This book will provide empirical evidence of blunders committed by firms from small developing countries that operate in developed country markets. It will identify lessons that managers who are ...looking to do business in international markets can learn in order to lessen the mistakes in markets that are psychically distant.
This study aims to empirically explore the nexus between foreign direct investment (FDI) and other factors for global value chain (GVC) participation (backward and forward) in Vietnam, a transitional ...economy. The estimation shows that the economic size and market development of Vietnam and its trading partners are the main determinants of the nation's GVC participation. Inward FDI flows into the country have a positive impact on its GVC participation in both forward and backward linkages. Geographical distance is an impediment to Vietnam's backward GVC participation, whilst engagement in free trade agreements is advantageous to its GVC participation in both backward and forward linkages. We find that the logistics performance of Vietnam and its trading partners also positively affects the country's GVC participation. The paper provides policy implications for Vietnam to better use FDI and other factors to enhance its GVC participation, such as by attracting large supplier firms in upstream industries across the multinational enterprises' (MNEs) value chains, promoting trade liberalization and improving logistical efficiency.
The present study contends that an inverted U–shaped relationship exists between generational involvement—i.e., the number of family generations simultaneously involved in the family–firm top ...management team (TMT)—and entrepreneurial orientation (EO). Drawing on the upper echelons theory, we conceive generational involvement as a proxy of knowledge diversity in multigenerational family TMTs. We argue that while moderate levels of generational involvement stimulate task–related constructive conflicts for EO, increased kinship distance and relationship conflicts led by high levels of generational involvement are likely to undermine this potential advantage by damaging the relational context for EO. Our hypothesis is confirmed on a data set of 199 family firms.
Markups vary systematically across firms and are a source of misallocation. This paper develops a tractable model of firm dynamics where firms’ market power is endogenous and the distribution of ...markups emerges as an equilibrium outcome. Monopoly power is the result of a process of forward-looking, risky accumulation: firms invest in productivity growth to increase markups in their existing products but are stochastically replaced by more efficient competitors. Creative destruction therefore has procompetitive effects because faster churn gives firms less time to accumulate market power. In an application to firm-level data from Indonesia, the model predicts that, relative to the United States, misallocation is more severe and firms are substantially smaller. To explain these patterns, the model suggests an important role for frictions that prevent existing firms from entering new markets. Differences in entry costs for new firms are less important.
This study uses the spatial autoregressive model for panel data to empirically test the spatial peer effect of enterprises’ digital transformation by using a sample of Chinese listed companies during ...2012–2021. We find that there is a significant spatial peer effect in the digital transformation of Chinese companies, and the level of digital transformation of a company increase with the level of digital transformation of its spatial peer companies. Moreover, heterogeneity analysis shows that the spatial peer effect of digital transformation can be effectively played only under a higher digital environment, higher marketization environment, and state-owned equity nature of companies. The findings suggest that it should focus on building a benchmark company for digital transformation, vigorously enhance the digital and marketization environment in the region and provide more policy support for the digital transformation of non-state-owned enterprises.
The born global literature often assumes a uniform pattern of internationalization across manufacturing and service-based firms. However, this view pays little attention to the nature of service ...characteristics and how they shape the international expansion of born global firms. This paper thus explores the internationalization of ‘hard’ and ‘soft’ service-based born global firms. Our multiple case study analysis (on three ‘hard’ and five ‘soft’ service firms) of born global firms differentiates between the internationalization pathways of these firms. We show that ‘hard’ and ‘soft’ service-based born global firms have different internationalization drivers, target different foreign markets, and have distinct entry modes in these markets. Our findings reveal that, soft service-based born global firms are particularly unique, initially entering markets by low-commitment entry modes before rapidly progressing to a high-control mode of entry.
•Coworking Spaces are a new intermediary in an entrepreneurial ecosystem.•The relation of start-ups and coworking spaces is dependent on trust.•Competition among coworking spaces is related with the ...stage of a start-up.•Robustness tests based on European WeWork data support the findings.
This paper is an empirical analysis – based on classic buyer–seller relationship theory – of the spatial relationship between coworking spaces and start-ups in an entrepreneurial ecosystem. We examine the relation between product market competition among coworking spaces and the life-cycle stages of their partnering start-ups, both of which influence the level of trust between the partners. In our hand-collected sample of coworking spaces in Germany’s seven largest cities, our findings indicate that mature start-ups are more likely to partner with coworking spaces in regions where product market competition among the latter is high. The relation between the number of nascent start-ups and product market competition among coworking spaces is found to be hump-shaped, indicating that nascent start-ups are more likely to partner with coworking spaces where market competition is neither too low nor too high. Our findings are corroborated by a European study based on WeWork data.
Guided by theories of “management by exception,” we study the impact of information and communication technology on worker and plant manager autonomy and span of control. The theory suggests that ...information technology is a decentralizing force, whereas communication technology is a centralizing force. Using a new data set of American and European manufacturing firms, we find indeed that better information technologies (enterprise resource planning (ERP) for plant managers and computer-assisted design/computer-assisted manufacturing for production workers) are associated with more autonomy and a wider span of control, whereas technologies that improve communication (like data intranets) decrease autonomy for workers and plant managers. Using instrumental variables (distance from ERP’s place of origin and heterogeneous telecommunication costs arising from regulation) strengthens our results.
Data, as supplemental material, are available at
http://dx.doi.org/10.1287/mnsc.2014.2013
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This paper was accepted by John List, behavioral economics
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