Sourcing technological knowledge from abroad is becoming a popular strategy among emerging market firms (EMFs). Combining the Knowledge-Based View and the Resource Dependence Theory, we argue that ...augmenting technological knowledge through foreign licensing enables EMFs to access state-of-the-art technological knowledge, reduce operational costs and risks associated to the innovation process, and develop a knowledge-based competitive advantage, ultimately boosting their financial performance. Using data about Indian firms observed from 2001 to 2013, we find that firms with a higher share of foreign inward technology licenses report better financial performance. However, the positive impact of technological knowledge accessed through inward licensing on firm performance is contingent upon: (1) the internal knowledge developed through R&D activity, and (2) the affiliation with business groups. While Indian firms with higher level of internal R&D are able to better leverage the value of foreign technological knowledge, thus reaching higher performance, firms affiliated to business groups gain fewer benefits from licensed foreign technological knowledge than non-business-group affiliated firms.
This paper investigates the antecedents of the internationalization of emerging economy multinational enterprises (EMNEs) through cross-border acquisitions. Using a panel data set of 1,138 ...cross-border acquisitions made by 515 Indian multinational enterprises (MNEs) during 2000-2013, it examines interactions of in-house resources with experiential and non-experiential knowledge to explore how EMNEs manage and exploit their knowledge base when internationalizing. The results show that Indian multinational enterprises have 'interface competence'. They combine in-house resources with experiential market and externally sourced technological knowledge for undertaking cross-border acquisitions. The Uppsala model provides insights in analyzing the role of market knowledge and the Global Factory model helps in analyzing the role of technology in cross-border acquisitions by EMNEs. web URL: http://www.sciencedirect.com/science/article/pii/S109095161630061X
This study explores the impact of foreign technology and professional services from outsourcing on firm financial performance. To this aim, we use a sample of 1710 Indian firms over a time period of ...13 years, from 2001 to 2013. The empirical evidence obtained shows that the positive effects of technological knowledge and professional services on performance are moderated by firm size, business growth and slack resources. In particular, the benefits of outsourcing in terms of higher profitability are more pronounced for small than for large firms, especially when small firms have higher growth rates and financial slack. The work contributes to the resource based view and the internalization theory of the firm. Our results suggest that firms from an emerging country such as India may have alternative motives for offshore outsourcing different from the reasons of firms from advanced economies. Several managerial implications are also derived from our findings.
•We analyze how foreign technology and professional services affect firm performance.•The moderating effects of size, growth and slack resources are examined in the study.•Offshore outsourcing impacts positively on performance, especially in small firms.•Small businesses with high growth and financial slack benefit most from outsourcing.•Our empirical evidence contributes to the RBV and internalization theory of the firm.
This paper adopts and extends the theoretical lens of institutional imprinting to international business research. It analyses a secondary data set on Indian and Chinese foreign direct investment ...(FDI) flows to Africa, compiled for the period ranging from 2008 to 2018, to highlight the distinctiveness of Indian FDI. It argues that Indian FDI streams into better governed host countries with controlled corruption and high standards of accountability. This is in striking contrast with Chinese FDI, which is impervious to host country governance standards in its geopolitical quest for gaining economic supremacy in the region. India’s membership of the Commonwealth (CW) plays a vital role in the location and volume of its investments to Africa, whereas the Chinese Belt and Road Initiative (BRI) wields no influence on the location of its investment.
Scholars following the resource-based view school of thought are often criticized for overlooking the impact of institutions on their fundamental argument that unique combinations of resources and ...capabilities contribute to the competitive advantages of organizations. Little is known about how institutional upheavals affect organizational resource bases and how managers respond to institutional changes by re-configuring any existing resources. In our study, we combined the resource-based and the institution-based views to investigate the complex relationship between organizational resources and institutional changes and the role played by dynamic capabilities in mitigating the impact of institutional changes. We explored this relationship by drawing upon an in-depth longitudinal processual case study of a privately owned education trust (PET) that underscored significant growth in India’s rapidly evolving institutional landscape. The findings of our study provide critical theoretical enrichment to the resource-based and institution-based explanations of organizational growth and offer important practical implications.
Artificial intelligence (AI) systems and applications based on them are fast pervading the various functions of an organization. While AI systems enhance organizational performance, thereby catching ...the attention of the decision makers, they nonetheless pose threats of job losses for human resources. This in turn pose challenges to human resource managers, tasked with governing the AI adoption processes. However, these challenges afford opportunities to critically examine the various facets of AI systems as they interface with human resources. To that end, we systematically review the literature at the intersection of AI and human resource management (HRM). Using the configurational approach, we identify the evolution of different theme based causal configurations in conceptual and empirical research and the outcomes of AI-HRM interaction. We observe incremental mutations in thematic causal configurations as the literature evolves and also provide thematic configuration based explanations to beneficial and reactionary outcomes in the AI-HRM interaction process.
•Collective adoption of non-robotic AI applications leads to beneficial outcomes.•Individually driven adoption of robotic AI applications leads to reactionary outcomes.•Individual non-robotic AI initiatives, adopted collectively have beneficial outcomes.•Collective and phased adoption staring with non-robotic AI gives beneficial outcomes.•Early conceptual and later empirical research show higher configurational similarity.
Processes Underlying Interfirm Cooperation Lahiri, Somnath; Kundu, Sumit; Munjal, Surender
British journal of management,
January 2021, 2021-01-00, 20210101, Letnik:
32, Številka:
1
Journal Article
Recenzirano
Odprti dostop
This special issue intended to bring together scholarly insights on the processes that underlie the formation, growth, management and termination of interfirm cooperation (IFC). In this introductory ...paper, we highlight what we know about IFC and why fresh perspectives are warranted on this phenomenon from a conceptual and practical standpoint. We also highlight the contribution of each paper published in this special issue. The seven selected papers differ in their theoretical perspective, context, research methodology and findings, but collectively they enhance our understanding of various IFC processes. We end this paper by highlighting fertile avenues of future research.
Despite resource constraints, smaller enterprises (SEs) are increasingly participating in international markets and becoming part of the global economy. E-commerce marketplace platforms are ...propelling this internationalization of SEs by alleviating SEs' resource constraints. However, there is a paucity of research in the nascent area of platform-based internationalization of SEs. Using an abductive inquiry, the study explores how platforms mitigate SEs' resource poverty, provide access to non-location-bound assets, and enable their internationalization. Accordingly, this study enunciates how platform-specific advantages (PSAs) allow for efficient markets through superior economizing of bounded rationality and reliability while assisting SEs with mitigating their liabilities associated with internationalization.
Today, the semiconductor industry is integral to the functionality of many critical goods and processes that are highly valued. The increasing demand across various semiconductor-related industries ...has correspondingly amplified the risks faced by firms within this sector. In this study, we empirically explore the potential of ordered backlogs as a means to mitigate the risks confronting semiconductor firms. Utilizing a dataset comprising publicly traded semiconductor firms in the USA, over a duration from 1998 to 2021, we quantitatively validate our hypotheses. Our findings reveal that a substantial volume of ordered backlogs is indeed correlated to a diminished level of firm risk. However, it is important to note that this risk-mitigating effect is lessened as the marketing and research intensities of these firms escalate. Moreover, we observe that the advantageous impact of ordered backlogs in risk reduction is more subdued in large workforce firms, whereas the presence of a sizable top management team aids in lessening the impact of ordered backlogs on risk. These managerial insights are invaluable in advancing both theoretical understanding and managerial practices within the realm of the semiconductor industry.
This paper explores the role of local context in cross‐border acquisitions by emerging economy multinational enterprises (EMNEs). It argues that the importance of local context has remained despite ...the increased global integration of the world economy. Hypotheses are tested using data on Indian acquisitions hosted in 70 countries over an eight‐year period. Results, which are consistent across number and value of cross‐border acquisitions, show that the local context in host countries offers contrasting benefits. Emerging economy multinational enterprises exploited these benefits by embedding in host countries through acquisitions. The acquisition strategy is conventional in the motives underpinning internationalization, but novel in its geographical clustering of host countries, and idiosyncratic owing to the EMNE's ability to draw on home country embeddedness. The paper develops theoretical implications and extends the concept of embeddedness, treating it as a series of internalization or quasi‐internalization decisions across a variety of local contexts by multinationals.
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