1,721,005 research outputs found
Environmental innovation in foreign subsidiaries: the role of home-ecological institutions, subsidiary establishment mode and post-establishment experience
Full text linkIn this study, we argue that foreign subsidiaries of multinational enterprises (MNEs) vary in terms of their engagement in environmental innovation depending on the strength of the MNE’s home-ecological institutions. We also propose that the manifestation of this home-institutional effect varies depending on the choice of the subsidiary establishment mode (acquisition vs. greenfield) and over time based on the subsidiaries’ host experience. We test our hypotheses using a sample of foreign subsidiaries in Spain over the period 2003-2015. Our results support the home-institutional effect on subsidiary-level environmental innovation as well as the moderating effects of the subsidiary establishment mode and host experience
From latent to emergent entrepreneurship: The role of human capital in entrepreneurial founding teams and the effect of external knowledge spillovers for technology adoption
Full text linkBuilding on the latent-emergent entrepreneurship framework, we investigate how different type of skills and combination of skills within entrepreneurial founding teams (EFTs) affect the adoption of latent vs emergent technologies (ICTs). We also examine the role of knowledge spillovers on the firm's adoption of different types of technologies and how their effect is moderated by the set of skills that are present within the EFT. We contribute by showing that latent and emergent entrepreneurs decide differently when it comes to whether they should adopt a latent or an emergent version of a technology, by identifying what type or combinations of skills differentiate between latent and emergent entrepreneurs when it comes to ICT adoption, and finally by showing how entrepreneurs, depending on their set of skills, are able to take advantage of the knowledge gathered from external spillovers to adopt different types of technologies
Nonprofit organizations and social-alliance portfolio size: Evidence from website content analysis
Full text linkBusiness-Nonprofit Partnership (BNP) has been widely regarded as a vital approach for public value creation and social innovation. At the same time, many studies show a positive association between the size of an organization’s portfolio of partners and its overall performance and innovation. Building on these insights, we contribute to the BNP literature by drawing on the relational view to theorize and empirically examine the conditions that underpin the effectiveness of nonprofit organizations (NPOs) in establishing collaborative linkages with the private sector (i.e. to determine the size of their portfolio of business partners). Data were compiled from the websites of NPOs (n=102) that were collaborating with FTSE 100 companies. The results of regression analysis show that the ability of NPOs to deliver economic rent (to business partners) and to establish calculative trust (pre-collaboration trust) positively predictstheir portfolio size. Furthermore, the results indicate that the ability to create social value also positively predicts portfolio size but only for larger NPOs, and that the delivery of collaboration options negatively predicts portfolio size. We discuss these findings in regard to
implications for research and practice
Recommended from our members
The role of language connectedness in reducing home bias in trade, investment, information, and people flows
No full textThis study introduces the concept of a country’s language connectedness (LC), namely, the extent to which the country is connected to the rest of the world in terms of the number of potential communicative partners. LC depends on the extent to which the country’s languages are spoken outside that country. Operationalizing and constructing an index capturing LC, I empirically show that a country’s LC is strongly associated with its globalization level. This effect is particularly strong in cross-border trade and investment and information flows. I also find that countries with languages belonging to large linguistic families (i.e., countries with greater linguistic connectedness) are more globalized. This study presents language barriers as a key contributor to home bias, that is, the tendency toward more within-border than cross-border interactions
The role of language connectedness in reducing home bias in trade, investment, information, and people flows
No full textThis study introduces the concept of a country’s language connectedness (LC), namely, the extent to which the country is connected to the rest of the world in terms of the number of potential communicative partners. LC depends on the extent to which the country’s languages are spoken outside that country. Operationalizing and constructing an index capturing LC, I empirically show that a country’s LC is strongly associated with its globalization level. This effect is particularly strong in cross-border trade and investment and information flows. I also find that countries with languages belonging to large linguistic families (i.e., countries with greater linguistic connectedness) are more globalized. This study presents language barriers as a key contributor to home bias, that is, the tendency toward more within-border than cross-border interactions
Why we should stop using the Kogut-Singh-Index
Full text linkThe Kogut and Singh (1988) index is the most widely used construct to measure cultural distance in international business and management research. We show that this index is incorrectly specified and captures the squared cultural distance. This inaccuracy is problematic because it means that the empirical findings on the effects of cultural distance presented in different strands of international business research are likely to be misleading. We specify the correct form of the distance measure based on the Euclidean distance formula and demonstrate the implications of using the incorrectly specified Kogut and Singh (1988) index
The Role of Language in Bilateral FDI: A Forgotten Factor?
No full textThe rapid development of modern transportation information and communication technologies has accelerated the pace of globalization. Multinational enterprises (MNEs) have increasingly broadened their use of foreign direct investment (FDI), and as a result they often need to deal with multiple languages and the associated administrative and transactions costs that come with language differences (Luo and Shenkar, 2006; Welch et al., 2001). FDI involves production, organization and management of business activities. The key to the success often lies in effective interactions and communications within MNEs and between MNEs and economic agents in host countries. To this end, language distance (LD) between home and host countries tends to influence FDI location choice
Firm-specific resources and foreign divestments via selloffs: value is in the eye of the beholder
Full text linkIn this paper, by using a large sample of foreign subsidiaries in Spain, we examine what explains their divestment via sell-offs. By integrating resource-based theory with foreign divestment literature, we examine the role that different subsidiary level resources and innovative capabilities play on its likelihood of being divested. We also argue and empirically show that the most influential subsidiary characteristics that determine divestment differ depending on whether the acquiring firm is a host-country firm or a foreign firm. Our results suggest that foreign subsidiaries are less likely to be sold off when they are characterized by high levels of product innovation performance, human capital or have introduced organizational innovations. Moreover, subsidiaries with export-market oriented capabilities were more likely to be divested to other foreign buyers whereas subsidiaries with domestic-market oriented capabilities were more likely to be divested to domestic buyers
The direction of regulatory institutional distance and MNE’s subsidiary ownership strategy: Re-examining theory and evidence in the case of emerging markets
No full textThe possibility of institutional distance exerting an asymmetric effect on the entry strategies of multinational enterprises (MNEs) has attracted recent scholarly attention. In this context, we re-examine the relationship described by Hernandez and Nieto (2015) on the effect of the direction of regulatory institutional distance on MNEs’ choice of entry mode in host countries. We extend this research by (1) focussing on the context of emerging markets and (2) accounting for a greater variety of MNEs as well as institutions by including both large and small firms, and a larger set of home and host countries. In contrast to Hernandez and Nieto’s study, we find that, in the context of emerging markets, institutionally distant MNEs are more likely to choose the full-ownership mode when they originate from an institutionally stronger country in comparison to the host (emerging) country, and they are more likely to choose the joint-ownership mode when they originate from an institutionally weaker country. We discuss our findings with respect to Hernandez and Nieto’s study, which explores this relationship more generally (i.e. beyond emerging-market contexts), however in the context of small and medium enterprises
Regulatory institutional distance and MNCs' subsidiary performance: climbing up Vs. climbing down the institutional ladder
No full textWe investigate the possibility of regulatory institutional distance exerting an asymmetric effect on multinational corporations' (MNCs') subsidiary performance depending on the direction of institutional distance. We use the term ‘institutional ladder’ to differentiate between upward distance, referred to as when the subsidiary is operating in a relatively stronger institutional environment than its parent-firm's home country, and downward distance for vice versa. Combining institutional theory with organisational imprinting and learning perspectives, we argue that the implications of regulatory institutional distance on subsidiary performance are relatively more positive (or less negative) when MNCs are climbing down the institutional ladder as compared to when MNCs are climbing up the institutional ladder. We also argue that subsidiary ownership strategy – i.e. the choice of a wholly owned subsidiary (WOS) versus joint venture (JV) – moderates the above-mentioned implications of institutional distance on subsidiary performance. We test these hypotheses based on a panel data-set of 1936 foreign subsidiaries representing 70 host countries and 66 home countries and spanning the 12-year period: 2002–2013
- …
