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 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 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.

External technology acquisition, exploitation and process innovation performance in emerging market small and medium sized enterprises: the moderating role of organizational slack

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thammanoon Charmjuree ◽  
Yuosre F. Badir ◽  
Umar Safdar
Keyword(s):  
Open Innovation ◽  
Emerging Market ◽  
Process Innovation ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Content Type ◽  
Technology Acquisition ◽  
The Relationship ◽  
Unabsorbed Slack ◽  
Positive Effect

PurposeThis study is among the very few to examine the firm's simultaneous use of both dimensions of open innovation and its influences on the firm's process innovation performance (PIP). Specifically, the authors consider the relationship between firm's external technology acquisition (ETA) and external technology exploitation (ETE) and examine their direct, indirect and mediating effect on the firm's PIP. The authors also examine the moderating effect of the organizations' unabsorbed slack (UASL) on the relationship between ETA and ETE.Design/methodology/approachAnalyzing data collected from 311 small- and medium-sized software development firms in emerging market; Thailand, we show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP.FindingsThe authors show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP. Moreover, the relationship between ETA and ETE is positively moderated by the firms' unabsorbed slack (UASL) and that the influence of ETA on PIP through ETE is stronger under higher unabsorbed slack.Originality/valueThe authors extend the “traditional” performance outcome of outbound dimension of open innovation concept, which focuses exclusively on commercialization and market (Chesbrough, 2003b), by showing that ETE positively influences the firm's PIP. Moreover, the study explains the mechanism through which ETA influence the firm's PIP by proposing that ETE fully mediates the relationship between ETA and PIP.

Performance of Ghanaian women businesses community: the moderating role of social competence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cynthia Ayorkor Sallah ◽  
Livingstone Divine Caesar
Keyword(s):  
Social Competence ◽  
Women Entrepreneurs ◽  
Emerging Market ◽  
Second Phase ◽  
Business Growth ◽  
Content Type ◽  
Intangible Resources ◽  
The Relationship ◽  
Moderating Role

Purpose This paper aims to investigate the moderating dynamics of social competence in the relationship between intangible resources and the performance of women businesses from an emerging market context. Developed economy literature provides ample evidence of a positive relationship between intangible resources and the performance of women business ventures. Little is known of the complexity of this orthodoxy in developing markets such as Ghana. In particular, this paper investigates the moderating role of social competence in the relationship between intangible resources available to women entrepreneurs and performance. Design methodology approach An exploratory sequential mixed method research design was used. First phase involved qualitative data collected through interviews, and the second phase was quantitative data collected from 264 participants. Content analysis and multiple regression analysis were used. Findings Social competence is important to the success of women businesses as it influences the outcome of entrepreneurial interactions and communications. Also, it positively moderated the relationship between organisational reputational capital (RC) and women business growth. On the flip side, it negatively moderated the relationship between human capital, social capital, individual RC and women business growth. Practical implications To sustainably grow their businesses, women entrepreneurs must ascertain the right level of social competence needed. The utilization of social competence at higher rather than lower levels could mean more costs and more training for which the business may not have immediate use. Originality value This paper advocates the need to improve the content of entrepreneurial training packages to include the reinforcement of social competency skills in terms of relationship management as this may be the key to the facilitation of access to resources for innovation and growth.

scholarly journals Debt financing and firm performance: The moderating role of board independence

2020 ◽  
Vol 45 (3) ◽  
pp. 141-151
Author(s):  
Hanh Song Thi Pham ◽  
Duy Thanh Nguyen
Keyword(s):  
Emerging Market ◽  
Debt Financing ◽  
Board Independence ◽  
Data Set ◽  
Listed Firms ◽  
Negative Effect ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

This article investigates the moderating role of board independence in the relationship between debt financing and performance of emerging market firms. We have used an empirical model in which the firm’s accounting profitability is a dependent variable and the independent variables are debt financing, board independence, the interaction variable made of debt financing and board independence as well as various control variables. Our analysis is based on a panel data set of 300 listed firms in Vietnam between 2013 and 2017. Our study finds that debt financing has a significantly negative effect and that board independence reduces the adverse impact of debt financing on accounting profitability. Our results are consistent across different estimation models and methods.

scholarly journals Integrator’s Coordination on Technological Innovation Performance in China: The Dual Moderating Role of Environmental Dynamism

2019 ◽  
Vol 12 (1) ◽  
pp. 308
Author(s):  
Lina Mao ◽  
Jinghua Li ◽  
Changwei Guo
Keyword(s):  
Technological Innovation ◽  
Dynamic Environment ◽  
Innovation Performance ◽  
Strategic Development ◽  
Trade Friction ◽  
Product Systems ◽  
Complex Product Systems ◽  
The Relationship ◽  
Moderating Role

As the backbone of national strategic development, Complex Product Systems (CoPS) have made great achievements in China, the world’s largest demand market and second largest economy. However, their further development is challenged by the dynamic environment, including the ongoing Sino-US trade friction, for example. The aim of this research is to investigate the influence of the dynamic external environment on CoPS innovation. Based on contingency theory, this study identifies and investigates the moderating effects of technological and market dynamism on the relationship between the integrator’s coordination and its technological innovation performance. Using survey data from 209 CoPS integrator enterprises in China, the findings show that (1) the positive effect of an integrator’s coordination on technological innovation performance is strengthened by technological dynamism, while (2) weakened by market dynamism. In addition, (3) the technological dynamism acts as a higher-order moderating role in inhibiting the negative moderating effect of market dynamism on the main effect in general. Furthermore, (4) an unexpected but inspiring finding shows that the integrator’s coordination facilitates innovation most when both the technology and market dimensions are highly dynamic. This study may indicate that managerial recognition may have significant influence on enterprise’s behavior.

scholarly journals Moderating Role of Financial Market Development on the Relationship between Stock Liquidity and Dividend

2020 ◽  
Vol 16 (2) ◽  
pp. 77-99
Author(s):  
Mohd Ashari Bakri ◽  
Amin Nordin Bany-Ariffin ◽  
Bolaji Tunde Matemilola ◽  
Wei Theng Lau
Keyword(s):  
Emerging Markets ◽  
Financial Market ◽  
Emerging Market ◽  
Investment Strategy ◽  
Market Development ◽  
Stock Liquidity ◽  
Financial Market Development ◽  
The Relationship ◽  
Moderating Role

This article aims to investigate the relationship between stock liquidity and dividend across emerging market countries as well as examined the moderating role of financial market development on the relationship between stock liquidity and dividend. Data were obtained from the World Bank and DataStream databases. The study examined 3,258 listed firms from 22 emerging markets to be extrapolated in the emerging market context. To analyse the data, this article used the panel data Tobit model and panel logistic regression, both with random effects. The analysis revealed that financial market development has a positive moderating effect on the relationship between stock liquidity and dividend by improving local market liquidity and mitigating information asymmetry. The study findings provide information for managers to devise investment strategy in the emerging markets. This article provides new insights into the financial market development moderating role on the relationship between stock liquidity and dividend.

scholarly journals Determinants of EMNEs’ Entry Mode Decision with Environmental Volatility Issues: A Review and Research Agenda

2021 ◽  
Vol 14 (10) ◽  
pp. 500
Author(s):  
Yameng Li ◽  
Ruosu Gao ◽  
Jingyi Wang
Keyword(s):  
Environmental Factors ◽  
Multinational Enterprises ◽  
Joint Venture ◽  
Emerging Market ◽  
Mode Choice ◽  
Entry Mode ◽  
Vital Role ◽  
Entry Modes ◽  
Entry Mode Choice ◽  
Country Level

Emerging market multinational enterprises (EMNEs) play a vital role in global economic development and usually adopt aggressive internationalization strategies. However, the volatile global environment has caused EMNEs to face various risks in their overseas expansion. To maximize the competitive advantages and achieve successful expansion, EMNEs should choose the most suitable foreign entry mode. Therefore, EMNEs need to understand what environmental factors affect their decision-making and how they influence the choice of entry modes, especially in a volatile environment. This review examines 44 selected journal articles from 1996 to June 2021 on the environmental volatility determinants of EMNEs’ entry mode choice. The entry mode choice we examined is mainly wholly-owned subsidiary versus international joint venture. We categorized the environmental volatility determinants investigated in the literature we reviewed into country-level factors (such as cross-national distance) and industry-level factors (such as industry condition). The main contributions are: (1) the review reveals three research gaps in extant studies, which are lack of research on external environmental factors, lack of research on multinationals from less concerning emerging economies, and lack of research on small-to-medium (SMEs) enterprises. (2) Practically, the study highlights the importance of understanding external environmental factors for EMNEs to make the most suitable entry mode decisions.

Entrepreneurial alertness and self-efficacy: A focus on social values and innovation performance

2019 ◽  
Vol 17 ◽  
Author(s):  
Boris Urban
Keyword(s):  
Value Chain ◽  
Self Efficacy ◽  
Cognitive Theory ◽  
Social Values ◽  
Emerging Market ◽  
Innovation Performance ◽  
Validity And Reliability ◽  
Entrepreneurial Alertness ◽  
Entrepreneurial Behaviour ◽  
The Relationship

Orientation: It is widely accepted that the entrepreneurial process has attitudinal and behavioural components, with recent studies indicating that social values (SV) interact with entrepreneurial beliefs and competencies to significantly influence the innovation performance (INNP) of enterprises.Research purpose: By relying on the prescripts of social cognitive theory (SCT), this study empirically investigated to what extent SV moderate the relationship between entrepreneurial alertness (EA) and self-efficacy to influence higher levels of INNP.Motivation for the study: Studies indicate there has been a marked decrease in entrepreneurs who believe they offer innovative products, which is of great concern given that the levels of innovation are important for African enterprises.Research approach, design and method: This cross-sectional study was based on primary survey data (n = 175 enterprises). Instruments were scrutinised for validity and reliability and hypotheses tested using regression analysis.Main findings: Results showed that EA and entrepreneurial self-efficacy (ESE) explained a significant amount of variance in INNP. In addition, SV positively moderated the relationship between these behavioural variables and INNP.Practical and managerial implications: It is important to have evidence-based policies that explain entrepreneurial behaviour and INNP of enterprises in African countries eager to move up the value chain to the next phase of economic development.Contribution or value-add: This article contributes to the understanding of how SV, in an under-researched emerging market context, interact with entrepreneurial behaviour regarding alertness and self-efficacy to increase the levels of INNP.

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