► We look at the value generation from cross-border transactions in emerging countries. ► We focus on comparative study of two representative emerging countries – China and India. ► We use two ...strands of theories – Resource-based view and Dunning's framework. ► Competitive advantage matters for both Chinese and Indian companies. ► Cultural distance matters only for Indian companies.
During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economies. Their increasing participation in cross-border mergers and acquisitions has raised great attention in the extant literature. This study evaluates the value creation from these cross-border transactions from two representative emerging countries, namely China and India, and determines factors that result in the different performance of these international acquisition activities. Cross-border acquisitions conducted by these countries’ companies indeed lead to significant shareholder wealth creation. Furthermore, Indian shareholders are more likely to benefit from deals in small cultural distance countries, while Chinese investors gain from the cross-border expansion of manufacturing companies. Location also affects the performance of cross-border acquisitions, with acquisitions into developed countries generating higher returns to shareholders. Our sample consists of 203 Indian and 63 Chinese cross-border deals over the period 2000–2010 and our results hold after controlling for various deal-level and firm-level characteristics.
This study examines how relationship innovation can be developed in global collaborative partnerships (alliances, joint ventures, mergers, and acquisitions). The recently emerging theory of big data ...analytics linked with traditional organizational powers has attracted a growing interest, but surprisingly little research has been devoted to this important and complex topic. Therefore, after developing the theoretical foundations, our study empirically quantifies the links between the theoretical constructs based on the data collected from chief executive officers, managing directors, and heads of departments who work in contemporary global data‐and‐information driven collaborative partnerships. The results from structural equation modeling indicate that the relationship innovation depends on the power of big data analytics and non‐mediated powers (NMP, expert and referent). The power of big data analytics also mediates the correlation between NMP and relationship innovation. However, mediated powers (coercive and manipulative) negatively affect the power of big data analytics and relationship innovation. The interaction effects further depict that analytically powered partnerships have better relationship innovation compared with those which focus less on the analytical power. Consequently, the contributions of this study provide a deeper understanding of mechanisms of how modern collaborative partnerships can use big data analytics and traditional organizational powers to co‐create relationship innovation.
Although various studies have emphasized linkages between firm competencies, networks and sustainability at organizational level, the links between top management tangible competencies (TMTCs) (e.g. ...contemporary relevant quantitative‐focused education such as big data analytics and data‐driven applications linked with the internet of things, relevant experience and analytical business applications), relationship‐based business networks (RBNs) and environmental sustainability have not been well established at micro‐level, and there is a literature gap in terms of investigating these relationships. This study examines these links based on the unique data collected from 175 top management representatives (chief executive officers and managing directors) working in food import and export firms headquartered in the UK and New Zealand. Our results from structural equation modelling indicate that TMTCs are the key determinants for building RBNs, mediating the correlation between TMTCs and environmental sustainability. Directly, the competencies also play a vital role towards environmental practices. The findings further depict that relationship‐oriented firms perform better compared to those which focus less on such networks. Consequently, our findings provide a deeper understanding of the micro‐foundations of environmental sustainability based on TMTCs rooted in the resource‐based view and RBNs entrenched in social network theory. We discuss the theoretical and practical implications of our findings, and we provide suggestions for future research.
This is a study of the challenges faced by Chinese expatriate managers and their strategic responses in securing a workable degree of alignment in UK subsidiaries, against a backdrop of competing ...home‐country and host‐country pressures. Although much of the literature on home‐country and host‐country effects tends to either adopt a culture or an institutional approach, this study highlights the intermeshed nature of the two. In locating cultural dynamics within an institutional firmament, this study juxtaposes the effects of each and draws conclusions as to their intersection. It is founded on in‐depth interviews with home‐country and host‐country managers. The findings suggest, on the one hand, Chinese expatriate managers tended to see local regulations as an obstacle to efficiency, rather than as a means to access context‐specific complementarities. On the other hand, these managers recognized the need to fit in with established locally specific ways of doing things and in securing sufficient staff buy in to sustain operations, and played a key intermediary role between headquarters and subsidiary.
In this paper, we leverage the concept of organizational field, currently under‐explored in international business literature, to understand how multinational enterprises (MNEs) from developed ...markets (DMs) strategically manage their institutional context in emerging markets (EMs). To develop theoretical arguments, we focus on institutional strategies and theorize how and to what extent MNEs in central, peripheral, and intermediate field positions engage with host country institutions in EMs. Using an international business perspective, organizational theory, and illustrations from EMs, we develop a dynamic view of field positions to identify how MNEs' intermediate repositioning trajectories in between the field's center and the periphery, driven by environmental and corporate factors, lead to the associated changes in the form and scope of institutional strategies deployed in EMs. In doing so, we offer testable propositions for future research.
This paper examines the role of four types of influences on the Subjective Well‐Being of Nigerian self‐initiated expatriates in Germany: (1) Individual, (2) Group, (3) Social, and (4) Organizational. ...Based on survey data from 377 respondents, we find that variables in all four categories influence subjective well‐being. Our findings generally agree with the results predicted by the theory, albeit a few counter‐intuitive findings. Above all, our results indicate the potency of social‐ and group‐level influences. The individual‐ and organizational‐level influences, too, are significant, although to a slightly lesser extent. Overall, our results suggest that “soft” factors play an important role in augmenting perceptions about one's own well‐being in the context of international assignments.
The current study examines the determinants of cross‐cultural leadership adjustment (CLA) and explores any potential linkage with performance. CLA adaptions are observed using a sample of leaders ...from two cultural regions, the United Kingdom and Germanic‐Europe, with expatriate experience at a British multinational enterprise (MNE) in seven different countries, including non‐European nations. Using data from a single company in multiple regions helps to isolate the firm, industry and regional effects. We adopted mixed method approach to address the question on what mode of adjustment leads to better performance and the antecedents of CLA which leads to better work‐performance. The results indicated that most expatriate leaders used the exploration mode of adjustment, under which both they and subordinates made substantial behavioral adaptations. This mode of adjustment addressing cultural differences had a positive impact on work‐performance along with replication mode. Additional antecedents here, such as differences relating to hierarchy, decision‐making and language/ communication, also impacted CLA.
This article suggests that under weak institutional arrangements, adverse economic conditions, and institutional voids in a late liberalizing economy, local firms that are part of the global value ...chains of multinational enterprises develop international networks as a balancing strategy to engage in exploratory innovations. We argue that local firms do so in order to counter the negative influences of local institutions on exploratory innovations. Using exploratory in-depth qualitative analysis, we study the suppliers of motorcycle parts in Pakistan that are working with leading Japanese and Chinese motorcycle assemblers. The results suggest that in adverse economic situations local institutional factors can sustain only the development of exploitative innovations. As a balancing strategy, motorcycle part suppliers develop international networks with global Tier 1 suppliers, international trade fairs, and international institutions. This strategy helps circumvent the negative influence of home institutional factors on developing exploratory innovations. Our study highlights the importance of global networks as a balancing strategy for creating exploratory innovations by firms in a late liberalizing economy.
Resilience in Organizations: An Editorial Tarba, Shlomo Y.; Cooper, Sir Cary L.; Ahammad, Mohammad F. ...
Applied psychology,
October 2019, 2019-10-00, 20191001, Volume:
68, Issue:
4
Journal Article
PDF
