Business Theory Research Articles

Patent- and trademark-seeking outward foreign direct investment by Chinese firms: The role of business group affiliation

AbstractWe examine the relationship between business group affiliation (BGA) of Chinese firms and their foreign acquisitive behavior in terms of technology and brand-oriented strategic assets. Drawing on new internalization, business group, and international business theory, we assert that Chinese business group affiliated firms will more likely pursue foreign acquisitions to seek strategic assets including patents but less likely to pursue foreign acquisitions to seek trademarks. Patents have non-location-bounded (NLB) properties that mean they can be exploited by the business group—not just the firm—back in the domestic market, while trademarks have location bounded (LB) properties that mean they are less easy to exploit by a business group domestically. Using a sample of 779 Chinese cross-border acquisitions between 2006 and 2015, we find support for arguments relating to the differences in relative attractiveness of targets holding patents vs. trademarks for Chinese firms linked to business groups. We discuss how this better helps us understand emerging market MNEs and related theory.

A theory of venture capital family business: a governance trajectory

PurposeThe purpose of this study is to understand venture capital family businesses (VCFBs) governance of portfolio companies through the deal process.Design/methodology/approachThis study applies a theory-developing approach. A model of VCFB governance is developed whose key aspects are illuminated by four examples (cases) of VCFBs.FindingsRecent research suggests that a venture capital firm's corporate deal processes can be divided into the pre-deal, deal and post-deal phases. Based on the age, size and succession dimensions, propositions for how a governance trajectory develops for VCFBs, affecting the deal process of target family firms (TFFs), are presented. These propositions highlight how the family owners' actions and behavior are related to VCFB governance, which in turn, influences the three phases involved in making an investment.Originality/valueThe propositions suggest how personal and administrative VCFBs' governance of the deal process of portfolio companies is significantly affected by centrifugal and centripetal forces that drive the respective types of governance where third-generation family owners appear as changers of governance approach.

Some Aspects About Entrepreneurial Skills and Competences Learning

Nowadays, teaching entrepreneurship is important in terms of developing country’s economics and forming entrepreneurial thinking among the society. The difference between entrepreneurial competence and adequacy must be considered, as well as defining entrepreneurial competences as being initiative and stringy. The result of teaching entrepreneurship has two different meanings - it is considered as a skill of leading business, more widely - as a stringiness of an individual. Human is an actualization of civilization, society and historical experience of profession, therefore the process of forming entrepreneurial thinking - universal skill - should be considered through this lens. The Entrepreneurial work is not easy, it demands a purposeful approach, assessment of individual possibilities and skills. Lots of business theorists and practicists still argue about whether it’s possible to teach someone entrepreneurship or not. Everybody agrees that possessing the entrepreneurial skills is very important, but cannot define what it means. The Entrepreneurial thinking can be reviewed as:  The Vivid vision and understanding of life goals - an entrepreneur mostly does what he wants and likes and minimizes almost every unpleasant work.  Desire to work for yourself - strong will to work without dependence on others.  Abillity and desire to take responsibility on his personal life, income and other material pleasures.  Particular attitude towards money - for entrepreneurs, money is not an instrument of fulfilling goals. Therefore, they’re not afraid of investing millions. The Positive perception of the word “investition” - entrepreneur sees investments not as an expense, but as the additional possibility. He knows that he doesn’t waste money in books or trainings, but investing in himself. The ability to gain from every situation - if others are saying that it’s not real, then it’s just an opinion of others. The Entrepreneurs love experiments - he’s open to the new things and possibilities and uses chances. The Entrepreneur is able to find necessary contacts, resources, possibilities fast. Dealing with those who are difficult to be dealt with, to say a firm “no” if he doesn’t agree with something. Developing entrepreneurial thinking is very real and this process should be based on human’s formation into an entrepreneur - if 100,000 is the biggest number for him, then his business will be of this scale. And when he starts thinking with 100 Million categories, the business will profit him accordingly. Keywords: entrepreneurship, entrepreneurial competences, entrepreneurial skills, teaching entrepreneurship, entrepreneurial thinking.

Transformational Leadership Dimensions and Job-Based Psychological Ownership as Facilitators in International Intrapreneurship of Family Firms

  R esearch Aims: The purpose of this study is to examine the effects of transformational leadership dimensions (TL) and job-based psychological ownership (PO) on nonfamily employee international intrapreneurship in family firms (FFs).   Design/methodology/approach: The study adopted a sample of 246 key role nonfamily employees at 118 family-owned export and import SMEs in Ho Chi Minh City, Vietnam. The data are analysed using a partial least squares structural equation modelling (PLS-SEM). Results: The article identifies four dimensions of TL and international intrapreneurship in which both concepts are interlinked. Job-based PO plays a significant role in the TL dimensions' effects on international intrapreneurship.   Theoretical Contribution/Originality: The article establishes the mechanism by which TL constructs influence nonfamily employee international intrapreneurship actions by examining the mediating role of employee job-based PO in FFs.   Managerial Implication in the South East Asian context : FFs need to develop the architecture and mechanisms for enabling nonfamily employees' international intrapreneurship to be committed to TL constructs and job-based PO.   Research limitation & implications: This article contributes to international business theory by interpreting the export trading results of FFs using entrepreneurship theory. However, each stage of FFs international business requires a unique set of resources. As a result, it is necessary to incorporate theoretical perspectives from both domains to explain each internationalisation stage of FFs adequately.  

The Continued Use of Social Commerce Platforms and Psychological Anxiety-The Roles of Influencers, Informational Incentives and FoMO.

Why does the continued use of social commerce platforms fail to promote consumer wellbeing? This study explores the roles of influencers, informational incentives and fear of missing out (FoMO) in the relationships between social commerce platform use and consumer mental health. Data were obtained through questionnaires, as well as constructing a research model. Statistical analysis and path analysis of the structural equation model were performed by the software IBM SPSS and AMOS, and the following results were obtained. (1) Influencer expertise and interactivity, informational incentives and FoMO have a significant impact on consumers’ continued use of social commerce platforms. (2) Materialism has no significant effect on consumer social commerce platform use. (3) FoMO mediates the relationships between informational incentives and continued use of social commerce platforms. (4) Consumers’ continuous use of social commerce platforms has a strong relationship with mental health. (5) Continued use of social commerce platforms can lead to intense social engagement, as well as more severe outcomes such as psychological anxiety and compulsive buying. The findings of the paper have important implications for the development of social business theory and management practice.

The Blueprint for Successful Device Development: Disruptive Innovation and Co-Opetition, Then Randomized Trials

• Novel devices must meet rigorous thresholds for clinical efficacy and safety. Some innovations succeed more than others. • Variations in the success trajectory of innovations cannot be easily explained by device efficacy alone. • The key to successful device development lies in 2 concepts of business theory: disruptive innovation and co-opetition. • We propose that initial randomized clinical trials of newer devices be conducted on these 2 building blocks. • Our construct places interventions in a Venn diagram depicting disruptive innovation, co-opetition and randomized trials. • Our construct has significant implications for industry, regulatory bodies and clinical trialists.

Will conjugal relationship affect the corporate innovation? Empirical evidence from a-share listed family business in China

PurposeFew studies have focused on the impact of conjugal control and non-conjugal control on the innovation capability of family firms. In the context of the relative lack of research on the relationship between family firm heterogeneity and innovation ability, this study aims to focus on the differentiated impact of husband–wife-controlled family listed companies and non-husband–wife-controlled family listed companies on their innovation capabilities, which provides empirical evidence with more Chinese institutional and cultural characteristics for the development of corporate organizational management and innovation theories.Design/methodology/approachTaking all A-share listed family firms from 2007 to 2016 as the research sample, this paper examines the influence of spousal control on firm innovation level by empirical research method.FindingsThe empirical results show that compared with non-spousal-controlled family enterprises, spousal-controlled family enterprises have significant positive effects on the level of enterprise innovation. Further studies suggest that joint management of spousal-controlled family enterprises improves the level of innovation. Authority difference of the couple will weaken the innovation capacity. However, the wife’s professional skills can promote the innovation level.Originality/valueFocusing on the characteristics of family internal structure and embedding marriage relationship in the enterprise organization, this paper investigates the influence of different characteristics of husband and wife and cooperation mode on enterprise innovation, and the conclusion enriches the theory of family business and family science, as well as provides important information reference for the stakeholder groups in the capital market.

The Role of Accounting Information Systems in Supporting Sustainable Business (Study In Wonosobo Cut Flower MSMEs

The purpose of this study was to examine the business strategy of Micro, Small and Medium Enterprises (MSMEs), the role of accounting information systems in supporting sustainable business, and the constraints on the use of accounting information systems. This type of research was a case study on Cut Flower SMEs in Wonosobo Regency. The sampling technique used purposive sampling with five informants of SMEs, cut flowers of chrysanthemum and kalili. Data collection techniques used documentation studies and in-depth interviews. The collected data was then analyzed by using data analysis developed by Miles and Huberman. MSME actors set a product differentiation business strategy to increase sales turnover. Here, Accounting information systems had a role for business decision making so that investors could include their capital and customer trust. The obstacle to the implementation of the accounting information system was that there was no clear division of tasks between employees and owners so that all business activities were carried out together. This research contributed to the development of sustainable business theory in order to obtain a model of the existence of SMEs during the pandemic that could be used as material for business decision making.

An evaluation of Turkey's health tourism policies using a social network analysis approach.

Despite the health tourism sector's rapid growth in the past decade due to globalisation, there is little research analysing countries' health tourism policies. This study aimed to examine the relationships between stakeholders in the health tourism sector in Turkey in the context of Turkey's health tourism policies. This study connects theory and practice in multidisciplinary sectors, including health, tourism, and business, through an evaluation of major issues from a health management perspective. Social network analysis was used to assess the role of 107 stakeholders in Ankara and determine the extent of weak and strong ties among them. Issues confronting these stakeholders and the obstacles they faced in practice were also identified. The study found that, the relevant stakeholders faced comprehensive sectoral deficiencies and issues in building positive relationships. Governmental stakeholders as policymakers need to develop effective strategies to improve stakeholder collaboration and encourage greater inclusiveness through better-targeted health tourism policies. The study contributes to social network theory, resource dependency theory, and stakeholder theory, and is, to our knowledge, the first study to use social network analysis to examine the role of stakeholders in the health tourism sector.

Introduction to the Special Issue: “The age of digital internationalization—Strategic capabilities, cultural distance and customer value”

This article develops a more fine-grained understanding of the relevant interfaces between firm digitalization and internationalization. Based on the close observation of the peculiarities of the digital age and its effects on the application of the extant international business theories and approaches, as well as the content of the papers contained in this issue, we take the view of “digital internationalization”. We provide an original definition for digital internationalization and introduce a digital internationalization interpretive framework encompassing its three key constituents (i.e., strategic capabilities, cultural distance and customer value) and the unifying mechanism (i.e., generativity rule) to achieve firms’ digital internationalization. This framework bears, in our understanding, a bouquet of implications helpful not only to scholars and researchers, but also to managers, entrepreneurs, consultants and investors operating in profit and non-profit organizations.

Toward epistemological identification of the four major mindscapes

PurposeJapanese American philosopher Magoroh Maruyama (1969) proposed the Mindscape theory, a macro model of cultural differences identification. The theory suggests inter-and intra-cultural heterogeneity and four major Mindscapes of H, I, S and G. He and his colleagues designed 64 graphic geometric patterns based on redundant and non-redundant complexity to recognize the Mindscapes in cultures. However, there is no method of identifying each Mindscape individually/separately. In other words, specificity is missing in this theory. Without such identification, the applicability of the Mindscape theory in international business is limited. This study aims to provide the needed specificity.Design/methodology/approachThe present study applies Harvey’s (1966) four epistemological systems to identify each of the four Mindscapes. According to Maruyama and Harvey, three of Harvey’s four systems are identical to the three Mindscapes of H, I and G. If the authors can match the three Mindscapes with the three Harvey’s systems, what remains the authors assume to be the fourth Mindscape.FindingsThe current study determined various graphic and geometric patterns associated with each of the four Mindscapes. In doing so, the study expanded the applicability of the theory in international business.Research limitations/implicationsHarvey (1966) administered nine psychological tests (instruments) to many subjects over nearly two decades to determine the four systems. Using nine major instruments is very challenging, demanding and time-consuming. For ease of application and saving time, the authors used one of these instruments as an example. Ideally, the authors should use all.Originality/valueMindscape theory suggests that each of the four salient Mindscapes is more relevant to a specific situation, such as human resource management, motivation, leadership, conflict resolution and others. By identifying each Mindscape, this study expands the use of Mindscape theory.

Towards a behavioral theory of MNC response to political risk and uncertainty: The role of CEO wealth at risk

Drawing on behavioral agency research, we examine how CEO equity wealth at risk of loss in the form of restricted stock influences the response of multinational corporations (MNCs) to political risk and political uncertainty. In a sample of 14,765 cross-border greenfield investments and full acquisitions announced by U.S. firms from 2004 to 2016, we find that while greater CEO equity wealth at risk of loss in the form of restricted stock strengthens the (positive) relationship between political risk and MNCs’ choice of greenfield investments over full acquisition, CEO equity wealth at risk of loss does not influence the relationship between political uncertainty and MNCs’ choice of greenfield investments. We contribute to international business theory by introducing a behavioral theory of MNC responses to adverse host country political environments. As such, unlike previous studies that have treated political risk and political uncertainty interchangeably, our study highlights the need to differentiate between political risk and political uncertainty as related yet distinct concepts.

Cluster Internationalization: Qualitative Review, Theoretical Direction, and the Rise of Emerging Markets’ Themes

The growing phenomenon of cluster internationalization has enriched the existing international business theories, but has also brought new puzzles and problems for these theories and perspectives. To synthesize what we do and do not know concerning cluster internationalization, we employed the qualitative content analysis method, systematically reviewing 348 articles published during the period 1990–2019, as well as 16,486 references. Our review examined five major areas, including citations, co-citations, theoretical foundations, co-occurrence networks, and three-phase research topics (pre-internationalization, internationalization, and post-internationalization) based on ten keywords. Moreover, we found that the research on the internationalization of emerging market clusters has shown a rising trend in recent years. We took China as an example to conduct in-depth research on three types of cluster internationalization (inward internationalization, outward internationalization, and overseas parks) with a view to expanding the academic perspective of the internationalization of emerging economic clusters. Finally, in order to promote further research on cluster internationalization, potential future themes related to cluster internationalization research are discussed.

Humanizing Stakeholders by Rethinking Business.

Can business humanize its stakeholders? And if so, how does this relate to moral consideration for stakeholders? In this paper we compare two business orientations that are relevant for current business theory and practice: a stakeholder orientation and a profit orientation. We empirically investigate the causal relationships between business orientation, humanization, and moral consideration. We report the results of six experiments, making use of different operationalizations of a stakeholder and profit orientation, different stakeholders (employees, suppliers, labor unions), and different participant samples. Our findings support the prediction that individual stakeholders observing a stakeholder-oriented firm see the firm’s other stakeholders as more human than individual stakeholders observing a profit-oriented firm. This humanization, in turn, increases individual stakeholders’ moral consideration for the firm’s other stakeholders. Our findings underscore the importance of humanization for stakeholders’ moral consideration for each other. This paper contributes to a deeper understanding of the firm as a moral community of stakeholders. Specifically, we move away from a focus on managers, and how they can make business more moral. Instead we direct attention to (other) stakeholders, and how business can make these stakeholders more moral.

Fatores críticos do processo de planejamento estratégico de empresas juniores

Objective: The research aims to identify which critical factors influence the strategic planning process, implementation and control in junior firms’ strategic planning.Methodology/approach: The study has a qualitative, descriptive approach, using multiple cases studies method, which examined seven junior firms. As a selection criterion, the accessibility and the snowball sampling technique were used. As data collection, it was applied semi-structured interviews. As a plan of analysis, it was considered Bardin’s assumptions (2016). Lastly, to a greater reliability of the study it was performed the researchers triangulation in both process of data collecting and analysis.Main results: The results point out 28 categories subdivided in difficulty and advantage of the planning process, implementation and control of strategic planning. However, only 11 were considered critical.Originality/Relevance: as originality, the result discusses the strategic process performed by junior firms, that is considered here as organizational entities, which, according to Bervager and Visentini (2016) it has not yet been researched.Theoretical contribution: As a theoretical contribution to junior firms, this study progresses in understanding these institutions as organizational entities, especially if the business theory presented in different courses is put into practice.Social and management contributions: The research has potential contributions to beginning junior firms that want to develop its practices in strategic planning, as well as connected institutions such as junior’s movement and national association.

East asian studies in latin america and its potential contributions for an improved inter-regional business understanding

East Asia is today one of the most powerful regions worldwide in terms of innovation, economic and industrial growth. And as such, it has taken its business models, industrial processes, and technology to Latin America, notoriously increasing economic relations. However, Latin American countries have been mostly on the recipient side, perhaps because there is a limited understanding of their Asian counterparts. East Asian Studies provide important knowledge for Latin American specialists on economics and business, improving Latin American business theory, models, and economic relations between regions. Following Michel Foucault’s ideas about the archeological method to understand the context in which a discipline is born, this article follows documentary research and summarizes the similarities and differences between the economic contexts of these regions at the beginning of the Cold War and at the beginning of the 21st century to establish the relevance for understanding East Asian economic and business models. Then, it reconstructs the development of East Asian Studies as an academic area worldwide and its standing in Latin America, highlighting how the political and economic context has influenced its emergence and topics of research. Finally, it reflects on the contributions that can reciprocally be made between the East Asian studies in Latin America and a Latin American School of Business Thought.

Benchmarking of Singapore maritime cluster: the role of cluster facilitators

PurposeThis article analyses the role of cluster facilitators in the Singapore maritime cluster. Singapore has been recognised for its pro-business policies and its ability to attract international shipping companies to set up the ship ownership headquarters and ship management activities in Singapore.Design/methodology/approachThe research is an empirical investigation on the approach for industrial cluster development of the Singapore maritime cluster, using the case study research methodology. The case study approach leverages on multiple sources of evidence from deep interviews (of 24 Singaporean firms and 13 Norwegian firms) related observations, documentation and archival records. As a means of contributing to the cluster renewal process, Singapore as the country embarks on the next stage of maritime cluster development, a benchmarking against the Norwegian Innovation Cluster has been incorporated.FindingsThe research findings reveals that Singapore is lacking in innovation activities that entails multi-firms collaborations and collaboration between multi-firms and research institutions. The existence of cluster organisation to facilitate collaborations between firms in the cluster and between firms in the cluster with research institutions is another contributing factor that are not institutionalised in the Singapore maritime cluster.Research limitations/implicationsThough the research is grounded primarily on the international business theory, particularly from firm- and country-specific advantages of location decisions, the economic geography theory and cluster theory also complement the theoretical grounding.Practical implicationsThe findings derived from this research aim to facilitate policy makers, maritime leaders and practitioners to develop effective courses of action in current and future maritime industry development.Originality/valueThe research provides value to maritime industry stakeholders, maritime leaders and policy makers in their firm positioning strategy. Thus, the research adds values to the maritime industry with similar country perspectives and firm values for developing policies.

Multinational Enterprises and International Cartels: The Strategic Implications of De-globalization

AbstractA cartel is an association of independent businesses for the purpose of regulating trade in an industry. There are three important reasons for studying international cartels: they will become important in the future; they are of immense historical significance; and they are poorly understood. This paper reviews the economic, political, and historical literatures on international cartels and considers the lessons for international business theory and policy. If IB researchers are to retain their reputation for policy-relevance, they must engage with the issue of institutional responses to globalization, and this must include the analysis of cartels.

A new framework that integrates inclusivity and quality improvement science for healthcare managers

This study proposes that healthcare delivery can be enhanced by integrating inclusivity and quality improvement (QI) into the inclusivity quality improvement (IQI) framework. This conceptual framework draws on astute theory, including the model for improvement (MFI), the system of profound knowledge (SOPK), the integral inclusivity framework, spiral dynamics, and business theory. Based on the IQI framework, two QI programmes were developed and implemented in the South African healthcare industry to validate, refine, and empirically inform the framework. Case study data were gathered from multiple sources, and content analysis was used to compare the theoretical themes informing the IQI framework. The findings provide insights concerning the theoretical contributions, practical application, prerequisites and barriers to successful QI work in healthcare, and the benefits derived from applying the IQI framework. The findings emphasize that the theories used to inform the framework resulted in improvement, and the applications offered practical insights into QI programme application of value to management. I address the readers directly in the first person, which is increasingly popular using a personal, auto-ethnographic and narrative report style through which I share my thinking and voice with the reader (Berger, 2015; Humphreys, 2005; Hyland, 2002; Onwuegbuzie & Johnson, 2006; Webb, 1992). Keywords: Improvement, Inclusivity, Management, Quality, Case study

The moderating role of cultural similarity in developing commitment in the industrial importer-supplier relationship

PurposeThis study aims to examine whether and how cultural (dis) similarity between business entities enhances or impairs the development of commitment in the trust building process in industrial importer-foreign supplier relationships.Design/methodology/approachDrawing on theoretical lenses of transaction cost economics, resource-based view and dynamic capability view, this study investigates how cultural (dis)similarity moderates the effects of opportunism, transaction-specific investment (TSI), the relative advantage of importing and communication on commitment, leading to building trust in business relationships. Using structural equation modeling and moderated regression analysis, the study tested several predicted effects using a sample of 154 industrial importers drawn from a developing country in Asia.FindingsA key finding of the study suggests that supplier opportunism comes into play and is negatively associated with industrial importer commitment as cultural dissimilarity increases. For culturally similar countries, opportunism does not affect commitment. Conversely, TSI has a positive effect on commitment for culturally similar countries; for dissimilar countries, TSI has no effect. The study also corroborates several additional hypotheses prevalent in the literature.Research limitations/implicationsCross-sectional data rather than longitudinal data, single country rather than multi-country perspectives and data from the importer’s side rather than from both importer and exporter may affect generalizability. Future research ought to address these issues to provide further insights.Originality/valueThe paper enriches the literature and extends the nomological network for international business theory by introducing the moderating effect of business cultural similarity in building commitment. Managerial perspectives are also gleaned from the findings.