scholarly journals Strategic Asset Seeking and Innovation Performance: The Role of Innovation Capabilities and Host Country Institutions

2020 ◽  
Vol 13 (3) ◽  
pp. 42 ◽  
Author(s):  
Lili Mi ◽  
Xiao-Guang Yue ◽  
Xue-Feng Shao ◽  
Yuanfei Kang ◽  
Yulong Liu
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Quality ◽  
Innovation Performance ◽  
Innovation Capability ◽  
Moderating Effects ◽  
Strategic Intent ◽  
Strategic Fit ◽  
Two Factors

Peering through the lenses of the strategic intent perspective and strategic fit paradigm, in this study, we seek to examine the contingent conditions under which emerging market multinational enterprises (EMNEs) with strategic asset seeking (SAS) intent can achieve improved innovation performance. We developed a contingency model of how the relationship between SAS intent and innovation performance is contingent on the moderating effects of firms’ innovation capability and institutional quality in the host country, as well as on the synergistic interaction of independent moderating effects from these two factors. We combined survey data from 320 Chinese MNEs with archival data to test our hypotheses. Our results show that SAS intent can lead to positive innovation performance when (a) the investing firm has developed high levels of innovation capability, and (b) synergistic interactions exist between institutional quality and firms’ innovation capability regarding their moderating effect on the SAS intent-innovation performance link.

scholarly journals Entry Mode, Market Selection, and Innovation Performance

2018 ◽  
Vol 10 (11) ◽  
pp. 4222 ◽  
Author(s):  
Chong Wu ◽  
Fang Huang ◽  
Caihong Huang ◽  
Huiming Zhang
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Entry Mode ◽  
Innovation Performance ◽  
Institutional Factors ◽  
Environmental Response ◽  
Market Selection ◽  
The Relationship ◽  
Moderating Role

Recent studies highlighted the need for multi-perspective research on the internationalization and performance of emerging market multinational enterprises (EM-MNEs) and revealed why many EM-MNEs perform negatively when they respond to the host-country environment. Using a sample of listed Chinese manufacturing firms from 2003 to 2014, this study examines the relationship between entry mode choice, which is driven by different environmental response patterns, and firms’ innovation performance. We further analyze the moderating role of market selection on the relationship between host-country institutional factors and firms’ innovation performance. The results show that the international breadth of firms and the economic stability and investment protection of the host country significantly promote firms’ innovation performance. While the entry mode is unilaterally driven by the host-country response, early international experience and the international depth of firms have significant negative effects on firms’ innovation performance. The level of economic development in the invested area plays a moderating role in the relationship between the host-country institutional factors and firms’ innovation performance. Our findings enrich the literature on the relationship between internationalization and EM-MNE performance, and provide inspiring and straightforward empirical evidence.

scholarly journals Knowledge management, sharing and transfer in cross-national teams and the remote management of team members: the onsite-offshore phenomenon of service EMNEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parth Patel ◽  
Hussain Gulzar Rammal ◽  
João J. Ferreira ◽  
Verma Prikshat
Keyword(s):  
Knowledge Management ◽  
Host Country ◽  
Multinational Enterprises ◽  
Service Sector ◽  
Emerging Market ◽  
Senior Managers ◽  
Content Type ◽  
Team Members ◽  
Diffusion Of Knowledge ◽  
Remote Management

PurposeThis study examines how emerging market multinational enterprises operating in the service sector manage knowledge and team members in their overseas subsidiaries and what role expatriates play in their operations.Design/methodology/approachThe authors use a multiple case study design and interview 20 senior managers representing 16 Indian IT firm's subsidiaries in Australia. The onsite-offshore concept and the SECI model are used to explain the knowledge management process.FindingsThe findings show that Indian IT firms mostly transfer knowledge from their headquarters in the parent country to their subsidiaries in the host country using the onsite-offshore model where work is divided and coordinated between team members situated between the two locations. Furthermore, the host country subsidiaries have limited independence in decision-making due to a forward, one-way diffusion of knowledge, thus limiting a two-way interaction between the HQ and the subsidiary for opportunities to create and exchange new knowledge.Originality/valueThe study is one of the few to investigate the onsite-offshore phenomenon in service-based emerging market multinational enterprises.

scholarly journals Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

2016 ◽  
Vol 51 (2) ◽  
pp. 251-263 ◽  
Author(s):  
Jie Wu ◽  
Chengqi Wang ◽  
Junjie Hong ◽  
Panagiotis Piperopoulos ◽  
Shuaihe Zhuo
Keyword(s):  
Host Country ◽  
Emerging Market ◽  
Institutional Development ◽  
Innovation Performance

scholarly journals From the Host to the Home Country, the International Upgradation of EMNEs in Sustainability Industries—The Case of a Chinese PV Company

2019 ◽  
Vol 11 (19) ◽  
pp. 5269 ◽  
Author(s):  
Jun Jin ◽  
Zhengyi Zhang ◽  
Liying Wang
Keyword(s):  
Emerging Markets ◽  
Host Country ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Home Country ◽  
Emerging Market ◽  
Internal Market ◽  
Market Mechanism ◽  
Trigger Time ◽  
Depth Analysis

With the internationalization of firms from emerging-markets, the upgradation along the global value chain of emerging-market multinational enterprises (EMNEs) has attracted the attention of academics and industries. However, the role of upgradation of EMNEs in a host country to the transition of EMNEs in the home country is ignored. This study explored how EMNEs from emerging-markets could upgrade their operations in their home countries driven by the transformation of subsidiaries in host countries. An in-depth analysis of Company S was conducted to elaborate on the resources and trigger time a firm needs to transform the function of a subsidiary in the host country, and the upgradation of the firm in the home country during the internationalization process. Research on the internationalization of Company S suggested that with the complementary capabilities and markets as the fundamental basic resources, the industrial crisis triggers the firm’s upgrading in the host country. In addition, the intrafirm (internal) market mechanism makes it possible to sustain the upgrading process without conflicts between subsidiaries. Moreover, synergies will develop through interactions with subsidiaries, owing to complementary capabilities and the internal market. The synergetic development promotes the transition of firms in the home country and emphasizes the complementarity of the manufacturing and engineering service. Finally, this study demonstrates the two-stage international upgrading process, in which the international upgrading of firms in the home country is driven by the development and transition of the subsidiary in the host country, which provides contributions to the internationalization upgrading strategy and process of firms from emerging-markets.

scholarly journals The Moderating Effects of Institutional Qualities and Energy Use on the Economic Output

2020 ◽  
Author(s):  
Abdulrasheed Zakari ◽  
Jurij Toplak
Keyword(s):  
Energy Use ◽  
Institutional Quality ◽  
Political Stability ◽  
Moderating Effects ◽  
African Countries ◽  
Economic Output ◽  
Regulatory Quality ◽  
Two Factors ◽  
Institutional Strategies ◽  
Control Of Corruption

Energy and institutional quality are two factors that determine economic output, but these two factors are often neglected in the search for economic output. Therefore, this study examines the relative importance of energy use and its interaction with institutional quality for economic output. We employ a robust econometric estimation technique on a panel sample of 21 African countries between 2002-2019. Our results show that energy use is significant and negatively related to economic output while moderating terms of institutional quality are significantly associated with economic output, but the direction of the association depends on the specific quality. We find the moderating term control of corruption and government effectiveness to be negative and significantly associated with economic output, whilst political stability, regulatory quality, rule of laws, voice, and accountability positively impact. Our results imply that improved economic output is possible when there are specific institutional strategies.

scholarly journals Does the Choice of IJV under Institutional Duality Promote the Innovation Performance of Chinese Manufacturing Firms? Evidence from Listed Chinese Manufacturing Companies

2020 ◽  
Vol 12 (17) ◽  
pp. 6869
Author(s):  
Chong Wu ◽  
Siyi Bo ◽  
Xing Wan ◽  
Min Ji ◽  
Meihua Chen ◽  
...  
Keyword(s):  
Multinational Enterprises ◽  
Joint Venture ◽  
Emerging Market ◽  
Strategic Choice ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Institutional Duality ◽  
The Impact ◽  
The Relationship

The relationship between the strategic choice of internationalization under institutional duality and the performance of emerging market multinational enterprises (EM-MNEs) will become a focal point for scholars, practitioners and policy makers in the future. In order to better understand the determinants of the entry mode choice under institutional duality for EM-MNEs, based on the sample of Chinese manufacturing listed companies ‘going out’ from 2003 to 2015, we investigated the impact of organization institutional inertia and host-country institutional quality on the choice of the international joint venture (IJV) of Chinese manufacturing firms, as well as the effect and potential problems of the IJV choice on the firms’ innovation performance under institutional duality. The main results of our empirical analyses provide evidence that the response to institutional duality means that Chinese firms have the possibility to choose IJV in entry modes ahead of their capability support, and subject to insufficient professional field accumulation, cross-cultural management and joint governance capability, this premature choice of IJV actually hinders their innovation efficiency. Furthermore, the test on the influence of firm heterogeneity found that, when the firm is privately owned or has a lower internationalization breadth, the above negative moderating effect of IJV choice is more significant. Our findings enrich the literature on the relationship between the strategic choice of internationalization and innovation performance of EM-MNEs, and provide inspiring and straightforward empirical evidence.

National Identity, Othering and Resistance: Host Country Manager’s Experience at a Japanese Multinational Enterprise in India

2021 ◽  
pp. 097215092110476
Author(s):  
Ashok Ashta
Keyword(s):  
National Identity ◽  
Host Country ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Power Distance ◽  
Multinational Enterprise ◽  
Original Model ◽  
Cross Cultural ◽  
Global Business ◽  
Advanced Economy

National identity has been found to be a basis for othering and resistance in host country managers at multinational enterprises overseas’ affiliates. An original model of employee’s resistance using national identity has developed a nuanced understanding of how resistance manifests. This research tests this original model in a multinational enterprise’s office in the emerging market and power distance accepting India. A case study design was adopted. Interpretive analysis of the data indicates that the newly developed model could apply to Indian situations, and collateral inductive reasoning proposes a further refinement to this model. Thus, besides verbal othering, it is found that the use of space and rituals can also be used in the acts of resistance and further it is proposed that such acts are not necessarily continuous, but can manifest intermittently. Hence, the practising international human resources manager now has a broader lens to assess resistance manifestation, facilitating sooner remedial countermeasures. The cross-cultural study is among the pioneers in studying national identity as a means of resistance in a power distance accepting context in general, and the under-researched advanced economy, emerging market Japan–India international business dyad specifically. It contributes to cross-cultural management (CCM) literature by surfacing the darker side of globalization—the power retained by the parent company and concomitant subordination of the host country manager that results in resistance. This study adds to the under-researched India–Japan global business scholarship.

International ambidexterity in firms' innovation of multinational enterprises from emerging economies: an investigation of TMT attributes

2020 ◽  
Vol 15 (3) ◽  
pp. 431-451
Author(s):  
Hang Wu ◽  
Jin Chen
Keyword(s):  
Multinational Enterprises ◽  
Emerging Market ◽  
Linear Regression Analysis ◽  
Innovation Performance ◽  
Foreign Markets ◽  
Content Type ◽  
Business Studies ◽  
Business Partners ◽  
Top Managers

PurposeExtant research has integrated ambidexterity perspective into international business studies and calls for emerging market multinational enterprises (EM MNEs) to implement exploration and exploitation activities simultaneously in foreign markets. However, less attention has been paid to empirically test whether and how international ambidexterity can benefit the innovation performance of EM MNEs. Based on the data of international manufacturing firms in China, this paper explores the relationship between international ambidexterity and innovation performance and investigates four contingency factors of top management team (TMT): two external resource accumulation elements (i.e. TMT business ties and TMT political ties) and two internal resource integration elements (i.e. TMT contingency rewards and TMT social integration).Design/methodology/approachThe author conducts multiple hierarchical linear regression analysis to test the hypothesis by collecting survey data from 227 MNEs from several Economic Development Zones located in Zhejiang province in China.FindingsThe results show that international ambidexterity is positively related to innovation performance, and the international ambidexterity–innovation performance relationship is amplified when TMTs build strong ties with external business partners and political departments, when EM MNEs link top managers' income to team collective performance and create a highly social integrated TMT.Originality/valueThe results contributes to answer the question that how well EM MNEs will succeed and enrich the context specificity of international ambidexterity. The findings also help us better understand the inconsistent empirical findings in organizational ambidexterity by uncovering the contingency role of several TMT attributes.

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