International Management Literature Research Articles

Approaching multinationals in clusters from different perspectives

PurposeFor the specific topic of multinationals in clusters, both regional strands and international business and management literatures address the topic from different yet intertwined perspectives. This study aims to facilitate the integration of the conversations and the distinct literatures to produce a clear understanding and conceptualization of the existent knowledge on the topic, with the aim to foster an integration of those different lines of inquiry on the topic that can advance scholarly research and improve policymaking.Design/methodology/approachMixing a robust and longitudinal bibliometric analysis (1992-2018) and a qualitative critical review, the study disentangles sub-conversations on the topic in each literature.FindingsThe study encounters commonalities that foster cross-fertilization and blind spots that prevent integration of findings from each literature.Research limitations/implicationsBoth literatures need to cross-fertilize and integrate each other’s knowledge.Originality/valueTo the best of the authors’ knowledge, this study is the first to integrate literatures using bibliometrics, mapping the existing knowledge on two key areas of competitiveness: clusters and multinationals.

The Internet and the International Management Literature: Its development and intellectual foundation

Abstract The Internet is now a common medium for consumers and an indispensable business tool globally. Despite this reality, research involving the Internet in international management has been limited. This is surprising in that, the Internet, as an external environmental force, is consequential in terms of its restrictions, privacy concerns, and preferred patterns of use which, as with other environmental imperatives, should supersede the smooth functioning of managerial functions. With this in mind, we examine the development of the literature in international management/businesses incorporating the Internet and unfold its intellectual structure in an effort to motivate future investigations. Specifically, we develop an interpretable spatial configuration of knowledge nodes in the strategy, general management, entrepreneurship, and international business literature. However, the literature for human resources and organizational behavior did not result in an interpretable MDS configuration. As a precursor to the three contributions to this special issue, we offer future research opportunities based on our analysis of the knowledge structure in the field as well as via a framework involving Internet regulations and firm structure.

Diaspora networks in international marketing: how do ethnic products diffuse to foreign markets

While diaspora networks can be instrumental for diffusion, their 'all-in-one' role has remained underexplored in international marketing management literature. Diaspora actors function as part of the channel system, diffusing ethnic products and creating the 'highway' to new markets. Globalisation has increased geographic dispersion and plurality, fostering their participation in international business as connectors. To this end, exporting firms benefit from diaspora resources while co-creating participant distribution. This mechanism - the 'invisible diaspora hand' - shapes the internationalisation processes of products and ethnic value creation on behalf of the firm. This study examines how ethnic products diffuse across borders, and how diaspora networks participate in the international diffusion and ethnic crossover process by orchestrating resources across contexts and networks. The findings contribute to advancing our understanding of product diffusion and mainstreaming, and theorising on the role of transnational diaspora in international market entry, product diffusion and international marketing.

Culture and cross-functional coopetition: The interplay of organizational and national culture

Abstract Scholars now recognize coopetition—the joint occurrence of cooperation and competition—between functional units as an important factor for a firm's learning and performance. We know little, however, about the drivers of cross-functional coopetition and in particular the roles of organizational culture and national culture. This study introduces cross-functional coopetition to the international management literature by illuminating the cultural antecedents of cross-functional coopetition. Specifically, we develop a cross-cultural model to analyze the influence of organizational and national culture on cross-functional coopetition. Drawing on a dataset of 646 companies from seven countries, we theoretically advance and empirically validate the influence of organizational culture and the moderating role of individualism and uncertainty avoidance on cross-functional coopetition. Organizational cultural dimensions directly enhance cross-functional coopetition. Furthermore, strong social values of individualism and uncertainty avoidance weaken the relationship between organizational culture and cross-functional coopetition. This study provides a novel perspective on how organizational culture can represent a strategic resource by illuminating the cultural mechanisms that influence coopetition within the firm.

Career decisions of married Indian IT female expatriates

Purpose Despite more than 50 years of research into gender and work, the impact of female expatriates persists to be underrepresented in mainstream international human resource management (IHRM) literature. The purpose of this paper is to identify and explore the perceptions of married Indian information technology (IT) women regarding career and expatriating discussions they have with their husbands and its impact on their decision making to undertake international assignments. Design/methodology/approach Semi-structured interviews were conducted with 24 married Indian IT women who had undertaken international assignments after marriage. The study includes two data sets, 1: women on less than one-year assignment; 2: women on greater than one-year assignments. Findings The study found that women who went on short-term assignments of less than one year travelled alone and found it fortunate and convenient to leave their children in the care of their husbands, in-laws, parents and maids. While in the cases of women travelling for longer-term assignments, most husbands accompanied them. The study suggests that while spousal support was the key, having a shared purpose with husbands along with extended family support was equally significant to facilitate women undertaking an international assignment. As an impetus, the authors note a change within the Indian society where both partners come together to make decisions about expatriating. Research limitations/implications The authors discuss the implications for IHRM as they relate to gender diversity within organisations. Originality/value The research, underpinned by the early workings of a theory of career hierarchy, explores the complexities in expatriation decision-making processes of married women from the emerging economy of India with traditional family values, who are working within a modern and liberal IT industry.

Spontaneous volunteerism in disasters, managerial inputs and policy implications from Italian case studies

The landscape of the emergency response system is rapidly changing, due also to an increasing frequency of natural and man-made disasters. Nowadays, the involvement of citizens into the whole emergency management is inevitable and indispensable, from preparedness to recovery operations. Drawing on international disaster management literature, this research analyzes and compares the management of spontaneous volunteers during six emergency events that recently occurred in Italy. The research’s aims are to present current tendencies of the Italian emergency volunteerism, to provide operational recommendations for organizations that may be in charge of managing unaffiliated volunteers and to propose some hints for a reform process of the Italian Civil Protection System towards a recognition of the spontaneous volunteerism in emergency. Starting from the research’s findings, the study underlines the latest trends in the field of emergency operations, at a local and international level, and their policy implications, within the Italian context.

Austerity Regimes at the Local Level: Examining Fiscal Effects of Austerity Commissioners Using a Time-Series Synthetic Control Method

From a democratic perspective, the replacement of government or parliament by a public manager to enforce budget discipline marks a serious intervention. Transferred to the local level, the replacement of the mayor and the council in three German municipalities by a state official (a so-called state commissioner) in recent years has raised questions about the legitimacy and adequacy of such a strong interventionist instrument. One crucial answer to be given to this legitimacy issue concerns effectiveness, in other words whether the instrument can fulfill its designated task by improving the local fiscal situation since the fiscal success of the commissioner is a basic prerequisite for legitimacy. By using a time-series approach of the synthetic control method (SCM) and constructing a synthetic comparison case to the town of Altena, an answer regarding the commissioner’s potential to reduce the short-term debt can be given. The commissioner was successful in limiting the debt increase and seems to have reversed the debt trend. This finding supports the effectiveness of rather hierarchical instruments for ensuring fiscal discipline at the local level and thereby adds to broadening the international public management literature on municipal takeovers.

The impact of offshoring on knowledge‐intensive services: A study of activities in service production processes

Abstract Research summary: In order to identify the impact of offshoring on knowledge‐intensive services (KIS), the activities related to the transfer and co‐creation of knowledge in the service production process are studied in this paper. The concepts of activity systems and activity structures from practice theory are used to analyze these activities. A qualitative case study of multiple offshored KIS shows that offshoring changes activity systems and structures within the production process. Activities related to the transfer of knowledge are reduced while the co‐creation of knowledge remains evident in the process. As a result, KIS become more modularized and less customized, evidencing changed KIS characteristics. The paper adds to service offshoring and international service management literature and extends practice theory. Managerial summary: This paper studies how knowledge‐intensive services (KIS) are impacted by a geographic relocation of the services across country borders. The relocation, termed offshoring, implies that the service client and provider are geographically separated and need to interact on a distance in order to produce the service. As the service production is dependent on the transfer of existing knowledge and co‐creation of new knowledge by clients and service providers, the geographic distance is challenging KIS production processes. An empirical analysis finds that the geographic distance is changing the way the services are produced. The transfer and co‐creation of knowledge are reduced leading to fewer interactions between clients and service providers, mainly knowledge coproduction remains important. These changes lead to altered KIS production processes and service characteristics.

Value co‐creation between foreign firms and indigenous small‐ and medium‐sized enterprises (SMEs) in Kazakhstan's oil and gas industry: The role of information technology spillovers

AbstractStudy related to the extractive sector still plays a limited role in the mainstream international business (IB) and management literature, with even less focus on ongoing liberalization and digitalization in the industry. This article was motivated by the question of how collaboration between foreign and indigenous oil and gas (O&G) companies can support small‐sized and medium‐sized indigenous technological development. The main contribution of this article is the development of a model that explains how different actors can cocreate value in the ecosystem of the O&G industry through digital technologies. A three‐stage qualitative–interpretive method based on interviews with industry experts was adopted to build three vignette case studies. This article proposes what companies and the government could do to increase the competitiveness of the local economy, diversify from O&G into high technological industries, and support industrial development through information and communication technologies (ICT).

Building value-driven HRM practices in Western Multinational Enterprise in Ghana using the AMO model

Despite the increasing presence of Western MNEs’ subsidiaries in Ghana, the country continues to remain underrepresented in international human resource management literature (IHRM). The purpose of this research is to address this lacuna by examining recruitment and selection; training and development; performance management; rewards management and employee communication and participation using the ability, motivation and opportunities (AMO) model to build value-driven human resource management (HRM) practices in Western MNEs in Ghana. The paper employs a qualitative multiple case study approach using semi-structured interviews with employees and managers in purposefully selected Western subsidiaries in Ghana. This research employs 37 in-depth interviews with managers and employees in eight British, European and US MNEs in Ghana. The study essentially provides fine-grained analysis of how subsidiaries develop strategies in each HRM practice to promote employee ability, motivation and opportunity (AMO) and possibly organisational performance. Keywords : HRM practices, Multinational Enterprise in Ghana, AMO model DOI : 10.7176/JRDM/53-07 Publication date :March 31 st 2019

21st Century reform in Australian coastal policy and legislation

Recent coastal legislative and policy reform in Australia reflects the changing focus of coastal management studies in the international scientific literature indicating a move towards systems perspectives, cross-boundary management strategies and an integration of marine and terrestrial environments. Significant global and national reports on integrated coastal management and climate change set the stage for a 21st Century wave of coastal reform in Australia. Given the absence of Australian national coastal legislation or coastal policy the reforms were initiated by a number of state governments such as in New South Wales and Victoria where new pieces of state-based coastal legislation came into law in 2018. This paper examines new coastal legislation, policies, manuals, and government documents and the rationale and triggers behind these reforms. These are discussed in the context of Australian governance structures and the international coastal management literature. The paper concludes that the latest wave of coastal reform in Australia represents a non-uniform stateled push for a more integrated approach to coastal management including, adaptation to climate change, sustainable development, a systems-based approach to coastal processes and inclusion of both marine and terrestrial environments.

Assessment of the effect of location and financial variables on environmental management performance for industrial goods supply chains

The paper uses data on environmental (management) performance (EP) of industrial goods companies in 14 countries to assess the impact of 3 variables on EP: companies' headquarters location, global spread (GS) & financial performance (FP). No prior study has addressed these questions for the industrial goods sector, a crucial sector in most economies. Hierarchical regression and other methods are used to test pertinent hypotheses. Among other things, the paper finds that EP differ based on regional location of the companies' headquarters. Consistent with prior research for some industries, FP and GS show no impact on EP. An auxiliary finding is that manufacturing firms outperform service firms environmentally. These results have several practical implications. For example, industrial goods companies headquartered outside Europe can learn environmental best practices in Europe, and endeavor to implement them throughout their global operations. Also, firms need not excel financially to excel environmentally. Such firms may focus on environmental excellence, knowing that investments in environmental programs would ultimately pay off. This work bridges the International Management and Sustainability Literatures, provides some guidance to managers about EP improvement and adds to our understanding of EP. It will stimulate related research in the Production and Operations Management and Environmental Management fields.

Using expatriates for adapting subsidiaries' employment modes to different market economies: a comparative analysis of US subsidiaries in Germany, the UK and Switzerland

Because the extent to which multinational companies (MNCs) benefit from foreign subsidiaries depends on how effectively MNCs manage their foreign subsidiaries' workforce, the international management literature has long focused on how MNCs transfer Human Resource Management (HRM) practices. However, the literature has only vaguely dealt with institutional differences between host and home countries, often simplifying these differences under the umbrella of institutional or cultural distance. This article investigates how MNCs use expatriates to adjust subsidiaries' employment modes to different market economies. We define employment modes as bundles of HRM and industrial relations (IR) practices implemented at the firm level and examine the employment modes of 76 subsidiaries of U.S. MNCs in a coordinated market economy (Germany), a hybrid market economy (Switzerland), and a liberal market economy (United Kingdom). Our results reveal substantial differences in the expatriation strategies of MNCs that depend not only on the international focus of the MNC but also on the differences in IR between the parent and subsidiary's environment. Our findings qualify the role of expatriates in adjusting subsidiaries' employment modes to different market economies and highlight the boundary conditions of integrating HRM with IR practices in the management of foreign subsidiaries.

Diaspora networks in international marketing: How do ethnic products diffuse to foreign markets?

While diaspora networks can be instrumental for diffusion, their 'all-in-one' role has remained underexplored in international marketing management literature. Diaspora actors function as part of the channel system, diffusing ethnic products and creating the 'highway' to new markets. Globalisation has increased geographic dispersion and plurality, fostering their participation in international business as connectors. To this end, exporting firms benefit from diaspora resources while co-creating participant distribution. This mechanism - the 'invisible diaspora hand' - shapes the internationalisation processes of products and ethnic value creation on behalf of the firm. This study examines how ethnic products diffuse across borders, and how diaspora networks participate in the international diffusion and ethnic crossover process by orchestrating resources across contexts and networks. The findings contribute to advancing our understanding of product diffusion and mainstreaming, and theorising on the role of transnational diaspora in international market entry, product diffusion and international marketing.

Crossing Cultural Boundaries Using the Internet: Toward Building a Model of Swift Trust Formation in Global Virtual Teams

This study employs a qualitative research method to advance understanding of the process of swift trust formation in global virtual teams (GVTs), which rely heavily on the Internet for virtual collaboration. We explore two key research questions: 1) What is the process of swift trust formation in GVTs? 2) How do GVTs develop swift trust behaviors during virtual collaboration? Over a period of two years (2014–2016), we interviewed 57 individuals from 16 countries. The interviewees had been GVT members in an international experiential learning project, and our aim was to explore their in-depth experiences of teamwork dynamics and swift trust formation. Our key contributions to the international management literature are 1) the development of a descriptive model of global virtual collaboration that explains the cyclical process of swift trust formation and 2) the formulations of prescriptions for promoting high-trust behaviors in GVTs. In the conclusion, this study reviews the theoretical and practical implications of understanding swift trust behaviors in the GVT context in order for firms to achieve business excellence and management effectiveness internationally.

Actors, Structure, and Processes: A Review and Conceptualization of Global Work Integrating IB and HRM Research

As organizations increasingly fulfill their customer needs by getting their work done globally, there is a pressing need for the scientific community to further advance knowledge on global work, especially in terms of how to better conceptualize and integrate it. A particular opportunity for such development involves the cross-fertilization between the international business (IB) and human resource management (HRM) literatures, which serve as the focal domains to study global work phenomena but have treated global work largely as separate research streams. We therefore edited a special issue to contribute to a more integrative understanding of various aspects of global work across both domains. In this opening article, we review existing research on global work in the multinational enterprise from both IB and HRM perspectives. Subsequently, we present a shared conceptualization of global work that helps integrate theoretical and empirical research in both fields. We then introduce the articles in this special issue, before developing an integrative agenda for future research on global work.

HR localization impacts on HCNs’ work attitudes

PurposeThe purpose of this paper is to investigate the impact of localized human resource management (LHRM) on host country nationals’ (HCNs) intention to remain (ITR) and extra-role performance (ERP) through the mediating role of person-organization fit (POF).Design/methodology/approachData were gathered from 494 employees in two Chinese subsidiaries in Iran via two-stage self-administered survey and analyzed with AMOS 21.FindingsThe results show that LHRM positively affected employees’ ITR and ERP. However, there was no significant relationship between LHRM and POF and between POF and ERP.Originality/valuePrevious studies in the international human resource management literature have focused more on Western and South Asian countries. The present study, to the best of our knowledge, is the first inquiry of its kind in an Iranian context. Hence, this paper contributes to the existing knowledge by testing LHRM in two large Chinese multinational companies in Iran. Additionally, the results of this study will increase our understanding of LHRM and provide practitioners with superior insights into some practices that could elevate HCNs’ ERP and ITR.

Embracing localization: evidence from Western MNEs in Ghana

PurposeDespite the growing economic importance of Africa, the region has received scant attention in the international human resource management literature. The purpose of this paper is to address the gap in examining human resource management (HRM) practices in Western multinational enterprises’ (MNEs) subsidiary operations in Ghana, which is a significant foreign direct investment market in Africa. Focusing on recruitment and selection, training and development, performance management, and rewards management viewed through the ability, motivation and opportunity (AMO) framework, the research emphasizes that effectiveness of the MNEs’ cross-cultural operations has necessitated embracing localization across a range of practices in accordance with the Ghanaian cultural landscape and specificities.Design/methodology/approachThe paper draws on 37 in-depth interviews with managers and employees in eight subsidiaries of British, European and US MNEs in Ghana. Interviews were conducted in 2015 in three locations – the capital city Accra, Tema (in the south) and Tamale (in the north).FindingsThe research reinforces earlier literature emphasizing the importance of paternalism and family and to a lesser extent patronage, but presents new findings in highlighting the erstwhile unexplored role of local chiefs in influencing HRM practices in Western MNEs in Ghana. Utilizing the AMO framework, this paper highlights practices within each HR area that influences performance through impact on employee AMO.Practical implicationsThe research informs MNE managers about the strategic importance of observing local cultural practices and designing appropriate strategies for ensuring both operational effectiveness and successful cross-cultural collaboration with local managers and employees in Ghana. It is suggested that if managers implement practices that foster and enhance employee AMO, subsidiaries may benefit from employee potential and discretionary judgment.Originality/valueThis paper contributes to a dearth of literature on HRM practices of Western MNEs’ subsidiaries in Africa by examining the extent to which MNEs strategically localize their practices to accommodate specificities of the host country cultural context and operate successfully.

Firms, Institutions And Anti-Globalization: The Institutional Determinants of Backlash

The international management literature has acknowledged the mounting evidence of a backlash against globalization – and the threat such a backlash represents for multinational companies (MNCs). In this paper, we argue that the likelihood of backlash, and of the policy consequences it may lead to, vary across countries and regions. This variation is largely explained by institutional factors. Building on the comparative capitalism and comparative regionalization literatures, we elaborate a series of propositions aimed at identifying the mechanisms through which national- and regional-level institutions either increase or decrease the likelihood of a backlash against globalization and the likelihood of a reversal of pro-globalization policies.

Exporting firm’s engagement with trade associations: Insights from Chile

This study addresses the effects of the firm’s level of engagement with trade associations located at the company’s export market on export performance. It analyzes firm-level data from a South American emerging economy, Chile. Results show that a stronger engagement with trade associations located at the company’s export market has a positive effect on export performance. Environmental uncertainty on customer needs is confirmed as an export performance barrier, but unexpectedly, this obstacle only diminishes in a negligible factor as the level of engagement with trade associations located at the firm’s export market increases. This study contributes to the international management literature by investigating the direct and moderating effects of overseas trade associations on the firm’s export performance, and by scrutinizing on the distinctions among the cooperation determinants of local networks and networks situated at the firm’s export market. Practical implications are discussed.