Developmental papers
From Institutional Duality to Institutional Trifecta Implications for Family Firms International Subsidiaries (218)
Author/s: Heling Wang Mathew Hughes Elena Georgiadou
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: family firm, subsidiary, institution
Abstract: Today the ever changing business world has accelerated family firms internationalisation, during which processes some family enterprises establish international subsidiaries and become multinational companies. Such activity introduces new challenges to family managers to do with cross border management, adaptation to new institutions and transfer of capabilities. The extant literature established that subsidiaries are subject to institutional duality. However, we argue that the family itself introduces an important institutional pressure unique to their subsidiaries. We theorize that family firms international subsidiaries are subject to a third institutional force, creating an institutional trifecta, that fundamentally affects the prospects of the family subsidiary. By finishing the research, we will potentially contribute to conceptualizing the trifecta acting on family firms international subsidiaries, as well as investigating how the synergy shapes and affects the behavior of those subsidiaries.
International arbitration and economic growth in Latin America (233)
Author/s: Juan S Correa Edgardo Cayon
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: Latin America, international arbitration, economic growth.
Abstract: In this paper, we examine the effects of international arbitration on GDP growth in Latin American countries. After reviewing the literature on the importance of arbitration from an economic standpoint, and by using a panel regression that allows us to control for country effects, we found that international arbitration has a positive effect on economic growth. Finally, to check for robustness, we control for country effects, and we find that the most relevant control variables that affect GDP growth are the current account deficit, inflation, income inequality, and the average duration of an arbitrage process in a specific country.
Institutions and Firm Performance The Moderating Role of Founders Social Ties (384)
Author/s: Da Teng Chengchun Li
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: Formal institutions, informal institutions, social ties, founder, China
Abstract: This paper explores the moderating effects of a founders political ties and managerial ties on the relationship between formal institutions development and firm performance in China. Leveraging a unique sample of 428 newly listed firms on Growth Enterprise Market in Shenzhen Stock exchange between 2009 and 2016, we found that the founders political ties enhances the relationship between marketization legal framework and firm performance while the founders managerial ties only positively moderate marketization and firm performance. Our findings show that the importance role of the founders social ties even under the improved formal institutions level of marketization and legal framework, which reveals the essential role of social ties in emerging economies.
Expatriates Socio-Cultural Adjustment And Host Country Nationals Social Identity Changes: An Empirical Investigation In Pakistan (769)
Author/s: Sana Mumtaz Sadia Nadeem
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: Chinese expatriates, Pakistani host country nationals, Social identity theory, Top management teams
Abstract: This working paper aims to develop an understanding of the role of three dimensions of expatriates socio cultural adjustment general, work and interaction adjustment in driving new behaviors and attitudes within host country nationals HCNs using social identity theory. It also examines the mediating role of trust, shared vision and intercultural communication, and the moderating role of transformational capacity in this process. Time lagged data were collected over 10 months from a matched sample of 93 top management Chinese expatriates working in Pakistan, and 239 Pakistani HCNs working under them, nested in 55 organizations. Analysis is based on a three level model. Findings indicate that interaction adjustment was negatively related to social identity changes. Furthermore, the relationship between shared vision and social identity changes were moderated by transformational capacity.
Something Old, Something New: Localized Knowledge Search And Re-discovery By MNE Subsidiaries (923)
Author/s: Elsen Ho Anna Spadavecchia
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: Global-local knowledge search, multinational enterprises, subsidiaries, historical technological knowledge, R&, D profile
Abstract: Recent work in international business advocates the importance of accessing, sharing and leveraging knowledge at a global-local scale. The implicit emphasis is often on the absorption of the most recently created knowledge. However, a limited understanding of past technological trajectories and contexts can cloud the judgment on the knowledge search path and the selection of favorable technological trajectories. Revisiting past technological decisions and accessing prior knowledge of the industry has also an impact on the absorption of new knowledge. This paper investigates the search for knowledge by MNE subsidiaries in host countries focusing on local and historical technological knowledge.
Our analysis is based on 28 world leader corporations specialized in Integrated Circuits (IC) design. These include multinational enterprises such as ARM and Qualcomm, the leading suppliers of IC products for mobile devices globally. Leading IC design companies tend to operate a global network of design centers in the service of local business clients. For instance, the renowned Sophia Antipolis cluster in France as well as the Scottish semiconductor cluster used to attract the investment of some of these companies. We track and analyze the patenting records of these 28 corporations from the early 1970s to 2017 and profile their R&D globally.
An important strand of the International Business literature has developed towards a combination of sociological and economic approaches in analyzing subsidiary knowledge search and creation. Through the investigation of the social and technological value of old technologies, this research intends to participate and contribute to this discussion.
Institutional and ?Subsidiaries Actors: ?A Multilevel Analysis ??of HRM Practices in ?Chinese MNCs in the UK (976)
Author/s: Amani Shajera
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: HRM practices, MNC, Subsidiaries, China, actors, institutional theory
Abstract: This research aims to extend the existing literature and widen the understanding of how different actors influence shaping HRM practices at Chinese multinational corporations CMNCs subsidiaries in the UK in term of the localization and standardization orientations. There is limited knowledge on how CMNCs manage a global workforce in their developed countries subsidiaries and how different factors can influence these practices in term of the standardisation and localisation debate. Moreover, IHRM researchers identify many factors influence shaping subsidiaries HRM practices through different conceptual models and empirical studies. However, limited consideration has been given to the influence of actors. This research adopted a qualitative exploratory case study research design. In depth semi structured interviews are being conducted with top and middle managers both local and expat, HR managers as well as non managerial employees both local and expat.
Multinational Corporation Management Strategies And Human Resources Practices: Understanding The Nigerian Context (981)
Author/s: Michael Adamu Oyelere Zedias Mutema John Opute
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: N/A
Abstract: The purpose of this paper is to examine the strategies employed by Multinational Enterprises (MNEs) in human resource (HR) practices within a developing economy context. It challenges established wisdom which argues that HRM practices of MNEs are adopted by those in the developing economies because they represent better or superior ways of managing organisations.
A non-probability sampling technique was employed for the study. A strategic sampling method was employed in recruiting firms for the study. A combined technique of snowball and purposive sampling methods of data collection were employed in the study.
Initial findings revealed that HR practice and practitioners in Nigeria are often open to people management practices as seen in both liberalised and coordinated market economies, even though, they are influenced by government policies and shaped by the society at large. Prevailing economic situation has also been seen to have an immense impact on HR practices in MNEs.
Activating Assets of Foreignness in Emerging Markets: Evidence from New Zealand SMEs (1003)
Author/s: Benjamin Fath Antje Fiedler Marko Garlick
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: Emerging markets, SMEs, Advantages of Foreignness
Abstract: The study addresses the question of how Western SMEs can build competitive advantage in emerging Asia. Drawing on qualitative data from 22 New Zealand (NZ) NZ SMEs food and beverage internationalising in China, the study finds that they can activate institutional resources of their home country to gain legitimacy in the presence of institutional voids. We argue that the institutions of the home country provide a resource for SMEs that they can turn into an advantage of foreignness. Based on these contributions the study offers several practical recommendations for policy makers and managers intending to navigate the challenges of institutional voids in emerging markets.
HQ attachment to the Crown Jewel: Balancing Autonomy and Influence in Subsidiary Role Development (1009)
Author/s: Josephine Igoe Kieran Michael Conroy
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: subsidiary, headquarter-subsidiary, autonomy, influence, initiative
Abstract:
Reframing Institutional Change: The Role of Context (1094)
Author/s: Nora Ramadan Rose Narooz
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: institutional change, context, emerging economies, developed economies
Abstract: Being core to the study of organizations and organization theory, institutional change has gained considerable research attention over the last two decades. While there have been previous efforts to frame the antecedents and the outcomes of institutional change Battilana, Leca, and Boxenbaum, 2009 Dorado, 2005 Hargrave and Van de Ven, 2006, the field remains fragmented with a wide array of conceptualisations and theoretical claims Micelotta, Lounsbury, and Greenwood, 2017 1886. Tolbert and Zucker 1996 and Van de Ven and Hargrave 2004 called for viewing institutional change as a process. Consequently, Micelotta, Lounsbury, and Greenwood 2017 conceptualised the processes of institutional change as resulting from exogenous triggers, purposeful agency, or improvisation in micro processes and practices. More recently, scholars have integrated perspectives such as sensemaking Baez and Abolafia, 2002, social ties Qureshi, Kistruck, and Bhatt, 2012, soft power Wouter Paul and Koen, 2015, collective action Hargrave and Van De Ven, 2006, inaction Wijen and Ansari, 2007, and accidental action Doldor, Sealy, and Vinnicombe, 2016. This has further enriched our understanding of the processes underlying institutional change. Yet, we still lack an understanding of whether and how these processes could vary across different contexts i.e in developed versus emerging economies. This review, therefore, aims to address this question by focusing on unpacking the process of institutional change in developed versus emerging economies to address whether, how and why they could differ and offer a framework to guide future research accordingly.
Exploration The Relationship Between Internationalization Of Indian Family-Owned Firms And Capability Development (1104)
Author/s: Manisha Dey
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: N/A
Abstract: The purpose of this paper is to find out how Indian family firm in pharmaceutical industry develop different kinds of capabilities in the internationalization process and then how they internalize those capabilities which they have developed from the internationalization process into their own business development. Pharmaceutical industry is a knowledge intensive industry. Tracing the evolution of the pharmaceutical industry, the paper first shows how Indian family firms from this industry has invested in gaining knowledge through different learning process in the internationalization process. Over the years Indian Pharmaceutical industry have gained knowledge on the chemical technology of creating bulk drugs and have improved particularly on the process technology. They have been lacking in the development of their product technology, which require advance level of capabilities. Therefore, secondly in the internationalization context, this research will examine the different mechanisms and process of learning, which have been used by the Indian family firm in the development of different kinds of capabilities. The research also gives insight on understanding different forms of learning during the process and how these learning help them to gain knowledge, skills and competence. The firms ability to develop new competencies and skills depends upon its learning capacity, ie its ability to acquire, create and disseminate new knowledge.
The Dark Side Of Entrepreneurial Networks: Exploring The Failure Of A Medical Device International New Venture (1120)
Author/s: Karl S.R Warner Carole Couper
Track: International Business and International Management
Paper Type: Developmental Papers
Keywords: International new ventures, networks, over-embeddedness
Abstract: In this qualitative study, we explore how and why networks negatively impact on the internationalisation of new ventures. It is widely acknowledged in the international entrepreneurship literature that networks are an important enabler for new venture internationalization. Despite a well published body of literature on the benefits that networks provide for the early internationalisation process, there is now emerging consensus that networks also have a dark side which can harm new venture internationalization. Based on a longitudinal multiple case study over a seven year period, we explore the negative impact of entrepreneurial networks which led to failure of a medical device international new venture. Taking a contextualised explanations approach, our study seeks to develop causal explanations of a failed internationalisation process in a contextually sensitive manner. Our preliminary report on underlying mechanisms at the pre inception, development and failure phases which indicate that the INV network structure and content had a sequential negative impact on both survival and growth.