC on employee deviance and to examine the mediating role played by PCB. The findings suggest a significantly negative relationship.

International expansion for knowledge acquisition or knowledge acquisition for international expansion?

2019 ◽  
Vol 28 (2) ◽  
pp. 177-200 ◽  
Author(s):  
Clarice Secches Kogut ◽  
Renato Dourado Cotta de Mello ◽  
Angela da Rocha
Keyword(s):  
Knowledge Acquisition ◽  
Latin American ◽  
Multinational Enterprises ◽  
Longitudinal Design ◽  
Emerging Market ◽  
Theoretical Perspective ◽  
Multinational Firm ◽  
International Expansion ◽  
Content Type ◽  
Catch Up

Purpose Starting from the knowledge-based view as a theoretical perspective, this study aims to examine how an emerging market multinational enterprise (EMMNE) engages in reverse knowledge transfer (RKT) processes and how such processes are managed by headquarters. Therefore, this paper captures the perspective of top management concerning RKT and the processes used to create, transfer and integrate knowledge. Design/methodology/approach The study uses a longitudinal design based on the case method of investigation. The case selected for the study was a Brazilian company theoretically sampled for being a domestically, regionally and globally important, information-rich company that operates in an industry in which technology plays a crucial role. The company was also selected for having had asset-seeking motives in at least some of its foreign market entries and for having successfully absorbed foreign-acquired capabilities. Findings The study provides counterfactual evidence to the springboard perspective, considering timing and speed of the internationalization and catch-up processes and the size of acquisitions. The study also highlights differences to other emerging market multinational enterprises, concerning the internationalization trajectory and catch-up moves, and to traditional MNEs, regarding RKT challenges and practices. Research limitations/implications The main limitations of the study relate to the case study method, which does not allow for statistical generalization, although it does support analytical generalization. Originality/value The study contributes to the literature by shedding light on the process by which a Latin American multinational firm developed technological capabilities to compete globally, focusing on the symbiotic, self-nurturing relationship between internationalization processes and technology acquisition and integration processes. Moreover, the work provides novel theoretical insights regarding timing, location, size and execution of the RKT activities. Finally, the paper contributes to the understanding of the relational aspects of the RKT process by focusing on building human relationships as the major force behind knowledge integration and examining the resistance of the acquired companies from developed markets to adopt the parent company’s best practices, or to contribute to its integrated knowledge, when the parent company is an EMMNE.

scholarly journals Institutional environment and network competence in successful SME internationalisation

2019 ◽  
Vol 36 (1) ◽  
pp. 31-55 ◽  
Author(s):  
Lasse Torkkeli ◽  
Olli Kuivalainen ◽  
Sami Saarenketo ◽  
Kaisu Puumalainen
Keyword(s):  
Dynamic Capabilities ◽  
Institutional Environment ◽  
Institutional Environments ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
International Performance ◽  
Network Competence ◽  
The Impact ◽  
Institutional Drivers

Purpose The purpose of this paper is to examine the impact of institutional environment on the international performance of small- and medium-sized enterprises (SMEs) and how this relationship is influenced by network competence. Design/methodology/approach This study uses a quantitative approach. In total, 119 internationally operating Finnish SMEs from five industry sectors are sampled via a cross-sectional survey. Data are analysed through regression modelling. Findings The international performance of SMEs is influenced directly and indirectly by institutional drivers. The results show that network competence mediates the positive relationship between institutional drivers and international performance. Research limitations/implications Network capability development can help SMEs leverage more or less favourable institutional environments for successful internationalisation. Perceived institutional drivers directly result in higher performance, but the effect can be partially mediated by dynamic capabilities. The limitations of the study include its single-country context and the cross-sectional nature of the data. Practical implications SMEs should take their home countries’ institutional environments into account, but for long-term success, they should develop the ability to manage their business networks. A conducive institutional environment may help develop competence, which in turn can enable more successful internationalisation in terms of scale, scope and satisfaction. Social implications Decision-makers may benefit from knowing that, in addition to capabilities, an institutionally conducive environment that drives domestic SMEs towards international markets may be an antecedent of successful internationalisation in the SME sector. Originality/value This is one of the few studies to illustrate how network capabilities can mediate the influence of institutional factors on entrepreneurial internationalisation. It combines institutional theory and the dynamic capabilities view to explain successful SME internationalisation.

Shopping orientation as a stable consumer disposition and its influence on consumers’ evaluations of retailer communication

2014 ◽  
Vol 48 (5/6) ◽  
pp. 1026-1045 ◽  
Author(s):  
Oliver B. Büttner ◽  
Arnd Florack ◽  
Anja S. Göritz
Keyword(s):  
Design Methodology ◽  
Longitudinal Design ◽  
Customer Segmentation ◽  
Cross Sectional ◽  
Design Studies ◽  
Interindividual Differences ◽  
Content Type ◽  
Shopping Orientation ◽  
Tailored Communication ◽  
Cross Sectional Design

Purpose – The present aims to examine whether interindividual differences in consumers’ shopping orientations reflect a stable consumer disposition (i.e. chronic shopping orientation; CSO). Furthermore, it examines whether this disposition influences consumers’ evaluations of retailer communication. Consumers may shop under an experiential or a task-focused shopping orientation. Design/methodology/approach – This research builds on four studies; three were conducted online and one was conducted in the laboratory. Study 1 applied a longitudinal design, Studies 2 and 3 applied a cross-sectional design and Study 4 applied an experimental design. Findings – Study 1 shows that CSO is stable over time. Study 2 finds that interindividual differences in CSO are stable across different retail domains. Studies 3 and 4 demonstrate that experiential shoppers prefer stimulation-oriented claims, whereas task-focused shoppers prefer efficiency-oriented claims. Originality/value – The value of shopping orientation for customer segmentation and tailored marketing largely depends on whether interindividual differences in CSO are stable. The present research is the first to demonstrate that CSO, indeed, exists as a stable consumer disposition. In addition, the research demonstrates that shopping orientation moderates the evaluation of retailer communication. Overall, the results demonstrate that CSO is a valuable construct for customer segmentation and tailored communication in retailing.

The influence of change-oriented leadership on work performance and job satisfaction in hospitals – the mediating roles of learning demands and job involvement

2019 ◽  
Vol 32 (1) ◽  
pp. 37-53 ◽  
Author(s):  
Aslaug Mikkelsen ◽  
Espen Olsen
Keyword(s):  
Job Satisfaction ◽  
Job Performance ◽  
Work Performance ◽  
Longitudinal Design ◽  
Practical Implication ◽  
Job Involvement ◽  
Negative Influence ◽  
Public Hospitals ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the mechanisms through which change-oriented leadership in hospitals influences job performance and employee job satisfaction. The authors examine the direct and the mediating effects of perceived learning demands and job involvement. Design/methodology/approach This cross-sectional study is based on a survey of four public hospitals in a regional health authority in Norway. Findings The findings illustrate how change-oriented leadership directly and indirectly influences work performance and job satisfaction. Learning demands and job involvement play mediating roles. Higher levels of change-oriented leadership decrease learning demands and increase job involvement, work performance and job satisfaction. Learning demands have a negative influence on work performance and job satisfaction. Job involvement has a positive influence on work performance and job satisfaction. The strongest relationship in the structural modelling is between change-oriented leadership and job involvement. Research limitations/implications This study is based on cross-sectional data. Future studies should therefore explore this further using a longitudinal design. Practical implications The practical implication of the study is to show how leaders by change-oriented behaviour can influence work performance and job satisfaction by reducing learning demands and increasing job involvement. Social implications This study illustrates different paths towards influencing job performance and job satisfaction from change-oriented leadership. It is important to use the potential of reducing learning demands and increasing job involvement, to improve job performance and job satisfaction. Originality/value The authors have developed and validated a new theoretical mediational model explaining variance in job performance and job satisfaction, and how this is related to change-oriented leadership, job involvement and learning demands. This knowledge can be used to increase the probability of successful change initiatives.

Internal mimetic behavior of MNCs with respect to foreign subsidiary staffing

2015 ◽  
Vol 3 (1) ◽  
pp. 46-61 ◽  
Author(s):  
Naoki Ando
Keyword(s):  
Multinational Corporations ◽  
Institutional Distance ◽  
Foreign Subsidiary ◽  
Foreign Subsidiaries ◽  
Research Gaps ◽  
Data Set ◽  
Content Type ◽  
Economic Rationale ◽  
Mimetic Behavior ◽  
Practical Implications

Purpose – The purpose of this paper is to fill the following research gaps. First, few studies have examined isomorphic behavior of multinational corporations (MNCs) with respect to foreign subsidiary staffing. Second, the adoption by an MNC of its internally preferable practices, which is referred to as internal mimetic behavior, has been less extensively investigated when compared with the imitation of practices adopted by a large number of peer firms. Lastly, factors that facilitate internal mimetic behavior have not been extensively explored. Design/methodology/approach – This study hypothesizes that internal mimetic behavior is affected by both formal and informal institutional distance. The hypotheses are tested using the panel data set that consists of 3,981 foreign subsidiaries of Japanese MNCs. Findings – This study finds that as the formal institutional distance between the host country and the home country increases, MNCs are more likely to adopt internal mimetic behavior. Furthermore, it demonstrates that as the informal institutional distance increases, the likelihood that MNCs adopt internal mimetic behavior decreases. Practical implications – This study suggests that MNCs need to consider the consequences of internal mimetic behavior when they adopt it without having economic rationale. It also suggests that when uncertainty can be mitigated, MNCs should avoid internal mimetic behavior. Originality/value – This study fills the aforementioned research gaps by examining what factors facilitate internal mimetic behavior. It suggests that both economic rationale and isomorphic behavior need to be considered to advance an understanding of foreign subsidiary staffing.

scholarly journals Entrepreneurs’ optimism, cognitive style and persistence

2016 ◽  
Vol 22 (1) ◽  
pp. 84-108 ◽  
Author(s):  
Samuel Adomako ◽  
Albert Danso ◽  
Moshfique Uddin ◽  
John Ofori Damoah
Keyword(s):  
Cognitive Style ◽  
Longitudinal Design ◽  
Moderating Effects ◽  
Causal Inferences ◽  
Cross Sectional ◽  
Policy Makers ◽  
Content Type ◽  
Cross Sectional Design ◽  
Entrepreneurial Decision ◽  
The Relationship

Purpose – The purpose of this paper is to examine the moderating effects of cognitive style dimensions on the relationship between entrepreneurs’ optimism and persistence. Design/methodology/approach – This theoretically derived research model is empirically validated using survey data from 198 small and medium-sized enterprises in Ghana. Findings – The study’s empirical findings are that the relationship between entrepreneurs’ optimism and entrepreneurial persistence is enhanced at higher levels of cognitive planning and creating styles. Somewhat interestingly, cognitive knowing style negatively moderates the relationship between optimism and entrepreneurial persistence. Research limitations/implications – The cross-sectional design of the study does not permit causal inferences to be made regarding the variables examined. Future studies may use longitudinal design to examine the causal links of the variables. Practical implications – The results of this paper can assist entrepreneurs and policy-makers in understanding the dynamics and processes involved in entrepreneurial decision making. The understanding of this issue can promote the development and maintenance of entrepreneurial ventures. Originality/value – The paper has a strong theoretical value as it relies on cognitive explanations of human behaviour, and seeks to advance the theoretical field by demonstrating the value of cognitive style within the domain of entrepreneurship.

The Facilitating Effect of Need-Supportive Parenting on the Change Rate and Adaptation of Dual Autonomy Among Taiwanese Adolescents

2015 ◽  
Vol 74 (4) ◽  
pp. 181-195 ◽  
Author(s):  
Chih-Wen Wu ◽  
Nai-Wen Guo ◽  
Yeu-Sheng Hsieh ◽  
Kuang-Hui Yeh
Keyword(s):  
Hierarchical Linear Modeling ◽  
Filial Piety ◽  
Longitudinal Design ◽  
Mediating Effect ◽  
Linear Modeling ◽  
Cross Sectional ◽  
Change Rate ◽  
Positive Effects ◽  
Supportive Parenting ◽  
Interpersonal Adaptation

Abstract. Two empirical studies were conducted to test the facilitating effect of need-supportive parenting (NSP) on Taiwanese adolescents’ individuating autonomy (IA) and relating autonomy (RA) as well as to investigate the mediating effect of IA and RA on the relationship between NSP and adaptation. Study 1 adopted a cross-sectional design and found that (1) NSP was positively related to adolescents’ IA and RA capacity; and (2) the positive effects of NSP on intrapersonal adaptation (i.e., self-esteem and happiness) and interpersonal adaptation (i.e., empathy and reciprocal filial piety) were superiorly mediated by IA and RA, respectively. Study 2 used a longitudinal design and added negative criteria (i.e., anxiety and depression for intrapersonal maladaptation, and hostility and delinquent behavior for interpersonal maladaptation). Hierarchical linear modeling analyses indicated that (1) NSP not only positively contributed to Taiwanese adolescents’ IA and RA, but also facilitated the change rate of IA and RA; (2) the changes in IA and RA within individuals over time were related to the changes in intrapersonal and interpersonal criteria, respectively; and (3) IA primarily mediated the effects of NSP on both intrapersonal adaptation and maladaptation, while RA mediated the effects of NSP on both interpersonal adaptation and maladaptation. Limitations and future directions are discussed.

Enhancing foreign subsidiaries' performance through relational ties, market- and nonmarket-based capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amonrat Thoumrungroje ◽  
Supara Kapasuwan
Keyword(s):  
Firm Performance ◽  
Multinational Enterprises ◽  
Social Capital Theory ◽  
Superior Performance ◽  
Foreign Subsidiaries ◽  
Capital Theory ◽  
Content Type ◽  
Mediating Role ◽  
Path Analyses ◽  
And Performance

PurposeGiven the inconclusive findings on relational ties–performance relationships, this study approaches this phenomenon through social capital theory and resource-based view (RBV) lenses to advocate the mediating role of nonmarket- and market-based capabilities.Design/methodology/approachA survey-based research methodology was employed. A list of 1,425 foreign subsidiaries was identified from the Thailand Board of Investment (BOI) website, and key informants were contacted. A final response rate of 11.8% was achieved. All hypotheses were tested via path analyses with the bootstrapping technique.FindingsThe results indicate that the relationships between business- and government-relational ties and performance are fully mediated by market- and nonmarket-based capabilities with the latter serving as essential but inadequate preconditions for achieving superior firm performance.Practical implicationsTo mitigate the liability of foreignness and to enhance performance of foreign subsidiaries operating in volatile emerging economies such as Thailand, government and business relational ties are crucial in developing nonmarket- and market-based capabilities. The nonmarket-based capabilities entail the ability to negotiate with and influence policy makers, which in turn helps augment the development of market-based capabilities, including the ability to be highly responsive to customers' needs.Originality/valueThis research illustrates the embedded roles of nonmarket and market-based capabilities developed through complex interactions among social actors, including the multinational enterprises’ (MNEs’) subsidiaries and government and nongovernment counterparts, in attaining superior performance. The results indicate how relational ties enable MNEs’ subsidiaries to develop various capabilities, and how these capabilities are related with each other and linked to firm performance. Findings from an emerging economy undergoing recent political and economic uncertainties also provide theoretical advancements for international business studies.

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