Strategic Motives Research Articles

Adopting environmentally-friendly certifications: transaction cost and capabilities perspectives within the Italian wine supply chain

Purpose Environmentally-friendly certifications have increased over the past decade within food supply chains. Although a large body of literature has explored the drivers leading firms to adopt such certifications, it has not closely examined the strategic motivations associated with their adoption. This paper aims to investigate an environmentally-friendly certification, VIVA, examining its role as an alternative form of supply chain governance. The aim is to investigate the drivers affecting the adoption of VIVA and to assess managerial perceptions related to transaction-related characteristics and the firm’s internal resources and capabilities. Design/methodology/approach This study draws upon both an extended transaction cost economics perspective, which is based on transaction risks and the resource-based view, which examines a firm’s internal resources. A survey was conducted via a structured questionnaire sent to all of the wine producers in charge of the decision regarding whether to adopt VIVA certification. A Hierarchal Bayesian Model was applied to analyse questionnaire responses. Such a model allows us to specify the probabilistic relationship between questions and latent constructs and to carry over uncertainty across modelling levels. Findings The adoption of this environmentally-friendly certification is envisioned as a tool to curb internal risks, and thus to manage behavioural uncertainty within the supply chain. A high level of exposure to exogenous transaction risks discourages firms from adopting VIVA certification. The certification system is not perceived as a promoter of operational capabilities. Managers are more likely to implement the certification when they expect that its adoption will leverage their potential knowledge of the supply chain or prompt new and better collaborations with the suppliers. Therefore, the certification can become a resource that interacts with the capabilities of the firm, expressing complementarities that stimulate the formation of dynamic capabilities. Research limitations/implications The identification of drivers from the two theoretical perspectives offers insights into the attributes that are perceived as important by managers and which, therefore, could be leveraged to foster the adoption of the environmental certification. The external validity of the study could be improved by extending the sample to other certifications and supply chains. Originality/value The study offers a different perspective on environmental certification. It demonstrates that considering the certification as an alternative form of supply chain governance opens up a set of efficiency and strategic considerations that could be addressed to promote the effectiveness of an environmental strategy within a supply chain

RETRACTED: Government regulation of the Internet as instrument of digital protectionism in case of developing countries

The research is devoted to the study of digital protectionism technologies, in particular, Internet censorship as a non-tariff barrier to digital trade and the determination of the strategic motives of states to use them. The reports ‘Freedom on the Net’ and ‘The network readiness index 2020’ acted as a basic data source for the study of modern instruments of government regulation of interactions in the digital environment. Internet censorship technologies have been considered in six countries with varying levels of Internet freedom: Russia, Belarus, Kazakhstan, Georgia, Armenia and Estonia. The key instruments of digital protectionism as a non-tariff barrier of the digital economy have been identified, such as: localisation requirements; restrictions on cross-border data flow; system of national protection of intellectual property rights; discriminatory, unique standards or burdensome testing; filtering or blocking; restrictions on electronic payment systems or the use of encryption; cybersecurity threats and forced technology transfer. Internet censorship technologies have been demonstrated and their influence on the strategic development of trade relations between economies in cyberspace has been determined. The scientific value of the article lies in substantiating the understanding of Internet censorship as a natural tool for regulating the development of a digital society and international trade relations. Each state at one time goes through a technological stage of development, which leads to the emergence of different levels of digital isolation and integration; and Internet censorship is a natural element in the system of building a national platform economy and consolidating the country’s internal technological and innovative advantages in digital realities.

‘A Shared Future for Mankind’: Rhetoric and Reality in Chinese Foreign Policy under Xi Jinping

ABSTRACT The phrase ‘work to build a community with a shared future for mankind’ became the guiding slogan of Chinese foreign policy in 2017. Beneath its smooth surface, the concept contains several layers of complex and sometimes contradictory meanings. Among other things, it seeks to position China both as one among many developing countries, treating all as equals, and as a major world leader that exerts influence over other states and the international system. The concept is thus at once both egalitarian and hierarchical. Along with the core concept, Chinese foreign policy articulates niche discourses on ethno-cultural identity, Marxism, and human rights that are targeted at special audiences. The writings of leading Chinese international-relations intellectuals tend to reveal a more emphatically hierarchical view of the international system, with China at the top, than is explicit in China’s official rhetoric. Xi’s international message has been promoted energetically by domestic media and promoted tirelessly on the international stage, with adaptations appropriate to diverse audiences. The Chinese message has met with a mixed reception abroad. China’s rhetoric of cooperation is seen by many in other countries as a cover for self-interested strategic motives.

Relationship between manager credibility, strategic alignment and employee motivation

Orientation: In today’s volatile and dynamic business environment, organisations need to continuously seek opportunities to increase their competitiveness through the human capital they employ. A sound understanding of factors that influence manager credibility, strategic alignment and employee motivation could enable organisations to proactively implement interventions that improve their competitive stance. Research purpose: This study sought to examine the relationship between manager credibility, strategic alignment and motivation. The role of strategic alignment as a mediator between manager credibility and motivation was also explored. Motivation for the study: Organisations need to have employees that are motivated and have a strategic fit. Managers play a significant role in fostering such. More so, it is essential to highlight the vital role that managers play in strategic alignment and employee motivation. Research approach/design and method: A quantitative and cross-sectional research design was used. Non-probability sampling was employed, and data were collected by using established questionnaires from a sample of N = 3112. Participants of the study are employed within various industries based in South Africa, Southern Africa and the United States of America. The data were analysed by using descriptive and inferential statistics. Main findings: A positive relationship between all the variables were established. The three variables (manager credibility, strategic alignment and motivation) were found to be significantly positively correlated. Manager credibility influences motivation and strategic alignment. Manager credibility and strategic alignment were both found to have a statistically significant influence on employee motivation. The mediation analysis shows that strategic alignment plays a positive mediating role between manager credibility and motivation. Practical/managerial implications: Recommendations are schematically presented in the form of a model, which, when implemented, have the potential to enhance employee motivation. Contribution/value-add: The study provided insight into the influence of manager credibility and strategic alignment on employee motivation.

Institutional investor motivation, processes, and expectations for sustainable building investment

ABSTRACT This paper examines strategic motivations, processes and expectations for institutional real estate owners around sustainable improvements and eco-labelling in office buildings. A series of 33 industry interviews with senior representatives of institutional real estate owners (e.g. REITs, Pension Funds, Opportunity Funds, and Investment Managers) were conducted to explore three key research questions. First, what motivates firms to invest in and move towards green technologies and certifications? Second, how do firms choose to implement, manage and maintain green investments and eco-labels? Third, what, if any, are the financial expectations of investing in green labelling and efficiencies? Results from the constant comparison analysis of the transcripts reveal that expected financial outcomes dominate environmental, broader sustainability and governance concerns when making decisions related to sustainability. The perceived value in eco-labelling was found to be widespread. Data collection and benchmarking related to energy and water usage were found to be the new norm for institutional managers and investors. In addition, a range of localized and firm-level policies was identified. A rigorous interview protocol was followed to reduce threats to reliability and validity.

Challenges to state control of territory: Comparative analysis of Yemen, Afghanistan and Myanmar

States around the world have lost control over their territory to armed non-state actors, including states like Yemen, Afghanistan and Myanmar in the Asian region. This article aims to understand why these states are unable to exercise control over all of their territory. The study identifies and examines four major challenges faced by states in maintaining control over their territory – lack of state legitimacy and effectiveness, strategic motives of armed non-state actors, socio-economic motives of armed non-state actors and external intervention. A comparative analysis of the cases of Yemen, Afghanistan and Myanmar illustrates the wide relevance of these challenges faced by the states with respect to territorial control.

Competitive CSR in a strategic managerial delegation game with a multiproduct corporation

We study the firm’s strategic choice of corporate social responsibility (CSR) in a managerial delegation framework where a multiproduct corporation competes against a single plant firm. We examine simultaneous-move versus sequential-move in output choices when CSR’s strategic level is simultaneously chosen in the first stage. We show that both firms adopt (asymmetric) CSR in a simultaneous-move game, whereas only the follower firm adopts CSR (but not the leader firm) in sequential-move games. In an endogenous timing game in output choices, we also show that a simultaneous-move is an equilibrium when the products are substitutes or weak complements, while a single plant firm’s leadership is otherwise wherein the multiproduct corporation might choose negative CSR. Our findings can explain the observed phenomenon of different industries in which firms’ CSR activities are more or less (even non-CSR or negative CSR), commonly widespread in the real world. It also partially helps us understand CSR’s strategic motives and its policy relations with the firm’s profits.

Towards a typology of strategic corporate social responsibility through camouflage and courtship analogies

AbstractThis paper develops a theory of strategic corporate social responsibility responses, by drawing on the analogy of biological species‐level adaptations of camouflage and courtship found in the natural world. In so doing, we focus on the substantive response and associated strategic motivation to engage in different types of CSR within a mainstreaming environment; and the mechanisms by which it occurs in differing scenarios, framed through a biological interpretative lens. We presents eight strategic approaches to CSR, each defined by a camouflage or courtship approach. Each strategy is considered through the lens of their biological comparators and published case vignettes of CSR strategies within firms. The paper concludes by discussing a future research agenda building on the theoretical framework presented.

Chinese and Indian FDI in Hungary and the role of Eastern Opening policy

The aim of this paper is to assess the main features of Chinese and Indian investments in Hungary and the role of the Hungarian Government’s Eastern Opening policy in the attraction of investments from these two Asian giants. This paper covers the sectoral distribution, modes of market entry, and motivations of Chinese and Indian foreign direct investments. The automotive sector is the most attractive sector for investors from both countries. ICT manufacturing (electronics) and services, and the renewable energy sector are also very attractive for Chinese companies. The same is true for IT/BPO services and the chemical sector in the case of Indian companies. Chinese and Indian companies enter the Hungarian economy mainly through green-field investments or acquisitions. Market-seeking and strategic asset-seeking motives are dominant in the case of investors from both countries. This paper also puts a special emphasis on studying the impacts of Hungary’s Eastern Opening policy (launched in 2012) on Chinese and Indian investments. The findings show that the Eastern Opening policy has had a significant impact on the investment decision (location choice) of new Chinese and Indian investors and further expansion of investments by Chinese and Indian companies located in Hungary due to four factors, namely high-ranking political meetings, strategic cooperation agreements, cash grants from the Hungarian Government and supportive services of HIPA.

Meeting Planners: Views of Corporate Social Responsibility Practices and Motivations Across Two Continents

Interpretation of, and commitment to, corporate social responsibility (CSR) differs from country to country, resulting in variances in implementation. It is theorized that these variances originate from organizational and cultural context. There is limited research dedicated to contextual variances of CSR in the meetings industry. As such, the objective of this article is twofold: first, to understand whether meeting planners in America and Western Europe differ in their current and future motives for engaging with CSR. Second, to establish whether the differences in motivation are influenced by their conceptual understanding of CSR or the wider socioeconomic and political environment. The authors analyzed over 1,000 self-reporting questionnaires from meeting planners across the two continents. Results were analyzed using unrelated t tests in order to establish if the two groups differ in their underlying motives to engage with CSR. An exploratory factor analysis was used to determine how meeting planners conceptualized CSR across the two continents. Results suggests similar strategic motives to engage in CSR. European meeting planners identify egoistic motives to engage in CSR. In contrast to America, CSR practice in Europe will change in the future as value-driven motives become prevalent. The article provides evidence of context as a defining factor in CSR, where ubiquitous constructs of CSR cannot be easily applied to meeting planners. The findings demonstrate the incongruent nature of CSR practice. The results advance the application of CSR to meeting planner's practice in both America and Western Europe, reigniting the definitional debate of CSR within the meetings industry.

Influences of Learning Approaches, Student Engagement, and Satisfaction with Learning on Measures of Sustainable Behavior in a Social Sciences Student Sample

In this empirical study, we address the relationship between the dimensions of learning in higher education (i.e., student engagement, approaches to learning, and satisfaction with learning) and sustainability (i.e., austerity altruistic, pro-ecological and equitable behavior). The results demonstrate that there is a positive linear relationship between engagement with learning and deep and strategic approaches, motivation and strategies, and altruistic, equitable and pro-ecological behavior. Austerity, however, only correlated with high dedication to learning. Satisfaction with learning was associated with altruistic and equitable behavior and an overall measure of sustainability, and was independently associated with austerity and pro-ecological behavior. Engagement with learning was associated with sustainable behavior, especially with altruistic and pro-ecological behavior in its three expressions, namely, vigor, absorption and dedication. In contrast, austerity was found to be only associated with engagement with learning. As a whole, and in line with Bronfenbrenner’s theory, the results of this study suggest that the aforementioned systems are interconnected and mutually influence each other.

The role of product lines in determining the degree and speed of integration: evidence from the pharmaceutical MNCs in cross-border acquisitions.

Despite the growing number of acquisitions of Business Units (BUs) by Multinational Companies (MNCs), international business literature is limited to investigating the post-acquisition integration at the firm level. Therefore, this research investigates MNCs' strategic motivation in acquiring BUs and how they manage the post-acquisition integration at the BU level. Specifically, this article focuses on studying the pivotal role of acquired BU's product lines in determining the degree and speed of integration. Using multiple case study method in cross-border acquisitions, the analysis reveals three findings. First, acquired BU's product lines are the strategic motive for the acquirer MNCs and, therefore, become significant in the decisions taken during post-acquisition integration. Second, the three phases of acquired product lines, namely marketed, upcoming, and Research and Development (R&D) pipeline, set the speed of integration from fast to slow. Third, acquired product lines' market relatedness determines the degree of integration between the acquirer and acquired BUs.

Like Me, You Say? a Model and Experiment on Supporting In-Group Bias through Cheaptalk

This paper presents a simple application and experimental test of a theoretical model of discriminatory social preferences. First, it establishes conditions under which a specification of “defection aversion” can support an equilibrium in which costless messages engender cooperative strategies in a one-shot Prisoners’ Dilemma (PD) game. The main result is a signaling equilibrium with full separation of signals, and cooperation whenever the social distance is less than a certain threshold level. The second part of the paper is an experimental application and test of a discrete version of the theory. Using the minimal group paradigm, subjects are put into a set of interlocking groups. 116 subjects played 4 games each (within-subjects) under different informational (treatment) contexts. Results are broadly consistent with the theory: people cooperate more when faced with group members. They are also less “honest” with their messages when messages are sequential than when they are simultaneous, which suggests a strategic motivation to the messages. A somewhat unexpected empirical result shows that the threshold social distance supporting cooperation is lower when the group information is based on simultaneous cheap talk than when it is exogenously revealed. Noting that the empirical rates of honest messaging are also rather far from the 100% predicted by the model, a theoretical extension shows that smaller social neighborhoods are in fact a straightforward prediction when the truth of messages is uncertain.

СУЧАСНІ ТЕНДЕНЦІЇ РИНКУ ЗЛИТТІВ ТА ПОГЛИНАНЬ У КРАЇНАХ AЗІАТСЬКО-ТИХООКЕАНСЬКОГО РЕГІОНУ

Mergers and acquisitions are understood as a global trend associated with global corporate restructuring in various industries, an important part of any business cycle. The strategic motives for concluding M&A deals are primarily associated with rapid growth and with the extraction of access to intangible assets, in particular, to human, structural and customer capital. The merger can help firms cope with the threat of multinational corporations and compete internationally. Companies in the Asia-Pacific region have always distinguished themselves by applying innovative solutions to expand production capacity and attract investment. Therefore, the purpose of this study was to analyze current trends in the M&A market in the Asia-Pacific region. The article analyzed the dynamics, structure of the M & A market and identified current trends in the M & A market in the Asia-Pacific region. Factors influencing the behavior of investors were considered. Also, one of the main factors influencing the market of mergers and acquisitions was the effect of COVID-19 . Since it was effec radically reformatted the strategies of companies and forced a complete overhaul of investment behavior. Asia-Pacific companies demonstrate throughout COVID-19 pandemic ability to overcome crisis by Implementing Innovative solutions. The pandemic, the strategy of changing the climate, as well as the normative and legislative changes, gave the mail for a glance at the strategies of development and values. The company policy focuses its respect on the goals of the development and the principles of ESG. ESG has become a critically important area for M&A facilities. As a result of the study, a regression analysis was performed and built a linear regression model of the influence of ESG factors on the beta of the company. For the analysis, the indicators of 30 companies in the Asia-Pacific region were used. The beta indicator was chosen based on the views of the investor, since the market beta reflects the volatility of the market, that is, the behavior of the investor. The results of the study confirmed the growing influence of ESG in the selection of an investment object.

Globalization processes and their influence on the international business development

The purpose of the paper is to consider aspects of the globalization process that are important factors of global development, to assess the current state of the world, which is defined by scientists as critical. Globalization is a new phenomenon in the expansion of international trade that emerged in the late twentieth century. This was due to the opening of many industrial companies. In other words, «globalization» is a word that can be defined in different ways, depending on its field of application, whether it is a personal company, business national or global in general. World trade has a significant difference compared to the market in one country. Among the keys to a company`s success are things that local companies don`t have to think about. Therefore, it becomes necessary to study the peculiarities of conducting and managing international trade carefully. The growing importance of transnational corporations as actors in the global economy, the transformation of their strategic motivations and practical actions are becoming increasingly global and putting pressure on the interests of virtually all countries and regions, leading to new approaches to theoretical research and practical regulation of TNCs. The development and operation of TNCs is carried out through multiple integration of the international market. As the market expands, companies often face the dilemma of choosing from all possible sources in the country the best indicators of the world market, including goals and objectives. At the same time, the behavior of global trading companies during the transition to the world economy is very ambiguous, which leads to further research in this direction.

Estimation of the static corporate sustainability interactions

ABSTRACT The empirical literature considers firm-specific aspects affecting corporate sustainability decisions but generally omits the influence of the competition. We advocate that sustainability actions of a company impact its marketplace and vice versa. Therefore, the sustainability return of the single firm is a function of the other firms’ sustainability decisions. We approach sustainability decisions as strategic decisions and evaluate the effect of competition and spillovers in a static market entry game. We estimate the parameters of the discrete choice model using the social performance ratings from MSCI KLD 400 Social Index as proxy for sustainability decisions and financial information from Wharton Research Data Services’ COMPUSTAT dataset. When strategic interaction is not accounted for, we find that an increase in the number of competitors increases the likelihood of sustainability investments, seemingly shows the spillover effect dominates the competition. When we apply the multi-stage approach, which incorporates competitive interaction, we provide empirical evidence that the effect of competition on the likelihood of entry into the sustainability market dominates the effect of spillover. We find that strategic motives, typically ignored in the empirical literature, appear to be an important factor in understanding sustainability-related decisions.

Combating Bisexual Erasure: The Correspondence of Implicit and Explicit Sexual Identity

Both straight (i.e., heterosexual) and gay/lesbian individuals still question and erase bisexual identities. Skeptics contend that people adopt bisexual identities for strategic motivations, such as avoiding the stigma associated with identifying as gay, or for attention-seeking purposes. Across two studies, self-identified gay (N = 168), straight (N = 237), and bisexual (N = 231) participants completed a sexual identity Implicit Association Test, a measure that can provide insight into automatic associations and lessen the influence of impression management strategies. All three groups displayed implicit sexual identities that were consistent with their self-ascribed identities. Gay men and lesbians implicitly identified as more gay and less bisexual than bisexual men and women, who in turn identified as less straight and more bisexual than straight men and women. These findings show that self-reported sexual identities converge with implicit identities and have implications for understanding the psychology of sexual orientation.

Are hedge funds' charitable donations strategic?

We study whether hedge funds make charitable donations to further their business interests. We find that donations are driven by poor fund flows and performance. Post-donation, donor funds experience lower outflows compared to matched non-donors. One-off donations and donations to charities which hold fundraising events catering to the hedge fund community are more likely to mitigate outflows after poor performance. These findings are consistent with strategic motivations driving at least some donations. While the economics of donations initially appear quite favorable to the hedge funds, the benefits from donations are not scalable. Moreover, investors punish donors through greater redemptions if poor performance persists post-donation.

Should Public Figures Apologize?

In the modern era, the statements and actions of public figures are scrutinized with great care, and it often emerges that they have said or done things that many people consider objectionable, hurtful, offensive, or despicable. A persistent question is whether public figures should apologize for those statements or actions. Suppose that an apology has a purely strategic motivation: helping a politician to be elected or reelected, helping an executive to keep his job, helping a nominee to be confirmed by the U.S. Senate. Empirical work presented here suggests that an apology might well turn out to be futile or even counterproductive. One reason is Bayesian; an apology produces updating that can be unfavorable to the apologizer (by, for example, resolving doubts about whether the apologizer actually said or did the objectionable thing, and about whether what the apologizer did was actually objectionable). Another reason is behavioral; an apology triggers the public’s attention, makes the public figure’s wrongdoing more salient, and can help define him or her. But many open questions remain about the reasons why apologies by public figures fail, and about the circumstances in which they might turn out to be effective.

Why socially concerned firms use low-powered managerial incentives: A complementary explanation

We study a duopoly market where a profit-maximizing firm and a socially concerned firm compete by offering differentiated products to consumers. Both firms delegate the quantity (price) decisions to a manager. The socially concerned firm employs an intrinsically motivated manager whose interest is partially aligned with the firm's objective. The profit-maximizing firm's manager is simply interested in maximizing compensation. We find that depending on the substitutability of the firms' products and the level of the firm's social concern, the socially concerned firm might prefer – solely for strategic reasons – a flat wage for compensating its motivated manager rather than a variable bonus. Our paper points to strategic motives as a complementary explanation for the observation that hybrid organizations with objectives other than profits frequently rely on different forms of compensation than their for-profit rivals.