Hybrid ownership structures and cross-border acquisition completion of emerging market firms: An institutional and signalling theory perspective

<p><b>Over the last decade, cross-border acquisitions (CBAs) have emerged as one of the most significant engines through which emerging market firms (EMFs) carry out foreign investments. Yet, emerging market acquirers (EMAs) terminate a significant percentage of initiated CBAs before completion. Compared to the 18 percent termination rate of CBAs involving acquirers from developed economies (DEs), CBAs by EMAs have a 33 percent termination rate. Scholars attribute the higher CBA termination by EMAs to the dual hurdle of 'liability of origin' and 'liability of foreignness' arising from direct government involvement and institutional voids in emerging economies. Although extant research provides in-depth insights into why EMAs have higher CBA termination rates than developed economies acquirers, they fall short in exploring how EMAs can navigate these challenges. Hence, in this study, I aim to investigate ownership based solutions to the institutional challenges affecting the CBA completion of EMAs.</b></p> <p>A striking phenomenon in the foreign investment of EMFs is that a firm's ownership matters. Pioneering ownership-based studies reveal that state-owned enterprises (SOEs) and private-owned enterprises (POEs) experience distinct interactions with home and host countries leading to diverse foreign investment challenges and strategies. Government regulatory discretion combined with capital market imperfection in emerging markets means that SOEs are privileged in accessing government support. In contrast, POEs lack direct government support and seek to establish and leverage political ties to survive. This need for sustained firm government relationships and the gradual pro-market reforms in many emerging economies catalyse hybrid ownership structures among EMFs where state and private owners coexist in one organization. However, this emergence of hybrid ownership structures and their implications for EMFs' foreign investment activities are under-investigated in the international business domain.</p> <p>Building on the new institutional theory and the signalling theory, I argue that hybrid ownership structures can act as signals through which external stakeholders evaluate and confer legitimacy on EMAs during the CBA process. My conceptualization emphasizes the mixture of unique resources brought into hybrid organizations by both SOEs and POEs. Accordingly, I assert that as hybrid organizations incorporate elements prescribed by both SOEs and POEs, they are likely to project at least partial appropriateness to a broader set of institutional referents. As a result, hybrid ownership structures confer legitimacy-enhancing benefits, resource-enhancing benefits, and operational autonomy benefits that position EMAs to simultaneously navigate the home and host institutional challenges in CBAs ultimately increasing the completion likelihood. In addition to proposing a direct effect of hybrid ownership on CBA completion, I develop novel varieties of hybrid ownership structures that categorize variations in the internal configurations of hybrid organizations as typology, degree, and nature of hybridization. I carry out further investigation on how the hybrid ownership effect might vary with these varieties of hybrid ownership structures. Subsequently, I identify top executives' political connection, target industry political sensitivity, and host country regulatory quality as contingences to the effect of hybrid ownership on CBA completion of EMAs.</p> <p>Analysing a dataset of 838 CBAs by Chinese firms between the years 2008 to 2017, the results from this study demonstrate that acquirers with hybrid ownership structures are more likely to complete CBAs than nonhybrid acquirers. Moreover, while the hybridization effect varied with the degree of hybridization, the results did not provide conclusive evidence for the nature of hybridization. The result also reveals that top executives' political connection and the host country regulatory quality present differing interactions with the hybrid ownership effect relative to the hybrid organization's typology. With these findings, I contribute to the literature on EMFs' CBA completion by demonstrating that hybrid ownership structures benefit from their different owners' resources to overcome challenges in CBAs. I also contribute to the conceptualization and implication of hybrid ownership for EMFs strategic outcomes. I find that the benefits of hybrid ownership differed with the controlling shareholder's identity and the degree of hybridization in a hybrid organization. Furthermore, by examining the boundary conditions of top executives' political connection, target industry political sensitivity, and host regulatory quality, I provide insights into how intra-organizational attributes and external factors shape the significance of ownershipstructures in EMFs foreign investment.</p>

Hybrid ownership structures and cross-border acquisition completion of emerging market firms: An institutional and signalling theory perspective

<p><b>Over the last decade, cross-border acquisitions (CBAs) have emerged as one of the most significant engines through which emerging market firms (EMFs) carry out foreign investments. Yet, emerging market acquirers (EMAs) terminate a significant percentage of initiated CBAs before completion. Compared to the 18 percent termination rate of CBAs involving acquirers from developed economies (DEs), CBAs by EMAs have a 33 percent termination rate. Scholars attribute the higher CBA termination by EMAs to the dual hurdle of 'liability of origin' and 'liability of foreignness' arising from direct government involvement and institutional voids in emerging economies. Although extant research provides in-depth insights into why EMAs have higher CBA termination rates than developed economies acquirers, they fall short in exploring how EMAs can navigate these challenges. Hence, in this study, I aim to investigate ownership based solutions to the institutional challenges affecting the CBA completion of EMAs.</b></p> <p>A striking phenomenon in the foreign investment of EMFs is that a firm's ownership matters. Pioneering ownership-based studies reveal that state-owned enterprises (SOEs) and private-owned enterprises (POEs) experience distinct interactions with home and host countries leading to diverse foreign investment challenges and strategies. Government regulatory discretion combined with capital market imperfection in emerging markets means that SOEs are privileged in accessing government support. In contrast, POEs lack direct government support and seek to establish and leverage political ties to survive. This need for sustained firm government relationships and the gradual pro-market reforms in many emerging economies catalyse hybrid ownership structures among EMFs where state and private owners coexist in one organization. However, this emergence of hybrid ownership structures and their implications for EMFs' foreign investment activities are under-investigated in the international business domain.</p> <p>Building on the new institutional theory and the signalling theory, I argue that hybrid ownership structures can act as signals through which external stakeholders evaluate and confer legitimacy on EMAs during the CBA process. My conceptualization emphasizes the mixture of unique resources brought into hybrid organizations by both SOEs and POEs. Accordingly, I assert that as hybrid organizations incorporate elements prescribed by both SOEs and POEs, they are likely to project at least partial appropriateness to a broader set of institutional referents. As a result, hybrid ownership structures confer legitimacy-enhancing benefits, resource-enhancing benefits, and operational autonomy benefits that position EMAs to simultaneously navigate the home and host institutional challenges in CBAs ultimately increasing the completion likelihood. In addition to proposing a direct effect of hybrid ownership on CBA completion, I develop novel varieties of hybrid ownership structures that categorize variations in the internal configurations of hybrid organizations as typology, degree, and nature of hybridization. I carry out further investigation on how the hybrid ownership effect might vary with these varieties of hybrid ownership structures. Subsequently, I identify top executives' political connection, target industry political sensitivity, and host country regulatory quality as contingences to the effect of hybrid ownership on CBA completion of EMAs.</p> <p>Analysing a dataset of 838 CBAs by Chinese firms between the years 2008 to 2017, the results from this study demonstrate that acquirers with hybrid ownership structures are more likely to complete CBAs than nonhybrid acquirers. Moreover, while the hybridization effect varied with the degree of hybridization, the results did not provide conclusive evidence for the nature of hybridization. The result also reveals that top executives' political connection and the host country regulatory quality present differing interactions with the hybrid ownership effect relative to the hybrid organization's typology. With these findings, I contribute to the literature on EMFs' CBA completion by demonstrating that hybrid ownership structures benefit from their different owners' resources to overcome challenges in CBAs. I also contribute to the conceptualization and implication of hybrid ownership for EMFs strategic outcomes. I find that the benefits of hybrid ownership differed with the controlling shareholder's identity and the degree of hybridization in a hybrid organization. Furthermore, by examining the boundary conditions of top executives' political connection, target industry political sensitivity, and host regulatory quality, I provide insights into how intra-organizational attributes and external factors shape the significance of ownershipstructures in EMFs foreign investment.</p>

Emirati 50-year economic plan offers mixed prospects

Significance It seeks to lessen direct government involvement in the economy, increase the importance of the private sector with a focus on high tech, improve business regulation, diversify from hydrocarbon revenues, reduce reliance on expatriate labour and upskill Emiratis. Impacts Growth in the digital, space, advanced and circular economies will be strong, because of high wages, low tax and capital availability. Unclear relations between federal and emirate-level plans such as Dubai 2040 and Abu Dhabi Economic Vision 2030 may cause confusion. Parallel diversification efforts in Saudi Arabia could boost regional prosperity, but intensified competition also risks becoming zero-sum.

The governance of energy transition: lessons from the Nigerian electricity sector

Background The rising need for transition towards more sustainable energy sources requires a rethink in the governance of energy systems. Arguably, policy makers have very important roles in governing transitions in any given society through established institutional frameworks. It has also been argued that energy infrastructure choices are determined by institutional dynamics and structures. However, what are the underlying influences required to change energy systems and what lessons can we draw from them for the governance of energy transition? This study focuses on understanding the dynamics of energy transition governance in the Nigerian electricity sector with the aim of drawing lessons that impact on energy transition and energy systems change. Methods Using explorative research tools, this study investigates the dynamics of energy transition governance in the Nigerian electricity sector with the aim of drawing lessons that impact on energy transition and energy systems change. Data from primary and secondary sources in documentary archives as well as other published sources that are linked with the provision of the Nigerian historical energy infrastructure were used for the analysis in order to draw lessons on energy transition dynamics in Nigeria. Results The study revealed that there were three important factors that had a direct impact on energy transition and energy systems change in Nigeria’s electricity sector. These are: (1) Changing perceptions and goals (during the period leading up to Nigeria’s independence, 1890–1960s); (2) Direct government interventions in energy infrastructure provisions (1940s–1970s); and (3) Major changes in market rules (from 2005 and beyond). Conclusions The study concludes by highlighting that: (1) there is a need for government institutions to tackle energy access issues that address the needs of the poor; (2) it is imperative to explore technological options that are more sustainable; and (3) there is a need to address energy consumption patterns that are more energy intensive. Indeed, available energy resources, technological changes in electricity supply systems, and the ‘geographies of energy’ are major factors that influence energy production and consumption dynamics. All of them needs should be considered, as energy decisions are primarily political choices.

Ukraine’s Way to a Consolidated Democracy: Issues, Prospects and International Experience

The article is devoted to current issues of democratic progress of Ukraine within the framework of the constitu-tional and legal provision of direct government by the people. Some aspects of the civil society formation are also considered. The reasons which do not allow Ukraine to be identified as a consolidated democracy in the light of international experience have been analyzed.The article analyzes the difficulties faced by Ukraine in the process of democratic transformation. Democratic state is a state based on the theory of popular sovereignty and the recognition of the people as the only source of power, the consistent guarantee of human and civil rights and freedoms, ensuring their equality, real participation in the management of the affairs of society and the state.Despite the existence of formal institutions of democracy and government by the people, the Ukrainian democ-racy shouldn’t be overestimated, paying particular attention to the essential aspects. Ukraine cannot be considered as consolidated democracy for all indicators. Democratic progress is considered slow, as corruption and a limited field of public initiative stand in the way.Currently, the problem of ensuring a genuine effect for the decisions of the all-Ukrainian referendum is an overdue issue. It is urgent to solve another problem in the sphere of direct democracy, namely the legislative settlement of the issue of local referendums, which have been actually impossible for the last eight and a half years. The adoption of this law is of paramount importance to our society – it can reduce social tensions and change the protest area – from ineffective demonstrations to productive and constructive voting.In terms of sustainable, consolidated democracies, Ukraine still remains an electoral, that is, unstable country. And for its final establishment, transformation into a consolidated one a great amount of time is still needed.

English Overseas Empire

The English (after the Union of England, Scotland, and Wales in 1707, the British) Overseas Empire famously encompassed the globe. The range of scholarship related to this phenomenon stretches accordingly. This article focuses on contributions that consider the period prior to c. 1700 but provides links to other Oxford Bibliographies articles that include entries on non-English perspectives on the expansion of English overseas interests more fully, entries on the cultural interactions generated by that expansion, entries that relate to the later period, and entries that provide additional references to the topics discussed here. The emergence of an English Overseas Empire might be regarded as one of the most significant yet one of the more unlikely consequences of the Reformation and the Renaissance. In the 15th century, England suffered civil war and had its overseas territory reduced to Calais and the Pale of Dublin while its foreign mercantile sphere concentrated on the Baltic region, Antwerp, and Seville. The English break with Rome severed longstanding Anglo-Iberian economic ties and provided the religious-ideological frame for trading, plundering, and colonizing forays against the “popish” Iberians the success of whose initiatives had left the English scandalously behind in the minds of early imperial cheerleaders. By the 1640s, English “private” initiatives had established presences in Africa, America, and Asia, although the scale of these operations eventually proved beyond the capacity of these projectors, thus necessitating governmental intervention. After 1689, France replaced Spain as the imperial bogey, but an anti-Catholic imperial ideology, which employed a language of liberty and virtue derived from humanism, intensified as English political and economic ambitions expanded and direct government involvement in empire increased. Both this expansion and the cultural interactions it generated tracked changing English cultural and political sensibilities: contemporary authors and artists acclaimed English overseas endeavor as a hallmark of civilization, modernity, capitalism, and progress; the stridency of this celebratory view accompanied a seemingly inexorable coloring of the globe pink prior to World War II. English overseas expansion also entailed deep involvement in the enslavement of Africans—in terms of both exporting enslaved persons from sub-Saharan Africa throughout the Western Hemisphere and importing these people to labor on English plantations—a reality that has begun to receive significant attention only recently. It also involved the often-nasty subjugation of societies in situ, another reality that has also received a recent intensive rethink in the postcolonial era that began in the 1960s.

NATURE-BASED TOURISM ENTERPRISE ADAPTIVE RESPONSES TO COVID-19 IN SOUTH AFRICA

COVID-19 is forcing a re-orientation of tourism research agendas. Emerging themes relate to ramification, transformation and adaptation. The aim of this paper is to contribute to the research cluster on adaptation by examining tourism business adaptive responses to COVID-19 through the lens of a case study destination in the global South, namely Bushbuckridge in Mpumalanga Province, South Africa. The methods implemented were qualitative, using semi-structured interviews. Data was analysed from 20 interviews conducted with enterprise owners or managers in a nature tourism destination which is one of South Africa’s tourism-dependent areas and thus most exposed to the negative impacts of COVID-19. The results show that adaptation to the crisis has been challenging because of the financial impacts experienced by these enterprises in the wake of minimal government support. The enterprise adaptive responses included staff reductions and wage cuts, adjustments towards the domestic market through price cutting and changes in marketing as well as adjusted tourism product offerings towards an emerging Black middle class domestic market. Of critical importance is the finding that these adaptive measures cannot replace the revenues formerly generated from the international tourism market. Accordingly, without a change in government policy and the availability of direct government financial support, there is a danger that in the short term the tourism product base will be diminished as many lodges and other tourism businesses are in danger of permanent closure.

Trust in Schooling System Governance and Reform

Since the 1980s there has been significant reform in the development, delivery, and evaluation of all areas of public policy and services provision, including schooling. The reforms are prompted by a general “turn” from direct government determination and provision of public services to indirect governance undertaken by a mixture of public, private, and philanthropic actors. Orthodoxies about public sector governance and schooling system reform have shifted over this time from a preference for bureaucracy to preferences for markets, contracts, and most recently social networks. Schooling system governance in many Organisation for Economic Co-operation and Development (OECD) countries has seen devolution of substantial statutory powers, responsibilities, and accountabilities to local parent communities or shared-interest coalitions, both for-profit and not-for-profit. Schooling policy, governance, and services provision work is now distributed across multiple state, parastatal, and nongovernmental actors. Trust in the actions of others within devolved and distributed systems is identified as an essential social lubricant of contemporary schooling governance and reform. Studies of the role played by trust in schooling systems remain relatively rare.

Responding to the settlement needs of newcomers to Canada: the role of community organizations in the Greater Toronto area

This study analyzes the role of grassroots organizations in the Greater Toronto Area who support newcomers to Canada. A qualitative thematic analysis was used, with staff from three grassroots organizations and two key informants participating. The study aims, first, to gather practical knowledge from these organizations about the actions needed to improve settlement outcomes for newcomers. Secondly, it seeks to learn what challenges grassroots organizations face in continuing and expanding their services, and how they can be supported in their work. The organizations of focus do not provide direct, government-funded settlement services, but work towards goals of long-term immigrant success and integration. Findings included the need for more responsive and culturally-relevant programming among settlement organizations, the challenges with attaining funding, and the importance of partnerships among related institutions. These actors have valuable insights on newcomers’ current settlement needs and can make important knowledge contributions to the settlement sector. Key words: immigrants; settlement and integration; public services; grassroots organizations; Canada

Responding to the settlement needs of newcomers to Canada: the role of community organizations in the Greater Toronto area

This study analyzes the role of grassroots organizations in the Greater Toronto Area who support newcomers to Canada. A qualitative thematic analysis was used, with staff from three grassroots organizations and two key informants participating. The study aims, first, to gather practical knowledge from these organizations about the actions needed to improve settlement outcomes for newcomers. Secondly, it seeks to learn what challenges grassroots organizations face in continuing and expanding their services, and how they can be supported in their work. The organizations of focus do not provide direct, government-funded settlement services, but work towards goals of long-term immigrant success and integration. Findings included the need for more responsive and culturally-relevant programming among settlement organizations, the challenges with attaining funding, and the importance of partnerships among related institutions. These actors have valuable insights on newcomers’ current settlement needs and can make important knowledge contributions to the settlement sector. Key words: immigrants; settlement and integration; public services; grassroots organizations; Canada