International Business Studies Research Articles

The influence of home-country resources and state ownership on subsidiary’s performance: a multilevel perspective

PurposeAlthough emerging markets are distinctly known for the rapid growth and international expansion of their state-owned enterprises, little is known about the influence of parent resource advantages and mixed state ownership on a subsidiary’s performance. Using the resource-based view, this study aims to investigate how resource advantages from the parent company and state ownership influence the performance of subsidiaries.Design/methodology/approachThis study included a unique data set of 207 subsidiaries from 33 large Brazilian multinationals located in 32 countries from 2000 to 2015. The authors used a hierarchical linear modeling and a multilevel structure based on data at different levels to analyze the influence of home-country parent resource advantages and state ownership on host-country subsidiary’s performance.FindingsThis study illustrates that state ownership can alleviate the resource advantages of parent companies. Evidence is presented, indicating that low and medium degrees of state ownership have a negative impact on the resource advantages of the parent company, consequently reducing the subsidiary’s performance. Moreover, this study highlights that low and medium degrees of state ownership lead to conflicting interests between state ownership and parent resource advantages, resulting in an overall decline in subsidiary performance.Originality/valueThis research contributes new evidence regarding state ownership and resource advantages to the field of international business studies and the domain of Latin American multinational enterprises, Multilatinas. The results suggest that low and medium levels of state ownership diminish the influx of resources from parent companies, thereby restricting the subsidiary’s performance.

Foreign divestment from emerging markets: A systematic literature review, integrative framework, and research agenda

Despite the significance of context in international business studies, existing reviews on foreign divestment have combined findings from developed and emerging markets, obscuring context-specific antecedents, decisions, and outcomes. In this review, we systematically identify and synthesize theoretical and empirical research on foreign divestment from emerging markets based on 60 articles in reputed academic journals. We develop a conceptual framework that integrates the antecedents, decisions, moderating mechanisms, and outcomes of foreign divestment in emerging markets. While firm-level antecedents of foreign divestment are well-researched, external antecedents, decisions, moderating mechanisms, and outcomes are understudied. Additionally, we highlight that foreign divestment from emerging markets has positive and negative consequences for the firm and the host country. Drawing insights from our review, we delve into prospective research agendas, forging connections between contemporary research themes, divestment, and emerging markets. We propose that a multi-level approach to studying the antecedents and outcomes of foreign divestment will enhance our understanding of international business dynamics within an increasingly volatile global environment.

FEATURES OF STRATEGY FORMATION OF UKRAINIAN COMPANIES ON INTERNATIONAL MARKETS

FEATURES OF STRATEGY FORMATION OF UKRAINIAN COMPANIES ON INTERNATIONAL MARKETS

Chinese SMEs’ location choice and political risk: The moderating role of legitimacy

International business studies show that multinational enterprises generally invest in locations with fewer political risks, but that this may not always apply to emerging-market multinational enterprises, due to the specific characteristics of their home countries. In this paper, we examine the impact of political risk on the location decisions of Chinese small and medium-sized enterprises (SMEs), and explore the legitimacy of firms from China in different host countries as a moderator of the relationship between political risk and location choice. Our empirical investigation is based on an original database of 617 foreign direct investment (FDI) location-choice decisions made by 240 Chinese SMEs between 2006 and 2017. The results show that political risk deters Chinese SMEs from choosing certain locations, but political and economic legitimacy positively mitigate this relationship. Combining the political institutions approach and legitimacy-based view of political risk, we contribute novel insights into the role of legitimacy of firms from the same country of origin in emerging market SMEs’ strategic choices of FDI location.

SMEs’ intangible resources and their effects on export performance: a study on Malaysian halal F&B sector

Purpose The growing demand for halal products has attracted small and large companies looking to secure their market share in the lucrative global halal market. However, it is difficult for resource-constrained firms, such as small and medium enterprises (SMEs), to compete internationally. Therefore, drawing from a resource-based view, this paper aims to examine how intangible resources affect the export performance of Malaysian SMEs exporting halal food and beverages (F&B) products. Design/methodology/approach This study used a purposive sampling technique, and respondents were reached out by mail. Out of 517 local SMEs exporting halal-certified F&Bs contacted, 193 firms responded, and only 188 responses were eligible to be used for data analysis. The partial least squares structural equation modelling technique was used to conduct the analysis. The data underwent measurement and structural model evaluation to confirm the hypotheses postulated. Findings Based on the data analysis conducted, it was discovered that intangible resources, namely, international orientation and marketing capability, significantly influence the export performance of Malaysian SMEs exporting halal F&B. However, the influence of cultural intelligence on export performance could not be demonstrated. Originality/value This paper fills the gap of the need for more attention to SMEs in developing countries, especially in the halal industry. This research paper also contributes to international business and halal studies by promoting an understanding of intangible resources as strategic resources for SMEs to create competitive advantages and elevate their export performance in the emerging global halal market.

The EU’s 2020 summit on the COVID recovery fund: leading the divided house to a consensus

Research methodology The writing of this case study was triggered by the numerous media reports in 2020 that talked about the EU nations losing its solidarity. EU being a very appropriate example of economic, monetary and customs union while teaching theories of economic integration and international relations, the post-pandemic approach of EU leadership to rebuild the crisis-ridden member nations seemed an excellent material for developing a teaching case study. The case study was written based on secondary data and published information available. Enough desk research was undertaken to build the characterisation of the protagonists and due diligence done to chronologically report all facts of the case as the story developed. It was decided to build the epilogue into the case study so that the case analysis had enough depth. Case overview/synopsis The case is set in 2020 when the global economy was reeling under the massive impact of a lockdown and the aftermath. The case study examines the model of economic union in international business and the various challenges that governance of an association of nations such as the 27 member EU can throw up. It examines the conflict of interest that can arise among member nations during critical circumstances such as the pandemic and its massive tolls. EU had established itself as a critical international trade player and had already proven their might as a united entity to the world trade partners, given the fact that they were not only a customs union but also a monetary union. In this scenario when the pandemic threw them into the whirlwind of lockdown-induced crisis, the united front of the mighty EU all but crumbled. As the worst-hit economies of Italy and Spain struggled to pull themselves back to normalcy, EU experienced one of its worst solidarity crises. EU’s president Angela Merkel and ally French President Emmanuel Macron with support from the EU Council’s President Charles Michel stepped forward to resurrect the badly hit economies. They viewed this as the best opportunity to bring about a united front by coming together at Brussels for a summit when lockdown eased up in July 2020. It was to be a show of unity to jointly bail out the severely affected member nations by grants rather than loans. The summit, however, snowballed into bitter arguments and open bickering between the wealthy and not-so-wealthy members, and they could not agree upon the issue of debt vs aid. The fact that the EU was an agglomeration of 27 nations, which were far from homogenous in socioeconomic status, not to speak of divided political ideologies, only added dimensions to the dispute. Negotiations repeatedly hit roadblocks. Can the EU leaders lead their bitterly divided house to a consensus? Complexity academic level The case is suitable for graduate and post-graduate levels. Management courses where international business studies, international trade blocs and global leadership are part of curriculum can use the case to teach concepts of “Regional economic integration”, “Economic and Political union” and theories of “International relations” and “Negotiation”. It can also be ideally used in an executive management programme on “Global Leadership” to highlight the complexities of “governance of international associations” and “consensus building amidst diversity”.

Commitment Helps: The Positive Effects of Long-Term Orientation and Family Ownership on Firms’ International Expansion

Abstract This research examines how commitment, long-term orientation, and distinctive family business traits resulting from family ownership affect internationalization by studying two unique and long-lasting firms with family and non-family ownership structures. Drawing upon arguments from international business studies and family business research, we have identified various entrepreneurial motivations and derived a framework that expands our knowledge on how commitment, long-term orientation and specific differences between family and non-family firms impact their international expansion. Our results indicate that family firms generate social capital, experience, and knowledge in an international context to sustain and maximize their advantages better than non-family firms.

K-pop’s internationalization in the product adaptation and the upstream music supply chain in Korea, China, Japan, and the West

ABSTRACT The success of Korean popular music (K-pop) in foreign markets has attracted considerable attention from researchers. Previous studies have highlighted the factors in K-pop’s international success, such as its idol management system, marketing strategies, and digital distribution channels. However, to the best of our knowledge, the contributions of product adaptation and upstream music supply chains to K-pop’s international success have received little attention. To substantiate this argument, we analyse the formula setting of K-pop from the 1990s to the present and the efforts of the founders of entertainment agencies (e.g. SM, JYP, and YG) to model their success in the global market. The argument presented here theoretically contributes to international business studies and has implications for the success of intangible products in foreign markets.

Determinants of Foreign Direct Investment and the Advantages Theory

This study reviews three classic international business theories and some related empirical studies to identify the gaps in the literature and suggest future research directions. In international business studies, most analyses on the determinants of FDI are centered on three concepts of firm-specific, internalization, and location advantages according to the monopolistic advantage theory, internalization theory, and OLI paradigm. These three advantages determine whether a firm will internationalize, how it will enter foreign markets, where it will locate in the host country, and how it will perform in a foreign market. However, These theories are set up with the premise of firm-specific advantages and cannot be used to explain the phenomenon of emerging market multinational enterprises, which have emerged in large numbers in recent years. Simultaneously, these theories, which focus on manufacturing, need to be used to explain the internationalization of the service industry in-depth and with greater relevance.

Introduction to the Virtual Special Issue: Strategy Science’s Contributions to Doctoral Reading Lists

Introduction to the Virtual Special Issue: <i>Strategy Science</i>’s Contributions to Doctoral Reading Lists

A framework for a more reflexive engagement with ethnography in International Business Studies

A limited idea of what ethnography involves, and dominant disciplinary ideas of rigour and validity stand in the way of International Business studies engaging more deeply with ethnography. For higher managerial and scholarly relevance, we propose the use of “reflexive engagement”. Reflexive engagement involves the researcher (ethnographer), the research subjects (actors) and those reading the study report (audience) in the “ethnographic triangle”. We outline the principles of reflexive ethnographic engagement with all three sides of the ethnographic triangle. We provide ethnographers in International Business studies with concrete research and writing advice regarding the three criteria of ‘excellent’ ethnography, namely positionality, plausibility and intersubjectivity.

Compassion in the international business studies – prospects for future research

PurposeThis paper aims to introduce the concept of compassion to the field of international business studies. As international business activities continuously intensify and hence generate a work environment characterized by cultural heterogeneity and pluralism, the notion of compassion in a cross-cultural context can be regarded a key skill for employees in internationally operating firms to enable coping with potential cross-cultural conflicts.Design/methodology/approachIn this narrative-oriented type of review, the authors discuss compassion in a cross-cultural context by drawing on the literature in the management and international business studies. By connecting prior research on compassion with the typical research interests in the IB domain, the authors identify and define potential future research foci for a research agenda centering on the role that cross-cultural compassion plays.FindingsThe authors argue that the conventional approach to learning about other national cultures, their value and norm systems, needs to be complemented by the acquisition of compassion skills. In todays culturally diverse business environment where employees increasingly work in virtual teams, cultural complexity is hardly manageable alone by developing expert knowledge about respective cultural contexts to prevent cross-cultural conflicts.Originality/valueBy drawing on extant research on compassion conducted in neighboring disciplines of the social sciences, the authors conceptualize compassion in the context of international business research. Because compassion in a cross-cultural context is new to international business research, this study suggests directions for future research consisting of four research streams to guide future research on compassion in a cross-cultural context in international business studies.

INSIGHT INTO AN UNDERSTANDING OF INTERNATIONAL BUSINESS STUDY FOR DEGREE STUDENTS

International business comprises trade practices wherein companies buy and sell products, services, technologies, and other commodities across global markets in various countries. Such trading takes place among those nations in which multinational companies seek to widen their consumer base, enhance their earnings, enter untapped markets, harness valuable resources, and gain a competitive edge over other companies. International business is affected by several complex regional and global factors, such as e-economic legislation, racial diversity, economic conditions, legal frameworks, and technological developments. Therefore, it is highly advisable for businesses seeking to venture into international markets to engage experts in the domain of international business, who are well equipped with sufficient knowledge of the essential requirements for successful international trading. In this context, the current paper explores the relevance of international business studies programs for prospective students as well as the additional inputs they require to incorporate their academic knowledge into the successful steering of international commerce.

With a “Licence to Adapt”: Translation Shifts in Subsidiary Corporate Value Statements

When organisations implement corporate values as a managerial tool, the Corporate Value Statement (CVS) is a central piece of corporate communication. Nevertheless, little research has been done on the linguistic aspect of the CVS in international settings. In this article, I study the case of Keolis, a French multinational corporation that empowers subsidiaries to translate and adapt the Group’s CVS to local business contexts, resulting in radically rewritten subsidiary versions. I propose a linguistic and discourse analytical approach to identify translation shifts between the headquarters’ CVS in English, and local versions in Denmark and in India. I also investigate which contextual and cultural factors may have contributed to these shifts. Findings suggest that subsidiaries use the value terms as vessels to be filled with corporate content of their choice. Contributing to a translatorial turn in international business and organisation studies, this paper illustrates how applied linguistics may inform management practice.

Bab Al Qasr Hotel &amp; Residence: sustaining business while housing COVID-19 patients

Learning outcomes This case study aims to yield the following learning outcomes: understand the key performance indicators of successful human resource management (HRM) in the hospitality and tourism sector, especially during pandemics; identify the various concepts and strategies of HRM and recruitment over a short period; conceptualize the types of HRM practices such as safety and health, recruitment and promotion and rewards when facing pandemic conditions as well as the handling of hotel staff in strained times; evaluate the crisis management solutions used by human resources to lower the employee turnover rate; and develop a crisis management plan from a human resource standpoint in a pandemic situation. Case overview/synopsis A five-star hotel in Abu Dhabi, United Arab Emirates (UAE), Bab Al Qasr Hotel &amp; Residence (BAQHotel) opened in October 2016. In April 2020, the hotel began accepting patients with COVID-19 in conjunction with the Abu Dhabi’s Healthcare Company (SEHA), as a support to the UAE Government, through Department of Culture and Tourism Abu Dhabi (DCTAD), to meet the local needs and sustain business during these unforeseen circumstances, which heavily impacted the whole World. Samer Majari, the Human Resource Director of BAQ hotel was responsible for recruiting and supervising delegates, while ensuring the comfort of hotel staff, arranging for their transportation, catering, safety and well-being. To combat the high staff turnover, including COVID-19-positive staff, Majari reviewed the existing staff model; divided the staff into two groups for providing services to both sides of the hotel; arranged for separate accommodations, food and transportation; and retained the existing resources and recruited new workers. This study aims to provide management solutions that concern hiring of staff from the existing UAE market and highlights ways of creating a lower staff turnover rate through incentives and compensations, while also managing staff by motivating them and also safeguarding them against COVID-19. Complexity academic level This case study intends to provide a context for creative solutions to human resource challenges facing organizations during a pandemic. It also involves swift responses to crises faced by HR managers and the immediate solutions required. Therefore, this case study can be used in undergraduate level courses for students pursuing a bachelor’s or a master’s degree in HRM, hospitality management, crisis management or international business studies. Moreover, this case study can be used for corporate training and to help hospitality industry staff, mid-level human resource managers and organizational development practitioners to better understand crisis management in their hotels. Supplementary materials Teaching notes are available for educators only. Subject code CSS 6: Human Resource Management

A research agenda proposal on the influence of ApexBrasil on export, internationalisation and foreign trade

Objective: The present technical report aimed at presenting a research agenda regarding the influence of the Brazilian Trade and Investment Promotion Agency (ApexBrasil) on academic research about export, internationalisation, and foreign trade for academia, policymakers, practitioners, and other stakeholders. Method: We pursued a case study approach divided in a two-stage process. Firstly, we systematically reviewed 35 articles related to ApexBrasil’s influence on scientific research. Secondly, we analysed official documents and conferences, besides consulting a panel of specialists from ApexBrasil, in order to propose the research agenda. Main Results: Firstly, the results suggested that the knowledge about ApexBrasil’s influence on scientific research is scattered in different journals, researchers, and themes; furthermore, many studies do not have an impact on the international academy. Secondly, based on the data analysed, we propose a research agenda that might narrow the gap between ApexBrasil, academia, and other stakeholders. Relevance / Originality: The findings suggest unique insights about how and to what extent ApexBrasil’s influence is reported by scientific research and show which themes for future investigations are aligned with the agency’s interests, as well as the interests of its stakeholders in a scenario affected by the COVID-19 pandemic. Theoretical / Methodological Contributions: Our main contributions consist in a research agenda proposal based on theoretical and practical perspectives developed as a technical report. By doing so, we seek to raise awareness of academia, practitioners, and policymakers about ApexBrasil’s influence and potential relevance for international business studies, whilst pointing out important research gaps in the literature and potential new research avenues.

Underlying Internationalization Process Theories for Small and Medium Enterprises (SMEs): A Systematic Literature Review and Classification of Research Streams

Studies on the internationalization process of SMEs have fascinated the attention of researchers around the world. The dynamics in the internationalization process of SMEs have attracted researchers' interest in analyzing the behavior and the factors that influence it with various theoretical approaches to contribute to the development of international business studies. This paper intended to provide an overview of the various theories applied in investigating SMEs' internationalization process. The review was conducted on 100 journal articles between 2013 and 2020. The investigation results show that 17 different theories have been identified in the internationalization process of SMEs and we classified them into five streams. Based on our findings, from those 17 theories, the five primary published theories in order are (1) Uppsala theory, (2) Network theory, (3) Resource-based theory, (4) international entrepreneurship theory, and (5) institutional theory. This study also provides suggestions and implications for future research.&#x0D; Keywords— Internationalization process; Internationalization SME theory; Small and Medium Enterprises (SMEs)

Four Decades of Challenges by Culture to Mainstream Psychology: Finding Ways Forward

Over 5 days at the Nag’s Head Conference Center, USA in 1987, social and cross-cultural psychologists discussed what would be required if research relating to culture were to gain greater attention from psychology in general, and in particular from what was perceived at the time as its mainstream. The criteria for gaining greater credibility laid down by three leading social psychologists proved daunting in relation to the cross-cultural work presented at the meeting but subsequently inspired cross-culturalists to “raise their game.” In this paper, we describe these crucial challenges and how they have been addressed more recently by cross-cultural psychologists. We assess the extent to which studies focused on cultural differences are now thoughtfully represented in social, personality, and organizational psychology by briefly surveying the content of a single year’s issues of the Journal of Personality and Social Psychology, Journal of International Business Studies, and the Journal of Personality in relation to the concurrent content of the Journal of Cross-Cultural Psychology. We identify the perils of assimilation to psychology in general by diluting the concept of culture and by tyrannizing research with over-specified criteria of statistical rectitude. We also identify studies published in top-rated journals that have nonetheless advanced our field. We reiterate the need for defensible measures of cultural difference and methods for identifying and examining them as a basis for multi-level explanations of cultural effects and cultural change. We conclude by proposing a gold standard for assaying cross-cultural studies of psychological processes and outcomes.

Time in Qualitative International Business Research (WITHDRAWN)

Qualitative research play an important role for theory building, and so does time. In fact, time is central for understanding many International Business (IB) related phenomena. In spite of this methodological understanding on the role of time in theorizing for qualitative research is limited. To address this lacuna, in this paper we analyze articles published in Journal of International Business Studies, Journal of World Business as well as the Academy of Management Journal and Journal of Management Studies from 1999 until 2020. We find four temporal theorizing styles, namely temporal variation, temporal accumulation, temporal evolution, and temporal story. Our discussion on these pluralistic styles of temporal theorizing will allow us to contribute to a better understanding on how time can be leveraged in IB for theorizing in qualitative research.

Vertical Political Fragmentation &amp; Firm Market Entry: An Examination of Maquiladora Entry in Mexico

This study advances scholarly understanding of how political fragmentation, the situation wherein public officials from different political parties control different government jurisdictions, affects firm market entry. Although the extant literature suggests that political fragmentation creates favorable environments for firm market entry, empirical studies show mixed results, potentially because the extant literature has not differentiated between the effects of different types of fragmentation. We address this conundrum by distinguishing theoretically between the effects of what we term horizontal fragmentation (which occurs between jurisdictions at the same level in the government hierarchy) and vertical fragmentation (which occurs between jurisdictions at different levels) and underscore that existing research has focused on the effects of the former while overlooking the effects of the latter. We examine the entry of 6,000 foreign manufacturing firms (maquiladoras) into 2,057 cities in Mexico between 1990 and 2006 and find that vertical political fragmentation has a negative effect on firm market entry by fostering adverse business environments. Implications for international business studies and business and government research are discussed.