scholarly journals Cultural Generalists and Cultural Specialists: Examining International Experience Portfolios of Subsidiary Executives in Multinational Firms

2018 ◽  
Vol 45 (2) ◽  
pp. 384-416 ◽  
Author(s):  
Marketa Rickley

On the basis of the observation that today’s executives increasingly possess significant international experiences, this study of foreign subsidiary executive staffing strategies looks beyond the local/expatriate dichotomy and shifts the theoretical and empirical focus from executive nationality to a more nuanced examination of subsidiary executives’ international experience portfolios. The intended contribution of this study is to explore the relationship between home country–host country institutional differences and the quantity and quality of subsidiary executives’ previous international experience. I draw on executive cognition theory and the literature on international experience to hypothesize that variety and specificity of previous educational and professional international experiences facilitate subsidiary executives’ abilities to manage liabilities of foreignness arising from institutional distance. The findings indicate a positive relationship between home country–host country institutional distance and the presence of subsidiary executives with higher duration, count, and variety of international experiences. However, the findings provide no statistical evidence of higher levels of institutional distance being associated with a higher presence of subsidiary executives with specific international experiences that are relevant to the home country–host country pair.

2015 ◽  
Vol 20 (01) ◽  
pp. 1550005 ◽  
Author(s):  
NIR KSHETRI ◽  
DIANA ROJAS-TORRES ◽  
MARLENY CARDONA ACEVEDO

Diaspora networks' non-economic remittances in the forms of social, political, cultural and technical contributions to their homeland play important roles in entrepreneurship and economic development. In this paper, we examine the effects of such remittances on entrepreneurship development in economies in Latin America and the Caribbean (LAC). We analyze how factors such as migrants' skills and education and characteristics of the host country are likely to affect non-economic remittances and their contribution to entrepreneurship and economic development. We offer some examples of initiatives taken in the home country and the host country to maximize the potential non-economic remittances and their impacts on entrepreneurship development in the home country. A key lesson and take-away that we can gain from entrepreneurially successful efforts of some economies is that the primary focus of diaspora policies need to be centered on utilizing various forms of non-economic remittances in stimulating the quantity and quality of entrepreneurial activity.


2019 ◽  
Vol 16 (8) ◽  
pp. 1415-1432
Author(s):  
Morteza Khojastehpour ◽  
Md Abu Saleh

Purpose Corporate social responsibility (CSR) has received considerable research attention globally over the past decade. Although a growing number of prior studies have investigated the various dimensions of CSR in general terms, few studies have investigated the critical role that CSR can play in the internationalization process of firms. Design/methodology/approach Using S&P 500 companies during 2004-2014, the authors found that the level of CSR commitment raises the level of reliability of firm and allows further international penetration. Moreover, better regulatory quality of host country is at actual support of internationalization only when considering the short term. Findings Better regulatory quality of host country is at actual support of internationalization only when considering the short term. Originality/value The authors build on internationalization theory and CSR and examine the relationship between firms’ level of internationalization and CSR commitment.


2021 ◽  
Author(s):  
◽  
Umar Ahmed

<p>This research investigates how the Top Management Team (TMT) characteristics impact the imitation of home country firms’ Foreign Direct Investment (FDI) location choice. A review of the FDI location choice research was performed, and various viewpoints for the selecting locations were identified. Amongst these viewpoints, the institutional perspective suggests that lack of cognition coupled with uncertainty about host markets compels firms to follow the FDI decisions of other home country firms. The review identified that the current literature in the cognitive domain had overlooked the role of TMTs. Upper echelon theory suggests that TMTs are not only a unique source of cognitive resources but also help to overcome challenges associated with internationalisation. This research applies institutional theory and the upper echelon theory to advance the argument of how and why TMT characteristics may impact the imitation of location choice decisions. Various TMT attributes like TMT international experience, TMT international experience diversity, TMT tenure diversity, TMT education diversity and TMT functional diversity were hypothesised to moderate the imitation in FDI location choice.  This research applied quantitative methods to assess the proposed hypotheses. First, a sample of 202 US-based firms (which invested in 11 Asia-Pacific countries from 2009 to 2014) was collected from FDI Markets database. This sample generated a panel dataset of 12,771 observations. Nearly 11,000 unique top manager profiles were created to compute the TMT data for the firms in the given period. Through logistic regression, this study assessed whether TMT attributes moderate the extent of imitation in FDI location choice.  The findings from this research contribute to institutional theory by highlighting the role of upper echelons. In particular, the findings show that while TMT tenure diversity weakens the effect of imitation, TMT functional diversity further exacerbates the effect of imitation in location choice. It was also found that when firms do not have a prior presence in the host country, then TMT international experience also strengthens the effect of prior FDI by other home country firms. The research also supports that the effect of various TMT attributes could be subject to environmental conditions. In particular, it shows that deep-level characteristics cause a more profound impact when host country uncertainty is high, while surface-level characteristics are impactful when host country uncertainty is low.</p>


2009 ◽  
Vol 33 (5) ◽  
pp. 1023-1044 ◽  
Author(s):  
Jennifer M. Sequeira ◽  
Jon C. Carr ◽  
Abdul A. Rasheed

Building on a typology of transnational firm types, developed by Landolt, Autler, and Baires in 1999, we examine whether immigrant attitudes toward the host country and their degree of embeddedness in the home country can predict the specific type of transnational enterprise that an immigrant is likely to begin. We also investigate whether the determinants of success of transnational enterprises vary by firm type. Based on a sample of 1,202 transnational business owners drawn from the Comparative Immigrant Entrepreneurship Project database, our analyses indicate general support for our hypotheses. More specifically, we found that transnational entrepreneurs‘ positive perceptions of host country opportunities and greater embeddedness in home country activities helped predict the specific type of ventures they would undertake. Further, the degree of embeddedness in the home country may influence the determinants of success for these types of firms. Depending on firm type, owners attributed their primary success to either personal characteristics, social support, or to the quality of their products and services.


2015 ◽  
Vol 53 (1) ◽  
pp. 198-220 ◽  
Author(s):  
Chinmay Pattnaik ◽  
SoonKyoo Choe ◽  
Deeksha Singh

Purpose – The purpose of this paper is to examine the impact of quality of market supporting institutions (institutional quality) in host country and the similarities and differences of institutional quality between the home and host country (institutional distance) on subsidiary performance. Design/methodology/approach – Based on the conceptualization of new institutional economics, the authors divide quality of host country institutions into factor markets; product, capital, labor market and sociopolitical dimensions. The authors examine the impact of the quality these institutional dimensions in host countries and their difference between home and host country on the performance of 318 subsidiaries of 146 Korean listed manufacturing firms operating in 28 host countries from 2001 to 2006. Findings – The empirical results based on 1,129 observations show that institutional distance explains a significant variance in the subsidiary performance. In particular, the difference in quality of institutions in product, capital and labor market has negative impact on subsidiary performance. However, except for quality of regulation in labor market, host country institutional qualities do not significantly explain the variation in subsidiary performance. Originality/value – The evidence suggests that host country institutions matter substantially when considered with their relative similarity and difference with home country institutions. The impact of individual dimensions of institutions varies on subsidiary performance.


Author(s):  
Katy Lane ◽  
Theresa Murphrey

Implementation of international experiences for students has increased. Anecdotal evidence suggests that these experiences enhance the quality of students upon graduation. However, a synthesis of literature related to the benefits of international experiences was lacking. We rooted the study’s conceptual framework in the concept of high-impact activities/experiences and related inputs, processes, and outcomes with a focus on the benefits of student participation in an international experience. Our purpose was to establish a benchmark documenting research conducted related to the benefits of an international experience and to identify research gaps. The rigorous literature review process identified 108 articles published across 55 unique publications for inclusion. Documentation of benefits was grouped into four categories: personal growth, international knowledge, cultural awareness, and additional skills. Further, the literature revealed a litany of reasons that students chose not to participate and a wide range of guidance for program planning. We conclude that research has documented specific benefits of students’ participation in international experiences; however, many of these studies are based on data collected immediately following the experience rather than longitudinal data. Our research synthesis provides a summary of benefits and program strategies for utilization by researchers in planning future research and by practitioners in planning future international experiences. Keywords: study abroad, international experience, benefit, cultural understanding, benchmark


2018 ◽  
Vol 41 (7) ◽  
pp. 860-877 ◽  
Author(s):  
Nana Yaw Oppong

Purpose The paper aims to trace the challenges that multinational companies (MNCs) face as they grow out of their national borders into foreign countries and how they attempt to transfer human resource management (HRM) policies and practices across their subsidiaries for a best-fit HRM model. Design/methodology/approach The paper uses the dilemma theory (involving two opposing values which doing one without the other creates a disadvantage but both cannot be done together) as the main analytical tool and reviews scholarly literature on MNCs’ HRM transfers for the assessment of the transfer challenges. Findings It is found that MNCs face a dilemma as to how to find best-fit between home-country HRM requirements and host-country demands. In the face of this dilemma, MNCs attempt to build synergy between home-country requirements and host-country demands for a best-fit HRM that is beneficial to both the parent company and their foreign subsidiaries. Despite the best-fit HRM practices to diffuse the tension, parent company has greater influence in the final synergy product which is the trade-off between home-country HRM label and host-country contextual demands, thereby advancing the dominant HRM option of the dilemma. Practical implications MNCs should be aware of the possible challenges as they internationalise and should equally be aware that though they may build a synergy (a blend of workable headquarters and subsidiary HRM), the final product will continue to favour headquarters’ HRM policies and practices. Originality/value The paper generates theoretical implications into the issues and challenges that arise with HRM transfers within multinational firms by examining how the dilemma theory sheds light on the transfer process and challenges from the dominant-contextual tension till the fight for best-fit HRM. It also contributes to the development of cycle of cross-border HRM dilemma, cross-border HRM transfer framework and Synergy-Dominant theory.


Author(s):  
Sarah Terwse Shittu ◽  
Ogbedu Michael

This paper investigates the complex developments of identity in contemporary Africa considering that the emergence of identity politics is a consequence of the extraordinarily rapid and profound upheavals and transformations of human society at the turn of the 21stcentury. Contemporary world has considerably opened up and extraordinarily shrunk in specific historical circumstances. The act of migration particularly, is one that profoundly changes the individual, transforming the relationship of the migrant with his home country and new host country and then impacting their identity as a result. The expanding use of the term, identity politics, is scrutinized in this work and attempts are made at delineating its unwieldy parameters. This in turn reflects the socio-political composition of African societies.


2019 ◽  
Vol 26 (1) ◽  
pp. 24-45 ◽  
Author(s):  
Diego Quer ◽  
Laura Rienda ◽  
Rosario Andreu ◽  
Si Miao

PurposeThe conventional wisdom suggests that the lack of prior host country-specific experience and a higher institutional distance deter multinational enterprises (MNEs) from entering a foreign country. However, past studies report that Chinese MNEs show an unconventional risk-taking behavior choosing foreign locations, where they have no prior experience or there is an increased institutional distance. Drawing on the institutional theory, the purpose of this paper is to argue that Chinese Government official visits to the host country may act as a risk-reduction device, thus providing an explanation for such an unconventional behavior.Design/methodology/approachThe authors develop two hypotheses regarding how Chinese Government official visits moderate the impact of host country-specific experience and institutional distance on the location choice of Chinese MNEs. The authors test the hypotheses using a sample of investment location decisions by Chinese MNEs in Latin America.FindingsThe authors find that government official visits mitigate the lack of firm’s prior host country experience. However, only high-level government visits reduce institutional distance.Originality/valueThe authors contribute to the international business literature by analyzing how home country government diplomatic activities may pave the way of host country institutional environment for foreign MNEs from that home country. In addition, the authors provide an additional explanation for the unconventional risk-taking behavior of Chinese MNEs. Finally, the authors also contribute to a better understanding of the decision-making process of emerging-market MNEs entering other emerging economies.


2017 ◽  
Vol 8 (2) ◽  
pp. 231-262 ◽  
Author(s):  
Sheng Huang ◽  
Guangyu Ye ◽  
Jinbo Zhou ◽  
Tiantian Jin

Purpose This paper aims to reveal the influencing mechanism of the interaction between institutional environments in the home and host country on the accelerated internationalization of entrepreneurial enterprises from emerging economies (EE). The authors want to open the black box of home-country institutional environments’ moderating mechanism on the relationship between host-country institutional environments and accelerated internationalization. Design/methodology/approach The authors chose a massive interview method and case study method to answer this question. According to our standards, the authors chose four high-tech companies in Guangdong and Guangxi provinces as case study samples. During investigation in the four case companies, the authors collected print data of 150 pages and electric data of 3 pages. Then, the authors excavated concepts in data through open coding, axial coding and select-type coding and identified concepts’ dimensions and connections between them. Findings Well-developed home-country institutions can reduce the inhibitory effect of under-developed host-country institutions on the accelerated internationalization of entrepreneurial enterprises from emerging economies. Under-developed institutional environments in the home country are beneficial for entrepreneurial enterprises from EE to develop the institutional capability for entrepreneurial enterprises with stronger institutional capability from emerging economies. The inhibitory effect of under-developed institutional environments in the host country on their accelerated internationalization is weaker. The positive moderating role played by institutional voids in the home country on the relationship between institutional voids in the host country and the accelerated internationalization are mediated by the institutional capability of entrepreneurial enterprises from emerging economies. Research limitations/implications The authors just refined the definition of institutional capability and divided its dimensions. Issues such as operationalization of institutional capability and the development of measurement scale are also worthy for future quantitative research. Considering the inherent defect of case study and that these four case companies are from Chinese high-tech industry, the external validity our research may be limited. The theoretical model that was constructed generally captured the relationships between dual institutional environments, institutional capability and EE entrepreneurial firms’ accelerated internationalization decision. Future studies may use a large-scale sample to verify the all propositions the authors introduced to draw more steady and reliable empirical study results. Practical implications The conclusions have significant implications for governments in EE to construct friendly institutional environments for international entrepreneurship and for entrepreneurial firms to implement internationalization strategies. Social implications Policy makers should establish well-developed normative and cognitive institutional environment by cultivating global-orientated and open national culture and organizing experience exchange conference, thereby speeding up the implementation of internationalization strategies and further improving international competitiveness for a country. Originality/value First, the authors defined institutional capability as firms’ ability of establishing relationships with institution actors, adapting to institutional contexts, changing existing institutions or creating new ones to gain potential interests and suggested that it consists of three dimensions. Second, institutional voids in the home country positively moderate the relationship between under-developed institutional environments in the host country and the accelerated internationalization of entrepreneurial firms from EE. At last, institutional capability of firms negatively moderates the relationship between under-developed institutional environments in the host country and the accelerated internationalization of entrepreneurial firms from EE.


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