1,720,970 research outputs found
Corporate Political Activities and Emerging MNCs’ Internationalization: Interplay of CEO Narcissism and Gender
No full textMultinational Corporations (MNCs) from emerging markets face various socio-political and institutional challenges in their domestic markets owing to their engagement in global markets. To navigate these challenges and secure favorable legislative and institutional support, they increasingly adopt nonmarket strategies in their domestic markets. Drawing on the institutional and upper echelons theories, this study examines why Chinese and Indian emerging MNCs (EMNCs) perform corporate political activities (CPAs) as a strategic nonmarket response in their domestic markets. Utilizing data from 159 EMNCs from 2011 to 2022, we find that engagement in CPAs serves as a buffering and bridging mechanism to support their degree of internationalization. Moreover, CEO narcissism and the presence of female CEO positively moderate this relationship. These findings offer both theoretical insights and strategic implications
Institutional voids, liability of origin, and presence of women in TMT of emerging market multinationals
No full textThis study examines the association between the pervasiveness of institutional voids in emerging markets and the inclusion of women in top management teams (TMTs) by emerging market multinational corporations (EMNCs) as a legitimation strategy. Leveraging institutional theory, we argue that EMNCs increase women presence in TMTs as a legitimation strategy to overcome the challenges of stakeholders' skepticism in foreign markets by disassociating themselves from the image of their home markets. Using a subsidiary level dataset of 1047 EMNCs from 26 emerging countries between 2009 and 2018, we find robust evidence indicating that the pervasiveness of institutional voids at home is positively related to the percentage of women in TMT's EMNCs' foreign units. This effect is particularly stronger for firms operating in countries with high institutional gender parity and low level of corruption
Global insights on TMT gender diversity in controversial industries: a legitimacy perspective
No full textFirms in controversial industries such as tobacco, alcohol, gambling, weapon, and nuclear power suffer organizational legitimacy problems. These firms, therefore, adopt various strategies to acquire legitimacy. Drawing on institutional theory, we conceptualize the top management team (TMT) gender diversity as a legitimacy-seeking strategy and examines how a firm’s belonging to a controversial sector affects TMT gender diversity. Based on a cross-country sample of 1542 firms operating in controversial industries from 34 countries and control sample with another set of 1542 similar-sized firms from non-controversial industries, the empirical evidence shows that belonging to a controversial industry exerts a positive impact on TMT gender diversity. The effect of industry belonging on TMT gender diversity is positively moderated by institutional gender parity and a low level of corruption. It indicates that institutional factors act as emancipative forces that foster women's empowerment. Taken together, our results for moderating variables highlight the role of institutional characteristics in supporting women empowerment initiatives
Using political connections to raise rivals’ costs: evidence from an emerging market
No full textIn this paper, we leverage resource dependency theory to examine the impact of political connections on rivals’ costs and how this impact is affected by rival-side and politician-side contingencies. Using panel dataset of Pakistani firms, our system GMM estimates show that politically connected firms can increase their rivals’ costs by influencing their rivals’ dependency relationship with the government. This impact is attenuated by the rivals’ strategic flexibility and social legitimacy, which provide some protection or insulation from political attacks in resource markets. Together, our findings extend the contingent dynamics of resource dependency in political markets from focal firms to competitors and offer significant contributions to the corporate political activity literature and resource dependency theory
Impact of family ownership and board gender diversity on financial disclosure: evidence from an emerging country
No full textThe study demonstrates the influence of family ownership and board
gender diversity on the extent of firms' voluntary financial disclosures
in the case of a developing country. Employing data of 181 Pakistani
firms for the period 2011-2018, our results show that family ownership
is negatively associated with voluntary financial disclosure.
Furthermore, the study also shows that having independent members on
corporate boards exerts a positive effect on financial disclosures among
family-owned firms and it is further enhanced if there is a significant
presence of women directors as independent directors. Our findings
persist after employing a battery of robustness tests. Our findings
highlight valuable empirical directions for corporate decision makers
and policymakers regarding the significance of board gender diversity
and voluntary financial disclosure as monitoring mechanisms for lowering
the effects of asymmetric information and problems of agency
Impact of environmental engagement on internationalization of EMNEs: interplay of social engagement and transnational board
No full textEmerging market firms’ internationalization to advanced nations is topical for scholarly understanding. In this regard, IB research has paid scant attention on how emerging market firms’ domestic environmental engagement contribute to their internationalization to advanced economies. Against this backdrop, this study combines the institutional theory and ambidexterity perspective and utilizes the data of BRICS MNEs and finds the positive relationship between their domestic environmental engagement and internationalization to advanced economies. Furthermore, the transnational board pronounces, and domestic social engagement subsides this relationship, suggesting environmental engagement is sustainable and important role transnational board plays in BRICS MNEs environmental engagement and internationalization
Pursuing sustainability development goals through adopting gender equality: women representation in leadership positions of emerging market multinationals
No full textThis study examines the competitive disadvantages rationale behind the pursuing of Sustainability Development Goals (SDGs) by emerging market multinational corporations (EM-MNCs) in foreign markets. We argue that EM-MNCs may pursue gender equality goal in host markets as a legitimation strategy to offset their strategic disadvantages inherited from the home markets. Based on a sample of foreign subsidiaries from 10 major emerging countries from 2010 to 2020, this study finds strong evidence demonstrating that the institutional quality of home markets exerts a positive effect on the representation of women in leadership positions of EM-MNCs. Additional analyses demonstrate that international experience and institutional ownership further magnify this effect
The survival of outward investments from China and India: Is there a North-South divide?
Full text linkMultinationals from China and India courted the economies of both the North and the South and they had different advantages in doing so. After more than two decades of successful internationalization, can the survival of Chinese and Indian investments reveal the factors that are associated with the success of EMNC investments in the North and the South? This is the main question we explore in this paper. We find that there is a North-South divide in the survival of Chinese and Indian outward investments. Investments in the North are subject to more intense competitive pressure due to the stronger technological and managerial abilities of domestic firms and survival is markedly weaker there. In Southern locations, where Chinese and Indian firms enjoy competitive advantages and industrial leadership in several areas, they also have better rates of survival. Apart from highlighting the role of relative (to host country firms) firm-specific advantages in explaining survival in the North and South, we also find that a larger diaspora in Southern locations is associated with greater survival
Board gender diversity, nonmarket strategy and firm performance: evidence from emerging markets MNCs
Full text linkFirms operating in foreign markets often engage in nonmarket activity for various benefits, such as gaining legitimacy, reducing uncertainty and enhancing performance. This is particularly true for emerging markets multinationals corporations (EMNCs) in advanced countries, as they commonly experience liabilities and challenges due to their origin. Leveraging institutional theory, we conceptualize board gender diversity as a nonmarket strategy, and investigate its impact on the performance of EMNCs. Using data from a sample of Chinese and Indian foreign subsidiaries, we find that board gender diversity improves performance. This effect is stronger for firms having public relations functions and also for firms operating in foreign countries with high institutional gender parity. These findings, besides significantly adding to the literature, have practical and managerial implications
Financial crisis of 2008 and outward foreign investments from China and India
Full text linkWe show that outward investment by Chinese firms with resource and asset seeking motives and Indian firms with market-seeking motives diverged after the financial crisis of 2008, due to different motives and the underlying financing structure of their outward investments. Indian firms faced export market contraction externally and cut back on outward investments as sales revenues shrank. In contrast, Chinese firms that relied on debt finance to seek out international assets expanded investment as investment targets became cheaper and the reliance on leverage inured Chinese firms to the fluctuations of stock markets and other financial implications of the crisis
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