scholarly journals Unravelling processes of alliance capability development: longitudinal processual insights from an emerging country multinational enterprise

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vijay Pereira ◽  
Swetketu Patnaik ◽  
Mohammad Roohanifar ◽  
Ram Baliga
Keyword(s):  
Multinational Enterprises ◽  
Multinational Enterprise ◽  
Internal Communication ◽  
Capability Development ◽  
Organizational System ◽  
Content Type ◽  
Study Approach ◽  
Complex Processes ◽  
Biopharmaceutical Company ◽  
Emerging Country

PurposeThe purpose of this paper is to explore and unbundle the complex processes underpinning development of alliance capabilities, particularly in the context of emerging country multinational enterprises. More specifically, this paper focuses on how firms internalize and translate knowledge generated from experiences gained by participating in international collaborations.Design/methodology/approachThe authors adopt an exploratory case study approach to undertake in-depth processual analysis of alliance capability development in an Indian biopharmaceutical company. The authors focused their analysis on the initial four international alliances the company formed and identified key elements pertaining to alliance capabilities that the company internalized and those that it could not, as this was key in understanding alliance capability.FindingsThe research shows that based on experiences from previous alliances, the Indian organization was able to overhaul its negotiation and governance designing processes and practices as well as made robust changes to its internal communication and coordination practices. Interestingly, the company organization, however, did not make any significant changes to its processes and practices regarding partner selection.Practical implicationsThe results from our study can be used by managers to develop processes and practices when it comes to developing alliance capabilities.Originality/valueThe paper is novel, as it addresses two specific gaps in the nascent alliance capability literature. First, it provides insights on how different constituent elements/aspects of alliance capability actually develop and integrate within the organizational system over time, and in the process, the paper identifies that some aspects are better internalized as compared to other aspects. Second, by focusing the attention on an Indian biopharmaceutical company, the authors attempt to address a gap in alliance capability development research, which has been neglected in emerging country multinational entities.

Corporate sustainability reporting in Japanese multinational enterprises: a threat to local legitimacy or an opportunity lost for corporate sustainability practices?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masayoshi Ike ◽  
Jerome Denis Donovan ◽  
Cheree Topple ◽  
Eryadi Kordi Masli
Keyword(s):  
Multinational Enterprises ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Internal Communication ◽  
Structured Interviews ◽  
Host Countries ◽  
Content Type ◽  
The Sustainable Development ◽  
Novel Approach ◽  
Responsible Consumption

Purpose This paper aims to investigate whether Japanese manufacturing multinational enterprises (MNEs) maintain local legitimacy in their host countries through adequate informing of local stakeholders with targeted corporate sustainability (CS) reporting. Design/methodology/approach The paper first identified specific CS activities that were considered important in four Association of Southeast Asian Nations host countries, through semi-structured interviews with 58 participants of 16 Japanese manufacturing MNEs. The degree of establishment of local legitimacy was then measured through the number of references made to these CS activities and other activities specific to the respective host countries in the CS reports of the MNEs across a five-year period. Findings The majority of MNEs in the sample were under-reporting items of specific interest to localhost country stakeholders potentially undermining the MNEs’ image. There were found to be differences on the topics published in CS reports compared to those mentioned in the interviews indicating potential issues with regard to internal communication between the subsidiary and headquarters offices. Originality/value A novel approach is taken to investigate the degree of local legitimacy established by MNEs through comparing the contents of interviews held at subsidiaries with their respective CS reports. This paper highlights the importance of considering MNE subsidiaries when addressing Target 12.6 of the Sustainable Development Goal 12: responsible consumption and production.

Building (or not building) dynamic capabilities: the case of Italian subsidiaries in China and India

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Business Strategies ◽  
Future Research ◽  
Capability Development ◽  
Regional Effect ◽  
Content Type ◽  
Capability Building

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

Financial internationalization of emerging country multinationals: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mariam Jamaleh ◽  
Abha Shukla
Keyword(s):  
Foreign Ownership ◽  
Independent Directors ◽  
Firm Level ◽  
Advanced Country ◽  
Content Type ◽  
Study Approach ◽  
Cross Listing ◽  
Emerging Country ◽  
Financial Internationalization ◽  
The Impact

Purpose Financial internationalization is of particular importance to emerging country firms. Its significance arises from the impact of institutional void and related agency problems (common to emerging markets) on the internationalization path of these firms. Building on concepts from international finance, agency theory and institutional theory, this paper aims to examine the main aspects of financial internationalization by emerging country multinationals, namely, cross-listing, foreign ownership and foreign independent directors. Design/methodology/approach This paper follows a multiple case study approach which is a good fit for the exploratory nature of this research. The interest is to examine the context-driven financial internationalization of each case firm and replicate the firm-level information to find a common strategy. Findings The findings suggest that financial internationalization by emerging country multinationals starts mainly as these firms plan to enter advanced country markets. It is a dynamic process that entails interaction between financial internationalization and real internationalization, as well as among different aspects of financial internationalization. Cross-listing comprises the first stage of the process. Then, foreign ownership, particularly foreign institutional investments, would increase gradually in response to advances in financial and factor markets. Recruiting foreign independent directors seems to be adopted last, possibly out of fear of losing control of strategic decisions. Originality/value This paper presents a unique perspective that delineates different stages of the process of financial internationalization by emerging country multinationals. This complements the efforts to explain the distinct path of internationalization followed by these firms and supplements scarce literature by including emerging multinationals from India where the matter has not yet attracted proper attention.

Early stage network engagement strategies in the network capability development of new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helen McGrath ◽  
Thomas O'Toole
Keyword(s):  
Social Network ◽  
Business Strategy ◽  
Early Stage ◽  
New Ventures ◽  
New Venture ◽  
Capability Development ◽  
Content Type ◽  
Study Approach ◽  
Engagement Strategies ◽  
Network Capability

Purpose The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network capability. Design/methodology/approach Using 24 new ventures in the micro-brewing industry in Ireland, Belgium and the USA as an empirical base, the authors use an inductive case study approach owing to the exploratory nature of the research aim and the lack of prior literature in the area. Findings The findings suggest five early stage network engagement process strategies in network capability development: business-to-business network prospecting; co-branding/co-promoting activities; from maker-mindset to adapting; social media platforming; and recognition and activation of network role. Research limitations/implications The findings are limited to the micro-brewery sector at one point in time, although in multiple country contexts. Analyzing other sectors and taking a temporal view of strategizing, analyzing the sector at another time point, would show how dynamics in engagement change as the actors acquire new experiences from interaction. Practical implications The potential to gain from network resources and the paucity of these resources in new ventures makes early stage engagement strategizing for network capability development an attractive business strategy for new firms. All firms are born within a social network that has economic importance. Identifying the five early stage network engagement strategies can mitigate the challenge for the new venture in moving from the initial social network to collaborating within wider business networks to gain access to resources, technology and customers. Originality/value Strategizing in new venture contexts is a relatively new stream of research for the industrial marketing and purchasing group. This paper adds to the growing body of literature that places interaction, relationships and networks at the heart of strategy making and provides important insights for new ventures, which may lead to earlier and greater success for the firms. The authors respond to calls for increased research addressing capability development in a new venture context and for research to take a more interactive perspective on new venture processes.

Understanding resource commitment to R&D in multinational enterprises: a novel conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niels le Duc
Keyword(s):  
Research And Development ◽  
Conceptual Framework ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
External Environment ◽  
Multinational Enterprise ◽  
Added Value ◽  
Content Type ◽  
Resource Commitment ◽  
Insight Into

Purpose This paper aims to introduce and advocate the concept of resource commitment to better understand multinational enterprise (MNE) research and development (R&D) behavior. Design/methodology/approach Adopting a theory adaptation research design, this paper assesses the characteristics and antecedents associated with varying resource commitment positions. It does so in relation to MNE R&D activities, considering their importance to firm competitiveness and the recent increases in the number of locations and innovative activities a firm might choose to invest in. Findings The paper presents a framework showing that differences in resource commitment are more nuanced than expected. The evaluation of antecedents shows that the external environment, the purpose of R&D activities and firm experience influence the resource commitment position of a firm’s R&D activities. Originality/value The paper provides a pathway toward understanding of MNE R&D behavior, explaining observable differences in resource and commitment levels of R&D units. The presented framework offers MNE managers insight into when to adopt which resource commitment positions. It offers policymakers insights into the type of activities and the companies they need to attract to maximize the added value of firm’s investments in their country/region.

An organismic approach to multinational enterprise failure

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeong-Yang Park ◽  
Yong Kyu Lew ◽  
Byung Il Park
Keyword(s):  
International Business ◽  
Delphi Technique ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Multinational Enterprise ◽  
Institutional Pressures ◽  
Content Type ◽  
Institutional Legitimacy ◽  
Foreign Divestment ◽  
Market Strategies

Purpose The purpose of this paper is to answer why some multinational enterprises (MNEs) fail within the international business (IB) domain. Design/methodology/approach Conceptually, the study takes an organismic approach to MNE failure. Methodologically, it adopts an elite interview approach derived from the Delphi technique. Respondents are 39 IB and strategic management academics. Findings The paper finds that MNE failure is rooted in strategic leadership and capabilities (i.e. internal deterioration of organizational resources and strategies) and institutional pressures and differences, and these factors lead to deterioration of institutional legitimacy for an MNE. Originality/value The paper conducts a review of the firm failure and foreign divestment literature and undertakes an organismic approach to the analysis of MNE failure in the IB context. The paper provides useful insights on developing and implementing both market and non-market strategies for overcoming MNE internationalization failure.

Resistance toward dominant US work practices in emerging markets

2019 ◽  
Vol 15 (4) ◽  
pp. 323-340
Author(s):  
Paresha N. Sinha ◽  
Dharma Raju Bathini
Keyword(s):  
Migrant Workers ◽  
Fast Food ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Working Environment ◽  
Work Practices ◽  
Content Type ◽  
Study Approach ◽  
Effect Theory ◽  
Local Firms

Purpose The purpose of this study is to apply the dominance effect theory and postcolonial notions of “otherness” to critically study the enactment of mimicry at IndianBread, an Indian fast-food chain that has adopted work practices typically found in US fast-food multinational enterprises (MNEs). Design/methodology/approach The authors used an interpretive sensemaking case study approach and collected qualitative data drawing on observations, notes from the company policy manual and in-depth interviews with eight staff at an IndianBread outlet. Data were also collected during informal interactions with staff at three other IndianBread outlets. The analysis focused on the enactment of mimicry and studied the postcolonial dynamics between managers and migrant workers to explain their resistance to the adoption of US work practices. Findings Work practices of US fast-food MNEs such as the standardization of workers’ appearance and basic “Englishization” such as greeting customers in English had been adopted at the IndianBread outlet. However, migrant workers resisted enforcement by contesting the superiority and relevance of these US work practices. The workers’ resistance was accommodated by local managers to pacify and retain them. Research limitations/implications The analysis contributes to a deeper understanding of the dynamics of resistance to the dominant influence of US work practices in emerging market firms. It expands current notions of “otherness” by presenting the perspective of “local” managers and migrant workers. The authors show how worker resistance embedded in their “identity work” involves contesting notions of “inferiority” of local work practices and selves. In the case of managers, accommodating resistance maintains their “legitimacy of dominance”. To that end, the study explains how the need to mimic US work practices is enforced, contested and ultimately diluted in competitive local firms in rising India. Practical implications The organizationally grounded data show how managerial accommodation of workers’ resistance to US practices creates a more flexible working environment that dilutes migrant workers’ sensitivity to their exploitation at the fast-food outlet. Social implications The findings identify the link between mimicry and resistance by the “other,” the ambivalence of the colonizing agent and the ongoing material exploitation within emerging economies. Originality/value To that end, the study explains how the need to mimic the US work practices is enforced, contested and ultimately diluted in the context of the competitive local firms in India.

Technological affordance discovery in enterprise social media success

2020 ◽  
Vol 120 (10) ◽  
pp. 1797-1812
Author(s):  
Keng Hong Ng ◽  
Rachel W.Y. Yee
Keyword(s):  
Social Media ◽  
Performance Outcomes ◽  
Internal Communication ◽  
Affordance Theory ◽  
Content Type ◽  
Enterprise Social Media ◽  
Study Approach ◽  
External Vendors ◽  
Technological Affordances

PurposeThis paper aims to build on affordance theory from a discovery perspective, to illustrate how motivations and goals behind enterprise social media adoption by companies in the fashion and apparel industries are discovered and realized in performance. Enterprise social media and its exogenous technological affordances are introduced as action opportunities in an organization during implementation, to be discovered and acted upon by users to effect various performance outcomes.Design/methodology/approachA case study approach was adopted. Data was collected on five fashion companies that have implemented enterprise social media for their internal communication.FindingsThe findings show that fashion companies adopt enterprise social media offered by external vendors to actively seek more effective internal communication and collaboration among their employees. However, fashion companies embark on different pathways of discovering and actualizing the affordances from the newly implemented enterprise social media. As a result, these firms achieved various kinds of performance benefits, which range from improved customer loyalty to enhanced innovation performance.Originality/valueThis study is the first to introduce a discovery perspective to affordance theory and systematically document the success of enterprise social media appropriation by companies in the fashion and apparel industries.

The competitiveness of emerging country multinational enterprise

2017 ◽  
Vol 27 (3) ◽  
pp. 208-216 ◽  
Author(s):  
Peter J. Buckley
Keyword(s):  
Direct Investment ◽  
Home Country ◽  
Multinational Enterprise ◽  
Competitive Advantages ◽  
Financial Flows ◽  
Content Type ◽  
Emerging Country ◽  
Rival Firms ◽  
Competitive Actions ◽  
Country Specific

Purpose This paper aims to conduct a theoretical enquiry into the questions as to whether emerging country multinationals’ competitiveness derives from country-specific advantage (CSA) or firm-specific advantages (FSA). The case of China is also examined. Design/methodology/approach CSAs and FSAs are examined both in theory and in the specific case of China as explicators of outward foreign direct investment from emerging countries. Findings FSAs and CSAs are found to be imprecise explanatory mechanisms to explain the competitiveness of emerging country multinationals. The examination of imperfections in emerging markets and in global markets and the internalisation responses of firms in different contexts is found to be a superior explanation of the financial flows classified as “outward direct investment”. Originality/value Internalisation theory requires a focus on mechanisms to convert home country attributes into competitive advantages and suggests that FSAs are context dependent, ephemeral and subject to negation by the competitive actions of rival firms.

scholarly journals Coordinating the processes of resource enrichment and capability deployment

2014 ◽  
Vol 22 (4) ◽  
pp. 357-374 ◽  
Author(s):  
Gary Pan ◽  
Sayyen Teoh ◽  
Poh Sun Seow
Keyword(s):  
Development Process ◽  
Research Question ◽  
Capability Development ◽  
Content Type ◽  
Study Approach ◽  
It Capability ◽  
It Implementation ◽  
Resources And Capabilities ◽  
Enrichment Process

Purpose – The purpose of this paper has been to address the research question of how are the processes of resource enrichment and capability deployment coordinated during information technology (IT) implementation at a small- and medium-sized accounting firm (SMAF)? Increasingly, organizations need to respond to a wide range of IT-based opportunities and pressures. The situation is no different in an accounting firm. Many accounting practitioners have advocated investment in IT to improve accounting firms’ productivity. To date, there are many instances of how IT has radically transformed the nature of accounting practice. Nevertheless, little is known about how IT capability is developed in SMAFs. In particular, the resource enrichment process during IT capability development has been understudied. Design/methodology/approach – The strategy of this paper was to undertake qualitative case research of an ERP systems upgrading project at SMAF. The case study approach is particularly appropriate for this exploratory study because it allows the capture of organizational dynamics of the phenomenon better (Newman and Sabherwal, 1996; Yin, 2003). Its strength also lies in its ability to explain the phenomenon based on the interpretation of data (Klein and Myers, 1999). Next, the paper will explain the case study approach. It approached fieldwork at SMAF, with a premise that resource enrichment and capability development exist and are identifiable using an existing theoretical lens. Accordingly, this study draws on Sirmon et al. (2007) ’s concept of resource enrichment process and objectively studied the IT capability development process through the resource enrichment lens. At the same time, it was recognized that resource enrichment and capability development may have their own unique characteristics, unrelated to any theoretical models offered in the organizational literature. Findings – The purpose of this paper has been to address the research question of how resource enrichment process may occur during IT capability development process of an SMAF. This study used a resource-based view of firms as its analytical lens. The study has drawn on SMAF’s sage ACCPAC ERP solution (ACCPAC) system upgrading experience by interviewing relevant project stakeholders and reviewing secondary data extensively. Our analysis identified two actions that were instrumental in enriching resources in the IT capability development process: collective leadership and managing change. Three attributes that supported the resource-enrichment process include effective governance structure, extensive IT knowledge and business experience, and stakeholder commitment. In addition, two coordinating mechanisms were put in place to enable an organization to transform existing resource and capability: informational and IT structure. Originality/value – From research point of view, this paper makes several theoretical contributions. First, this study has contributed to the accounting information systems literature by examining the transformation processes of resource and capability enrichment during IT implementation of a context that is little known. It helps to address the call for more research into IT use and the impact of such tools by SMAFs by Omoteso and Sangster (2011). Second, this study extends the understanding of the IT capability development process by demonstrating how an organization developed IT capability. Through this case, how fundamental resources can be leveraged through specific actions and strategies undertaken have been uncovered. The empirical evidence gathered in the case of SMAF provides useful insights into how resources and capabilities may be enabled. Third, the coordination of the resource and capability transformation contributes to theory development as the coordination mechanisms derived from this analysis offer an insights into how a set of enriched resources and capabilities are synchronized during IT implementation.

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